Strategic Business Plan for Caravan Parks
The State of the Industry Report published by Tourism Research Australia states that in 2015-16, campers and caravan parks were booked out for 31.8 million nights for the year.
That’s an increase of 8.9% compared to the previous year and is a concrete example of how caravanning and camping as a form of lifestyle accommodation are both on the rise.
With 46% of all Australian caravanners and campers now aged between 30 and 54-years old, this age group now supersedes 55-year-olds and above as the most popular demographic (who now only make up 29% of consumers).
The camping and caravanning industry is evolving, and it’s becoming increasingly popular with Millennials (or the 20-29-year age group) who now represent 18% of the market and who are undisputed as the future of Australia.
With the camping and caravanning industry evolving into a form of holidaying that is gaining momentum across all generations, it’s essential that your caravan park is operated in line with current business trends to meet the needs of all your potential customers.
Which is why it’s essential that you have a working business plan.
Your business plan documents your overall strategy detailing the direction you want your caravan park to take, and how you intend to get there. It sets your financial and performance targets, objectives, and identifies key milestones required to achieve your goals.
A strategic business plan covers all stages of your caravan business-ownership from laying the original foundations of your successful business, to bringing your unique concepts for your caravan park to life.
If you don’t have a working business plan in place, here are five ways this essential document will help your caravan business thrive in a competitive market.
1. It pays attention to all areas of your business.
While you might focus specifically on one area such as revenue, human resources, or your vision for your caravan park; a detailed business plan will also include strategies for avoiding risk, the environment, and marketing (among others).
A business plan focuses on those areas which you might not have considered important and ensures that no single element of your caravan park lacks the attention it deserves.
2. Increases profitability.
The business plan for your caravan park places emphasis on your growth strategy. It documents how you can reduce unnecessary costs and introduce budgetary items that will directly contribute to your profit.
A business plan also gives you a greater insight into what your target market wants from your facility to make sure you’re always meeting their needs which will improve your turnover.
3. Removes the emotion from your business practices.
As a business owner, it’s easy for your emotions to take over. You’ve nurtured your business into the success it is today which can mean that you don’t always make the most practical business decisions.
A business plan allows you to see the rationale behind the strategy and make choices based on the figures rather than the heart.
4. Ensures consistent communication across key stakeholders.
When you own a caravan park, you must communicate regularly with many key stakeholders. Clients, investors, brokers, business partners, suppliers and insurers are just some on the long list of your significant relationships.
A business plan will ensure that you’re delivering consistent messaging across the broad range of participants, so there is never any confusion about your offering and what you’re trying to achieve.5. Identifies your areas of weakness and biggest risks.
A thorough business plan identifies any risks to the security of your business and recommends short and long-term solutions to maximise your success.
If all this is an overload of information, don’t worry! Here are the simple stages involved in creating an effective business plan.
Stage one: Background and context.
Your business plan, which is created by us, details the background and history of your business and identifies the key objectives that your business plan will address as it develops.
This initial stage provides a complete overview of the caravan park or campsite and includes your facilities, the condition of your assets, location, management and organisation structures, applicable legislation and policy framework.
Stage two: Current market analysis.
Once the intricacies of your caravan park business have been documented in the overview, your current market will be analysed to identify your positioning. This market analysis takes a detailed look at regional statistics, industry trends, a competitor analysis and SWOT analysis which will all give you a clearer direction for your caravan park business.
This stage is also instrumental in identifying your customers and profiling their behaviour. This will help you focus your sales and marketing strategically on making sure that your campaigns are pointed at your ideal customer.
When we create your business plan, we’ll use the benefit of our extensive experience to make recommendations which will keep your caravan park in line with industry best practice.
Stage three: Current financial performance.
Knowing how valuable every single dollar is to you, the most meticulous stage details your park’s financial performance.
This financial review helps us identify your position against benchmarks set in the industry for caravan parks in similar locations with a similar target market, and make recommendations for improvements. Your revenue will be split across the following categories to see if adjustments are required to increase the profitability of your business:
- Expenditure and profits
- Occupancy and yields
- Seasons and pricing
Stage four: Strategies for the future.
Once you are clear on your existing business model, we will focus on your strategies for the future. Our sole goal is to make your caravan park profitable, sustainable and a secure investment for your future.
We will include measurable KPI’s with a realistic timeline to allow you to monitor the progress.
These KPI’s aren’t just financial; they also extend to operational procedures such as customer services, health and safety, and internal and external protocol.
Highlighting these strategies ensures that your caravan park continues to grow and continually improve to meet the needs of your customer base and personnel.
Stage five: Master planning considerations.
In the fifth and final stage of your business plan, we will identify the potential of your caravan park and determine how you will accomplish becoming a frontrunner in the market.
We will analyse every area, including your facilities, and makes sure they’re in line with industry standard, and if not, provide solutions on how we can achieve those objectives.
The master planning phase will implement a staged improvement program consisting of projected returns, revenue modelling, indicative staging and building costs, and of course; the all-important return on investment that you can expect from your future.
Cost.
The cost of a business plan is dependent on many factors so a thorough understanding of you and your business is required before we can provide an accurate quote.
Prices begin at $6,500 for a simple plan and increase with the extra value that a thorough and comprehensive overview and strategy will bring to your caravan park or camping ground.
Consider your business plan a significant investment in the future of your caravan park and contact us today to arrange a personalised quote or for more information.