Business ideas
8 min read

How to Start a Profitable Campground Business [11 Steps]

Learn how to start a profitable campground business with these 11+ steps. From site selection to marketing, we cover everything you need to know.
Newfoundr

By Nick Cotter
Updated Feb 05, 2024

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This page may feature products from our affiliate partners, which could influence the products we discuss due to potential compensation. Despite this, our evaluations are impartial, based solely on our independent analysis. The content here is intended for informational purposes and should not be seen as legal advice. For professional guidance, consulting with a legal expert is recommended.
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1. Perform market analysis.

Embarking on a campground business venture requires a comprehensive analysis of the market to identify demand, competition, and potential strategies for success. This initial step lays the groundwork for making informed decisions and crafting a business model that caters to the needs of campers. Below are key points to consider in performing a market analysis:

  • Demographic Research: Assess the demographics of potential customers, including age, income levels, and camping preferences, to tailor services and amenities effectively.
  • Geographic Analysis: Evaluate the location to ensure it is accessible and attractive to campers, and consider proximity to natural attractions or points of interest.
  • Competitive Analysis: Identify existing campgrounds in the area to understand their offerings, pricing, and customer reviews, which will help in differentiating your campground.
  • Trend Identification: Stay informed about camping trends and emerging technologies that could enhance the camping experience and attract a broader audience.
  • Regulatory Environment: Investigate local zoning laws, environmental regulations, and any permits or licenses needed to operate a campground.
  • Revenue Streams: Look into various potential revenue streams, such as site rentals, equipment rentals, events, and on-site sales, to maximize profitability.
campground business image

Are Campground businesses profitable?

The profitability of campground businesses can vary widely depending on a number of factors, including the size and location of the campground, the amenities offered, and the demand for camping in the area. Generally, campgrounds that offer more amenities, such as cabins, RV hookups, and recreation activities, tend to be more profitable than those that do not. Additionally, campgrounds located in areas with higher demand for camping tend to be more profitable as well.

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2. Draft a campground business plan.

Creating a solid business plan is a critical step in starting a successful campground business. Your plan will serve as a blueprint for your venture, outlining your business goals, strategies, and how you intend to achieve them. Here’s a guide to drafting a comprehensive business plan for your campground:

  • Summarize your vision with an executive summary that encapsulates your campground's concept, target market, and competitive advantages.
  • Conduct a thorough market analysis to understand the camping industry, identify your target demographic, and analyze competitors.
  • Detail your business structure, including ownership, management team, and staffing requirements.
  • Describe the services and amenities you will offer, such as campsites, rental cabins, recreational activities, and facilities.
  • Outline a marketing and sales strategy that includes online presence, advertising, pricing, and customer retention plans.
  • Provide a financial projection that includes startup costs, revenue streams, profit margins, and a break-even analysis.
  • Include an operational plan that covers day-to-day operations, maintenance schedules, and long-term development plans.
  • Develop a risk management strategy to address potential challenges and outline mitigation measures.

How does a Campground business make money?

Campgrounds typically make money by charging a fee for camping, either per night, per week, or per season. They may also make money by renting out cabins, charging for RV hookups, selling firewood, and offering other amenities such as showers and laundry services. Some campgrounds also generate income through special events such as concerts, festivals, and other activities.

3. Develop a campground brand.

Creating a brand for your campground is a crucial step that will set the tone for your business and help you connect with your target audience. It involves defining your unique identity, values, and the experience you want to provide your guests. Here's how you can develop a compelling campground brand:

  • Define Your Unique Selling Proposition (USP): Identify what makes your campground different from others. Consider location, amenities, or special activities that offer a unique camping experience.
  • Choose a Memorable Name: Your campground's name should be easy to remember, reflect its unique qualities, and resonate with your target audience.
  • Design a Logo and Visual Identity: Create a logo that represents your brand's personality and choose a color scheme that evokes the right emotions and associations.
  • Create a Brand Voice: Decide on the tone and style of communication that reflects your brand's personality. Whether it's friendly, adventurous, or serene, ensure it's consistent across all channels.
  • Build a Brand Story: Share the inspiration behind your campground, the values you stand for, and the experiences you want to create. A compelling story can forge a strong emotional connection with customers.

