Revenue Projections & Financial Modeling

💰 5-Year Revenue Forecast

Year Target Revenue Customers Occupancy Avg Rate/Week Key Milestone
Year 1 $45,000 50 40% $65 Establish operation
Year 2 $70,000 70 60% $75 Growth phase
Year 3 $93,000 85 80% $85 Optimization
Year 4 $100,000 95 85% $90 Stable operations
Year 5 $104,000 100 90% $95 Plan expansion

📊 Monthly Revenue Build-Up (Year 1)

Month New Customers Total Customers Monthly Revenue Cumulative
Month 1 5 5 $1,400 $1,400
Month 2 8 13 $2,600 $4,000
Month 3 7 20 $3,500 $7,500
Month 4-6 15 35 $4,500/mo $21,000
Month 7-9 10 45 $5,500/mo $37,500
Month 10-12 5 50 $6,000/mo $55,500

💼 Revenue by Storage Type

Storage Type Units Available Target Rate At 80% Occupancy Monthly Revenue Annual Revenue
Large Units (48m² covered) 6 $110/week 5 units $2,383 $28,600
Small Units (12m² covered) 6 $40/week 5 units $867 $10,400
Large Boat/RV Outdoor 15 $75/week 12 units $3,900 $46,800
Medium Vehicle/Boat 20 $55/week 16 units $3,810 $45,720
Small Car/Trailer 30 $40/week 24 units $4,160 $49,920
Total at 80% Occupancy $14,020 $168,240

📈 Break-Even Analysis

Expense Category Monthly Cost Annual Cost Notes
Interest (6.2% on $470k) $2,428 $29,140 Covered by rental properties
Insurance $250 $3,000 FMG estimate
Software (6Storage) $75 $900 From Month 3
Utilities $100 $1,200 Security lights, gate
Marketing $100 $1,200 Facebook, signage
Maintenance $150 $1,800 General upkeep
Total Operating Expenses $8,100 Excluding interest
Break-Even Point: Need approximately $675/month which can be achieved with 2-3 large units OR 4-6 small units OR mix of indoor and outdoor storage (excluding interest which is covered by rentals).

🎯 Scenario Analysis

Scenario Occupancy Avg Rate Monthly Revenue Annual Revenue Net Profit
Pessimistic 30% $55/week $3,200 $38,400 $30,300
Conservative 50% $65/week $6,500 $78,000 $69,900
Target 70% $75/week $9,500 $114,000 $105,900
Optimistic 85% $85/week $12,500 $150,000 $141,900

🚀 Growth Drivers

Revenue Enhancers

  • Seasonal pricing for boat storage (winter premium)
  • Long-term contract discounts (5% for annual)
  • Referral program ($50 credit)
  • Additional services (boat washing station)
  • Power hookups for RVs ($10/week extra)
  • Covered vs uncovered pricing tiers

Cost Optimization

  • Automate billing to reduce admin time
  • LED lighting for lower power costs
  • Preventive maintenance schedule
  • Bulk insurance negotiation
  • Solar panels consideration (Year 3)
  • Shared marketing with local businesses

💡 Key Financial Insights

  • Interest Coverage: Already handled by rental properties - all revenue is profit/reinvestment
  • Quick Wins: Outdoor storage requires minimal setup, immediate revenue
  • Scalability: Can add spaces incrementally as demand grows
  • Asset Value: Property value increases with established business
  • Exit Strategy: $2M+ property value in 10 years with proven income