Are you about starting a campground? If YES, here is a complete sample campground business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a campground. We also took it further by analyzing and drafting a sample campground marketing plan template backed up by actionable guerrilla marketing ideas for campgrounds. So let’s proceed to the business planning section.
Why Start a Campground Business?
Americans and perhaps Europeans like camping especially during springs and summer; this goes to show that the campground business is a viable and profitable business venture and aspiring entrepreneur can successfully launch in the united states of America.
It is important to state that the bulk of the job when it comes to starting a campground business lies in securing a big facility that is large enough to contain the required facilities that will make your campground worth patronizing.
Also your campground should be in a location with the right atmosphere in terms of serenity; a location that may attract the kind of clients that would pay to make use of your campground. It might take you months to get an ideal facility and you just might have to even pay from your nose. So, it is better that you inform your real estate agent well in advance to help you with the search.
Besides, building a campground can be expensive but you can be rest assured that you will make your money within few years of launching the business especially if you have people patronizing your facility on a regular basis. The fact that you are going to secure a facility big enough to accommodate the activities and services you intend offering and enough parking means that you must truly be prepared for this business.
So, if you have decided to open a campground for business, then you should ensure that you carry out thorough feasibility studies and also market survey. This will enable you properly locate the business and then hit the ground running.
Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business. Below is a sample campground business plan template that can help you to successfully write your own with little or no difficulty;
A Sample Campground Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
The campgrounds and RV parks industry primarily operates campgrounds and (RV) parks, as well as recreational and vacation camps. The industry also includes trailer and caravan parks and wilderness camps. Basically, players in this industry take care of outdoor enthusiasts and also provide access to facilities such as washrooms, laundry rooms, recreation halls, playgrounds and even training facilities.
Studies shows that the Campgrounds and RV Parks industry has enjoyed stable growth in recent time for instance, in spring 2008 in the United States; the number of people who went camping within the 12 months of that same year amounted to 41.75 million.
The industry is largely driven by travel-related trends, as trips to campgrounds and RV parks are viewed as cost-efficient alternatives to traditional vacations. Going forward, increasing fuel prices and an appreciating dollar are expected to affect industry growth. On the other hand, improvements in the broader economy of the United States, as well as an aging population, will support the growth of revenue for this industry.
The Campgrounds and RV Parks industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.
Statistics has it that in the United States of America alone, there are about 14,031 licensed and registered Campgrounds and RV Parks those who are into franchising responsible for employing about 51,211 employees and the industry rakes in a whooping sum of $6 billion annually with an annual growth rate projected at 2.3 percent between 2011 and 2016. It is important to state that no establishment has a lion share of the available market in this industry.
A recent report published by IBISWORLD shows that the Campgrounds and RV Parks industry has expanded steadily, with revenue expected to increase at an annualized rate of 2.3 percent over the five years to 2016. The report shows that while the cost of using campground and RV facilities is less expensive relative to other types of accommodation, the RV Parks and Campgrounds industry was not immune from the impact of the broader economic downturn.
The report also stated that following the downturn, a spike in unemployment caused consumers to curtail nonessential purchases and cancel or delay their travel plans. Recovery commenced in 2012, but the industry’s rebound began slowly, with revenue increasing marginally in 2013. As the US economy underwent its initially tepid recovery, travel-related sectors experienced a bump in sales.
In recent time, the Campgrounds and RV Parks industry has experienced revenue growth, despite many families being time-strapped. While the industry contended with mounting competition from alternative leisure activities, such as bouncing castle, gym and fitness centers and cinemas, many operators generated industry revenue growth on the basis of convenience.
In the coming years, the industry revenue is forecast to grow as family entertainment centers such as campground and RV parks will continue to enhance their product portfolios to attract families, despite their reduced leisure time
Over and above, starting a campground business in the United States of America can be some worth stressful, it requires enough cash to acquire land large enough to accommodate the kind of facility that can comfortably attract families, religious organization and corporate organizations and also cash required to equip the facility to meet the standard expected by campers. But that does not rule out the fact that the business is profitable.
2. Executive Summary
Unique Arena Campground®, LLC is a standard and well equipped campground and recreational facility that will be located in a serene environment in the outskirt of Madison – Wisconsin. Our aim of setting up the business is to contribute our quota in ensuring that families, campers, religious organizations and corporate organizations that live in Madison and neighboring cities have a facility that is highly suitable for family recreation and camping.