How to come up with a name for your Campground business?

When coming up with a name for your campground business, it’s important to choose something that is both memorable and descriptive. Consider incorporating elements such as your location, the type of campground, or even a unique word that reflects the atmosphere you’re creating. You may also want to consider searching online for name ideas or even running a contest for your customers to come up with a name. Once you’ve settled on a name, make sure to do a quick online search to ensure that the name isn’t already in use.

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4. Formalize your business registration.

Starting a campground business requires careful planning and adherence to legal requirements. Registering your business is a critical step to ensure compliance with local, state, and federal regulations. Here's a guide to help you navigate through the formalities of business registration:

  • Choose a business structure (e.g., sole proprietorship, partnership, LLC, or corporation) that suits your campground's needs and offers the appropriate level of liability protection and tax benefits.
  • Register your business name with your state government, ensuring it is unique and not already in use. This may involve filing a DBA (Doing Business As) if you're operating under a name different from your legal name.
  • Obtain an Employer Identification Number (EIN) from the IRS. This is necessary for tax purposes and to open a business bank account.
  • Apply for the necessary business licenses and permits. Campgrounds often require specific permits related to health and safety, land use, and environmental protection.
  • If you plan to sell goods at your campground, like camping supplies or food, you might need a sales tax permit from your state's revenue department.
  • Check with your local government about any additional requirements or zoning regulations specific to campgrounds in your area.

Resources to help get you started:

Explore key resources designed for campground entrepreneurs to gain insights on market trends, operational best practices, and strategic guidance for business development:

  • The National Association of RV Parks and Campgrounds (ARVC) - Offers reports, guidance, and courses for campground management and operation. https://www.arvc.org/
  • Campground Management Magazine - Provides industry news, expert advice, and case studies on campground business strategies. http://www.campgroundmanagement.com/
  • Woodall's Campground Magazine - Focuses on RV park and campground news, with articles on best practices and industry trends. https://woodallscm.com/
  • Campground Business 101 by Peter Pelland - A comprehensive guidebook for new campground owners covering everything from marketing to operations. Available on major book retail platforms.
  • Outdoor Industry Association - Offers reports and research on outdoor recreation, including camping, which can help with market understanding. https://outdoorindustry.org/
  • Kampgrounds of America (KOA) Report - An annual report that provides insights and trends in the North American camping market. https://koa.com/north-american-camping-report/

5. Acquire necessary licenses and permits for campground.

Starting a campground can be an exciting venture, but it's important to ensure that you have all the necessary legal documentation in place before you welcome your first campers. Acquiring the right licenses and permits is crucial to operate legally and to protect both you and your guests. Here are some key steps to follow:

  • Research Local Zoning Laws: Check with your local municipality to ensure that the land you plan to use is zoned for camping or RV use.
  • Health and Safety Permits: Obtain health department permits for water systems, septic systems, and any food service facilities.
  • Building Permits: If you're constructing new buildings or modifying existing structures, you will need the proper building permits.
  • Business License: Apply for a business license from the city or county where your campground will operate.
  • Fire and Safety Inspections: Ensure compliance with fire safety regulations and have your campground inspected by the fire department.
  • Environmental Permits: Check for any environmental permits required, especially if your campground will impact land or water resources.
  • Special Use Permits: If your campground will offer special activities (like guided tours), you may need additional permits.

What licenses and permits are needed to run a campground business?

