HomeMy WebLinkAboutHumane Soc - Redmond - Storage ProposalThe Humane Society of Redmond
Business Plan Proposal
RV Storage Facility
Submitted by:
The Humane Society of Redmond
Board of Directors
1355 NE Hemlock
Redmond, OR 97756
Tel: (541) 923-0882
Website: www.redmondhumane.org
Submitted to: Deschutes County Commissioners
September 23, 2009
HSR Business Plan — RV Storage
Page 1 of 15
1. Table of Contents
1. Table of Contents 2
2. Executive Summary 3
3. Facility Description 3
4. Description of Products 3
5. Marketing Plan 3
6. Customer Description 5
7. Competition 5
8. SWOT Analysis 5
9. Operational Plan 6
10. Management and Organization 6
11. Capitalization 6
12. Risk Assessment 7
13. Financial Statements 7
Appendices:
Appendix A. — Lot Plans 8
Appendix B. — Competition 11
Appendix C. — Financial Statements 13
Cost Estimates 13
Pro -Forma Cash Flow Analysis 14
Four Year Profit Projections 15
HSR Business Plan — RV Storage
Page 2 of 15
2. Executive Summary
The Board of Directors of the Humane Society of Redmond (HSR) recognizes the
need for a steady source of revenue to make the shelter a viable and stable
contributor to the community. To this end, the HSR plans to construct an RV
Storage facility on approximately one acre of undeveloped land behind the
shelter. Assuming full occupancy in the future, RV Storage will bring in
approximately $1,700 per month to be used in support of the shelter's operations.
3. Facility Description
Occupying nearly one acre of undeveloped land behind the shelter and next to the
Event Center, approximately 50 RV parking spaces will be made available for
rent (see plans, Appendix A). Access to the facility will be via Jackpine Ave on
the north side of the property. A paved access road will be constructed leading to
a locked gate. The entire facility will be fenced using six foot tall chain link
fencing with a two foot barbed wire top. In addition to the main gate, a second
gate will be provided for emergency evacuation of the facility. This second gate
will face NE Hemlock Ave. A man -gate will be provided for personnel access.
An existing single down facing light pole will be used to provide limited
illumination of the area. Security will include a Fire Department approved lock
and coded access for tenants only, via a keypad or other device. We are also
considering other security measures such as motion sensors or additional lighting.
4. Description of Products
The product is RV Storage in a safe and secure location. RV's, boats and other
vehicles will be provided a space upon successful completion of a rental contract
and payment of first and last months rent. Monthly rent for the spaces will be
charged at $1.50/linear foot with a minimum charge of $30/month. The facility
will be accessible by renters during shelter business hours and off hours by prior
arrangement. A volunteer managerial staff will be available during shelter
business hours, 10AM to 5PM Monday through Friday with limited hours on
weekends to assist with contracts and viewings of the facility.
5. Marketing Plan
A multilevel marketing plan is being developed for the RV Storage facility. The
plan includes:
HSR Business Plan — RV Storage
Page 3 of 15
Market Economics — Redmond is a town of approximately 25,000 people
with an average salary in the mid $30,000 range. The demographics
include professionals employed by T -Mobile, St. Charles Medical Center,
and independent real estate and financial institutions. Construction
workers make up another segment of the populace as do retail and service
workers. Something of a bedroom community for Bend, many commute
to Bend and live in the less costly, more expansive areas of Redmond.
Adding the Town of Sisters to our market increases the demographics by
approximately 2,000 full time residents with a large seasonal influx.
Many in Redmond and nearby communities own RV's and boats to take
advantage of the many outdoor activities in the area. At present only four
other storage facilities of this type are available in the Redmond area and
are routinely full to capacity.
Promotion — Immediately upon startup, solicitations for storage tenants
will be sent to our network of members, volunteers and other sources.
Contact will be made with Eagle Crest RV Storage to see if we could be
used in the event they reach capacity, which is common.
Newspaper articles describing the facility will be provided to the Bend
Bulletin and the Redmond Spokesman as well as the local radio and TV
outlets. These types of Public Service Announcements in support of non-
profits such as the HSR are readily picked up and promoted by the press.
To date, the HSR RV Storage facility has already been mentioned in
stories on KOHD TV and in the Bend Bulletin.
The "Grand Opening" will be widely promoted by announcements and
advertising in the local press. The grand opening will be a noteworthy
event with TV and press coverage, supporting our word of mouth
advertising. This "kick-off' should provide sufficient notification of our
new facility and get the word out in a timely manner.
Continuing advertising will be through classified ads, our website, phone
book listings, and other non-specific means. A brochure for the facility
will be printed and available at the opening for possible new tenants.
Pricing — Pricing will be $1.50/linear foot/month with a $3 0 minimum.
First and last months rent will be required upon signing of the contract and
monthly payments can be made via check or charge with automated
payment options.
HSR Business Plan — RV Storage
Page 4 of 15
6. Customer Description
The range of customers runs from affluent retirees to median income families who
enjoy travel and the outdoors. The customer will have an RV or boat and need a
secure location for storage away from their residence. Resort communities such
as Eagle Crest provides an ideal opportunity for RV storage tenants as the
residents do not have on -street parking and their RV storage facility is often full
to capacity.
7. Competition
Four secured RV Storage facilities are operating in the immediate area:
Eagle Crest Resort RV Storage
Smith Rock Self Storage in Terrebonne
Deschutes County Expo Center RV Storage
Storage Central
A detailed description of these competitors can be found in Appendix B.
