An individual wanted to put up a storage facility anywhere within a 30 mile radius of his home. He came to Capacity not knowing much more than the fantastic long term profit potential for these types of properties. He did understand the value of a proper feasibility study for his safety and the lenders comfort.
He engaged Capacity Consulting to launch a full feasibility analysis. Unlike most entrepreneurs he wanted us to do all the research on the business, demographics, expenses, income, competition, market share, building materials, contractors, available real estate, zoning and regulatory approval.
The analysis determined that the business was indeed viable and we pre-cleared all zoning and regulatory issues on the land he was interested in. The biggest concern was a large degree of completion, but the particular areas he chose actually supported a storage facility despite the competition. The other very influential factor was the price of the land. The endeavor made financial sense at a certain price and didn’t at another.
Armed with the facts, our client began to negotiate with two land owners having the necessary locations. We were hopeful due to slowing real estate prices but both remained way above market value and way above what made sense for our client.
No deal was made but he thanked us profusely for saving him as he was originally prepared to over pay for the land. Had he done that, he would not have made a profit no matter how well we projected the business did and he would have been ruined.