A Recreational Vehicle Park (RV Park) is a business that provides a facility where people with recreational vehicles can stay overnight, or longer, in allotted spaces known as “sites” or “campsites”.
Statistics have it that in the United States of America alone, the market size of the campground & RV park sector was estimated to be around 5.48 billion U.S. dollars in 2020, down from the previous year’s size of 7.88 billion U.S. dollars. Please note that currently, there are over 13,000 privately owned RV parks and over 1,600 state parks that cater to RVers in the USA.
The real deal in starting an RV Park (Recreation Vehicle Park) business is securing a big facility that is large enough to contain not just the tracks for the recreational vehicles (RV) and other fun-filled outdoor games for children.
But also a restaurant, a place where parents/guardians can hangout while their wards catch fun, enough parking space, and also a location that may attract the kind of clients that would pay to make use of your RV park. It may take you months to get an ideal facility and you may have to pay from your nose.
Steps on How to Write an RV Park Business Plan
Table of Content
Executive Summary
Radisson Green® Recreational Vehicle Park Company, Inc. is a standard RV park facility that will be located in San Antonio – Texas. We have been able to secure all the necessary permits for our facility. Radisson Green® Recreational Vehicle Park Company, Inc. will ensure that all our amenities and facilities meet international standards.
We have CRM software that will enable us to manage a one-on-one relationship with our customers no matter how large our customer base may grow. Radisson Green is the founder and CEO of Radisson Green® Recreational Vehicle Park Company, Inc.
Company Profile
a. Our Products and Services
Radisson Green® Recreational Vehicle Park Company, Inc. will establish an ideal recreational vehicle park (RV Park) facility for people (travelers) with recreational vehicles and also for tent campers who would want to stay in our facility. We will also provide an electric vehicle charging facility for Electric Vehicle owners to charge their cars.
b. Nature of the Business
Our recreational vehicle park (RV Park) facility will operate essentially as a club where patrons can pick up membership and pay their subscription monthly, quarterly, or annually.
c. The Industry
Radisson Green® Recreational Vehicle Park Company, Inc. will operate under the campground and recreational vehicle park (RV Park) industry.
d. Mission Statement
Our mission is to establish a world-class recreational vehicle park whose facility will not only attract individual recreational vehicle owners but also attract campers and organizations to host their local, national, and international competitions in our facility.
e. Vision Statement
Our vision is to become the ‘go-to’ recreational vehicle park in San Antonio and environs when it comes to world-class recreational vehicle facilities.
f. Our Tagline (Slogan)
Radisson Green® Recreational Vehicle Park Company, Inc. – Safe Heaven for Recreational Vehicle Owners!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Radisson Green® Recreational Vehicle Park Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Recreational Vehicle Park (RV Park) Facility Manager
- Accountant/Cashier
- Marketing and Sales Officer
- Attendants (5)
- Customer Care Executive / Front Desk Officer
- Cleaners
- Security Officers
i. Ownership/Shareholder Structure and Board Members
- Radisson Green (Owner and Chairman / Chief Executive Officer) 56 Percent Shares
- Peter Santos (Board Member) 14 Percent Shares
- Valene Joel (Board Member) 10 Percent Shares
- Maurene Linus (Board Member) 10 Percent Shares
- Monica Poska (Board Member and Sectary) 10 Percent Shares.
SWOT Analysis
a. Strength
- Ideal Location for recreational vehicle facility
- Highly Experienced and Qualified Employees and Management
- Availability of electric vehicle charging ports
- Highly Secured and Clean Facility
b. Weakness
- Budget limitations
- Inability to properly manage off-peak season such as bad winter
- A new business that will be competing with well-established RV park facilities
- Inability to retain our highly experienced and qualified employees longer than we want
c. Opportunities
- San Antonio is a thriving market for recreational vehicle park (RV Park) facilities.
- Good support structure for recreational vehicle park (RV Park) facilities from the government and nonprofit organizations.
i. How Big is the Industry?
The campground and recreational vehicle park (RV Park) industry that recreational vehicle park facility is a part of are pretty big and it is worth well over $7.88 billion in the United States.
ii. Is the Industry Growing or Declining?
