Boat and RV storage business plan for starting your own business

RVs are becoming a norm more than ever. People use them as homes and for camping. The trouble, however, with them is that you cannot park them in your garage or driveway. You need to park them in an RV park. That has given rise to a new business and that is the basis of this RV and boat storage business plan.

So, the aim of this business, basically, is to provide people with a place to store their RVs and vans and charge them for the services. If you want to know how to start a RV storage business, we will cover all the details of that while telling you the method of creating a franchise business plan.

Let’s jump right into it and see how you can start a self-storage business plan for RVs and boats.

Executive Summary

2.1 The Business

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Jack RV storage is the example we will be using to explain all the dynamics involved in starting a boat and RV storage business. It will be situated in Tucson, Arizona. This business will be headed by Jack Reacher who is a retired World War II veteran. Keep reading if you want to know how to start a boat storage business.

2.2 Management of Boat and RV Storage Business

When you are creating a business plan for a bank loan, the most important thing is to discuss the management of the business. The success of the venture and the chances for getting approval for the loan depends on this. Jack will hire 3 managers to run the business and will himself act as the CEO of the business, exercising supreme authority in all aspects. This will run the Boat and RV storage building plans smoothly and without any issues.

2.3 Customers of Boat and RV Storage Business

That brings us to the customers we will be serving through our boat and RV storage building plans. These will be divided into four main categories:

  • Tourists who want to store their RVs for a night.
  • Local residents who want to park the RVs for a long time.
  • People living out of RVs who want a place with parking and electric supply.
  • People who use their boats for recreational purposes and don’t have place in their homes to store them.

2.4 Business Target

Talking subjectively, the business of Jack RV Storage is to provide people in Tucson with a place they can park their RV safely. The objective targets of this venture, just like a transportation business plan will include:

  • Becoming the largest RV and boat storage facility in the state.
  • Expanding to other states and making a brand that people can trust.
  • Starting to make a sizable income for the owner, Jack.
3 Years Profit Forecast - Boat and RV Storage Business Plan
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Company Summary

3.1 Company Owner

Jack Reacher will be the owner of this business and is going to build boat storage because he has a passion for RVs and boats. He has lived out of an RV for five years. He noticed that there is a serious gap in the market when it comes to getting storage and electric supply for RV.

3.2 Why the Boat and RV Storage is being started?

Jack is starting RV storage business to capitalize in this gap in the market. His boat storage design is aimed at solving the most important problem people face and that is lack of secure locations for storing RVs and boats for long-term and short-term storage. He has a strong plan, and it will work out.

3.3 How the Boat and RV Storage Business will be started?

Step1: Planning the Feasibility

The first thing that needs to be done to start this RV storage franchise is to conduct a survey of the market and make a feasibility for the business. Jack did that and has come to the conclusion that the business can, indeed, be feasible. This is because there are thousands of RVs in the area and not even one dependable parking and storage facility for them.

Step2: Making a Name  

As RVs are quite expensive, people need to have a name that they can trust if they want to store them. For that reason, the next step in starting the business will be to establish a name for the business. Jack will get the business registered and insured to make sure people can rely on them.

Step3: Establishing the Business 

Once the business has a name, the next thing to do would be to actually establish the physical presence of the business. This will be done by buying or leasing a large plot of land and building a fence around it. The land will be acquired just out of the city so that it is cheap to buy but still easily reachable for the customers.

Step4: Going Online

As people look for everything on the internet, Jack RV Storage has to have an online presence. For that, a website will be setup where people can come and explore the business. It will provide complete information about what services the business offers and what is the pricing structure.

Step5: Promotion and Marketing

Just like a business plan for a drop shipping business, we will make sure that the business is marketed properly, and that people know of its existence. Jack will use all social and electronic media channels to advertise and market the business.

Startup Cost - Boat and RV Storage Business Plan
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    Start-up Expenses 
    Research and Development$26,000
    Expensed Equipment$54,000
    Start-up Assets$349,000
    Cash Required$389,000
    Start-up Inventory$43,000
    Other Current Assets$235,000
    Long-term Assets$301,000
    TOTAL ASSETS$1,317,000
    Total Requirements$1,709,400
    Start-up Expenses to Fund$392,400
    Start-up Assets to Fund$1,317,000
    Non-cash Assets from Start-up$1,709,000
    Cash Requirements from Start-up$379,000
    Additional Cash Raised$53,000
    Cash Balance on Starting Date$42,000
    TOTAL ASSETS$2,183,000
    Liabilities and Capital 
    Current Borrowing$0
    Long-term Liabilities$0
    Accounts Payable (Outstanding Bills)$49,000
    Other Current Liabilities (interest-free)$0
    Planned Investment$1,709,400
    Investor 1$0
    Investor 2$0
    Additional Investment Requirement$0
    Loss at Start-up (Start-up Expenses)$395,600
    TOTAL CAPITAL$2,105,000
    Total Funding$1,709,400



    One of the most important aspects of this RV storage facility business plan is discussing the services that this business will be providing.

