BUSINESS PLAN STOREIT N.V.

BUSINESS PLAN

Date : May 12th 2014

Program : International Business Management Studies

Class : Project

Project Title : Introduction and Development of StoreIT Self-Storage to Suriname

Group : Five

Coach : Raoul Tjon-Jaw-Chong

Consultants : Sheetal Ramkhelawan-Sujan M.Sc. & Randy Badal

Team : Bhikharie, Rodney | Charlery, Anne |Goudzand, Timothy|

Heidanus, Duane | Persaud, Amanda

Why throw it away, when you can StoreIT!

 BUSINESS PLAN STOREIT N.V.

Contents

Introduction iii

Confidentiality Agreement iv

1.0 Executive Summary 1

2.0 Industry Analysis 3

2.1. Industry Size, Growth Rate and Sales Projection 3
2.2. Industry Structure 3
2.3. Nature of Participants 4
2.4. Key Success Factors 4
2.5. Industry Trends 5
2.6. Long-Term Prospects 5

3.0 Company 6
3.1. Company Description 6
3.2. Company History 6
3.3. Mission Statement 7
3.4. Vision 7
3.5. Product and Services 7
3.6. Current Status 7
3.7. Legal Status and Ownership 8
3.8. Key Partners 8

4.0 Market Analysis 8

4.1. Market Segmentation and Target Market Selection 8
4.2. Buyer's Behavior 10
4.3. Competitor’s Analysis 10
4.4. Estimates of Annual Sales and Market Share 11

5.0 The Economics of the Business 12

5.1 Revenue Drivers 12
5.2. Profit Margin and Fixed and Variable Costs 12
5.3. Fixed and Variable Costs 13
5.4. Operating Leverage and Its Implications 14
5.5. Start-up Costs 15
5.6. Break-Even Chart and Calculation 16

6.0 Marketing Plan 17

6.1. Overall Marketing Strategy 17
6.2. Product, Price, Promotions and Distributions 18
6.3. Sales Process 20
6.4. Sales Tactics 21

7.0 Design and Development Plan 21

7.1. Development Status and Tasks 21
7.2. Challenges and Risks 21
7.3. Projected Development Costs 21
7.4. Proprietary Issue 21

8.0 Operations Plan 22

8.1. General Approach to Operations 22
8.2. Business Location 22
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 BUSINESS PLAN STOREIT N.V.

8.3. Facilities and Equipment 23

9.0 Management Team and Company Structure 24

9.1. Management Team 24
9.2. Board of Directors 25
9.3. Board of Advisers 25
9.4. Company Structure 26

10.0 Overall Schedule 26

11.0 Financial Projections 27

11.1. Sources and Uses of Funds Statements 27
11.2. Assumptions Sheet 28
11.3. Pro Forma Income Statement 28
11.4. Pro Forma Balance Sheets 29
11.5. Pro-Forma Cash Flow 30
11.6. Ratio Analysis 31

12.0 Bibliography 32

13.0 References 32

14.0 Appendices 33

Introduction

The International Business Management Studies (IBMS) offered by the FHR School of Business has been
devised in such a way that each term deals with a number of essential professional competencies. Term 1 was
focused on obtaining a descriptive understanding of an organization, Term 2 was focused on the immediate

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 BUSINESS PLAN STOREIT N.V.

external environment of an organization and the major factors directly impacting its marketing strategies, and
Term 3 and Term 4 are focused on the entrepreneurial dimensions of a company.

As Term 3 students of the IBMS program, our assignment is to form our own company and come up with a new
product or service to introduce into the Surinamese market. This project is based on the successful BBC
television series, The Dragons’ Den, where entrepreneurs “pitch” their ideas to a group of venture capitalists in
order to gain investment which will be the main objective of Term 4.

We are required to form a company, to develop a product or service not yet registered in our local market and to
obtain funds from a team of investors in the Dragons’ Den to further develop our company.

In order to accomplish this, we need to:

Research and assess target markets, segments and competition
Develop a business strategy
Develop a business model or concept
Justify the viability and profitability of the business model or concept
Provide a financial feasibility of the product or service as well as the business plan
Work efficiently in a team

The deliverables of this project in Term 3 are:

Initial Paper The initial paper is a brief introduction to the project, gives a general idea on what the
product or service is, defines the methods which the team will implement to
successfully complete the project and states the agreements for collaboration made by
the team. This was submitted on March 31st 2014.
Action Plan The action plan consists of a clear and structured overview of the manner in which the
project will be executed and implemented including details on the project
organization, schedule, communication plan and quality plan. This was submitted on
April 14th 2014.
Feasibility Analysis The feasibility analysis consists of a complete analysis of the viability of the business
idea and will be focused on answering one main question: “Should we proceed with
the proposed business idea?” This was submitted on April 25th 2014.
Business Plan The business plan will be critical to the success of our new venture. It is the
framework of our company and provides the necessary benchmarks so that we can
monitor if we are reaching our goals. It will consist of a description of our company
and our product or service line, an analysis of our target market, the organization and
management of our company, the marketing and sales activities, funding request and
financial projections. This is due on May 12th 2014.
Presentation In Term 3, we will be required to present our business plan. We will be required to
explain our product or service in details, to defend it viability and to show that it will
work in the Surinamese Market.

The Project Group

The students working on this project are listed below with their contact information and the roles they are
fulfilling during the duration of the project.

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 BUSINESS PLAN STOREIT N.V.

Name: Bhikharie, Rodney Name: Charlery, Anne

Mobile Phone: 8738841 Mobile Phone: 8566523
Email: rodney_bhikharie@hotmail.com Email: julcharlery@gmail.com
Role : Project Archivist Role: Project Secretary

Name: Goudzand , Timothy Name: Heidanus, Duane Name: Persaud, Amanda

Mobile Phone: 7185337 Mobile Phone: 8514584 Mobile Phone: 8656077
Email: tim.goudzand@gmail.com Email: dwduane@hotmail.com Email: apersaud@n-remote.com
Role: Project Communicator Role: Project Planner Role: Project Leader

iv Why throw it away, when you can StoreIT!

Confidentiality / Non-Disclosure Clause

STOREIT N.V. has agreed to furnish the undersigned reader certain confidential, proprietary information or intellectual
property relating to ideas, inventions, or products for the purposes of determining an interest in developing,
manufacturing and retailing.

The undersigned reader acknowledges that the information provided by StoreIT N.V. in this business plan is confidential;
therefore, the reader agrees not to disclose it without the express written permission of StoreIT N.V. The undersigned
reader agrees to review, examine, inspect or obtain such confidential information only for the purposes described above,
and to otherwise hold such information confidential pursuant to the terms of this clause.

The undersigned reader agrees:

To hold confidential or proprietary information or trade secrets ("confidential information") in trust and
confidence and agrees that it shall be used only for the contemplated purposes, shall not be used for any other
purpose, or disclosed to any third party.
That no copies will be made or retained of any written information or prototypes supplied without the express
permission of (name of business), its officers, or legal representatives.
That at the conclusion of any discussions, or upon demand by STOREIT N.V., all confidential information,
including prototypes, written notes, photographs, sketches, models, memoranda, or notes taken shall be returned
to STOREIT N.V.
That confidential information shall not be disclosed to any employee, consultant, or third party unless they agree
to execute and be bound by the terms of this Agreement, and have been approved by STOREIT N.V.
This Agreement and its validity, construction, and effect shall be governed by the laws of Suriname.

_______________________________________
Date

_______________________________________
Raoul Tjon-Jaw-Chong

_______________________________________
Sheetal Ramkhelawan-Sujan
1. Executive Summary

StoreIT N.V. is a self-storage provider which rents storage units of varying sizes to companies and individuals on a
short-term or long-term basis. The rented spaces will be secured by locking devices purchased and controlled by the
tenant only, hence the term self-storage and will be accessible at all times. StoreIT N.V. will not have access to the
unit, unless absolutely necessary. The locking devices can be simple locks and keys or can even be biometric
devices.

It is StoreIT’s goal to introduce and develop the self-storage industry in Suriname. The self-storage industry is an
industry consisting of facilities which offer storage space rentals on a long-term or short-term basis. This industry
does not yet exist in Suriname. Research has revealed that there is currently no company registered as a public
storage facility at the Surinamese Chamber of Commerce and Industry (Kamer van Koophandel & Fabrieken).

The annual sales of the company has been estimated as follows:

Estimated Annual Sales

$300,000.00
$246,600.00
$250,000.00
$200,000.00 $184,950.00
$150,000.00 $123,300.00
$100,000.00
$50,000.00
$0.00
Year 1 Year 2 Year 3

StoreIT N.V. will target both commercial as well as residential customers. StoreIT is expected to rent 60% of its
available units to the commercial sector of the market and 40% to the residential sector.