The exact licenses and permits needed to run a campground business will depend on the particular location and other factors such as the size of the campground, whether it is open year-round or seasonally, if alcohol will be served, etc. Generally, a campground business may need to obtain a business license, zoning approval or variance, health permit/certificate, fire safety permit/certificate, septic system approval/permit, and any other necessary permits from local government agencies. Additionally, campgrounds may need to acquire insurance specific to their business operations.

6. Open a business bank account and secure funding as needed.

Opening a business bank account is an essential step in managing your campground's finances effectively, while securing funding is crucial to cover the initial costs of setting up and running your business. Here's a guide on how to accomplish these two important tasks:

  • Research Banks: Look for banks that offer business accounts with low fees and good customer service. Consider also if they have experience with small businesses or the hospitality industry.
  • Gather Documentation: You'll need your business registration details, EIN (Employer Identification Number), and personal identification documents to open an account.
  • Understand Your Needs: Decide on the types of banking services you'll need, such as online banking, credit card processing, and merchant services.
  • Explore Funding Options: Determine how much funding you will need to start and operate your campground. Explore options like business loans, investors, or crowdfunding campaigns to raise the necessary capital.
  • Prepare a Solid Business Plan: A well-prepared business plan can increase your chances of securing a loan or investment. Make sure it outlines your business strategy, projected earnings, and detailed financial plans.
  • Build Relationships: Establishing a good relationship with your banker and potential investors can provide you with valuable advice and improve your chances of securing funding.

7. Set pricing for campground services.

Setting the right price for your campground services is crucial for attracting customers while ensuring profitability. Consider your costs, the value provided, and the prices of competing campgrounds to find the sweet spot. Here are some key points to guide you through this process:

  • Analyze your costs: Calculate the total costs of running your campground, including maintenance, staffing, utilities, insurance, and any loan repayments.
  • Understand your market: Research the pricing of similar services in your area to avoid undercharging or overpricing.
  • Value-based pricing: Consider the unique features and benefits of your campground. Adjust prices for premium sites or additional amenities like Wi-Fi, electricity, or laundry facilities.
  • Seasonal adjustments: Implement dynamic pricing to account for peak seasons, holidays, and special events when demand is higher.
  • Discounts and loyalty programs: Offer discounts for extended stays, return customers, or off-peak visits to encourage repeat business and fill low-demand periods.
  • Transparency: Clearly communicate what's included in the price and any additional fees to avoid surprising guests and ensure a positive experience.

What does it cost to start a Campground business?

Initiating a campground business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $1020000 for launching such an business. Please note, not all of these costs may be necessary to start up your campground business.

8. Acquire campground equipment and supplies.

Starting a campground business requires careful planning and acquisition of the right equipment and supplies. These essentials will ensure the comfort and satisfaction of your guests, as well as the smooth operation of your campground. Consider the following items as you prepare to welcome campers to your outdoor retreat.

  • Basic Campsite Setup: Purchase durable picnic tables, fire rings or pits, and signage for each campsite.
  • Restroom Facilities: Invest in clean and well-maintained portable toilets or build permanent restroom structures with showers.
  • Utility Supplies: Ensure access to water, electricity, and sewage disposal systems for RVs and other campers in need of hookups.
  • Grounds Maintenance: Acquire landscaping tools, lawn mowers, and possibly an all-terrain vehicle for larger properties.
  • Recreational Equipment: Offer rental gear like bikes, canoes, or fishing equipment for guests to enjoy.
  • General Store Stock: Stock a small store with essentials like snacks, camping supplies, and souvenirs for convenience.
  • Safety Gear: Have first aid kits, fire extinguishers, and emergency supplies readily available.
  • Office Supplies: Set up a front office with reservation systems, payment processing tools, and campground maps.

