You must have public Liability Insurance and you should take out contents insurance for your office equipment and containers. You cannot easily insure your client’s items; you do not know the value or condition. They can get insurance coverage from their own household insurance (goods in transit) or from a company like Insurastore (www.insurastore.com) who specialise in Self Storage Insurance. Let Clients sorts out their own insurance you just offer the information. Most insurance companies insist on CCTV of the site and adequate gate and fencing is a must have requirement and the CCTV must have a regular maintenance contract with an accredited supplier.
There are a few available specifically for Self Storage see KashFlow & Sage as examples…but assuming your turnover is to be around 100K per annum you will need an accountant and they are the best to advise you on how to transpose your accounts to them for tax assessment etc. (A copy book system may at first appear a cheap option but your accountants will give you a sizeable bill for transposing to audit-able HMRC accepted audited accounts). You will need to register for a VAT account, do not try to dodge this and avoid cash transactions as far as possible, HMRC recognise Self Storage as a massive growth business and will be looking for their take. Keep good records, and keep them for at least 5 years. The police have often turned up tracking a villains previous business transactions, The police and more recently their Anti–Terrorist branch like to be assured that what is going on in your depot is legal and if you think otherwise that you will inform them.
RATES TO CHARGE
Depends on location and amount of competition…for the average, a general rule of thumb is £25-00 for a 20’ £50.00 for a 40’ smaller units from £5-00 per week its useful to have some smaller units that are cheap as you can advertise from as little as 70p Per Day (don’t forget the VAT)
COST TO SET UP
This is only a very rough guide based on today’s Central UK Urban located New Build Container prices and will of course vary greatly upon many factors Inc. the cost of final placement of your containers and the rent / mortgage cost of an approx. ½ acre area depot….with hard standing surface . A depot with a 100 units of various sizes say for example;…
|65 x 20’s New build Containers||£130,000-00|
|15 x 40’s New build Containers||£42,000-00|
|20 x minis New build stds or modified||£36,000-00|
|1 x office Converted 20’||£5,000-00|
|1 x Toilet block small||£3,750-00|
|Security (Fencing, CCTV)||£10,000-00|
WHAT SORT OF PROFIT MARGIN
Based on 100 % take up. (These are very loose figures based on the Land being rented and check out what your nearest competition are charging)
|65 x 20’ at £25-00 per week||£1,625-00|
|15 x 40’s at £50-00 per week||£750-00|
|20 x mini’s at £8-00 per week||£160-00|
|Total £2,535-00 x 52 weeks||£131,820-00 Per annum|
LESS (Again very loose approximations)
|Running costs land/rent||£30,000-00 per annum|
|Labour (if you take a wage)||£30,000-00 per annum|
|Utilities Supply||£3,000-00 per annum|
|Rates||£12,000-00 per annum|
|Insurance||£1,500-00 per annum|
|Accounts||£2,000-00 per annum|
|Advertising||£1,000-00 per annum|
|Office Admin Inc. Phone etc.||£2,500-00 per annum|
|Total £82,000-00 = £49,820-00 less Corporation Tax 20% = Total||£40,000 Per year|
It will take about 6 years to fully recover your total initial outlay but that does include a £30,000-00 annual Salary. It can take about 2 years to get a fully established 100% utilised storage business.
Alternatively if you own a suitable parcel of land or know of any suitable land in the UK and wish to either sell the land or enter into a business partnership please contact us and we may be able to arrange an introduction for you.