8. SWOT Analysis
Strengths —
New facility with good security is needed in the area
A strong, dedicated following for the HSR will most likely switch
storage facilities to support our shelter
Competitive pricing will encourage new tenants
Weaknesses - Limited marketing and advertising budget
Current economic conditions have reduced the number of new RV
and boat owners
Out of the way location could be a cause for concern for
prospective tenants
Opportunities — The addition of a large fenced yard adjacent to the Event Center will
make the building more amenable for sale or lease in the future
to M2 zoning prospects
Continued development in Redmond and nearby locations will bring
more prospective tenants to the area
Threats - Worsening of economic conditions leading to reduced need
Unknown additional facilities like ours opening in the area
HSR Business Plan — RV Storage
Page 5 of 15
9. Operational Plan
The RV Storage facility will be open to conduct business during shelter hours,
10AM to 5PM, Monday through Friday with limited availability on weekends.
All renters will be required to sign a contract to lease space for a pre -determined
length of time with options to renew. First and last months rent will be required
at lease signing.
Renters will be provided a dedicated space for the term of the lease. Only the
person signing the contract will be allowed to move the RV or boat. Renters may
access their vehicles during shelter business hours or during off hours by prior
arrangement with a manager.
10. Management and Organization
Oversight of the RV Storage facility will be by the HSR Board of Directors.
Monthly financials will be delivered and reviewed as a part of the established
board meetings.
The day to day operation of the RV Storage facility will be the responsibility of a
select group of trained volunteer managers. These managers will be responsible
for completing new contracts, keeping the facility clean, and ensuring the security
measures in place are operating properly. Marketing and Promotion will fall to
the HSR Board of Directors.
Bookkeeping and financial oversight will be performed through the shelter. Rent
receipts, bookkeeping, reporting and bank interactions will be controlled by the
shelter. Contracts for phone, utilities, and insurance will be provided to the
facility via the board of directors' contracts committee. Repair and maintenance
of the facility will fall to the operations committee of the board.
11. Capitalization
The HSR will seek a low cost Business Development Loan from Deschutes
County to pay for initial startup and capitalization costs.
Start-up costs are detailed in the financial statement and include:
Gravel surface treatment
Six foot fencing with two foot barbed wire top
Two gated access points
HSR Business Plan — RV Storage
Page 6 of 15
Paving of access road
Security systems
Materials for lining and corner markings
City of Redmond business start-up costs include:
Business Application fee
Grading and Drainage Plan costs
Other start-up activities with limited cost will include:
Contract writing and legal review
Advertising and marketing
12. Risk Assessment
Risks are few but not unimportant. Risks to the success of the RV Storage facility
include:
A starting date in late October or early November will miss a large
component of the market. The facility may not be at full occupancy until
fall, 2010.
Capital outlays of approximately $27,000 will add yet more financial
stress to the shelter. A low cost loan from the county will help ameliorate
this issue.
The presence of a dirt slope on the eastern edge of the facility could limit
access to certain areas and reduce the number of available spaces.
Maintaining a volunteer force to operate the facility may be difficult.
13. Financial Statements
See Appendix C. for full financial disclosures.
HSR Business Plan — RV Storage
Page 7 of 15
Appendix A. — Lot Plans
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HSR Business Plan — RV Storage
Page 8 of 15
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HSR Business Plan — RV Storage
Page 9 of 15
Appendix A. — Lot Plans — Cont'd.
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HSR Business Plan — RV Storage
Page 10 of 15
Appendix B. — Competitive Analysis
(Note: Availability of space is as of Sept. 1. It is not known if these facilities will reach
capacity later in the year.)
Competitor A: Eagle Crest RV Storage Facility
Location: Eagle Crest Resort, East side of Redmond
Pricing: $1.50/foot/month.
Security: Fenced.
Access: Unknown
Availability: Available only to Eagle Crest Residents
Competitor B: Deschutes County Expo Center
Location: Expo Center, South side of Redmond
Pricing: $3.00/foot/month.
Security: Inside barn space.
Access: Unknown
Availability: Spaces available. Limited storage time, all vehicles must be out for
Spring events.
Competitor C: Smith Rock Self Storage
Location: Terrebonne, north of Redmond
Pricing: $40/mo. up to 30 feet. Plus $1/foot/month over 30 feet.
Security: Fenced with cameras.
Access: 7AM to 9PM 7 days/week.
Availability: Spaces available
Specials: Get one month free when renting 2 or more months.
HSR Business Plan — RV Storage
Page 11 of 15
Appendix B. — Competitive Analysis — Cont'd.
Competitor D: Storage Central
Location: SW 25th Place, Redmond, outdoor lot near airport.
Pricing: $1.50/foot/month.
Security: Fenced lot
Access: 24/7 with prior notification
Availability: Spaces available
HSR RV Storage - Competition
HSR Business Plan — RV Storage
Page 12 of 15
Price
# of Spaces
Availability
Security
Eagle Crest Resort
$1.50/ft
Unknown
Available
Good
Deschutes County Expo
Flexible
Center
$3.00/ft
Barn storage
Available
Good
Smith Rock Self Storage
$1.50/ft
30 (est.)
Nearly Full
Good
Storage Central
$1.50/ft
50 (est.)
Nearly Full
Good
HSR RV Storage
$1.50/ft
-50
Available
Good
HSR Business Plan — RV Storage
Page 12 of 15
Appendix C. — Financial Analysis
Page 1: RV Storage Cost Estimates
Page 2: Pro -Forma Cash Flow Analysis
Page 3: RV Storage 4 year P& L assuming County Loan for capitalization
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