One of the benefits of engaging in a new industry is the benefit of not having direct competitors. Research has
revealed that there is currently no company registered as a public storage facility at the Surinamese Chamber of
Commerce and Industry (Kamer van Koophandel & Fabrieken).

StoreIT N.V. has two main revenue drivers. These are:

Varying sizes of storage units and deposit boxes which can be rented on a short-term or long-term basis.
This is the main revenue driver of the company.
Maintenace agreements which will be required for tenants renting units for periods longer than three
months. The maintenance agreement includes cleaning the unit once per month and pest control.

The start-up costs of the company is a total of $ 901.205.63.

There are no variable costs. The fixed costs adds up to a total of $12,323 per month which results in a break-even
point of 771 m2 of rented storage space per month.

Break-Even Chart

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 $15,000.00
$10,000.00
$5,000.00
$0.00 Total Costs (Fixed)
0 200 400 600 800 1000 1200 1400 Net Profit
-$5,000.00
-$10,000.00
-$15,000.00

The overall marketing strategy of StoreIT N.V. is based on the focus and differentiation strategy put into effect using
the digital and direct marketing strategies. StoreIT N.V. will strive to serve some relatively small sectors to the
market very well and thus not focus on the whole market. The company will differentiate by providing a service not
yet offered in the market in a state of the art facility accompanied by personnel driven by customer satisfaction.

The company will be managed by its five owners with each owner taking the leadership of each of the main
departments within the company based on their own skills and competencies. The company currently does not have
a board of directors or board of avsiers but hopes to eventually.

StoreIT N.V. is currently at the initial stages of the development of its self-storage service. The site location and the
building are the two main development stages. The first stage is the selection and purchase of the site’s location and
the second state is the construction of the storage facility.
Selection of the site’s location –One of the founders of the company owns a piece of land on the Ringweg
which will be used to build the self-storage facility.
The second phase in the development plan is the acutal building which will embody every aspect of the
service. This stage is currently in production.

The projected yearly profit are displayed in the chart below and its estimated value based on the pro-forma balance
sheet at the end of it third year of operation is $ 865,721.

Yearly Profit

$50,530.00
$60,000
$40,000 $10,304.00 Year 1
$20,000 Year 2
$0 Year 3
-$20,000 Profit
-$40,000
-$60,000 -$48,184.00

2. Industry Analysis
The industry analysis describes the industry StoreIT will enter and focuses on matters such as the industry size,
growth rate, attractiveness, trends and long-term prospects.

2.1. Industry Size, Growth Rate and Sales Projection

It is StoreIT’s goal to introduce and develop the self-storage industry in Suriname. The self-storage industry is
an industry consisting of facilities which offer storage space rentals on a long-term or short-term basis. This
industry does not yet exist in Suriname. Research has revealed that there is currently no company registered as
a public storage facility at the Surinamese Chamber of Commerce and Industry (Kamer van Koophandel &
Fabrieken).

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 Since that there is no information to be obtained about the self-storage industry in Suriname, we have provided
general information regarding the self-storage industry globally.

The self-storage industry had its beginning in 1958 in Florida with the opening of Lauderdale Storage for
business but it was not until the 1980s that interest started to develop in Europe, Canada, Australia and other
countries. A recent report conducted by Mintel Consulting in collaboration with the Self Storage Association of
the United Kingdom reported that the self-storage industry is the most thriving in the United States of America.

Chart 1: Self Storage Facilities Worldwide

60000 50000
50000
40000
30000
20000
10000 1000 800 380 100
0
USA Australia United Kingdom France Germany

Today, approximately three thousands (3,000) new storage facilities are built per year worldwide. The growth
rate of the industry has been very strong. The self-storage industry has doubled in size each decade since its
introduction. Research has shown that almost one in every ten household in the United States rents a self-
storage unit. Recent surveys also indicate that there is a positive trend in the market demand for self-storage
services worldwide.

Contributing factors to the growth rate of the self-storage industry included a transient population moving to
new jobs and better climate, the mobile society and the tendencacy to live in rental apartments which require
additonal space.

The Storage and Warehouse Leasing Market Research Report revealed that the growth size of this industry
from the period of 2009 to 2014 was an average of 3.2% per year andthat the industry in the United States is
currently valued at approximately twenty-six billion dollars.

2.2. Industry Structure

The industry structure decribes what type of industry it is and the opportunities offered. The self-storage
industry is an emerging industry in Suriname in that it is a new industry in which the standard operating
procedures are yet to be developed. By entering this industry, Store-IT N.V. will capture the first-mover
advantage and will have the first opportunity at assuming leadership. However, we will need to make sure that
we assume that posistion of leadership and that we have what it takes to remain leaders as the barries to entry
are low in an emerging industry. If we are successful, it will not be long before others enter the industry.
Globally, the self-storage industry is an extermely fragmented industry and as a result, it is receptive to new
entrants to the market.

2.3. Nature of Participants

It is important that we understand the nature of participants in this industry, whether they are innovative or
conservative or fast or slow to react to environment changes.

The key participants in the self-storage industry are:

Existing self-storage facilities
Moving Companies
Large Warehouses

There are no existing self-storage factilties and moving companies are very few. Large warehouses are not very
innovative and they are definitely not fast to react to environment changes. They are not capable of meeting the
individual needs of consumers. For example, many companies are forced to rent an entire warehouse when they
do not need all the storage space. This is where StoreIT N.V. seeks to make a difference by offering
customizable storage units designed to meet specific needs.

2.4. Key Success Factors

Just like every other industry, the self-storage industy has a number of key success factors. It is important that
StoreIT N.V. is aware of these key success factors and can excell in at least three so that it can secure its
competitive edge.
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 Some of the key success factors of the industry include:
Location – Any self-storage facility must be located in a highly visible and easily accessible location.
StoreIT N.V. will be located at the Ringweg which is a highly visble and easily accessible location.
Varying Unit Sizes – Being able to meet the storage needs of every customer no matter how small or
large they are can be accomplished by offering varying unit sizes for rent. StoreIT N.V. have a range
of different sizes of units for rent.
Availability – As customers will be storing their valuables in the units, it is important that the units are
available for access. The units of StoreIT N.V. will be accessible 24/7.
Innovation: It is important that self-storage companies are innovative and foresee customers needs and
come up with innovative ways of meeting those needs. StoreIT N.V. will keep monitoring the needs of
it customers to continue to be innovative in meeting those needs.
Ancillary Products and Services – Extra or additional products or services increases value proposition.
StoreIT N.V. offers a range of ancillary products such as boxing, packing and locking supplies.
Operations – A solid infrastructure and excellent customer service gives a competitive edge. The
driving force behind the daily operation of StoreIT N.V. is customer satisfaction.
Convenience – Customers must be provided with a certain amount of convenience when storing their
belongins that they cannot get elesewhere including their homes.
Adapatibility – The ability to adapt as storage and market needs change will also secure a comptitive
edge.

2.5. Industry Trends

The industry trends discusses the environment and business trends which will affect the introduction and
development of the self-storage industry in Suriname.

2.5.1. Environmental Trends

The environmental trends include the economical trends, the social and cultural trends, the technological
advances and the political changes in the country that affects the industry. Below are the environmental
trends that may affect the self-storage industry once it has been introduced to the Surinamese market.

Economical
The Surinamese economy has been somewhat stable during the last few years which will positively
affect the introduction of the self-storage industry.
Social and Cultural
The concept of renting storage space in order to save personal belongings, inventory and assets is a
concept that has not yet been implemented in the Surinamese culture. There is a possibility that
people might not be so receptive to the concept initially but we will need to minimize the effect of
this factor by using the right marketing tools to create the right perception of this service in the
Surinamese culture. In this process, we will take another dominant Surinamese culture into effect
and try to use it to our advantage and that is that most Surinamese people like to hold on to their
belongings for as long as possible. Surinamese people are very sentimental people. We will therefore
need to get them to see that with our service, the can keep any and all of their sentimental
belongings.
Technological Advances
The technological advances in Suriname keep improving and it already has the basic technologies
needed to foster the self-storage industry.
Political
Politically, the country has been somewhat stable as well. However, we know from past experience
that political factors are known to have positively and negatively affected industries and businesses.
Due to the upcoming elections in 2015, a period of political instability can be expected which will
definitely affect emerging industries such as the self-storage industry. Consumers will more likely
decrease their spending patterns.

