How to Create a Winning RV Park Business Plan

Whether you’re an entrepreneur seeking a new business venture or an existing RV park owner looking to expand, developing a comprehensive business plan is crucial to your success.

A well-crafted business plan allows you to examine the market, pinpoint your target audience, and create a foundation for financial projections and growth strategies.

You’ll also need one when seeking funding from banks or investors.

Whether you’re an RV’er or not, here’s the deal. The RV park industry is seeing tremendous growth, attracting more and more people seeking to escape the hustle and bustle of everyday life.

With that comes the need for well-thought-out RV park business plans encompassing various aspects of market research, marketing strategies, operational plans, and financial forecasting.

Keeping these factors in mind as you craft your business plan will lead to a stronger, more sustainable business over the long term.

Key Takeaways

    
• A comprehensive business plan is essential for success in the growing RV park industry.
    
• Consider market research, target audience, and financial projections when creating your plan.
    
• A well-developed plan acts as a foundation for operational strategies and attracts potential investors.

What Are RV Parks?

Before we get into what’s involved with writing a good RV park business plan, let’s first define what an RV park is in the first place.

An RV Park is a venture where people with recreational vehicles (RVs) have a spot to stay overnight or longer in designated areas called “sites” or “campsites.”

This industry isn’t just about providing a parking spot; it’s about offering a full outdoor experience. Think campgrounds, RV parks, and vacation camps, plus trailer and caravan parks and even wilderness camps.

These places are all about catering to outdoor enthusiasts and providing amenities like:

    
• washrooms
    
• laundry facilities
    
• pools/lazy rivers
    
• playgrounds

A lot of the growth we’re seeing is driven by travel trends, as heading to campgrounds and RV parks is seen as a more budget-friendly alternative to traditional vacations.

To give you an idea of the scale, check out some of this data:

And it’s worth noting that the U.S. is home to over 13,000 privately owned RV parks and more than 1,600 state parks geared towards RV enthusiasts.

Key Elements of a Successful RV Park Business Plan

Executive Summary

In your RV Park Business Plan, the Executive Summary serves as a brief yet comprehensive overview of your business. It offers potential investors an insight into your overall business goal, as well as the strategies you plan to implement in achieving it.

Important aspects of your executive summary include the following:

    
• business concept
    
• target market
    
• competitive advantage
    
• financial growth projections

Unique Selling Proposition (USP)

To start with your RV Park Business Plan Template, you need to emphasize the fundamental concept of your RV park. Describe the unique selling proposition (USP) of your park, such as favorable location, amenities, or activities that set it apart from other parks in the area.

When I was learning sales and marketing for my dental practice, one of the first concepts taught was having a USP. This is a simple way to describe “why someone would want to do business with you versus the person down the street.”

Target Market

Next, consider identifying your target market. Analyze and mention the demographics of your prospective customers, such as families, retirees, or specific groups of RV enthusiasts.

Explain how your RV park will cater to their needs, preferences, and expectations. Again, you’ll want to show your competitive advantage that will enable you to stand out from the competition, attract customers, and build a strong brand reputation.

Financial Outlook

Present key financial metrics, such as your anticipated revenue, expenses, and profitability over a specific period.

You may choose to use tables or graphs to help illustrate your projections, making it easier for the reader to understand your financial goals.

Operations Plan

Location and Facilities

You’ve probably heard the MOST important aspect of real estate is LOCATION. RV parks are no different as the location and facilities play a crucial role in its success.

Ideally, your park should be situated near popular tourist attractions, such as state parks and outdoor activities, which will attract more visitors.

Look for a piece of real estate that provides ample space for RV parking, as well as additional facilities such as a swimming pool, laundry facilities, and common areas for guests to gather and socialize.

Here are some factors to consider when choosing the right facilities for your park:

Proximity to attractions

 Evaluate nearby state parks and outdoor activities that may be appealing to travelers.

Available real estate

Make sure the chosen property has enough space to accommodate your desired number of RV sites and necessary facilities.

Utility access

 Check whether the location is connected to essential utilities, such as water and electricity.

Staffing Requirements

An important aspect of your operations plan is determining the staffing requirements for your RV park. This includes deciding on the number of team members needed to manage the park efficiently and ensure smooth operational workflow.

Factors like park size, the seasonality of the location, and guests’ expectations will influence staffing needs.

Here’s a brief breakdown of staffing positions to consider:

Keep in mind that seasonality and park size may affect these staffing needs, so consider flexible working hours or part-time positions to control operating expenses.

Operational Workflow

To run a successful RV park, a clear and efficient operational workflow is necessary. This involves addressing the daily tasks and processes to maintain the park and meet guests’ expectations.

Incorporating a reservation system allows for seamless check-ins and check-outs, while having a well-defined maintenance schedule for pools, laundry facilities, and other amenities keeps your park in optimal condition.

A well-organized operational workflow might follow these steps:

    
1. Guest reservations: Confirm availability and record their information through an online reservation system or by phone.
    
2. Check-in and park orientation: Register the arriving guests, provide them with key information about the park, and guide them to their reserved spot.
    
3. Facility maintenance: Regularly clean and maintain amenities like laundry rooms and pool areas according to a predetermined schedule.
    
4. Customer support: Address any guest feedback, complaints, or concerns in a timely manner to ensure a positive experience.

Financial Plan

Revenue Model

A clear revenue model is going to be important to create when creating a financial plan.

RV parks typically generate income from several sources:

Financial Projections

Developing accurate financial projections will help you determine the profitability and sustainability of your RV park. Your financial statement should include:

    
1. Income Statement: This shows your projected revenue, expenses, and net income for each year of operation.
    
2. Balance Sheet: This summarizes your company’s assets, liabilities, and equity at a specific point in time.
    
3. Cash Flow Statement: This report details your company’s inflow and outflow of cash during a specified period.
    
4. Startup Costs: Estimate your initial expenses, such as the purchase price of the land, construction costs, and equipment purchases.

Funding and Capital Structure

Obtaining funding for your RV park will likely involve a combination of financing options. Researching the best methods to finance your business is crucial. Consider the following sources:

    
• Bank Loans: Traditional bank loans are a popular choice for business financing. However, obtaining approval may require a detailed business plan, collateral, and a strong credit history.
    
• Private Investors: Partnering with private investors can be advantageous. In exchange for capital, they may request equity or profit-sharing agreements. This is my go-to resource with members of our Passive Investors Circle. 
    
• Business Loans: Small Business Administration (SBA) loans or other government-backed loans are available for qualifying entrepreneurs.
    
• Business Credit Cards: These cards can assist with small expenses and may provide rewards or cashback incentives.

Appendices

Supporting Documents

A section for supporting documents will provide evidence backing up your claims and help demonstrate the viability of your venture. These documents may include:

Additional Resources

In addition to including supporting documents in your good business plan, having access to additional resources can further strengthen your proposal. Some of these resources might include:

    
1. Industry associations: Leverage professional networks, like recreational vehicle park associations, to gain insights and collaborate with industry experts.
    
2. State agencies: Consult websites and publications from relevant state agencies to find up-to-date information on regulations, licensing requirements, and application processes.
    
3. Small Business Administration (SBA) resources: Utilize the SBA’s online resources, tools, and templates to ensure your business plan meets their standards.
    
4. Local chamber of commerce: Make use of your local chamber’s information, workshops, and networking events to build relationships within your community.
    
5. RV park industry reports: Access the latest RV park industry reports to stay informed about recent trends and market conditions.