How to Create a Self Storage Business Plan

How to Create a Self Storage Business Plan

For many people, the thought of creating a business plan is equal or greater than the fear of public speaking. However, it doesn’t have to be such a daunting task, especially since you already have most of the information. Your personal financial statement, the project due diligence and the market analysis comprise about 90% of all the information needed. All you need to do is to organize this information into a coherent document so that you may present yourself and the deal in the best possible light. It is designed to give uour lenders and equity partners an in-depth look at yourself as a borrower including your past successes, the reasons why this project is so strong, and the reasons it will succeed in this market. This will all be supported by facts from your research and due diligence.

Reasons for a Business Plan

A written business plan speaks louder than any thing you say or do when applying for a loan or asking private Lenders to fund a portion or all of your deal. In addition, a written plan may be the only information the loan committee or board can refer to when looking at your deal. The business plan speaks for you when you are not present. It is extremely important to create a professional, organized, document proving that you have done your homework and can manage the risk that is inherent in all facilities.

There are several software packages and numerous resources available to assist you in preparing a business plan. Some are very good, but few are tailored specifically to real estate. I suggest you follow the format I have provided in this home study course for several reasons. Most business plan templates are just that; templates. They are designed using generic terms for operating a multitude of small businesses. However, a business plan and subsequent loan request for real estate requires many different elements. You may find that the effort involved in adapting a template is more work than writing a plan from scratch following the model I have presented. And Remember – this is YOUR plan, so YOU need to write it. If you are asked specific questions by a lender or potential partner, and you have “borrowed” or had someone else create one for you, you will lose credibility if your answers don’t match what you have provided in the written plan.

The ability to professionally package and present your proposals will provide a major advantage in getting your deals funded. Your plan should spell out very succinctly what You’re going to do, when You’re going to do it, and HOW You plan to do it.

There are 7 (seven) critical elements that should be included in any business plan and subsequently, a loan application or Private Capital Raise:

1. Projected Financial Statement

2. Amount of Funds Requested

3. Requested loan terms and Length

4. Source of Repayment and collateralization

5. History of and nature of the Business

6. Repayment of the loan (including plan B should things go awry)

7. Timeframe for approval

Then, hire a professional to create a PDF with headers, footers, logos, high resolution images, and an overall Clean, crisp, and Professional Document to send in an email, or pull down from your Credibility Website.

In Summary, when I have taken the time to prepare a thorough business plan and loan request, it has been given the attention and priority it deserves. And subsequently, I have had a great deal of success in getting my deals funded, and grow my business in ways others have failed.

To your Success,

Scott Meyers