2.6. Long-Term Prospects

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 In conclusion, we believe that the self-storage industry will be as successful in Suriname as it is in the rest of
the world. The industry has high potentials..

Table 1: Industry Analysis Self-Storage in Suriname

Dimension Low Moderate Potential High

Potential Potential
Number of competitors ☐Many ☐Few ☒None
Age of industry ☐Old ☐Middle aged ☒Young
Degree of industry concentration ☐Concentrated ☐Neither ☒Fragmented

Stage of industry life cycle ☐Maturity phase ☐Growth phase ☒Emergence

phase
Importance of industry's products ☐Ambivalent ☐Would like to ☒Must have
and/or services to customers have
Extent to which business and ☒Low ☒Medium ☐High
environmental trends are moving in
favor of the industry
Long-term prospects ☐Weak ☐Neutral ☒Strong

Table 2: Determining the Attractiveness of the Industry

Using the Five Forces Model

Threat to Industry Profitability

Competitive Force Low Medium High

Threat of substitutes ☒ ☐ ☐
Threat of new entrants ☐ ☐ ☒
Rivalry among existing firms ☒ ☐ ☐
Bargaining power of suppliers ☐ ☒ ☐
Bargaining power of buyers ☐ ☒ ☐

3. Company
This section provides more information on the company describing items such as the company, its mission and
vision, its legal status, its products or services and its current status.

3.1. Company Description

StoreIT N.V. will be the official name of the company. The reason why this name was chosen is best explained
by our slogan or tagline: Why throw it away, when you can StoreIT! The name is catchy and self-explanatory.
Research conducted at the Surinamese Chamber of Commerce confirmed that there is no other company in
Suriname that has legally registered this name which means that it is available and can be used for our business.

StoreIT N.V. is a self-storage provider which rents storage units of varying sizes to companies and individuals
on a short-term or long-term basis. The rented spaces will be secured by locking devices purchased and
controlled by the tenant only, hence the term self-storage and will be accessible at all times. StoreIT N.V. will
not have access to the unit, unless absolutely necessary. The locking devices can be simple locks and keys or
can even be biometric devices.

Our objective is to give businesses and individuals the ability to store their personal belongings in a safe
environment at an affordable rate. There will be a great range in the sizes of units that can be rented, because
we believe that everyone should be able to rent a space for storage so whether you need a small unit to clear
your house of clutter or a large unit for your files, inventory or other business needs, StoreIT N.V. will provide
the space that is perfect for your needs.

3.2. Company History

The founders of StoreIT N.V. are solution-driven individuals who like to be challenged and have a strong
desire to be trendsetters. This is basically the main reason behind the formation of this company. We wanted to
introduce a service that does not yet exist on the Surinamese market but we did not want it to be just any
service. We wanted it to be a service that provides a solution to a pending need while having some degree of
complexity in its formation, hence the formation of StoreIT N.V.

5 Why throw it away, when you can StoreIT!

3.3. Mission Statement
Our mission is to guide you, our customer, through a positive storage experience by providing a clean,
convenient, state-of-the-art facility with customer service that goes above and beyond in the most professional
and friendly manner.

3.4. Vision
Our vision is to be the premier self-storage company in Suriname. Our signature accomplishment will be to
create and environment where our employees can grow and develop while delivering superior self-storage
solutions to our clients.

3.5. Products and Services

StoreIT N.V. will provide short-terem and long-term self-storage facilities to the commercial and residential
community of Paramaribo, Suriname. These storage units are of varying sizes and can be used to store just
about anything – house hold belongings, merchandise, inventory, vehicles, boats.

The unit sizes that will be available for rent are:

5'X5' (25 Sq. Ft.) - Regular Closet
5'X10' (50 Sq. Ft.) - Walk-in Closet
7.5'X10' (75 Sq. Ft.) - Large Closet
10'X10' (100 Sq. Ft.) - Half of a one-car Garage
10'X20' (200 Sq. Ft.) - Standard one-car Garage
10'X30' (300 Sq. Ft.) - Standard two-car Garage
10'X40' (400 Sq. Ft.) - 40-ft Container

We will also offer ancillary products and services such as:

Different sizes of boxes
Wrapping material
Packing Material
Taping Material
Locks and Keys

We will also offer a deposit boxes for important personal or commercial documents

Small deposit boxes 159mm (H) x 210mm (W) x 492mm (D)

Medium deposit boxes 125mm (H) x 352mm (W) x 492mm (D)
Large deposit boxes 278mm(H) x 352mm (W) x 492mm (D)

Tenants renting storage units for periods longer than three months will be required to sign a maintenance
agreement. The maintenance agreement will cover services such as pest control, cleaning and other maintenance
services. Pre-defined arrangements will be made with tenants in terms of days that these services will be carried
out so that they are present and that their units are accessible.

3.6. Current Status

The company is still in it’s start-up phase. We have alreay selected the name of the company and checked the
availablity of the name but have not yet officially registered it. The feasibility analysis has been completed and
we are in the process of writing the business plan and pooling together the finanical and other resources
necessary to lauch the company. The overall schedule of the tasks and activities that are scheduled to be
completed for the lauch of the company can be seen in section ten.

3.7. Legal Status and Ownership

The company will be established as a limited liability company (LLC) or as it is called in Suriname, the
“Nameloze Vennotschap (N.V.)” .

The founders and owners of the company are:

Bhikharie, Rodney
Charlery, Anne
Goudzand, Timothy
Heidanus, Duane
Persaud, Amanda

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 Initially, the company will be divided into 1,000 shares which will be allocated to the five founders based on
their investment in the company.

3.8. Key Partners

The key companies with which we will seek to create a partnership to assure our customers of quality,
convenience and security are as follows.
Secas N.V. for the alarm systems in the different units and the security guards who will be present on
the compound
Asssuria N.V. for the property and liability insurance of the merchandise stored in the units
Agrofix N.V. for pest control

4. Market Analysis
The market analysis describes the attractiveness and the dynamics of the specific and chosen market within self-
storage industry.

4.1. Market Segmentation and Target Market Selection

StoreIT N.V. will target both commercial as well as residential customers. StoreIT is expected to rent 60% of
its available units to the commercial sector of the market and 40% to the residential sector.

Chart 2: Target Market Selection

Residential
40% Commercial
60%

Our primary commercial targets will consist of small business retailers who are usually located in shopping
malls or rent a retail space in order to execute their business and small business offices conducted at the home of
the owner or at a rented space with insufficient inventory or storage space. Many companies in Suriname are
forced to build their own warehouse(s), due to the fact that Surinamese retailers import more goods than are
produced. In 2012, Suriname imported a total of $1,733,311,435 US Dollars’ worth of goods. This is the total
representation of all imported goods and services including oil and other raw materials, but yet we know that
there is a great deal of companies that import a large amount of products quarterly. Our service will primarily
focus on the companies that need storage facilities and are not in the position to build a warehouse. Suriname is
a developing country and parallel to it is the development of its industrial awareness. They will primarily use
our facilities to store stock and merchandise.

Our secondary commercial targets will consist of large business enterprises which are companies with larger
profit abilities and also consist of a larger workforce. Large business enterprises usually import more goods and
on a more frequent basis. All though most large businesses are in the position to build their own warehouse and
storage facility, we will be able to rent our storage facility in order to fulfill their need of storage space.

Our primary residential targets will consist mainly of middle income to higher income households. The last
census has proven that there are 539,910 inhabitants in Suriname. The capital of Suriname, Paramaribo, contains
over 40% (236,065) of the total population. This is why we have decided that Paramaribo is the right
geographical area for us to launch our business. Residential customers will use our self-storage facilities to
temporarily store their property while moving into new house. They will also include customers with oversized
property and do not have space at home to store it such as boats and similar equipment or those who have excess
household property.

Our secondary residential target will consist of immigrants. For immigrants, we want to be able to provide a
temporary storage for their goods when moving to Suriname. Currently, there are 15,185 registered foreigners
living in Paramaribo.

Our analysis of the target market has revealed the following.

