Business model
At the moment, the existing network of individual warehouses offers a temporary storage servicewith delivery in Kharkov and Lvov.
This type of warehouse is designed for urban residents who have accumulated things that have no place either in the apartment or in the garage. In a modern warehouse, you can store your favorite bike, children's toys, car tires, furniture and other unnecessary things. Optimum temperature and humidity are maintained. Warehouses are equipped with professional security systems.
There are 3 types of space BOX, ROOM and FREE Space with different options for area from 2 to 50+m2. Base prices from 160 to 330 UAH/m².
Additional services:
- Loading Unloading
- delivery at a price below the market price by own transport
- rack rental
- packaging materials, boxes
- means of loading - free of charge
Competitive advantage - providing a comfortable and ergonomic placement of things in the "Room" by providing a variety of additional auxiliary storage accessories (boxes, hooks, hangers, stretch film, etc.). Accessories are offered for an additional fee, which allows you to increase the amount of box rental.
Services can be ordered online without leaving home.
At the moment, the network says:
-3 warehouses in Kharkov
- 1895 sq. m. (occupancy 95%, boxes are 517 sq.m.)
- 500 sq.m. (occupancy 98%, boxes are 475 sq.m.)
- 110 sq. m. (100% occupancy, boxes are 86 sq.m.)
-2 warehouses in Lviv
- 170 sq. m.
- 280 sq. m.
Market
The total area of such warehouses in the USA reaches more than 200 million sq.m. (For every American, there are 0.72 square meters of individual storage warehouses)
In Europe, these figures are a little more modest - 7.5 million square meters. m. (for each European there is 0.015 sq.m. self storage)
In Russia - up to 500 thousand square meters. m.
In Ukraine - up to 80 thousand square meters. m.
In Kharkov - up to 3 thousand square meters. m.
The data show that the potential for further development and scaling of the business model in the cities of Ukraine is quite large.
By risks - the company is not exposed to COVID risks or military actions. In addition, any force majeure or instability in the market, in which other companies are closed, is a plus for this company.
Financial performance and development plan
Current business indicators (annual):
Number of m2 in operation: 2505 m2
Revenue: UAH 2,426,675
Profit (excluding UK): UAH 1,340,675
Future business performance after attracting investments (cumulative):
Year 3
Investment amount (cumulatively over 3 years): 62,046,107 UAH
Number of m2 in operation: 20000 m2
Net profit: UAH 13,172,593
Investor profit: 2,536,200 UAH
Year 5
Number of m2 in operation: 24000 m2
Net profit: UAH 86,238,552
Investor profit: UAH 26,793,600
Year 7
Number of m2 in operation: 24000 m2
Net profit: UAH 230,058,846
Investor profit: UAH 84,321,680
Offer for the investor
The purpose of attracting investments:business expansion (scaling) to other regions of Ukraine (Kyiv, Dnipro, Zaporozhye, Odessa, Lviv, Krivoy Rog).
Registration and protection of investments:
Co-ownership in LLC is proportional to the amount of investment + investment agreement, co-ownership of assets - TM, website, boxes.
Different investment conditions, depending on the amount, terms, are discussed individually. Options for the investor are formed based on the assessment of 100% of the company: 5,866,700 USD:
- The minimum investment amount is $117,334 for 2% in the company.
- The maximum investment amount is USD 2,346,676 for 40% in the company.
Rationale for the company's valuation:
The assessment of the company is formed - on the basis of the future performance of the company, after investing funds in it and implementing the project. Forecast performance indicators are taken on the basis of a pessimistic development scenario.
Year 3
Company capitalization: UAH 232 million
Year 5
Company capitalization: UAH 362 million
Year 7
Company capitalization: UAH 848 million
Taking into account the dynamics of the company's forecast value, the potential to increase the invested funds by 10 or more times by the multiplier due to capitalization in less than 10 years, as well as the payment of dividend income from the 6th year, is planned to be 46% or more per annum.
Expansion Project Performance Indicators
For dividend yield:
1) Annual profitability of the project: 5%
2) Profitability of the project for 7 years: 36%
3) Annual profitability of the project: 19%
4) Profitability of the project for 7 years: 136%
With dividend yield + sale of the investor's share:
1) Annual profitability of the project: 83%
2) Profitability of the project for 7 years: 583%
3) Annual profitability of the project: 98%
4) Profitability of the project for 7 years: 683%
Control:
- Transparency of activities: accounting is completely conducted online, the investor gets access from anywhere in the world to relevant management dashboards.
- The ability to see the warehouse occupancy, the amount of income, expenses, any changes in the warehouse and which of the clients brings in how much profit.
- This business model is successfully showing itself as an alternative monetization of commercial and logistics real estate.