    As the field is a very vast one, this RV and boat storage business will focus on the following services:

    • RV Storage

    This aspect of the business plan storage units will cover short-term and long-term RV storage without electric supply or any other amenities.

    • Boat Storage

    A part of the business will be dedicated to boat storage. All stored boats will be regularly inspected, and any required maintenance work will be carried out.

    • RV Electric Supply

    People living out of RVs often need a source of electricity for the appliances and air conditioning in the vehicle to work. Jack RV Storage will provide this service too.

    • RV Workshop

    As people with RVs often come from other towns and cities and these things breakdown often, a workshop service will also be included to serve these people and make money while we are at it.

    Marketing Analysis of Boat and RV Storage Business

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    One of the most important things that you need to have for any boat and RV storage building plans is a thorough marketing analysis for the business. Jack carried out the analysis and determined that there are 10,000+ RV and boat owners in the area. This will make the storage unit business model a successful one. The other thing that was revealed in the survey was that there are only two RV and boat storage facilities in the area, and even they are extremely underequipped to handle the customers.

    Let’s now explore more details of the boat RV storage business plan.

    5.1 Market Trends

    A survey of market trends was carried out before opening a storage unit and it was discovered that there has been a sharp rise in the number of RVs in Tucson area over the last five years. While import export business plans might not appear to be very lucrative or rewarding at the moment, this business can return massive profits.

    5.2 Marketing Segmentation

    The customers of Jack RV Storage will be divided into the following major market segments:

    Marketing Segmentation - Boat and RV Storage Business Plan

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    5.2.1 RV Owners

    This will be the main market segment for the business. The major aim of this business will be to provide RV owners in the area with a place to store and park their RVs. Permanent customers will be given a monthly subscription while temporary customers will be charged at per-hour or per-say basis.

    5.2.2 Boat Owners

    The second major customers of the business will be the people who own small or medium sized boats. As boats are used less often and are mainly in storage, this market segment will mainly consist of people looking for long-term storage of their boats.

    5.2.3 Motorhome Owners

    People who have a digital nomad lifestyle and live out of large RVs called motorhomes will also be the customers of Jack RV storage. These people will generally be temporary customers and will not stay for a long time.

    5.2.4 RV and Boat Leasing Companies

    Not all people own RVs and boats of their own and that is the reason leasing these things has become a big industry. However, the leasing companies in Tucson, Arizona do not have enough area to park all their RVs. Jack will serve these people too.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    RV Owners35%39,00040,00042,00044,00046,00010.00%
    Boat Owners20%23,00025,00027,00029,00030,00010.00%
    Motorhome Owners23%27,00029,00030,00032,00034,00010.00%
    RV and Boat Leasing Companies22%25,00026,00028,00029,00031,00011.00%

    5.3 Business Target

    • To provide reliable RV and boat storage for the residents of Tucson, Arizona.
    • To provide electricity and other provisions to people living out of motorhomes in the area.
    • To start making at least $262,200 per year in profits by the end of year two.
    • To expand to at least 5 more locations by the end of year 3.

    5.4 Product Pricing

    Jack will keep the prices slightly lower than the other RV and boat storage providers in the are in the start. This will be done to convert the customers of the other service providers in the start. Once that has been done effectively and Jack makes a name for himself in the business, the prices will be increased to make more profit. This is the same strategy as the one used in trucking business plan.

    Marketing Strategy

    Another of the very important things needed to make any boat and RV storage building plans successful is a solid marketing strategy for the business. Jack has done extensive competitive analysis along with the marketing analysis to make sure that the business is a success. Here’s what makes up the marketing strategy of thisboat storage facility.