The campground and recreational vehicle park industry are growing due to the fact that most states have started lifting the covid19 restrictions that negatively truncated growth for the industry in the last 18 months.
iii. What are the Future Trends in the Industry
The campground and recreational vehicle industry are changing, and players in the industry are improvising. No doubt, technology, and social media will change the landscape of the industry going forward. With revenue heavily linked to the millennial generation, and of course, the inclusion of amenities such as electric vehicle charging ports, will likely dictate industry recovery over the next five years.
iv. Are There Existing Niches in the Industry?
No, there are niche ideas in the recreational vehicle park line of business.
v. Can You Sell a Franchise of your Business in the Future?
Radisson Green® Recreational Vehicle Park Company, Inc. has plans to sell franchises in the nearest future and we will target the United Kingdom, Canada, and Australia.
d. Threats
- Competition from other recreational vehicle parks
- Community resistance
- Government regulations
- Liability problems
- Funding
- Continuously changing consumer demands
i. Who are the Major Competitors?
- Equity Lifestyle Properties Inc.
- Sun Communities Inc.
- Kampgrounds of America Inc.
- Mountain Home RV Park
- Dark Sky RV Campground
- Paso Robles RV Ranch & Campground
- Seven Feathers RV Resort
- Pine Near RV Park
- Welcome Station RV Park
- Bandon Wayside Motel + RV
- Blake Ranch RV Park & Horse Motel
- Anchor Down RV Resort
- All About Relaxing RV Park
- Red Barn RV Park
- Wanderlust Crossings RV Park
- Elwha Dam R.V. Park
- Emerald Beach RV Park
- French Quarter RV Resort
- Lake George RV Park
- Ouray RV Park & Cabins.
ii. Is There a Franchise for Recreational Vehicle Park (RV Park) Facility Business?
- Yogi Bear’s Jellystone Park Camp-Resort
- Kampgrounds of America Inc.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Recreational Vehicle Park Business?
Yes, and zoning laws require recreational vehicle park operators to follow specific rules and regulations. Please note that in many communities, zoning laws require recreational vehicle facilities to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the recreational vehicle park meets the zoning rules for the community. Permits also ensure that all recreational vehicle parks are properly licensed with the county or state agencies.
Marketing Plan
a. Who Is Your Target Audience?
i. Age Range
Our target market age range covers people that are 18 years and above.
ii. Level of Educational
We don’t have any basic educational qualifications for those who we are targeting; everyone is welcome to use our recreational vehicle park.
iii. Income Level
Anyone who can afford our membership fee will be welcome to make use of our recreational vehicle park.
iv. Ethnicity
There is no restriction when it comes to the ethnicity of the people we will welcome to our recreational vehicle park.
v. Language
There is no restriction when it comes to the language spoken by the people we will welcome to our recreational vehicle facility.
vi. Geographical Location
Anybody from any geographical location will be welcomed in our recreational vehicle park.
vii. Lifestyle
Radisson Green® Recreational Vehicle Park Company, Inc. will not restrict any patron based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with Other Businesses in Your Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
- Including direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Pay-per-click (PPC).
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our audience.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Radisson Green® Recreational Vehicle Park Company, Inc. will make sure it covers premium, skimming, economy or value and penetration, In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, managed service providers, marketplaces, or value-added resellers—to market our recreational vehicle park.
Radisson Green® Recreational Vehicle Park Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand product or service that is competitively priced and promoted to our customers.
b. Inventory Strategy
Radisson Green® Recreational Vehicle Park Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Radisson Green® Recreational Vehicle Park Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
Radisson Green® Recreational Vehicle Park Company, Inc. will operate a no refund policy hence we will not provide compensation for purchased products or services (membership fees inclusive) that customers paid for in our recreational vehicle park facility.
e. Customer Support Strategy
Our customer support strategy will involve seeking customers’ feedback. This will help us to continue to improve our facility and also to provide excellent customer service to all our patrons. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Operational Plan
We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include organizing regular campers’ competitions at the local and state levels, providing lodging and electric vehicle charging amenities, and attracting recreational vehicle owners and campers.
a. What Happens During a Typical Day at a Recreational Vehicle Park Business?
- The facility is open for the day
- Administrative work is done concurrently
- The facility is cleaned, and other inventories are arranged and ready to welcome patrons
- Recreational vehicle owners and campers come in and parking spaces are allotted to them.