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 Table 3: Target Market Analysis

Low Moderate Potential High

Criteria Potential Potential
Number of competitors in the target market ☐Many ☐Few ☒None
Methods for generating income in the target ☐Unclear ☐Somewhat clear ☒Clear
market
Ability to create “barriers to entry” for ☒Unable to create ☐May or may not be ☐Can create
potential competitors able to create
Degree to which customers feel satisfied ☐Satisfied ☐Neither satisfied or ☒Unsatisfied
by the current offerings in the target dissatisfied
market
Potential to employ low cost guerrilla and/or ☐Low ☐Moderate ☒High
buzz marketing techniques to promote the
firm's product or services
Excitement surrounding new product/service ☐Low ☐Medium ☒High
offerings in the target market
Purchasing power of customers ☐Low ☒Moderate ☐High
Momentum of the market ☐Stable to losing ☐Slowly gaining ☒Rapidly gaining
momentum momentum momentum
Need for a new firm in the market with your ☐Low ☐Moderate ☒High
offerings or geographic location
Extent to which business and ☐Low ☒Medium ☐High
environmental trends are moving in
favor of the target market

4.2. Buyer’s Behavior

Due to there being no current companies active within this industry, it was difficult to determine and research
the buyer behavior of this service. In order to have an indication if there is indeed a need for such a product, we
conducted a survey among 30 small retailers in the Hermitage Mall of which nineteen (19) said that they were
in need of storage space for their merchandise. We also had very informative interviews with a government
official and an infrastructure planning company in Suriname. This was done in order to gain more information
of this yet unknown industry and market. With the research that was conducted, we concluded that there is a
great need for storage facilities within Suriname, not only for commercial use, but also for individual usage.

In general, customer needs in the self-storage industry have certain similarity across different market segments.
The underlying need is for a reliable, safe, dry and accessible self-storage facility. Most customers are less
price sensitive and consider convenient location and accessibility as the major buying decision criterion.
Convenience is probably the single most import factor in the decision of where to rent a self-storage unit.

4.3. Competitor Analysis

One of the benefits of engaging in a new industry is the benefit of not having direct competitors. Research has
revealed that there is currently no company registered as a public storage facility at the Surinamese Chamber of
Commerce and Industry (Kamer van Koophandel & Fabrieken). However, the market research did reveal that
Cambridge International did offer short term storage to individuals and small businesses. Cambridge
International is primary an international shipping company and a moving company that helps people relocate
their belongings. Their short-term storage service was mainly offered to immigrants who needed to temporary
store their merchandise during transition. A telephone interview conducted with Cambridge International
revealed that this service was discontinued in 2013. The company preferred not to share the reason for the
discontinuation of this service with us.

We are aware of the indirect competitors and are aware of the impact they can have on our market share. Most
of our indirect competitors consist of individuals or companies who have a free warehouse and are available for
rent. Currently there are some companies, and the government, that rent entire warehouses in order to store
their products. During the interview with the government official, it was made clear that there is a great need
for a well-designed storage facility, because it is inefficient to rent a whole warehouse if you cannot use the

8 Why throw it away, when you can StoreIT!

 whole warehouse. Also it was made clear that even though there are some storage facilities available there is
still need for a company that offers storage facility on a consistent basis.

A trend that could be followed in Suriname and other third world countries is the copying of business ideas. We
know that we will be the first of our type and have to make sure that we will use our advantage of being the
pioneer. We will make sure that we use the right legal tools in order to defend ourselves from future
competitors that may decide to engage in this new industry. It is also possible that future competitors may
emerge from shipping and moving companies as some of them have attempted a fraction of this service in the
past.

4.4. Estimates of Annual Sales and Market Share

Below is a calculation of the estimated amount of annual sales.

Table 4: Calculation Estimated Annual Sales

Squa re d To ta l Pric e pe r Mo nthly Ye a rly
Ava ila ble
Me te rs Squa re d Unit Inc o me Inc o me
Re ve nue Drive rs pe r Unit Units Me te rs pe r Mo nth Full Utiliza tio n Full Utiliza tio n
5'X5' - Re g ula r Clo se t 2.50 5.00 12.50 $50.00 $250.00 $3,000.00
5'X10' - W a lk-in Clo se t 4.70 5.00 23.50 $100.00 $500.00 $6,000.00
7.5'X10' - La rg e Clo se t 7.00 5.00 35.00 $125.00 $625.00 $7,500.00
10'X10' - Ha lf o f a o ne -c a r Ga ra g e 9.30 10.00 93.00 $150.00 $1,500.00 $18,000.00
10'X20' - St a nd a rd o ne -c a r Ga ra g e 18.60 10.00 186.00 $300.00 $3,000.00 $36,000.00
10'X30' - St a nd a rd t wo -c a r Ga ra g e 27.90 12.00 334.80 $450.00 $5,400.00 $64,800.00
10'X40' - 40-ft Co nt a ine r 37.20 10.00 372.00 $600.00 $6,000.00 $72,000.00
Sma ll d e p o sit b o xe s 159m m (H) x 210m m (W ) x 492m m (D) 0.03 100.00 3.34 $5.00 $500.00 $6,000.00
Me d ium d e p o sit b o xe s 125m m (H) x 352m m (W ) x 492m m (D) 0.04 75.00 3.30 $10.00 $750.00 $9,000.00
La rg e Sa fe t y De p o sit Bo xe s 278m m (H) x 352m m (W ) x 492m m (D) 0.10 75.00 7.34 $15.00 $1,125.00 $13,500.00
Ma int e na nc e Ag re e m e nt $550.00 $6,600.00
Lo c ks a nd Ke ys $100.00 $1,200.00
Bo xing a nd Pa c king Sup p lie s $250.00 $3,000.00
To ta ls 1070.78 $20,550.00 $246,600.00

Estima te Estima te d Estima te

Re ve nue Utiliza tio n Re ve nue
Ye a r 1 50% $123,300.00
Ye a r 2 75% $184,950.00
Ye a r 3 100% $246,600.00

9 Why throw it away, when you can StoreIT!

 Chart 3: Estimated Annual Sales
$300,000.00
$246,600.00
$250,000.00

$200,000.00 $184,950.00

$150,000.00 $123,300.00
$100,000.00

$50,000.00

$0.00
Year 1 Year 2 Year 3

5. The Economics of the Business

The economics of the business begins the financial analysis of the company which is further worked out in the
financial projections. It addresses the basic logic of how profits are earned in the company and how many units must
be rented for the company to “break even” and start making a profit.

5.1. Revenue Drivers

StoreIT N.V. has three main revenue drivers. These are:
Varying sizes of storage units and deposit boxes which can be rented on a short-term or long-term
basis. This is the main revenue driver of the company.
Maintenace agreements which will be required for tenants renting units for periods longer than three
months. The maintenance agreement includes cleaning the unit once per month and pest control.
Boxing, packing and locking materials. This will generate revenues for the company but it is not
meant to be a revenue driver that will be primary focused on. Instead, it is meant to be a
complimentary service offered to customers which will increase the value proposition of the company.

Figure 1: Revenue Drivers

Boxing
and
Packing
Materials

Maintenance
Agreements

Storage Units
and Deposit
Boxes

5.2. Profit Margin and Fixed and Variable Costs

The profit margin of a revenue driver is normally calculated by subtracting the variable costs from the selling
price; however, StoreIT N.V. does not have variable costs directly linked to its main revenue drivers. The costs
remain the same whether or not the storage units are rented. The profit margins are therefore calculated by
subtracting the fixed costs from the selling price. To determine the profit margin, the fixed costs per m 2 are first
calculated.

10 Why throw it away, when you can StoreIT!

 Formula 1 : Fixed Costs per m2 Storage Units & Safety Deposit Boxes

Fixed Costs per m2 = Fixed Costs / Total m2

$12,323 / 1,100 m2 = $11.20 per m2
The calculation of the fixed costs per month is visble in Table . In regards to the total available m 2 for rent, the
building has a total area of 1,234 m2 of which 134 m2 has been reserved for office space and other related
space.

Formula 2: Profit Margin Storage Units & Safety Deposit Boxes

Profit Margin = Sales Price per m2 – Fixed Costs per m2

Table 5: Profit Margin Storage Units & Safety Deposit Boxes
Revenue Driver Sales Price per m2 Cost price per m2 Profit Profit Margin
Storage Units & Deposit $15.99 $11.20 $4.79 30%
Boxes

Formula 3 : Fixed Costs per Maintenance Agreement per Unit

Fixed Costs per Maintenance Agreement = Fixed Costs / Total Unit

$375 / 22 = $17.05 per Unit
The calculation of the fixed costs per month per maintenance agreement per unit has been calculated based on
the montly costs that StoreIT N.V. needs to pay for pest control and cleaning services. In Table , that amount
adds up to $375 per month. The assumption is that only clients who rent the larger units will rent them for
periods longer than three months. There are twenty-two (22) units of these units.

Formula 4: Profit Margin Maintenance Agreement

Profit Margin = Sales Price per Agreement – Cost price per Agreement

Table 6: Profit Margin Storage Units & Safety Deposit Boxes

Revenue Driver Sales Price per Cost price per Profit Profit Margin
Agreement Agreement
Maintenance Agreement $25.00 $17.05 $7.95 31.80%

For boxing, packing and locking supplies, the objective is to basically resell these materials based on a markup
of 25% - 40%.

