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PROFILE |
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Description: |
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A full service self storage business where the storage units are mobile and can be taken to the client and packed or unpacked on site. The owner operates the head office branch in Gauteng and established this branch in Cape Town. His resources are over extended and hence needs to sell this Cape branch.
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Industry / Sector: |
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Services |
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LOCATION |
| State / Province: |
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Western Cape RSA |
| City / Town: |
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Johannesburg |
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Location / Area: |
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Midrand |
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Metro Proximity: |
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Cape Town. It should be possible to commute from this metro city to the business location. |
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Portability: |
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The storage units can be loaded on the back of a truck and moved to any suitable warehouse |
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PRICE |
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Asking Price: |
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R 540 000 |
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FINANCIAL & OPERATING INFORMATION |
| Turnover: |
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R 35 000 per month
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| Profit: |
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R 4 000 per month
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| Annual Return: |
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9
% per annum
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| No. of Staff: |
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1 |
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Year Established: |
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2020 |
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Legal Persona: |
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Private Company (Pty) Ltd |
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Other Information: |
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REASON FOR SALE
The current owner has other business interests and is needing to focus on his family and cannot afford the time to continue developing and growing the business.
PROFITABILITY
The operation is currently running at break-even as it grows. The current R20,000 paid for warehouse space would be profit if a buyer was looking to utilise excess space. That would realise R240,000 p.a. extra profit and immediately push ROI to 50%.
PASSIVE INCOME
It is important to realise that storage offers an almost passive (or annuity) type income. Once storage is contracted there is very little to do in terms of servicing the customer.
PREMISES
There would be economies for a buyer who already has suitable and secure warehouse space for the actual storage. Finding premises at a good location would be key to improving profitability.
Existing Storage Warehousing in Johannesburg
Click the image to view enlargements
POTENTIAL FOR GROWTH
The success of this model in the Gauteng area led to opening a Cape Town branch. This has absorbed capital and slowed the Gauteng marketing effort which has had an effect on short term profitability, but areas are now poised to move strongly.
A mobile population looking increasingly towards semigration and expatriate assignments is pushing demand for storage solutions. This trend is unlikely to be reversing in the foreseeable future.
MARKETING
The marketing is done by an external company who feeds us the leads (It is the second highest ranking website for storage in CT). We get around 160 leads per month.
ASSETS
The assets consist of 48 storage units (custom built for the mobile storage) which cost R5500 each. A total of R264,000.
TRANSPORT
There is additional income to be made on the delivery and collection of storage units. And customers can collect and return the filled units.
A local contractor can be arranged to transport which the customer would pay for.
Once the business develops further it would make sense to acquire a small truck and trailer combo.
FRANCHISE OPPORTUNITY
The structure of the business and requirement for local service to local customers makes it suitable for expansion as a franchise or business opportunity.
COMPETITOR ACTIVITY
The concept of the mobile containers on delivery and fetch is unique and offers clients a more flexible solution. As a result there is no significant competition. It also makes more efficient use of warehouse space which creates more profitability as you scale upwards.
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