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1.0 Executive Summary
The purpose of this business plan is to raise and examine the allocation of $625,000 for the development of a high-end camping facility that will provide an amazing experience for its patrons. Glamping Site, LLC (“the Company”) intends to provide these spaces to the general public from its large-scale campus in Texas. Glamping is a combination of the words glamorous and camping. This type of outdoor experience has exploded in popularity over the past five years as people want an outdoor experience coupled with many amenities that would be found in traditional hospitality locations. The Company was founded by John Doe.
1.1 The Services
The principal revenue center for Glamping Site will come from the nightly rental of glamping spaces (via large scale tents) and onsite cabins (which will be modeled as tiny houses and rustic cabins). The Company anticipates that nightly rental fees will range from $100 to $250 depending on the season. The facilities will offer a number of amenities including site-wide WiFi, complimentary breakfast, immaculate shower/bathing facilities, shuttles, and related benefits.
Beyond the nightly rental fees, the business will feature an onsite store and laundry facility. The Company will generate substantial secondary streams of revenue through these operations.
The third section of the business plan will further describe the services offered by Glamping Site.
1.2 Financing
At this time, Management is seeking to raise $625,000 from as a bank loan. The interest rate and loan agreements are to be further discussed during negotiation. This business plan assumes that the business will receive a 15 year loan with a 5% fixed interest rate. The financing will be used for the following:
- Acquisition of the Company’s land in Texas.
- Capital for developing cabins and glamping spaces
- Financing for the first six months of operation
- Development of the Company’s onsite store and offices
Mr. Doe will contribute $100,000 to the venture. The Company would be a strong candidate for expansion capital via a working capital line of credit, business loan, or equity investment should the need arise. However, this business plan assumes that no further capital will be used outside of the funding sought in this document.
1.3 Mission Statement
Management’s mission is to develop Glamping Site into a premier, unique destination for an outdoors based vacation experience.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the hospitality industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Expansion Plan
Moving forward, Management will make continued investments into the Company’s marketing infrastructure in order to ensure 100% occupancy during busy summer seasons. The business will also aggressively promote off-season usage of the facility. After the third year of operation, the business may also seek to acquire additional properties in Texas in order to develop secondary locations. Management will also continually increase the scope of the amenities offered at Glamping Site, LLC.
1.6 Revenue Forecasts
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Glamping Site, LLC. The Company is registered as a limited liability company in the State of Texas.
2.2 Required Funds
At this time, Glamping Site requires $625,000 of debt funds for the development of its facilities. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Glamping Site, LLC.
2.5 Exit Strategy
In the event that Mr. Doe wishes to sell Glamping Site to a third party, he will contract a real estate brokerage firm to market the property to potential buyers. Based on historical sales prices of campground facilities, Management anticipates that the business could be sold for up to seven times earnings by the third year of operations (including the value of real estate).
3.0 Operations
Below is a description of the revenue centers for Glamping Site:
3.1 Rental of Glamping Spaces
The primary revenue center for the business will come from the ongoing rental of spaces that feature luxurious large scale tents and state-of-the-art cabins that are situated on Glamping Site’s beautiful campus. At the onset of operations, the business intends to have 30 large-scale tents available and 20 cabins (which will be modeled as rustic cabins and tiny-homes). Each space will have electrical hookups so that people can still have access to their devices.
In regards to amenities, the following will be provided to patrons:
- Full site WiFi
- Complimentary breakfast
- Shuttles to important landmarks within the target market
- Onsite concierge (for making arrangements at area restaurants)
There will be a high end shower, sauna, and bathing facility on the premises.
3.2 Store and Ancillary Revenue Streams
Beyond the nightly rental fees charged to clients, the Company will have a moderate sized onsite general store that will provide packaged and prepared foods, toiletries, small electrical components (such as phone chargers), beverages (including alcohol), and related items. The Company anticipates that it will generate gross margins of 70% on all products sold through the store. The Company will also have an onsite laundry room that will feature washers and dryers. This will be a more modest tertiary revenue center for Glamping Site.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the glamping and campgrounds industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic climate is uncertain. The pandemic stemming from COVID-19 has created a substantial amount of turmoil within the capital markets. It is expected that a prolonged economic recovery will occur given that numerous businesses are being forced to remain closed for an indefinite period of time (while concurrently having their respective employees remain at home). However, central banks around the world have taken aggressive steps in order to ensure the free flow of capital into financial institutions. This is expected to greatly blunt the economic issues that will arise from this public health matter.
However (and as will be discussed below), the demand for glamping has increased substantially over the past eighteen months. Glamping is a socially distanced and safe activity from a health perspective. Even prior to the pandemic, the demand for this type of outdoor experience increased greatly as many people want to experience the outdoors but still have many amenities that would be found at a traditional place of lodging.