5.3. Fixed and Variable Costs

As already mentioned, there are no variable costs for our services. The fixed costs are as follows:
Table 7: Fixed Costs

Operating Expenses     Total

Operational, Maintenance & Repairs      

Pest Control     $150.00

Cleaning     $225.00

Landscaping     $100.00

Maintenance Supplies     $100.00

Repairs (Doors, Gates, Equipment, Building)     $150.00

Security Services     $461.54

Total     $1,186.54
Utilities      

Electricity     $153.85

Water     $35.00

Telephone & Internet     $184.62

Total     $373.46

11 Why throw it away, when you can StoreIT!

 Insurance      

Fire Insurance Premium     $100.00

Liability Insurance Premium     $200.00

Car Insurance Premium     $100.00

Total     $400.00
Payroll      

Salaries, including benefits     $7,500.00

Health Insurance     $614.27

Total     $8,114.27
Administrative      
Legal & Account Fees     $150.00
Office Supplies     $50.00
Printing     $50.00
Computer Supplies     $50.00
Total     $300.00
Advertising      
Promotional Items     $50.00
Website Hosting & Maintenance     $25.00
Brochures and Flyers     $100.00
Total     $175.00
Interest      
Interest Expenses     $973.73
Total     $973.73
Other Expenses      
Gasoline     $300.00
Travel Expenses     $100.00
Other Miscellaneous Expenses     $400.00
Total     $800.00
Total Operating Expenses     $12,323.00

5.4. Operating Leverage and Its Implications

The operating leverage is an analysis of the fixed versus the variable costs. As stated before, we basically do
not have variable costs which means that our fixed costs are definitely higer in comparison to our variable
costs which means that we have a high operating leverage. Having a high operating leverage means that it may
take us longer to meet break-even but once we have readed break-even, more of our revenues will fall to the
bottom line.

5.5. Start-up Costs

This section discusses the one-time start-up costs of the company. These costs as seen in the table below
include expenses such as legal expense, fees for the business license and permit and marketing related expenses
such as website and logo design. The normal operating expenses of the company is not included in these costs.

Table 8: Start-up Costs

12 Why throw it away, when you can StoreIT!

 Sto re IT Sta rt-up Co sts
La nd
Ma rke t Va lue
Sq ua re d Me te rs To ta l
p e r m2
1851 $150.00 $277,650.00
Pro p e rt y
To ta l Pric e p e r
Sq ua re d Me te rs Le ve ls To ta l
m2 m2
1234 1 1,234 $400.00 $493,600.00
To ta l La nd & Pro p e rty $771,250

Othe r Sta rt-up Asse ts Pe rc e nta g e To ta l

Co m p ut e r Ha rd w a re / So ft w a re 0.50% $3,856.25
Eq uip m e nt 5.00% $38,562.50
O ffic e Furnit ure / Fixt ure s 0.50% $3,856.25
Se c urit y Syst e m Inst a lla t io n 0.50% $3,856.25
To o ls & Sup p lie s 0.25% $1,928.13
Tra nsp o rt a t io n 2.50% $19,281.25
To ta l Othe r Sta rt-up Asse ts $71,340.63

To ta l Sta rt-up Asse ts $842,590.63

Sta rt-up Expe nse s Pe rc e nta g e To ta l

Arc hit e c t & Eng ine e ring 1.00% $7,712.50
Co nst ruc t io n Insp e c t io n a nd Te st ing 0.10% $771.25
So ils & Env iro nm e nt a l Te st ing 0.10% $771.25
Pe rm it s, Re v ie w , Co nne c t io ns 0.10% $771.25
Le g a l / Ac c o unt ing & Co nsult a nt s 1.00% $7,712.50
Ta xe s & Insura nc e 0.75% $5,784.38
Tit le & Clo sing 0.10% $771.25
Sig na g e 0.10% $771.25
Ma rke t ing (W e b sit e , Bra nd , Pro m o t io na l Ma t e ria l) 1.00% $7,712.50
Busine ss Ent it y Cre a t io n 0.10% $771.25
Int e rne t & Te le c o m m unic a t io n 0.25% $1,928.13
Pub lic Ut ilit ie s 0.50% $3,856.25
Un-fo re se e n st a rt -up Exp e nse s 2.50% $19,281.25
To ta l Othe r Sta rt-up Asse ts $58,615.00

To ta l Sta rt-up Co sts $901,205.63

Chart 4: Start-up Assets vs Expenses

$900,000.00 $842,591.00
$800,000.00
$700,000.00
$600,000.00
$500,000.00
$400,000.00
$300,000.00
$200,000.00
$100,000.00 $39,334.00
$0.00
Start-up Assets Start-up Expenses

5.6. Break-Even Chart and Calculation

13 Why throw it away, when you can StoreIT!
 The break-even point of StoreIT N.V. is the point where the total revenue equals the total costs associated with
the costs of providing and selling the service. The formula that is normally used to determine the break-even
point is as follows:

Formula 5: Total Fixed Costs / (price – average variable costs)

However, due to the fact that we do not have variable costs, the formula that we have used to calculate our
break-even point is as follows:

Formula 6: Total Fixed Costs / price per m2

$12,323 / $15.99 = 771 m2

In order for the company to run at break even, it must have rented 771 m2 of the 1100 m2 that it has available.

Table 9 : Projected Sales Volume and Break-Even

Sq ua re d Me t e rs So ld 0 200 400 600 800 1000 1200

Sa le s Pric e p e r sq ua re d Me t e r $15.99 $15.99 $15.99 $15.99 $15.99 $15.99 $15.99
To t a l Sa le s Vo lum e $0.00 $3,198.00 $6,396.00 $9,594.00 $12,792.00 $15,990.00 $19,188.00
To t a l Co st s (Fixe d ) $12,323.00 $12,323.00 $12,323.00 $12,323.00 $12,323.00 $12,323.00 $12,323.00
Ne t Pro fit -$12,323.00 -$9,125.00 -$5,927.00 -$2,729.00 $469.00 $3,667.00 $6,865.00

Chart 5 : Break-Even Chart

14 Why throw it away, when you can StoreIT!

 $15,000.00

$10,000.00

$5,000.00

Total Costs (Fixed)

$0.00
Net Profit
0 200 400 600 800 1000 1200 1400

-$5,000.00

-$10,000.00

-$15,000.00

6. Marketing Plan
The marketing plan focuses on how the company will position itself within the market, how the company will sell its
service to prospective customers and how the company will build its perception towards consumers and the rest of
the community.

6.1. Overall Marketing Strategy

The overall marketing strategy of StoreIT N.V. is based on the focus and differentiation strategy put into effect
using the digital and direct marketing strategies. StoreIT N.V. will strive to server some relatively small sectors
to the market very well and thus not focus on the whole market. The company will differentiate by providing a
service not yet offered in the market in a state of the art facility accompanied by personnel driven by customer
satisfaction.

6.1.1. Positioning Strategy

StoreIT N.V. wants to be known as a company that has made life more comfortable and convenient for its
customers. We do not only want our customers to just store their belongings in a secure place, but we also
want them to make use of everything else this company has to offer. We offer to professionally help the
customer load and unload their belongings and we promise to give the customer 24 hour access to their
units. Our goal is not to be an exclusive service. We as pioneers in this industry have the ability to choose
how we position ourselves. We want to position as an affordable service focused on meeting the needs of
the customers.

6.1.2. Unique Selling Proposition (USP)

Our USP relies solely on the fact that there is no other company like us. We are the first to offer storage
facilities accompanied by great security, 24/7 access to the units and help whenever it is needed. We will
have security guards that will guard the building on a 24/7 hour basis. In order to make sure that our
clients are the only with access to their units, we will give them the only keys available to their units, and
also each unit will have a separate alarm system with a personal code. Also the building is designed in
such a way that tenants are able to stop right in front of their storage units with their container or moving
trucks. This service was designed for the customer and for the customer only.

6.1.3. Target Customers

We are currently targeting commercial and residential customers. We have calculated that 60% of our
available space will be used for commercial customers and 40% for residential customers. The building is
also designed in a way that there are enough large units available for the small retailers and specific units
for residential customers. Our definition of small retailers is companies located within shopping malls or
other rented spaces that are used to execute their business. Most of these companies are not in the position
to build their own warehouse for storage usage, and renting a whole warehouse is in most cases too

15 Why throw it away, when you can StoreIT!

 inefficient. Most of these companies also do not have a large workforce. Due to a small workforce, we
will offer the service to help load and unload the client its products.

