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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
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.
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.
| Start-up Expenses | |
| Legal | $248,000 |
| Consultants | $0 |
| Insurance | $30,000 |
| Rent | $30,000 |
| Research and Development | $26,000 |
| Expensed Equipment | $54,000 |
| Signs | $4,400 |
| TOTAL START-UP EXPENSES | $392,400 |
| 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 FUNDING | |
| Start-up Expenses to Fund | $392,400 |
| Start-up Assets to Fund | $1,317,000 |
| TOTAL FUNDING REQUIRED | $1,709,400 |
| Assets | |
| 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 | |
| Liabilities | $29,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $49,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $78,000 |
| Capital | |
| Planned Investment | $1,709,400 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,709,400 |
| Loss at Start-up (Start-up Expenses) | $395,600 |
| TOTAL CAPITAL | $2,105,000 |
| TOTAL CAPITAL AND LIABILITIES | $2,183,000 |
| Total Funding | $1,709,400 |
Services
Note
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:
UK Start-Up Visa Business Plan
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 Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| RV Owners | 35% | 39,000 | 40,000 | 42,000 | 44,000 | 46,000 | 10.00% |
| Boat Owners | 20% | 23,000 | 25,000 | 27,000 | 29,000 | 30,000 | 10.00% |
| Motorhome Owners | 23% | 27,000 | 29,000 | 30,000 | 32,000 | 34,000 | 10.00% |
| RV and Boat Leasing Companies | 22% | 25,000 | 26,000 | 28,000 | 29,000 | 31,000 | 11.00% |
| Total | 100% | 114,000 | 120,000 | 127,000 | 134,000 | 141,000 | 10% |
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
- It has been revealed in the marketing strategy survey that there are only two other boat storage facility providers in the area.
- The services provided by these people are not at par with what the customers require.
- 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.
- Once we attract enough customers, we can charge any price of our liking from them.
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
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| RV Storage | 41,000 | 43,460 | 46,068 |
| Boat Storage | 40,000 | 42,400 | 44,944 |
| RV Electric Supply | 56,000 | 59,360 | 62,922 |
| RV Workshop | 38,000 | 40,280 | 42,697 |
| TOTAL UNIT SALES | 175,000 | 185,500 | 196,630 |
| Unit Prices | Year 1 | Year 2 | Year 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 |
| Sales | |||
| 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 Costs | Year 1 | Year 2 | Year 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.
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 1 | Year 2 | Year 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 |
| Drivers | $36,000 | $39,600 | $43,560 |
| Mechanics | $45,000 | $49,500 | $54,450 |
| Receptionist | $8,000 | $8,800 | $9,680 |
| 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 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.16% | 8.20% |
| Long-term Interest Rate | 8.38% | 8.44% | 8.51% |
| Tax Rate | 24.05% | 24.60% | 25.43% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5339 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| 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 1 | Year 2 | Year 3 | |
| Sales | $9,510,000 | $11,693,496 | $14,378,323 |
| Direct Cost of Sales | $9,160,000 | $11,033,540 | $13,491,065 |
| Other | $0 | $0 | $0 |
| 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% |
| Expenses | |||
| Payroll | $131,000 | $144,100 | $158,510 |
| Sales and Marketing and Other Expenses | $138,000 | $144,000 | $150,000 |
| Depreciation | $2,100 | $2,200 | $2,480 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,700 | $3,000 | $3,200 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $3,400 | $3,700 | $3,900 |
| Payroll Taxes | $32,000 | $33,000 | $35,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $311,300 | $332,100 | $355,190 |
| Profit Before Interest and Taxes | $38,700 | $327,856 | $532,067 |
| EBITDA | $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/Sales | 0.33% | 2.24% | 2.96% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 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 |
| Expenditures | Year 1 | Year 2 | Year 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 |
| Dividends | $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 | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $22,000 | $24,640 | $27,695 |
| Inventory | $4,300 | $4,816 | $4,900 |
| 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 Capital | Year 4 | Year 5 | Year 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 |
| Earnings | $199,000 | $216,910 | $238,601 |
| 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 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.26% | 8.04% | 8.91% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.24% | 10.24% | 11.34% | 9.80% |
| Inventory | 5.44% | 6.03% | 6.68% | 9.90% |
| Other Current Assets | 2.30% | 2.55% | 2.82% | 2.40% |
| Total Current Assets | 150.05% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.61% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.91% | 4.95% | 4.99% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.61% | 7.67% | 7.74% | 7.38% |
| NET WORTH | 101.00% | 101.81% | 102.74% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 94.00% | 96.54% | 99.24% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.00% | 42.11% | 43.29% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 34 | 34.2 | 35.055 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.33% | 74.70% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 95.19% | 99.95% | 104.95% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.10% | 34.13% | 35.18% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32 | 33.6 | 33 | N.A. |
| Accounts Payable Turnover | 15 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $238,000 | $251,328 | $265,402 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.86 | 0.87 | 0.87 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29.17 | 29.24 | 29.4 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.3 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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