- Surveillance is carried out
- Maintenance of the facility is carried out
- The facility is administratively closed for the day.
b. Production Process (If Any)
There is no production process when it comes to the recreational vehicle park business.
c. Service Procedure (If Any)
When a recreational vehicle park is opened and everything is in place, they will either choose to welcome patrons based on membership or open their doors to people in the city where the recreational vehicle park is domiciled.
d. The Supply Chain
Radisson Green® Recreational Vehicle Park Company, Inc. will rely on trusted agents to supply some of the toiletries and related supplies and we have been able to establish business relationships with wholesale supplies of all these merchandise.
e. Sources of Income
- Recreational vehicle park vehicle owners, campers, and other related events
- Providing electric vehicle charging ports.
- Membership fee.
Our Membership fee will cost $20,000 for the start and then a $15,000 annual fee from the subsequent year (VAT inclusive and subject to change).
Financial Plan
a. Amount Needed to Start your Recreational Vehicle Park Business?
Radisson Green® Recreational Vehicle Park Company, Inc. would need an estimate of $750,000 to successfully set up a recreational vehicle park in the United States of America. Please note that this amount includes the salaries of all staff for the first month of operation.
b. What are the Cost Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $750,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $60,000
- start-up inventory – $25,000
- Counter area equipment (countertop, sink, ice machine, etc.) – $9,500
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $550,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?
Radisson Green® Recreational Vehicle Park Company, Inc. will build a new facility for our recreational vehicle park and it will cost us $2.2 million (acquiring land, construction, furnishing, and equipping the recreational vehicle park (RV Park) facility inclusive).
d. What are the Ongoing Expenses for Running a Recreational Vehicle Park?
- Cost of stocking up supplies such as toiletries
- Cost of regular surveillances
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Maintenance of facility
- Salaries of employees
e. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $55,000 per year
- Recreational Vehicle Park (RV Park) Facility Manager – $38,000 per year
- Accountant/Cashier – $34,0000
- Marketing and Sales Officer – $32,000 per year
- Attendants (5) – $30,000 per year
- Customer Care Executive / Front Desk Officer – $23,396 per year
- Cleaners – $18,000 per year
- Security Officers – $21,150 per year.
f. How Do You Get Funding to Start an RV Park Facility?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from, the government, donor organizations, and angel investors
- Source for soft loans from family members and friends.
Financial Projection
a. How Much Should You Charge for your product/Service?
Aside from our membership fee, Radisson Green® Recreational Vehicle Park Company, Inc. will charge patrons based on the industry standards in the United States, and they are expected to pay between $500 and $1,200 per month to stay at an RV park, including the cost of utilities.
b. Sales Forecast?
- First Fiscal Year (FY1): $550,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.2 million
c. Estimated Profit You Will Make a Year?
Radisson Green® Recreational Vehicle Park Company, Inc. are projecting to make;
- First Fiscal Year (FY1): $175,000 (50% of revenue generated)
- Second Fiscal Year (FY2): $337,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $540,000 (45% of revenue generated)
d. Profit Margin of a Recreational Vehicle Park
The profit margin of a recreational vehicle park business is not fixed. It could range from 25 percent to 35 percent depending on some unique factors.
Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a Franchise?
Radisson Green® Recreational Vehicle Park Company, Inc. will grow our recreational vehicle park by first opening other outlets in key cities in the United States of America, the United Kingdom, and Australia within the first five years of establishing the business and then will start selling franchise from the sixth year.
b. Where WE Intend to Expand to and Why?
Radisson Green® Recreational Vehicle Park Company, Inc. plan to expand to:
- Mountain Home, Idaho
- Custer, South Dakota
- Paso Robles, California
- Grand Island, New York
- Canyonville, Oregon
- Cedar City, Utah
- Long Beach, Washington
- Dandridge, Tennessee
- Theodore, Alabama
- Roswell, New Mexico
The reason we intend to expand to these locations is the fact that the cities boast of having the highest number of people with recreational vehicles. Internationally, we plan to expand to Canada, the United Kingdom, and Australia.
Exit Plan
Radisson Green® Recreational Vehicle Park Company, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder Radisson Green is already grooming his son Reese Green to take over from him. Reese Green is at the moment being groomed to go through the company’s employment process.