For our residential customers we want to market to households. The last census defined families with an
average of four to five habitants in one house. We also target that the head of the household who are
mostly between 35 years and 70 years and are mostly male with middle to high income.

We will also be targeting immigrants who need a temporary storage facility before they are able to settle
down. We believe that this group will consist of both men and women between the ages of 40 and 67.

6.2. Product, Price, Promotions and Distributions

The product, price, promotion and distribution are marketing factors that are within the control of StoreIT N.V.
which it can use to increase its marketing position.

6.2.1. Product
The product that we are offering is a self-storage facility targeted at meeting the expectations of our
customers which include safety, availability, affordability and great customer service. As company it is
our duty to incorporate these expectations, because they complement our service. Since the
product/service is internally controlled it is up to us to make sure that these expectations are incorporated
within our service in order to assure our customers of a great and sustainable service.

6.2.2. Price
As a pioneer of the self-storage industry in Suriname, it is our objective to be positioned as an affordable
service. Since that there are no other self-storage companies on the market, we are free to determine our
prices; however, we are not focused on charging high prices. We want to offer our customers “more for
less” as much as possible. It is also important that our prices remain affordable as we do not want our
prices to become a barrier that keeps people from trying our services.

6.2.3. Promotion
Promotion will be very important. Our promotional strategy will be to promote our service in the most
attractive and personal way as possible. Our focus will be on getting people to see how making use of our
service can improve the quality of their lives.

For the small retailers we will make use of a direct marketing strategy. We will go and meet the
prospective customers personally. With enough material to explain what our service is and what it could
mean to them, we have a chance of explaining and making that they do understand the concept of our
service. With direct marketing, we will be able to establish a personal relationship with the prospective
customers. The decision to use the direct marketing strategy for commercial customers is based on the
business culture in Suriname. Companies are more likely to do business with you once they have met you
and have a general idea of your background.

For our residential customers, we will make use of the digital marketing strategy. We will use the
different social networking websites available which makes it easier for us to reach our specific
demographic. We will also use commercials on the different television networks in Suriname before and
during the prime time. We will also make use of advertisements in the different newspapers available in
Suriname. Unlike many Surinamese companies, we will not flood the community with our commercials
and advertisements, but instead use marketing means to target and reach our specific target markets.

Some other methods of promoting will include:

Signage: This might include attractive on-site signage with high visibility. Also, to be
considered is off site signage. Perhaps signs placed on trucks or other vehicles or even a
strategically located billboard.
Brochures: Brochures, flyers, and leaflets advertising "special discounts" or simply familiarizing
the public with the concept of self-storage.
Radio/TV Advertising: Commercials on the different television networks in Suriname before
and during the prime time.
Newspaper and Local Publications: Classified advertising in the different newspapers
available in Suriname.
16 Why throw it away, when you can StoreIT!
 Referrals: We will try to increase our market presence through word of mouth and referrals
from current customers, moving companies, relocation services, real estate brokers, truck rental
agencies, and apartment managers.
Web Site & Internet: We will use the different social networking tools and will also have a
user-friendly website will all information regarding our service.

6.2.4. Distribution
It is important for us that the customers are well aware of the different storage units available and the
different services that we have to offer. Our well-designed website will consist of enough information and
visuals giving a prospective customer a clear idea of which storage unit will be sufficient for his needs
and how much such a storage unit will cost. Prospective customers will also be able to call into our office
during office hours and schedule a meeting to see our different sizes available. We prefer this because in
this situation we are able to assist to prospective customer on a personal and a more precise way. Due to
our service only being available at our warehouse, it is necessary that it is widely known where we are
located and of course that we are easily accessible.

6.3. Sales Process

The following is the approach that we plan on taking in terms of selling our self-storage service and products.
Our sales process will consist of seven steps.

Figure 2: Sales Process

Prospecting and
Qualifying Pre-approach Approach

Presentation Presentation Closing the Sale

Follow-up and
Referrals

6.3.1. Prospecting and Qualifying

We hope to generate sales lead from our website and other promotional efforts. As mentioned earlier, we
will also take on a direct approach whereby we are going to seek out prospective customers, especially
prospective commercial customers. Once we have qualified them as prospective customers, we will
proceed to the next step in our sales process.
6.3.2. Pre-approach
In this stage, our sales team will do as much research as possible on our prospective customers, learning
the needs and relevant background so we can find the best way to apply our services to their needs. As
stated earlier, our commercial customers will mostly include retailers so we will try to obtain as much
information as possible on the type of merchandise that they would need to store and which storage units
will be the most appropriate for the storage of such merchandise.
6.3.3. Approach

17 Why throw it away, when you can StoreIT!

 The most important part is making sure that we make a great first impression on our prospective
customer, whether if our initial approach is a phone call or a personal meeting.
6.3.4. Presentation
In this stage of our sales process, we will present our prospective customers with factual information
regarding our services and show them how our services can meet their need of self-storage. If necessary,
we will present the physical storage units to them.
6.3.5. Handling Objections
If the customer has any concerns or hesitations regarding our product or services, we will make sure that
we take the time to fully understand them and to respond accordingly taking away all concerns or doubts.
6.3.6. Closing the Sale
Once we have successfully convincing the customer of their need for self-storage, we will close the sale
by arranging on the terms of the sale and finishing up the transaction.

6.3.7. Follow up and Referral

This is one of the most crucial stages of our sales process. We want to make sure that our customers are
satisfied so that we can retain them and obtain prospects for new customers via them. This stage will
include customer relationships activities such as thank-you notes and customer satisfaction surveys.

6.4. Sales Tactics

In order to implement our sales strategies, we will follow the following sales tactics which are the planned day
to day activities that we hope to help us achieve our sales objectives.
The implementation of lead tracking tools
Make it about value and not price
Making sure that our sales team is knowledgable of the benefits of our service
Conduct regular sales and customer service trainings

7. Design and Development Plan

The design and development plan focuses on the status of our development efforts of our self-storage service.

7.1. Development Status and Tasks

We are currently at the initial stages of the development of our self-storage service. The site location and the
building are the two main development stages. The first stage is the selection and purchase of the site’s location
and the second state is the construction of the storage facility.
Selection of the site’s location – We already have the perfect location for our self-storage facility. One
of the founders of the company owns a piece of land on the Ringweg which will be used to build the
self-storage facility.
The second phase in the development plan is the acutal building which will embody every aspect of
the service. We plan on developing a virtual prototype (a 3-D) model to give a representation of what
the building will look like and the facilities that it will have and what the service will look like and
how it will be expereienced by customers.

7.2. Challenges and Risks

Some of the challenges and risks involved with building and developing our self-storage facility include:
Finding experienced architects
Delays in finalizing the legalities of construction such as obtaining the building permits and licenses
on a timely manner
Poor organization and lack of construction knowledge and expertise which may result
The construction process will take approximately twelve (12) months but can be obstructed by bad
whether which may result in it taking longer to be finished.

7.3. Projected Development Costs

As mentioned earlier, the land and building are infact the basis for the self-storage service. The start-up of the
business is infact the development of the service and as a result, the projected development costs are equaled to
the start-up costs of the buisness which is $ 901,205.63. The calculation of this amount can be seen in Table 8.

7.4. Proprietary Issue

In our line of business, we will have to take active measures to protect our trademark and our trade secrets. A
lawyer will be hired to register StoreIT as a trademark which will ensure the protection of our company’s
name, brand name, logo and slogan.

Our trade secrets will be protected by using physical and written measures. For example, employees will be
required to sign written agreements prohibitting them from starting up their own self-storage company after
18 Why throw it away, when you can StoreIT!
 having obtained knowledge and expertise from StoreIT N.V. Anyone to whom confidential information
regarding the company and its operations are revealed will be required to sigen non-disclosure agreements.

8. Operations Plan
The operation plan describes how the business will be run on a day to day basis and how our product and services
will be produced.

8.1. General Approach to Operations

It is the objective that the storage facility will be a two-story building with storage units for rent on both levels;
however, due to insufficient funding, we will only start with one story and will later on seek funding to extend
to the second level. The building will be approximately 1234 m 2; however, only 1100 m2 will be available for
rent. Anyone that has an interest in storing personal belongings or extend the storage of their company can
come to the office at the Ringweg or they can contact us using our website or telephone facilities. At the office
a front desk employee will meet with the client and discuss our services. During this meeting our front desk
employee will give the client a tour of the facility and present the sizes of the renting spaces. If the client is
interested in renting a space, the front desk employee will draw up the contracts which need to be signed. The
contracts can differ from a time period of 3 months up to 5 years. After the contracts have been signed, the
client will be guided to the finance department where the payment can be made. After the payment
requirements the client will receive a key to the rented unit. The Management will have a quality review of the
company once every month. During this review the managers will write a report on the process of their given
department. These reports will be merged in one report called the monthly quality control report. In this report
all the managers can have an indication on the status of the company as well as the overall performance.