List of Software, Tools and Supplies Needed to Start a Campground Business:

  • Business Plan Software
  • Accounting Software
  • Website Design Software
  • Campground Management Software
  • GPS System
  • Security System
  • Campground Signage
  • Campground Amenities
  • Equipment for Campground Maintenance
  • Insurance
  • Licenses & Permits

9. Obtain business insurance for campground, if required.

Ensuring your campground business is protected with the right insurance coverage is crucial for mitigating risks and safeguarding your investment. Depending on your location, the size of your campground, and the services you offer, different types of insurance may be required or recommended. Here are some steps to help you obtain the necessary insurance:

  • Research Requirements: Check with your local and state authorities to understand the specific insurance requirements for campgrounds in your area.
  • Assess Your Risks: Evaluate potential risks associated with your campground, such as natural disasters, accidents, or vandalism, to identify the types of coverage you need.
  • Contact Insurance Providers: Reach out to insurance companies that specialize in business and recreational facility insurance to get quotes and discuss coverage options.
  • Compare Policies: Review the proposed policies carefully, comparing coverage limits, deductibles, premiums, and exclusions.
  • Consider Liability Coverage: Ensure you obtain general liability insurance to protect against injury claims from guests and employees.
  • Property Insurance: Look into property insurance to cover damages to your campground structures and facilities.
  • Worker's Compensation: If you have employees, worker's compensation insurance will be necessary to cover any job-related injuries or illnesses.
  • Additional Coverage: Consider additional coverage options like business interruption insurance, equipment breakdown insurance, and commercial auto insurance if applicable.
  • Review Annually: Once insured, review your policy annually to adjust for any new developments or changes in your business operations.

10. Begin marketing your campground services.

Successfully marketing your campground is essential to attract campers and create a thriving outdoor retreat. Implementing a multi-faceted marketing strategy will increase your visibility and help you stand out in a competitive market. Consider the following tactics to effectively promote your campground services:

  • Develop a robust online presence: Create a professional website with booking capabilities, and engage with customers through social media platforms to build a community around your campground.
  • Utilize SEO strategies: Optimize your website content with relevant keywords to ensure your campground appears in search results when potential customers are looking for camping options.
  • Partner with local businesses: Form partnerships with local outdoor and tourism-related businesses to cross-promote services and tap into their customer base.
  • Leverage customer reviews: Encourage satisfied campers to leave positive reviews on platforms like Google, TripAdvisor, and Yelp to build credibility and attract new visitors.
  • Offer promotions and discounts: Provide special offers for first-time visitors, seasonal discounts, or package deals to entice bookings and repeat business.
  • Attend trade shows and events: Participate in camping and outdoor expos to connect with enthusiasts and promote your campground services directly.
  • Implement a referral program: Reward campers who refer friends and family with discounts or freebies, turning your customers into advocates for your business.

What licenses and permits are needed to run a campground business?

  • Business Plan Software
  • Accounting Software
  • Website Design Software
  • Campground Management Software
  • GPS System
  • Security System
  • Campground Signage
  • Campground Amenities
  • Equipment for Campground Maintenance
  • Insurance
  • Licenses & Permits

11. Expand your campground business.

Once your campground is operational and you've established a solid customer base, it's time to think about expansion. Growing your business can provide new experiences for guests and increase your revenue. Here are some strategies to consider:

  • Develop Additional Amenities: Add features like a swimming pool, a playground, or a clubhouse to enhance the camping experience and attract a wider array of guests.
  • Offer Glamping Options: Introduce luxury camping accommodations, such as yurts, teepees, or cabins, to appeal to those looking for a more comfortable outdoor experience.
  • Organize Events and Activities: Hosting events, workshops, and guided tours can provide guests with unique experiences and incentivize longer stays.
  • Create Loyalty Programs: Encourage repeat visits with a rewards program for frequent guests, offering discounts or special perks.
  • Upgrade Infrastructure: Invest in better roads, Wi-Fi, and online booking systems to improve accessibility and convenience for your guests.
  • Partner with Local Businesses: Collaborate with nearby attractions, restaurants, and shops to offer package deals and promote regional tourism.
  • Explore Additional Locations: If your brand is strong, consider opening new campgrounds in other areas to cater to different markets.