We have successfully leased a standard facility in a central and easy to locate location in Madison – Wisconsin. We our services include operating campgrounds, operating RV parks, operating overnight recreational camps, operating travel trailer and caravan campsites, and operating wilderness camps plus other recreational activities. We are well equipped to services the whole family cum community as well as visitors and travelers.
Unique Arena Campground®, LLC is going to become the number one choice for campers looking towards camping in Madison – Wisconsin and we will work hard to build our facility to match the needs of all our clients and potential clients.
Before choosing a location for our campsite, we conducted a thorough research and feasibility studies and we were able to come to the conclusion that Madison – Wisconsin is the right place to open our campground. Our campground facility is specifically designed and built to take care of religious events, corporate events, school events et al.
We have active childcare services for toddlers and we have membership packages that are highly discounted for families that enrolled with us or churches, corporate organizations and schools who would want to regularly make use of our facility for camping events.
Unique Arena Campground®, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
Unique Arena Campground®, LLC is a registered family business that is owned and managed by Paul Livewire and his immediate family members. Paul Livewire has a degree in Business Management from the University of Wisconsin. He has over 10 years hands on experience in the campgrounds and RV parks industry working for some of the leading brands in the United States of America and Canada.
3. Our Products and Services
Unique Arena Campground®, LLC is in the campgrounds and RV parks industry to provide camping and recreational facility for campers, religious organizations, corporate organizations, and families living in Madison and other neighboring cities and we have been able to put up a facility that can help us achieve our business goal.
We are optimistic that everyone who makes use of our campground facility will definitely derive huge fun and of course value for their money. These are the services and amenities that will be made available to our clients in our facility;
- Operating campgrounds
- Operating RV parks
- Operating overnight recreational camps
- Operating travel trailer and caravan campsites
- Operating wilderness camps
- Food and drinks court
- Ice cream shop
- Other related facility operation
4. Our Mission and Vision Statement
- Our vision of starting Unique Arena Campground®, LLC is to build a world – class campground and recreational facility and also to contribute our quota in encourage families and residence in Madison and neighboring cities to actively engage in camping and fun – filled recreational activities.
- Our mission for establishing Unique Arena Campground®, LLC is to create a movement in the community that supports total engagement of families and groups in fun filled camping and recreational activities.
Our Business Structure
Unique Arena Campground®, LLC is in business to become the leading private camping and recreational facility in the whole of Madison – Wisconsin and we are fully aware that it will take the right facility, management and organization – structure to achieve our goal.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
Our business will not be built only for the purpose of giving our members / customers value for their money, but also we will ensure that we make our work environment highly conducive for all our employees. We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals et al.
In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;
- Chief Executive Office – CEO
- Camping Facility Manager
- Admin and Human Resources Manager
- Accountant / Cashier
- Marketing and Sales Officer
- Customer Care Executive / Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Carries out staff induction for new team members
Camping Facility Manager
- Responsible for operating and managing the campground
- Ensures that the camping facility is in tip top position at all times
- Responsible for managing food and beverage services
- Manages membership and registration services
- Handles equipment rentals and sales services
- Handles other relevant camping facility operation
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversee the smooth running of the daily office activities.
Marketing and Sales Officer (2)
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluate new plans for expanding increase sales
- Documents all customer contact and information
- Represents the organization in strategic meetings
- Helps to increase sales and growth for the organization.
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization.
Client Service Executive
- Welcomes members and potential members / clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s products and services
- Manages administrative duties such as membership registrations and other related tasks assigned by the management in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for cleaning in and around the campground facility
- Cleans up after customers and clean work area
- Washes glassware and utensils after each use
- Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Handle any other duty as assigned by the campground / facility center manager.
6. SWOT Analysis
Unique Arena Campground®, LLC is in business to provide camping and recreational facility for families and groups in Madison – Wisconsin and at the same time to make profits. We are aware that there are competitions in the campgrounds and RV parks industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard earned money into the business.
We know that if we get things right before starting our campground, we will not have to struggle before attracting loyal clients and building our membership base to a level where we can easily breakeven in record time. We hired the services a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us.
Here is a of the result we got from the SWOT analysis that was conducted on behalf of Unique Arena Campground®, LLC;
One of the obvious strength that will definitely stand as a plus for Unique Arena Campground®, LLC is the fact that our facility is of great standard and it is strategically located in a densely populated – residential area in Madison – Wisconsin; our location is in fact one of our major strength.