The opening hours of the office are from 8.00am till 5.00pm. However, the storage facilities will be accessible
for the renters on a 24hour basis. Each tenant has a key to access their space and a keycard to access the
premises.

During working hours the managers of Finance, HRM, Marketing, Sales and Operations are available in the
office. Apart from these managers the company will also have a five people employed. Security guards will be
hired from Secas N.V.. There will always be two guards on location at any given time. There will be two field
employees who will be available to assist tenants with loading and unloading of merchandise.

8.2. Business Location

The location chosen for StoreIT N.V. is the Ringweg which is one of the most interconnected locations within
Paramaribo. Anyone would be able to easily and convenient arrive at StoreIT N.V. from different directions
from Paramaribo. Furthermore, the main shopping malls consisting of one of the main target market (retailers
who do not have their own storage space within the malls) are easily accessible from the Ringweg.

Image 1: Ringweg, Suriname

19 Why throw it away, when you can StoreIT!

 8.3. Facilties and Equipment
Key facilities and equipment that StoreIT N.V. will need to ensure successful operations are:
Burglary alarm
Fire alarm
Company vehicles
Computer and software
Forklifts
Electricity and Water
Trash removal
Pest Control
Cleaning Services
Man Security Services

The main approach for obtaining their facilities and equipment is by establishing key partnerships with the
providers of these facilities and to establish line of credits with them which will allow StoreIT to make use of
the services without having to pay for it immediately.

9. Management Team and Company Structure

The management team and company structure focuses on the human resources of the company and whether or not
they have the necessary skills, experience and expertise needed to execute the business idea and manage the
company.

9.1. Mamagement Team

The management of StoreIT N.V. will consist of the five founders. Below is the result of the management
analysis conducted in the feasibility analysis.

20 Why throw it away, when you can StoreIT!

 Table 10: Management Analysis

Criteria Bhikharie, Charlery, Goudzand, Heidanus Persaud,

R A H ,D A
Passion for the High High High High High
business idea
Relevant Moderate Moderate High High Moderate
industry
experience
Prior Moderate Moderate High High High
entrepreneurial
experience
Depth of professional High High High High High
and social networks
Creativity among High Moderate High High Moderate
management team
members
Experience and expertise Moderate Moderate High Moderate High
in cash flow management
College graduate High High High High High

Since that the operation of StoreIT N.V. is not large scale and does not require much human resources, the
management team will also assume the leadership functions of the main departments within the company as
explained in the table below. The CV of the individual members of the management team with their skills
profile can be found in the appendix.

Table 11: Management Team Skills Profile

Department Management Skills & Expertise

Accounting & Finance Persaud, Amanda Bachelor’s in IBMS
Master’s in Business Administration
9 Years’ Experience in Accounting & Finances
Good oral and written communication skills
Self-motivation
Initiative and the ability to work as part of a team.
Excellent problem-solving, analytical, technical, IT and
numerical abilities
HRM Charlery, Anne Bachelor’s in IBMS
Master of Human Resource Management
30 Years’ Working Experience
Good oral and written communication skills
Self-motivation
21 Why throw it away, when you can StoreIT!
 Initiative and the ability to work as part of a team.
Excellent problem-solving
Marketing Goudzand, Timothy Bachelor’s in IBMS
Master’s in Business Administration in Sales and Marketing
7 years relevant experience
Creative Skills
Commercial Awareness skills
Operations Heidanus, Duane Bachelor’s in IBMS
MSc Operations Management
10 years relevant experience
Planning & Management Skills
Problem solving & strong initiative and leadership skills
Sales Bhikharie, Rodney Bachelor’s in IBMS
Master’s in Business Administration in Sales and Marketing
Commercial Awareness skills
Result orientated
Confident
Passion for selling

9.2. Board of Directors

In it’s initial phase, StoreIT N.V. will not have a board of directors but as the company grows, it is the
objective to eventually have a board of directors consisting of a minimum of three members. The fuction of the
board of directors will be to:
Provide direction for the company
Provide guidance and advice to the shareholders
Establish a policy based governance system for the company
Monitor and control the activities of the company

9.3. Board of Advisers

The company currently does not have a board of advisers.

9.4. Company Structure

The below organizational chart explains how the company will be structured.

Figure 3: Organizational Chart

22 Why throw it away, when you can StoreIT!

 Board of
Directors

Board of Management
Advisers Team

Finance and
HRM Marketing Operations Sales
Administation

Operations
Finance Marketing
HRM Assistant Assistant Sales Executive
Assistant Assistant
Manager

Operations Operations
Assistant Assistant
10. Overall Schedule
The following schedule includes the major events that are needed to launch the business.

Table 12: Overall Schedule

Task In Progress Next 3 Months Next 6 Months

or Done
Feasibility Analysis ☒
Business Plan ☒
Incorporation ☒
Secure building permit
Building Construction ☒
Obtaining Business Loan ☒
Hiring Employees ☒
Marketing and Promotion Business Launch ☒
Establishing Key Partnerships ☒

11. Financial Projections

This section presents the company’s pro-forma projectsions. The feasiblity analysis revealed the following regarding
the finanical analysis of the company.

Table 13: Finanical Analysis

Low Moderate High

Criteria Potential Potential Potential
Initial capital investment ☒High ☐Moderate ☐Low
Steady and rapid growth in sales during the first one to three ☐Unlikely ☐Moderately ☒Highly likely
years in a clearly defined target market likely
High percentage of recurring income—meaning that once you win a ☐Low ☐Moderate ☒Strong
23 Why throw it away, when you can StoreIT!
 client, the client will provide recurring sources of revenue
Ability to forecast income and expenses with a reasonable degree of ☐Weak ☐Moderate ☒Strong
certainty
Availability of exit opportunity for investor if applicable ☐Unlikely to be ☐May be ☐Likely to be
unavailable available available
Number of revenue drivers ☐One ☒Two or three ☐More than three
Time to break even ☐More than two ☒One to two ☐Less than one
years years year
Ability to fund initial service development and start-up expenses ☐Low ☐Moderate ☒High
from personal funds

11.1. Sources and Uses of Funds Statements

The below table shows the total amount of money that the company needs, where the money will come from
and how it will be used.

Table 14 : Start-up Funding Sources and Uses

Start-up Assets to Fund $842,590.63

Start-up Expenses to Fund $58,615.00
3-Months Operating Expenses $36,969.00
Total Start-up Funding Required $938,174.63
Owner’s Equity / Investment  
Bhikharie, Rodney $123,400.00
Charlery, Anne $123,400.00
Goudzand, Timothy $123,400.00
Heidanus, Duane $277,650.00
Persaud, Amanda $123,400.00
Total Equity $771,250.00
Long-Term Liabilities (Bank Loans) $166,924.63
Total Funding (Equity & Liabilities) $938,174.63

11.2. Assumptions Sheet

The following assumptions were made based on which the finanical projections and calculations in this
document has been made.

Table 15: Assumptions used for Finanical Projections

Pro-Forma Income Statement Assumptions

Net Sales In Year 1, Only 50% of avaiable storage units will
be rented.
In Year 2, 75% of available storage units will be
rented at any given time.
Year 3, 100% of available storage units will be
rented each month.
Cost of Goods Sold There are not direct costs of goods sold.
Expenses Expense amounts will remain approximately the
same within the first 3 years of operation.
Interest Expenses 7% of long-term debt
Depreciation Fixed Method of Depreciation with 2.5% off

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 Property and 20% per year other assets.
Other Income Late Fees & Administration Costs
Pro-Forma Balance Sheet Assumptions
Accounts Receivables 5% of sales
Accounts Payable 2.5% of sales
Accurred Expenses 1% of sales

11.3. Pro Forma Income Statement

The following pro-forma income statement reveals the projected profit and loss for StoreIT N.V. for the first
three years of operations.

