How to Start an RV Park Business

A RV Park (RV Park) is a business that provides a facility where people with recreational vehicles can stay overnight, or longer, in allocated spaces known as “sites” or “campsites”. The campgrounds and RV parks industry primarily operates recreational vehicle parks and campgrounds, 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 and playgrounds et al.

A close watch over the Campgrounds and RV Parks industry shows that the industry has enjoyed stable growth in recent time. 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.

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.

Steps on How to Start an RV Park Business

Conduct Market Research

If you are considering starting an RV park business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process should be to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source information that will help you maximize your business, give you reliable information of what your potential market will be looking out for from an RV park, and also help you operate your RV park business with less stress and of course, build the business to profitability.

a. Who is the Target Market for RV Park Business?

Recreational vehicle owner
Campers

The demographic and psychographics composition of those who need the services of an RV park facility is not restricted to adults who love outdoor activities and camping but extends to children and families also. There is a wide range of clientele who visit and patronize RV parks for different purposes.

So, if you are looking towards defining the demographics of your RV park facility business, then you should make it far reaching to include households and families, schools, churches and religious centers, sport clubs, corporate organizations, travelers and tourists.

b. Is RV Park Business a Profitable Business?

Yes, the RV park business is profitable. Available data shows that an average RV park can make around $240,000 (USD) and above per year gross.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the RV park business. But on the other hand, some RV park facilities may decide to major in some key areas such as;

Operating campgrounds
Operating RV parks
Operating overnight recreational camps
Operating travel trailer and caravan campsites
Operating wilderness camps
Other related facility operation

d. Who are the Major Competitors?

Anchor Down RV Resort
All About Relaxing RV Park
Bandon Wayside Motel + RV
Blake Ranch RV Park & Horse Motel
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
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.

It is important to state that no establishment has a lion share of the available market in this industry. However, there are always brands who perform better or are better regarded by customers and the general public than others.

e. Are There County or State Regulations or Zoning Laws for RV Park Business?

Yes, and zoning laws require RV park operators to follow specific rules regulations, including some that apply only to players in the industry. Please note that in many communities, zoning laws require RV park facilities to apply for a permit from the city.

This application process allows the city’s zoning department to determine whether the recreational vehicle facility meets the zoning rules for the community. Permits also ensure that all recreational vehicle facilities are properly licensed with the county or state agencies.

f. Is There a Franchise for RV Park Business?

Yes, there are franchise opportunities for recreational vehicle parks, and here are some of them;

Yogi Bear’s Jellystone Park Camp-Resort
Kampgrounds of America Inc.

g. What Do You Need to Start RV Park (RV Park) Business?

A Feasibility Report
Business and Marketing Plans
Business Licenses and Permits
A Well-Equipped and Secured RV Park (RV Park)
Insurance
EIN (Employer Identification Number)/Federal Tax ID Number.
A Corporate Bank Account
Employees
Operational Capital (For Ongoing Expenses)

Choose a Memorable Business Name

Normally, when it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Typically, it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

If you are considering starting your own RV park facility business, here are some catchy names that you can choose from;

RV Park Business Name ideas

Green Network© RV Park, Inc.
Next Level® RV Park, LLC
Future Solutions® RV Park, Inc.
Tree Land® RV Park, Inc.
Bob King™ RV Park, Inc.
Lush Green™ RV Park, LLC.
Nile Division© RV Park, LLC
Mount Camel® RV Park, Inc.
Sony Star© RV Park, Inc.
Move Ahead© RV Park, Inc.
Dray Danton® RV Park, LLC
Park House® RV Park, LLC
Latitude Connect™ RV Park, LLC
First Port© RV Park, Inc.
Pantex Chap® RV Park, Inc.
Power House™ RV Park, Inc.
Speed Link™ RV Park, Inc.
Laneways Best© RV Park, Inc.
Fresh Nest® RV Park, Inc.
Rover Street™ RV Park, Inc.

Register Your Business

a. What Type of Business Structure is Best for RV Park Business?