We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims making use of our campground facility and lastly our gate fee / membership package is one of the best that anybody living in Madison – Wisconsin can get; it is cheap and affordable.
We critically looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing campground and RV parks as well as family entertainment and recreation facilities and even government own entertainment and recreation facilities in Wisconsin when it comes to acquiring latest recreational vehicles and generating the needed hypes that can drive traffic towards our facility.
We are centrally located in densely populated area and of course an area with the right demographic composition in Madison – Wisconsin and we are open to all the available opportunities that the city has to offer.
Some of the threats that are likely going to confront Unique Arena Campground®, LLC are unfavorable government policies, inclement weather, demographic / social factors, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our campground facility is located.
7. MARKET ANALYSIS
- Market Trends
The Campgrounds and RV Parks industry has indeed benefited from recent marketing campaigns which is targeted towards encourage people to participate in recreation activities and camping, as well as consumer trends toward healthy living.
Going forward, many people who are part of the baby boomers generation are expected to sign up for recreational club memberships or make use of camping and recreation facilities in their communities, as they become more family cum health- conscious as they grow older. However, patrons of campgrounds and recreation centers are anticipated to increasingly pick up membership from less expensive camping and recreational centers as against expensive all-inclusive clubs.
The trend in the campground and RV parks industry is such that if a facility is well – equipped and positioned close to a residential area or a place where people can easily access without much stress, there is the likelihood that the campground and recreational facility will enjoy high patronage.
Just like in other business ventures, the owner of campgrounds and recreational vehicle parks are always looking for ways to increase their market share; they go as far as signing deals with high schools and also religious organizations et al to make use of their facility.
Lastly, it is a common trend that as campgrounds and recreational vehicle parks grows, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people. Little wonder some campground and recreational vehicle parks now have other facilities targeted towards attracting adults / parents.
In order words, it is very important for campgrounds and recreational vehicle facilities to continue to improvise if they want to grow their business and generate their target revenues.
8. Our Target Market
The target market for campground cuts across people from different backgrounds. The fact that people visit or register in campgrounds and recreational facilities for various reasons makes marketing the business interesting. The target market for campgrounds and recreation facilities can be categorized into three various groups.
The first group is the families who are looking towards creating time for children cum family hangouts and bonding. The other group of people is schools who are would want an ideal place to take students / children to during excursions or playtime et al. The last group of people is religious organizations, corporate organizations and clubs who are looking for towards team bonding activities and other similar activities.
Unique Arena Campground®, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our family entertainment center to;
- Households and families in an around Madison – Wisconsin
- Churches and Religious centers
- Corporate organizations
- Travelers / Tourists
A close study of the campgrounds and recreational vehicle (RV) parks industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to compete favorably with other leading campgrounds and recreational vehicle (RV) parks in the United States and the globe.
The Campgrounds and RV Parks industry is indeed a prolific and highly competitive industry especially in the United States of America. Clients will only make use of your campground and recreation vehicle facility if they know that you can successfully help them achieve their goals or provide the enabling environment and facility for them to camp and achieve their aim of camping.
Unique Arena Campground®, LLC is strategically located in a densely populated – residential area in Madison – Wisconsin; our location is in fact one of our major strength. We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims making use of our campground facility and lastly our gate fee / membership package is one of the best that anybody living in Madison – Wisconsin can get; it is cheap and affordable.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups campground and recreational vehicle park businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Unique Arena Campground®, LLC is established with the aim of maximizing profits in the campgrounds and recreational vehicle (RV) Parks industry and we are going to go all the way to ensure that we do all it takes to attract both individual clients (families) and corporate clients on a regular basis.
Unique Arena Campground®, LLC will generate income by offering the following services;
- Operating campgrounds
- Operating RV parks
- Operating overnight recreational camps
- Operating travel trailer and caravan campsites
- Operating wilderness camps
- Food and drinks court
- Ice cream shop
- Other related facility operation
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.
It would be hard to create a sales forecast with a newly opened business like campground and recreational parks. This is simply because the statistics that will be provided will be on a short term basis. Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will be need to help in accurate forecasting; statistics should be at least one-year-old in order to show the trends and pattern in consumer spending.