    6.1 Competitive Analysis

    1. It has been revealed in the marketing strategy survey that there are only two other boat storage facility providers in the area.
    2. The services provided by these people are not at par with what the customers require.
    3. The only thing we need to do to make this venture successful is to provide better services to the customers and provide them at a better price.
    4. Once we attract enough customers, we can charge any price of our liking from them.
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    6.2 Sales Strategy

    • Jack will make use of all social, print, and electronic media channels operating in the area to advertise the services provided by the business.
    • The focus, in the start, will be on getting more customers than making profit.

    6.3 Sales Monthly

    Sales Monthly - Boat and RV Storage Business Plan

    6.4 Sales Yearly

    Sales Yearly - Boat and RV Storage Business Plan

    6.5  Sales Forecast

    Sales Yearly - Boat and RV Storage Business Plan
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    RV Storage41,00043,46046,068
    Boat Storage40,00042,40044,944
    RV Electric Supply56,00059,36062,922
    RV Workshop38,00040,28042,697
    TOTAL UNIT SALES175,000185,500196,630
    Unit PricesYear 1Year 2Year 3
    RV Storage$50.00$58.00$67.28
    Boat Storage$68.00$78.88$91.50
    RV Electric Supply$48.00$55.68$64.59
    RV Workshop$54.00$62.64$72.66
    RV Storage $2,050,000.00 $2,520,680.00 $3,099,428.13
    Boat Storage$2,720,000.00 $3,344,512.00 $4,112,411.96
    RV Electric Supply $2,688,000.00 $3,305,164.80 $4,064,030.64
    RV Workshop $2,052,000.00 $2,523,139.20 $3,102,451.96
    TOTAL SALES$9,510,000.00 $11,693,496.00 $14,378,322.68
    Direct Unit CostsYear 1Year 2Year 3
    RV Storage$48.00$55.00$63.00
    Boat Storage$66.00$75.00$87.00
    RV Electric Supply$46.00$52.00$60.00
    RV Workshop$52.00$59.00$68.00
    Direct Cost of Sales   
    RV Storage $1,968,000.00 $2,390,300.00 $2,902,258.80
    Boat Storage$2,640,000.00 $3,180,000.00 $3,910,128.00
    RV Electric Supply $2,576,000.00 $3,086,720.00 $3,775,296.00
    RV Workshop $1,976,000.00 $2,376,520.00 $2,903,382.40
    Subtotal Direct Cost of Sales$9,160,000.00 $11,033,540.00 $13,491,065.20

    Personnel plan

    With all that done, we are left with one thing and that is the discussion of the workforce that will be needed for starting an RV storage business. In this RV storage business plan, we will focus on the workers that are needed to start the business. The staff will increase as the business expands. It will happen in the same fashion as it does in a trucking business plan.

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    7.1 Company Staff

    The following people will be needed to run the business:

    • Jack Reacher, the owner, will be the CEO of the business.
    • 1 receptionist who will also act as office secretary for the CEO.
    • 3 managers will be hired for sales, operations, and marketing.
    • 3 mechanics will be hired to work at the workshop allied with the storage facility.
    • 3 drivers to move the permanently stored/parked RVs around.

    7.2  Average Salary of Employees

    Personnel Plan   
     Year 1Year 2Year 3
    Sales Manager$14,000$15,400$16,940
    Operations Manager$15,000$16,500$18,150
    Marketing Manager$13,000$14,300$15,730
    Total Salaries$131,000 $144,100 $158,510

    Financial Plan

    The last thing that we need to touch in this boat and RV storage business for sale are the finances involved in starting the business. Just like any logistics business plans, the costs can vary from case to case.

    • The cost of buying or leasing the plot of land to establish the business will be the major chunk of expenditure.
    • The cost of advertisement and promotion.
    • The cost of paying the salaries to staff before the business starts making profit.
    • Electricity, water, and other overheads.

    8.1 Important Assumptions

    General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.16%8.20%
    Long-term Interest Rate8.38%8.44%8.51%
    Tax Rate24.05%24.60%25.43%

    8.2 Break-even Analysis

    Break-even Analysis - Boat and RV Storage Business Plan
    Break-Even Analysis 
    Monthly Units Break-even5339
    Monthly Revenue Break-even$132,500
    Average Per-Unit Revenue$232.00
    Average Per-Unit Variable Cost$0.62
    Estimated Monthly Fixed Cost$162,290