When it comes to the business structure for recreational vehicle parks, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Setting up an LLC protects you from personal liability.

If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

Choose a Name for Your LLC.
File Articles of Organization.
Choose a registered agent.
Decide on member vs. manager management.
Create an LLC operating agreement.
Comply with other tax and regulatory requirements.
File annual reports.

c. What Type of License is Needed to Open a RV Park?

General Business License
Zonal Permits
Signage Permit
Operational State Facility Inspections for your facility

d. What Type of Certification is Needed to Start RV Park (RV Park) Business?

You don’t need any certifications to start an RV park.

e. What Documents are Needed to Open RV Park Business?

DBA
EIN
Business and liability insurance
Federal Tax Payer’s ID
State Permit and Building Approval (For your RV park (RV Park))
Certificate of Incorporation
Business License
Business Plan
Employment Agreement (offer letters)
Operating Agreement for LLCs
Insurance Policy
Online Terms of Use
Online Privacy Policy Document
Contract Document
Company Bylaws
Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting an RV park, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

a. How Much Does It Cost to Start an RV Park Business?

The startup cost for recreational vehicle parks is not uniform. But basically, the business will cost from $20,000 – $600,000 to start and that can easily go higher depending on your overall business goals and objectives. Please note that you can spend between $15,000 to $50,000, with 10 RV-ready sites per acre and this is excluding your non-equipment costs.

b. What are the Costs Involved in Starting RV Park?

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 like 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 – $2,500

c. What Factors Determine the Cost of Opening RV Park?

The size of the RV park
The choice of location
The required licenses and permits
The cost of hiring and paying a business consultant and attorney
The cost for branding, promotion, and marketing of the RV park (RV Park) business
The cost for furnishing and equipping the facility
The cost for insurance policy covers
The cost for registering the business
Cost of recruiting and training your staff
The cost for the purchase and customizing of uniforms
The cost for the grand opening of the RV park

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your RV park (RV Park) business, and it will cost you a minimum of $120,000.

e. What are the Ongoing Expenses of RV Parks?

Electric bills
Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
Salaries of employees
Maintenance
Insurance
Marketing costs

f. What is the Average Salary of your Staff?

Chief Executive Officer (Owner) – $55,000 per year
RV 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

g. How Do You Get Funding to Start an RV Park Business?

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 your family members and friends.

Write a Business Plan

a. Executive Summary

Fresh Nest® RV Park, Inc. is a standard and well-equipped RV park that will be located in a growing community in Roswell, New Mexico.

Fresh Nest® RV Park, Inc. 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.

b. Services

Operating RV parks
Operating overnight recreational camps
Operating travel trailer and caravan campsites
Operating wilderness camps
Food and drinks court

c. Mission Statement

Our mission is to develop highly successful and profitable chains of recreational vehicle parks with state-of-the-art facilities and the latest technology; a business that will not only meet the needs of her clients but also supersede their expectations.

Vision Statement

Our Vision is to operate chains of recreational vehicle parks all across major cities in the United States of America.

d. Goals and Objectives

The goals and objectives of the RV park are to provide a safe and secured camp facility for owners of recreational vehicles and campers.

e. Organizational Structure

Chief Executive Officer (Owner)
RV Park (RV Park) Facility Manager
Accountant/Cashier
Marketing and Sales Officer
Attendants (5)
Customer Care Executive/Front Desk Officer
Cleaners
Security Officers

Marketing Plan

a. SWOT Analysis

Strength:

Ideal Location for RV park
Highly Experienced and Qualified Employees and Management
Availability of electric vehicle charging ports as an additional service offering
Highly Secured and Clean Facility
Excellent operational history

Weakness:

Not enough existing clientele to run at full capacity immediately
The owner is new to large scale marketing
We will need a loan to build our facility
The owner is currently running the business solo and will need to build out the existing business
Lack of economies of scale.

Opportunities:

A growing number of recreational vehicles and electric car owners in the United States.
Build upon existing clientele
Online market, new services, new technology, and of course the opening of new markets.
Favorable government policies.