We expect to welcome a minimum of 12,000 customers i.e. 0ne thousand customers per month within our first year of operations and then in subsequent year we will grow by 25 percent or more. Below are the sales projection for Unique Arena Campground®, LLC, it is based on the location of our campground and recreational facility and the services and products that we will be offering to our clients (members);
- First Fiscal Year-: $240,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major competitor offering same additional services as we do within 4.5 miles radius from our campground and recreational vehicle facility. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and increases our market share. We will leverage on improving on our services and facility to ensure that we win new clients and retain old members.
At Unique Arena Campground®, LLC, our marketing strategies will be consistent throughout the marketing mix and we will take into consideration product improvement, promotion, and price.
As part of our sales and marketing strategies, we will pay attention to the promotion of our campground facility so as to attract families, schools, groups, religious organizations and corporate organizations to enroll and become our members.
Our unique selling proposition is that we are well positioned and people can easily access our facility, our prices are affordable and we have a complete package for families, clubs, schools and religious organizations. Parts of the marketing and sales strategies that we will adopt are;
- Open our campground and recreational facility with a big party for all and sundry
- Advertise our campground and recreational facility on national dailies, local TV stations and local radio station
- Promote our campground and recreational facility online via our official website and all available social media platforms
- Introduce our campground and recreational facility by sending introductory letters alongside our brochure to religious organizations, schools, corporate organizations, households and key stake holders in Los Angeles – California
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Delivering consistent customer experiences to all our members; making our first impression count positively to those making use of our campground and recreational facility for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our campground and recreational facility
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places in and around Madison – Wisconsin
- Create a loyalty plan that will enable us reward our consistent members especially those that registered as a family or groups
- Engage in road shows within our neighborhood to create awareness for our campground and recreational facility.
11. Publicity and Advertising Strategy
We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of Madison – Wisconsin which is why we have made provisions for effective publicity and advertisement of our campground and recreational facility.
Below are the platforms we intend to leverage on to promote and advertise Unique Arena Campground®, LLC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based sport events and competitions
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Madison – Wisconsin
- Engage in road show from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact Families, corporate organizations, religious organizations and schools by calling them up and informing them of Unique Arena Campground®, LLC and the facilities and services we offer
- List Unique Arena Campground®, LLC on local directories / yellow pages
- Advertise our campground in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our official vehicles and trucks are well branded with our corporate logo et al.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the campgrounds and recreational vehicle (RV) parks industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging as gate fees or members fee in Madison – Wisconsin.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family, groups or a religious organization and schools. The prices of our services will be same as what is obtainable in the United States’ open market.
- Payment Options
The payment policy adopted by Unique Arena Campground®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Unique Arena Campground®, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our facilities and services.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a campground and recreational facility; it might differ in other countries due to the value of their money.
However, this is what it would cost us to set up Unique Arena Campground®, LLC in the United of America;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
- Cost for hiring Business Consultant – $5,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing facility for the campground and recreational facility – $250,000.
- The total cost for facility remodeling and equipping the facility ((electrical, furnishings, plumbing, painting and landscaping) – $150,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for the purchase of room furniture, kitchen equipment and gadgets (mattresses, bed sheets, blankets, pillows, beds, fridges, smoke detector, TVs, microwave oven, Sound System, tables and chairs et al) – $150,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, video games, snooker board, tables and chairs et al) – $10,000.
- The cost of Launching a Website – $600
- The cost for our grand opening party – $15,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000
We would need an estimate of $750,000 to successfully launch a small but standard and well – equipped campground and recreational facility in Madison – Wisconsin.
It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to start up a campground and recreational facility and also the huge amount required in securing a facility large enough to accommodate campground and recreational facilities within same location.
Generating Funds / Startup Capital for Unique Arena Campground®, LLC
Unique Arena Campground®, LLC is a family registered business that will be owned and managed by Paul Livewire and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources. They do not intend welcoming external investors for now.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Unique Arena Campground®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to pick up membership in our campground and recreational facility is to equip our facility with state of the entertainment equipment, ensure that the camping facility is always in tip top shape and conducive, and over and above make our services and facilities affordable.
Unique Arena Campground®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed family entertainment equipment, gym and fitness equipment, electronic appliances, office appliances and suppliers: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors and key stakeholders in the industry: In Progress
Frequently Asked Questions
How Do You Apply For A License To Operate A Campground?
This will depend on the location of your campground because regulations tend to be different from one jurisdiction to another. Regulations and how to apply to operate a campground in your local area can be found in zoning laws, municipal codes, or state regulations.
