Self Storage
Hello my name is Jeff Skillen. My business is Self Storage. I am currently active in Calgary, Alberta and am expanding. But I have no real business plan model or any help whatsoever besides from google. I am 22 years old a young entrepreneur that is ambitious and am using my savings to buy SEA CAN Containers and putting them on land in the most convenient location's I can find with 24/7 access. I have 4 Containers that are being rented at $350/month from personal clients from the past and family. I am now trying to advertise via Kijiji and am building a business plan model using a website called Futurepreneur.ca. Unfortunately the prices around me at other Self Storage compounds are $260/month for a 20x10. So I don't feel comfortable with my current price.
My questions are?
PRICE:
How to go about the price? For example. Should I give incentives for a lower price if they store longer with me. Say 175/month for 6 months or 235/month for 3 months?
Should the price always be a fixed rate?
Should the price be different depending on the location?
INVESTORS:
I have very wealthy investors that are willing to help grow my storage business. But I feel like if they invest in my business and gives me all the money to help grow it. Am I not just building a business for them and doing all the work? How do i go about this so that I have a concrete business model and works both for me and my investor.
My investor like minimal risk and all willing to put the money upfront to buy SEA CAN Containers which in Calgary are priced at $3500 a containers or cheaper if you buy wholesale. How do I go about deciding which Containers to fill first with clients?
Example. Jeff has 40 Sea cans... Tim has 60 Sea Cans. Should by business model be depending on how many sea cans you have is the % of the business you have. So if there are 100 sea cans. Jeff gets 40% of the profit from the total 100 sea cans...if they are 100$ occupied. Hopefully you get what I'm saying.
Last Question:
Should I tell my investors we need a storage facility... a compound that usually costs around 2.5mill if we want to take this seriously. I'm very confused and I feel lost. The only thing I got going in I still have more available space and more Sea cans.
Right now the Land I have is 25x80 and I have 4 Sea cans on it and are easily accessible. Its fenced off behind a industrial building and is secure. No more Sea cans can fit on this land. I pay $300/month for this Land and am making $1400 a month with my 4 Sea Cans.
I recently found more Land available in my city that is half price! 150/month and I can fit 4 sea cans on this Land. But can i get $350 from the community...from people who I do not know thats the question.
Am I going about this right? If you were in my position what would you do? I know it depends on how much capital I have and what my investors and willing to do. I have enough for at least 10 more sea cans myself then I would have to wait for the sea cans to be paid off. From there on I would make cash and use that money to buy more.
Should I grow my business slow and steady? If there real potential here if I get my investors to buy into my company and provide more sea cans and I take a small % for basically managing and growing the business myself. WHAT SHOULD I DO?