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Sales$9,510,000 $11,693,496 $14,378,323
    Direct Cost of Sales$9,160,000 $11,033,540 $13,491,065
    TOTAL COST OF SALES$9,160,000 $11,033,540 $13,491,065
    Gross Margin$350,000 $659,956 $887,257
    Gross Margin %3.68%5.64%6.17%
    Sales and Marketing and Other Expenses$138,000$144,000$150,000
    Leased Equipment$0$0$0
    Payroll Taxes$32,000$33,000$35,000
    Total Operating Expenses$311,300 $332,100 $355,190
    Profit Before Interest and Taxes$38,700$327,856$532,067
    Interest Expense$0$0$0
    Taxes Incurred$7,740$65,571$106,413
    Net Profit$30,960$262,285$425,654
    Net Profit/Sales0.33%2.24%2.96%

    8.3.1 Profit Monthly

    Profit Monthly - Boat and RV Storage Business Plan

    8.3.2 Profit Yearly

    Profit Yearly - Boat and RV Storage Business Plan
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    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Boat and RV Storage Business Plan

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Boat and RV Storage Business Plan

    8.4 Projected Cash Flow

    Projected Cash Flow - Boat and RV Storage Business Plan
    Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$50,000$54,000$58,320
    Cash from Receivables$20,000$21,600$23,328
    SUBTOTAL CASH FROM OPERATIONS$70,000 $76,300 $82,404
    Additional Cash Received   
    Sales Tax, VAT, HST/GST Received$0$0$0
    New Current Borrowing$0$0$0
    New Other Liabilities (interest-free)$0$0$0
    New Long-term Liabilities$0$0$0
    Sales of Other Current Assets$0$0$0
    Sales of Long-term Assets$0$0$0
    New Investment Received$0$0$0
    SUBTOTAL CASH RECEIVED$72,000 $77,000 $83,000
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations   
    Cash Spending$41,000$43,000$45,000
    Bill Payments$26,000$28,000$31,000
    SUBTOTAL SPENT ON OPERATIONS$67,000 $71,000 $76,000
    Additional Cash Spent   
    Sales Tax, VAT, HST/GST Paid Out$0$0$0
    Principal Repayment of Current Borrowing$0$0$0
    Other Liabilities Principal Repayment$0$0$0
    Long-term Liabilities Principal Repayment$0$0$0
    Purchase Other Current Assets$0$0$0
    Purchase Long-term Assets$0$0$0
    SUBTOTAL CASH SPENT$68,000 $73,440 $79,315
    Net Cash Flow$19,000$22,000$24,000
    Cash Balance$29,000$31,000$34,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$22,000$24,640$27,695
    Other Current Assets$1,000$1,000$1,000
    TOTAL CURRENT ASSETS$291,000 $325,920 $366,334
    Long-term Assets   
    Long-term Assets$10,000$10,000$10,000
    Accumulated Depreciation$20,040$22,445$25,250
    TOTAL LONG-TERM ASSETS$22,000 $24,640 $27,720
    TOTAL ASSETS$296,000 $331,520 $372,960
    Liabilities and CapitalYear 4Year 5Year 6
    Current Liabilities   
    Accounts Payable$19,900$22,288$25,052
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$20,000 $22,400 $25,178
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$17,000 $19,040 $21,401
    Paid-in Capital$30,000$30,000$31,000
    Retained Earnings$55,000$59,950$65,945
    TOTAL CAPITAL$288,000 $313,920 $345,312
    TOTAL LIABILITIES AND CAPITAL$305,000 $331,520 $372,960
    Net Worth$302,000$329,180$362,098

    8.6 Business Ratios

    Ratio Analysis    
     Year 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.26%8.04%8.91%3.00%
    Percent of Total Assets    
    Accounts Receivable9.24%10.24%11.34%9.80%
    Other Current Assets2.30%2.55%2.82%2.40%
    Total Current Assets150.05%151.00%152.00%158.00%
    Long-term Assets11.55%11.61%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.91%4.95%4.99%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.61%7.67%7.74%7.38%
    NET WORTH101.00%101.81%102.74%110.00%
    Percent of Sales    
    Gross Margin94.60%97.15%99.87%99.00%
    Selling, General & Administrative Expenses94.00%96.54%99.24%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.00%42.11%43.29%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.33%74.70%75.00%75.00%
    Pre-tax Return on Assets95.19%99.95%104.95%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.10%34.13%35.18%N.A.
    Return on Equity55.80%57.53%59.31%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover3233.633N.A.
    Accounts Payable Turnover151616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$238,000$251,328$265,402N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.860.870.87N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test29.1729.2429.4N.A.
    Sales/Net Worth2.12.22.3N.A.
    Dividend Payout000N.A.

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