What Kind Of Supplies Do You Need For Your Campground Business?
- Licensing and Permits
- Septic system
- High-speed internet
How Much Does It Cost To Start A Campground?
Aside from the cost of land, it will be around $20,000.00 and $30,000.00 per site to start a campground.
How Much Land Is Needed To Start Up A Primitive Campground?
According to experts, at least 5 acres or more.
How Much Would It Cost To Start A Campground That Already Exists?
According to experts, an existing campground with amenities already in place will cost around $100,000 to $2 million+, and you can assume a substantial amount of additional renovation.
How Much Does It Cost To Run A Campground Business?
This will vary depending on how the campground is set up. While some parks are quite inexpensive to run, a good number of others are extremely expensive. Factors such as location, zoning, competition, level of amenities, and volume of guests, seasonal impacts, and availability of resources all play a part in driving your costs.
What Other Regulations Do You Need To Operate A Campground?
When starting and running a campground, you might have to apply for various other permits or certificates, depending on what you intend to install or offer (e.g. Place of Assembly Permit if a huge number of people will gather on your campground, Sign Permit, Sign Building Permit, Swimming Pool Permit to install, operate or construct a pool; Restaurant Equipment Authorization, Food Service Establishment Permit, Food Protection Certificate or Pool Operator Certificate, etc.). Your local government will be able to advise you on all of these requirements.
How Many Sites Can You Have In Your Proposed Campground?
Have it in mind that you can have as many sites in a campground as the septic system and the sanitary/shower building can support. Note that to have more sites, the septic system and/or sanitary facilities need to be adequate and also expanded to meet with the extra demands.
How Much Does A License To Operate A Campground Cost?
This will vary according to states, cities, and counties, and you will have to contact your local authority to find out.
What Should The Campground Fees Be Set At?
Ideally, campground fees are set between $25 and $80 per night depending on the location, the size of the space, and the amenities available in the campground.
How Does One Go About Finding An Owner Of A Campground On The Other Side Of The Country To Talk To?
Note that the National Association of RV Parks & Campgrounds (ARVC) is a trade association that is well suited in providing resources and assistance to more than 3,700 campground owners throughout the nation. When venturing into this industry, it is advisable to participate in ARVC or other trade groups to stay on top of campground industry developments and to network with other campground owners.
Who Do You Speak With If You Have Technical Questions About The Requirements To Operate A Campground?
Your district health inspector is the best person to speak with if you have technical questions about the requirements to operate a campground.
What Are Some Skills And Experiences That Will Help You Build A Successful Campground?
To build and run a successful campground, owners need a wide range of skills, especially if they intend to do all of the work without hiring or outsourcing! Skills that will help include:
- Working with heavy equipment
- Landscaping and design
- Office management
- Customer service
What Are The Factors That Can Influence The Selection Of Campground Software?
There are numerous factors that will influence this answer, and they include;
- Platform Ease of Use and Layout
- Customer Service
- Cloud vs. Software
Does A Private Campground Need A License From The State Of Illinois To Operate?
In the State of Illinois, campgrounds that operate more than 5 nights per year are mandated to obtain a State permit, although there are some limited exceptions. Ensure to contact the Illinois Department of Public Health in Marion at 618- 993-7010 for more information.
The Campground Was Recently Inspected With the Previous Owner; Does It Need To Be Inspected Again If Ownership Changes To Me?
This will depend on the Health Inspector and how well he or she knows the campground, history, and if you intend to make certain renovations or changes to your menu.
What Happens During A Typical Day At A Campground?
As a new business, the business owner will be expected to do all the work. He or she is expected to perform the following duties;
- Cleaning bathhouses and bathrooms
- Interacting with campers in person and on the phone
- Setting reservations
- Planning events
- Checking campers in and out
- Emptying trash containers at each campsite
- Handling campers’ complaints about other campers, the site, or the campground
- Opening and cleaning rec rooms and other amenities the campground offers
- Seasonal duties such as snow plowing, picking up debris from trees, and cleaning up after storms.
Is Owning A Campground Profitable?
Yes, owning a campground can be very profitable if it is done right. Whether you start from scratch or build on a pre-existing campground, there are many factors that can influence the profitability of your campgrounds like your location, business experience and timing.
Should I Use An LLC Formation Service Or Do It Myself?