Threat:

Loans diminish profitability until they are paid off
The first year will be financially tight while we gain customers and pay off loans
Competition in the area could increase
Management of employees requires time, money, and efforts
Economic downturn; when the economy is bad it affects consumer spending which in turn impacts businesses negatively.

b. How Do RV Parks Make Money?

Recreational Vehicle Parks make money by;

Operating RV parks
Operating overnight recreational camps
Operating travel trailer and caravan campsites
Operating wilderness camps
Food and drinks court

c. Payment Options

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. Sales & Advertising Strategies

Introduce your RV park by sending introductory letters to recreational vehicle owners, electric vehicle owners, and other stakeholders in and around your city
Open your RV park with a party to capture the attention of residents who are your first targets
Advertise your RV park on national dailies, local TV, and local radio stations
Promote your RV park online via your official website and all available social media platforms
Making your first impression count positively
Make use of attractive handbills to create awareness and also to give direction to your RV park
Adopt a direct mailing coupon marketing approach
Position our signage/Flexi banners at strategic places
Create a loyalty plan that will enable you to reward your regular customers

Financial Projection

a. How Much Should You Charge for your Service?

Most recreational vehicle parks charges between $500 and $1,200 per month to stay at an RV park, including the cost of utilities.

b. How Much Profit Do RV Park Owners Make a Year?

It depends, but the available report shows that on average, a successful RV park owner can make from $50,000 to $90,000 a year. A successful RV park itself can make over a hundred thousand dollars depending on its popularity, location, and assets.

c. What Factors Determine the Amount of Profit to Be Made?

The capacity of the RV park
The types of related services and products offerings
The location of the RV park
The management style of the RV park
The business approach of the RV park
The advertising and marketing strategies adopted by the RV park
The number of years the RV park is in business

d. What is the Profit Margin of RV Park?

The profit margin of the RV park is not fixed. It could range from 15 percent to 25 percent depending on the available spaces in your facility.

e. What is the Sales Forecast?

Below is the sales forecast for recreational vehicle parks. It is based on the location of the business and other factors as it relates to such startups in the United States;

First Fiscal Year (FY1): $550,000
Second Fiscal Year (FY2): $750,000
Third Fiscal Year (FY3): $1.2 million

Set Up your Office

a. How Do You Choose a Perfect Location for RV Park?

The demography of the location especially as it relates to the number of people that owns recreational vehicles
The purchasing power of businesses and residents of the location
Accessibility of the location
The number of recreational vehicle parks in the location
The local laws and regulations in the community/state
Traffic, parking and security et al

b. What State and City are Best to Open a RV Park Business?

Paso Robles, California
Grand Island, New York
Canyonville, Oregon
Cedar City, Utah
Long Beach, Washington
Dandridge, Tennessee
Mountain Home, Idaho
Custer, South Dakota
Theodore, Alabama
Roswell, New Mexico

c. What Equipment is Needed to Operate an RV Park?

You should be prepared to purchase charging plugs, measuring meters, changeover box, transformer, safety gadgets, computers or laptops, an internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

Hire Employees

When it comes to hiring employees for a standard RV park, you should make plans to hire a competent chief executive officer (you can occupy this position), facility manager, marketing and sales executive (business developer), accountant, attendants, cleaners, and security officers.

Launch the Business Proper

In recent times, no RV park opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the RV park, you will be able to officially inform people in your city that your RV park is open for business.

a. What Makes an RV Park Successful?

Choose a good and secured location to launch the business
Hire only competent, hardworking, and trustworthy staff
Be deliberate with your marketing sales approach
Encourage the use of word of mouth to promote your RV park
Leverage on all available online and offline platforms to promote your RV park

b. What Happens During a Typical Day at RV Parks?

The facility is open for the day
Administrative work is done concurrently
The facility is cleaned and arranged 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.

c. What Skills and Experience Do You Need to Build an RV Park Business?

Good facility management skills
Customer services skills
Interpersonal skill
Business management skills
Bargaining skill
Work experience in the RV park industry
Experience in managing people
Experience in business administration.