4.2 Industry Analysis
Within the United States, nearly $3 billion is spent each year on campgrounds, cabins, and RV based accommodations. The industry is poised for substantial growth over the next five to ten years. Specific for glamping, this is a rapidly growing segment of the outdoor travel industry. Within the next three years, glamping is expected to generate over $1 billion. Moving forward, the compounded annual growth rate of the industry is expected to remain near 14%.
It should be noted that many traditional campground facilities are integrating higher-end tents, cabins, and geodesic domes onto their premises in order to accommodate the demand for glamping. This is expected to become a common trend as owners of these facilities seek to boost their revenues. There are currently no pieces of regulation that would impact the way that a glamping site conducts business.
4.3 Customer Profile
Management will use the following demographic profile in conjunction with Glamping Site’s marketing operations:
- Household income exceeding $50,000.
- Between the ages of 21 and 65
- Will spend three to five days at the Glamping Site facility
4.4 Competition
In the market where you intend to develop your glamping facility, you should examine any potential competitors. This will include companies that offer cabins, RV rental spaces, and general campgrounds. Although these businesses are somewhat different than glamping facilities, they are substitutive. A major focus of glamping sites is that they provide an amazing outdoors experience with numerous amenities that are common to hotels.
5.0 Marketing Plan
Glamping Site, LLC will use a number of marketing strategies that will ensure that the business is able to have near 100% occupancy during busy seasons. Below is an overview of the marketing strategies that will be used at the onset of operations and through the life of the business.
5.1 Marketing Objectives
- Maintain an expansive online presence so that reservations can be made through the Company’s ecommerce enabled platform.
- Develop ongoing relationships with travel agents that will promote usage of the Glamping Site facility.
- Develop an expansive presence on social media (including Facebook, Instagram, YouTube, Tik Tok, and Twitter).
5.2 Marketing Strategies
Foremost, Glamping Site will maintain an expansive internet presence that will combine a proprietary website coupled with an aggressive use of social media. While the facilities are being developed, Management will develop an expansive social media presence that will showcase images of the in-process development as well as providing news related to the launch date. By creating an online presence prior to the grand opening, the business will be able to create substantial interest in the glamping facility.
In regards to the Company’s website, this will be a state-of-the-art platform that allows individuals to make reservations while concurrently showcasing all facets of operation. The platform will feature images and videos of the grounds while concurrently showcasing all available amenities (as discussed in the third section of the business plan). The website will be mobile/tablet friendly and search engine optimized. The business will register the website among directories that list glamping facilities. This will substantially contribute to the search engine optimization campaigns.
Glamping Site will also work with national level travel agencies that will promote the facility among their clients. This is an important secondary method of marketing as commissions are only paid when reservations are made. Given the demand for unique outdoor focused accommodations, Management sees a substantial opportunity to partner with travel agents.
In time, Management expects that word-of-mouth marketing will become an invaluable source of business. It is expected that previous customers will showcase their experience on their respective social media pages (while providing information regarding the Glamping Site location). Moving forward, this will create substantial interest among similarly minded people want to enjoy a luxurious camping experience.
5.3 Marketing Expenditure Breakdown
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- Glamping Site, LLC. will have an annual revenue growth rate of 8% per year.
- The Owner will acquire $625,000 of debt funds to develop the business.
- The loan will have a 15 year term with a 5% interest rate.
- The business will have a $100,000 capitalization.
7.2 Sensitivity Analysis
The Company’s revenues are only modestly sensitive to negative changes in the economy. The demand for unique accommodations in outdoor settings has increased substantially over the past five years. The COVID-19 pandemic has accelerated the demand for socially distanced activities (such as glamping). This, coupled with the high gross margins generated from the revenue centers outlined in this document, will ensure that Glamping Site, LLC is able to remain profitable and cash flow positive at all times while servicing all financial obligations.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
SWOT Analysis
Strengths
- Economically insulated business as people are going to want substantial amenities as they enjoy the outdoors.
- High gross margins from rental of glamping spaces as well as ancillary revenue centers discussed in this document.
- Strong demand among individuals that want to enjoy unique travel experiences and accommodations.
- An owner-operator (John Doe) that has extensive experience in the hospitality industry.
- Glamping is a socially distanced activity.
Weaknesses
- Legal liabilities resulting from accidents onsite (limited risk).
- Competitors that operate in a similar but not identical capacity to Glamping Site.
Opportunities
- Expansion of the business to maintain several glamping sites throughout major tourist destinations throughout Texas and the United States.
- Attract additional equity capital to further fuel the growth of the business.
- Continued yearly increases in pricing to keep pace with inflation.
Threats
- A potential resurgence of COVID-19 could impact the operations of Glamping Site (limited risk given that glamping is a socially distanced and safe activity).
- Rising interest rates could impact the Company’s ability to expand via the development of new facilities (limited risk).
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