Table 16: Consolidate Pro-Forma Income Statement

Consolidated Pro-Forma Income Statement

StoreIT N.V.
December 31st December 31st December 31st
 
Year 1 Year 2 Year 3
Net Sales $123,300.00 $184,950.00 $246,600.00
Cost of Sales 0 0 0
Gross Profit 123,300 184,950 246,600
Operating Expenses      
Operational, Maintenance & Repairs 14,238 14,238 14,238
Utilities 4,482 4,482 4,482
Insurance 4,800 4,800 4,800
Payroll 97,371 97,371 97,371
Administrative 3,600 3,600 3,600
Advertising 2,100 2,100 2,100
Other Expenses 9,600 9,600 9,600
Depreciation 26,608 23,755 20,855
Operating Income -39,499 25,004 89,554
Other Income (Fees & Other) 3,000 3,300 3,630
Interest Expenses 11,685 11,685 11,685
Income before income taxes -48,184 16,619 81,499
Income Tax Expense 0 6,315 30,970
Net Income -48,184 10,304 50,530
Earnings per share 0 10 51

Chart 5: Yearly Estimated Profit

25 Why throw it away, when you can StoreIT!

 $50,530.00
$60,000

$40,000
$10,304.00 Year 1
$20,000
Year 2
$0 Year 3
Profit
-$20,000

-$40,000
-$48,184.00
-$60,000

11.4. Pro Forma Balance Sheets

The following pro-forma balance sheet reveals the projected ending value of the company for the first three
years of operations.

Table 17: Pro-Forma Balance Sheet

Consolidated Balance Sheet

StoreIT N.V.
December 31st December 31st December 31st
 
Year 1 Year 2 Year 3
Current Assets      
Cash and cash equivalents 1,000 11,558 82,017
Account Receivables 6,165 9,248 12,330
Total Current Assets 7,165 20,805 94,347
Non-Current Assets      
Land 277,650 277,650 277,650
Building 481,260 468,920 457,197

Computer Hardware/Software 3,085 2,468 1,974

Equipment 30,850 24,680 19,744

Office Furniture/Fixtures 3,085 2,468 1,974

Security System Installation 3,085 2,468 1,974

Tools & Supplies 1,543 1,234 987

Transportation 15,425 12,340 9,872

Total Non-Current Assets 815,983 792,228 771,373
Total Assets 823,148 813,033 865,721
Current Liabilities      
Account Payables 3,083 4,624 6,165
Accrued Expenses 1,233 1,850 2,466
Total Current Liabilities 4,316 6,473 8,631
Long-term Liabilities 158,578 150,232 141,886
Total Liabilities 162,894 156,705 150,517
Owners’ Equity      
Owners’ Equity 660,254 646,024 664,674
Retained Earnings 0 10,304 50,530

26 Why throw it away, when you can StoreIT!

 Total Owners Equity 660,254 656,328 715,204
Total Liability and Owners Equity 823,148 813,033 865,721

11.5. Pro-Forma Cash Flow

Table 18: Pro-Forma Cash Flow

Consolidated Statement of Cash Flow

StoreIT N.V.
  Year 1 Year 2 Year 3
Cash Flow from Operating Activities      
Net Income (48,184) 10,304 50,530
Changes in Working Capital      
Depreciation 26,608 23,755 20,855
Increase in Accounts Receivables (6,165) (3,083) (3,083)
Increase in Accounts Payables 4,316 2,158 1,541
Increase in Accrued Expenses 1,233 617 617
Total Adjustments 25,992 23,446 19,930
Net Cash Flow from Operating Activities (22,193) 33,750 70,459
Net Cash Flow from Investing Activities 0 0 0
Net Cash Flow from Financing Activities 0 0 0
Net Cash Flow (22,193) 33,750 70,459
Cash at the beginning of the year 0 (22,193) 11,558
Cash at the end of the year (22,193) 11,558 82,017

11.6. Ratio Analysis

The following ratio analysis provides the businesses with a way to understand its financial position, identifying
weaknesses and opportunities so that we can make reasonable forecasts.
Table 19: Ratio Analysis

Ratios Formula Year 1 Year 2 Year 3

Profitability Ratios        
Return on assets Net Income / Average Total Asset -5.85% 1.26% 6.02%
Return on equity Net Income / Average Shareholder Equity -7.30% 0.39% 7.37%
Profit Margin Net Income / Net sales -39.08% 8.99% 20.49%
Liquidity Ratio      
Current Ratio Current Assets / Current Liabilities 166.03% 321.40% 1093.12%
Quick Ratio Quick Assets / Current Liabilities      
Overall Financial Stability
       
Ratio
Debt Total Debts / Total Assets 19.79% 19.27% 17.39%
Debt to equity Total Liabilities / Owners Equity 24.67% 23.88% 21.05%

27 Why throw it away, when you can StoreIT!

12. Bibliography

Armstrong, G. & Kotler, P. (2012) Principles of Marketing 15th ed. Harlow: Pearson Education Limited.
Barringer, B. R. & Ireland, R. D. (2012) Entrepreneurship 4rd ed. Harlow: Pearson Education Limited.

13. References

ABS (2013). Handelsstatistieken 2009 - eerste helft 2013 (293rd ed.). Paramaribo, Suriname: Algemeen

Bureau voor de Statistiek.
ABS (2014). Districtsresultaten Volume I (Paramaribo - Wanica) (301st ed.). Paramaribo, Suriname:
Algemeen Bureau voor de Statistiek
IBIS World. Storage & Warehouse Leasing in the US Market Research. Web.
<http://www.ibisworld.com/industry/default.aspx?indid=1351&partnerid=ValuationResources> . 12 May
2014.
"Inside Self-Storage Resource Center." Inside Self-Storage Resource Center. N.p., n.d.
http://www.insideselfstorage.com/resource-center.aspx. Web. 12 May 2014.
"Self Storage Association ." SSA. Web.
http://www.selfstorage.org/SSA/Home/AM/ContentManagerNet/ContentDisplay.aspx?ContentID=4228. 12
May 2014.
Wikimedia Foundation, 05 Nov. 2014. "Self Storage." Wikipedia. Web.
http://en.wikipedia.org/wiki/Self_storage. 12 May 2014.
ZippyShell. "About The Self Storage Industry." Web. <http://www.zippyshell.com/franchise-
opportunities/about-the-self-storage-industry/#sthash.BS16h5Wr.dpuf. 12 May 2014.

28 Why throw it away, when you can StoreIT!

14. Appendicies

Appendix 1: New service concept statement

New Business Concept

StoreIT N.V.
Service
StoreIT is a self-storage service which rents storage units of varying sizes to companies and individuals. This service is
not yet in Suriname. By giving businesses and individuals the ability to store their personal belongings in a safe
environment at an affordable rate we hope to meet the need of businesses such as retailers executing their business in
shopping mall for storage facilities. All customers will have 24/7 access to their storage compartment. There will be a
great range in choices of space that can be rented, because we believe that everyone should be able to rent a space for
storage so whether you need a small unit to clear your house of clutter or a large unit for your files, inventory or other
business needs, StoreIT will provide the space that is perfect for your needs.

Target Market
Since that this will be a revolutionary service in the Surinamese market, StoreIT N.V. plans to start off with one facility
which will be located on the Ringweg being in close proximity to down-town Paramaribo and the shopping malls such as
the Hermitage Mall. StoreIT is expected to rent 60% of its available units to the commercial sector of the market and
40% to non-commercial renters. The commercial segment are small businesses, many of which are run out of people's
homes such as an interior designer who needs space to store hundreds of expensive sample fabric books, or a retail shop
with inadequate on premises storage. The non-commercial renters includes individuals who need storage facilities due to
moving arrangements or to store excess household property and also immigrants who need to temporary store their
belongings because they have not yet found living accommodations.

Why StoreIT N.V.?

Our aim is to guide you, our customer, through a positive storage experience by providing a clean, convenient, state-of-
the-art facility with customer service that goes above and beyond in the most professional and friendly manner. That is
why you should choose StoreIT N.V. We also strive to offer you a valuable and needed service that no one else is
currently offering and we will not only provide you with storage facilities. We will also sell packing and moving supplies
to make it more convenient and all arrangements regarding moving trucks and vehicles will be arranged by us on your
behalf.

Special Features
Two special features about our service are: a space estimator calculator and an animated storage unit illustrator. Both of
these features are online features available on our website. The space estimator calculator will help our clients to choose
a unit size that is best suited for their storage needs based on total cubic footage. We will also have an animated storage
unite illustrator that will show our clients determine how much space they need to store their belongings.

Management Team
The management team of StoreIT N.V. will initially consist of it five co-founders who all have the required knowledge,
expertise and experience needed to successfully manage the daily activities of StoreIT N.V. and to develop it into one of
the well-known brands in Suriname.

29 Why throw it away, when you can StoreIT!

Appendix 2: Building Design

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31 Why throw it away, when you can StoreIT!