To form an LLC, you just need to follow certain simple procedures and many people can do so without much difficulty. You just have to visit the Secretary of State’s website, ensure that your business name is available, file out the Articles of Organization (also called a Certificate of Formation or Certificate of Organization depending on the state), and paying all necessary fees.
Note that the process can differ in states, and some can be quite easier than others, however, it is very common to come across processes and requirements that sound strange. For individuals, this can cause issues. Therefore, to avoid mistakes and uncertainties, using a formation service is best.
With All These Cons Of Owning A Campground, Why Would Anyone Want To Purchase One At All?
Aside from being lucrative, owning and managing a campground is indeed a very rewarding experience. Although you will be busy, you will get to be your own boss. You can set up your own schedule based on the needs of your park and your own personal agenda. As a cash business that is busy through the summer and cost-free living arrangements on the property, owning a campground can be a wonderful investment with the ability to rake in a large profit.
What Are The Costs Involved In Opening A Campground?
If you are building or starting from the scratch, then expect the cost to include;
- The purchase of land
- For acquiring an existing campsite, prices range from about $100,000 to over $2 million.
- Licensing and permitting, including sales tax and occupancy certificates
- Designing the campground, including roads, the locations of the sites, and locations of amenities you are providing. These may include playgrounds, a dog walk area, and rec room, boat ramp, hiking trails, roads, and bridges.
- Clearing of the land and creating the roads
- Installing electric, plumbing, and septic systems
- Construction of bathhouses, bathrooms, fencing, rec buildings, installing a pool, and building any other amenities you plan.
How Do You Apply For A Department Of Health And Human Services License?
To apply for a department of Health and Human Service License, you will need to download an application (PDF) online or call the Health Inspection Program’s main line at 207-287-5671 for a hard copy. Note that you will be expected to provide information about the business owner, a general site plan, and the proposal. You will also be expected to provide a copy of a water test if you use a well as a water supply, and a copy of your septic systems design if you are not on a public sewer.
How Soon Can I Get a License After An Application Is Submitted?
Note that immediately the district health inspector has given approval for you to operate your campground, within 30 days of receipt of a completed application, if there are no other pending issues, the Health Inspector will inform the Licensing Clerk to issue your license. This is more or less within a week once the Health Inspector informs the Licensing Clerk.
What Are Some Insider Tips For Jump Starting A Campground?
Note that you won’t have to spend much if you already have the land available. However, it is necessary to always consider what the area has to offer. If there is a river on the property, you might have to cater to those who like to fish. But if most of the land is flat, then expect to cater to the handicapped, especially if you are able to make concrete hiking trails that would be easy for those in wheelchairs to navigate.
You should consider inculcating a small store, playgrounds for children, a dog park area, and a recreation room for those rainy days. Extra things to consider include:
- Ensure to make curves and turns in the roads wide enough for longer rigs.
- Ensure to have numerous of pull-through sites to make it easier for the larger rigs.
- While “glamping” is quite famous, you will also find that there are many who like to rough it. Be sure to have plenty of primitive sites for tents.
- Provide a good variety of 50-amp and 30-amp hook-ups.
What Is The Growth Potential For A Campground?
The growth potential of any campground depends on how much extra land is available. Note that owners of these businesses could make over $1 million per year if the campground is big enough and is popular. In addition, if a campground is small, but is always booked to capacity, the owner could acquire adjoining land to make additional campsites and grow business revenue.
Another way to engineer growth in this business is to create a franchise. Franchises, without doubt, offer you unlimited growth potential, since you can open campgrounds across the country. Note that you would make money from franchise fees and a portion of the profits for each campground.
What Are The Ongoing Expenses For A Campground?
Have it in mind that this will differ greatly, depending on how the campground is set up. However, they may include:
- Garbage disposal
- Septic tank maintenance and cleaning
- Cleaning supplies
- Licenses and permits that need to be renewed
- Entertainment, such as paying performers
- Gas for camp vehicles
- Maintenance on camp vehicles
- Gravel for roads, if applicable
- Patch materials for paved roads
How Can You Make Your Business More Profitable?
To make your campground more profitable, here are strategies to consider;
- Inculcate more sites
- Analyze your accounting to ensure that you are charging a fair amount that covers utilities and your liabilities
- Ensure that you are sold out by making your campground the best place to go in your locations
- Establish a budget and stick to it
- Add additional services that you might charge for, such as ice, firewood, and a store