Funding
Writing a Winning Business Plan When embarking on setting up a glamping business it is best to treat it like any other. You must begin by writing a business plan that encompasses the whole venture from what you intend to create to the bottom line and profit margins. As well as providing information to planning authorities and similar bodies you may need to deal with along the way, this business plan will also play a crucial role if you intend to borrow funds for your project or raise money to expand in the future. A good business plan or figures from sites you already run will increase you borrowing potential and will make it easier for lenders to interpret. In order to do this you will be looking at some key financial points.
Your Budget/investment: The budget you have will be a deciding factor in the type and number of set-ups you can create. In order to do this you can seek professional help or get quotations from different building companies so you can get a good idea of set-up costs. A ball park figure of £3035,000 per site is a good place to start. Most people at this stage want to get as many structures built as possible for their money. However, it is key to remember one high quality well finished site will often out-perform two sites lacking in investment and finesse. Glamping is after all an outdoor luxury experience and it is vital to try and set yourself apart from the competition.
infrastructure investment: Another key point that can be overlooked in the early stages, are infrastructure costs. These include good access and track ways, which can be enormous money pits. Water can also be a costly investment depending on the location
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and existing infrastructure. Fortunately it is not necessary in many glamping sites to have domestic power feeds as solar is often adequate, but again this is not a cost one would want to overlook. Planning permission can also be a costly process depending on how much of it you are willing to do yourself. Having a clear vision before creating an application for the next 5-10 years will reduce the amount of time, effort and money you end up spending. Once you have chosen your structures and have all of your infrastructure costs, you will start to get a good idea of your overall investment.
occupancy rates and projected profits: When projecting your occupancy rates for your business plan, it is crucial to remain conservative and realistic. You can get a good idea of occupancy rates for different site styles by visiting glamping agency websites and seeing how similar retreats to the ones you intend to build are performing. This way you can create a set of projected figures. At Crown and Canopy, when we provide consultancy to clients we hand out spread sheets of actual figures attained by running our own sites. These are invaluable as they are based on an actual business and include running costs and agency rates. Glamping agencies will typically look to charge around 25% of turnover plus VAT. These occupancy rates play a large part of your financial projections for your business, so it is important to get the best information you can.
By Edward Busby, Glamping consultant for Crown and Canopy, makers of bespoke retreats and glamping sites. www.crownandcanopy.co.uk. out your projected or actual net profit. This is achieved by working out initially how much you intend to charge per stay and combining it with your occupancy rates to come up with a monthly or seasonal figure. Amounts vary depending on structures, but £80-£140 per night for 2-4 people is common. Seeking advice from someone in the industry is the best source of information as they can draw on their own experience. Failing that, you can go about costing this yourself, however, be careful to think about everything from agency fees to toilet paper as these costs will add up and eventually create your bottom line.
Payback schedule and annual net profit:
It may be wise to seek professional help from a glamping consultant if you feel less confident with the topics above, however, you can also do background and market research yourself, in order to get a good idea of the business potential. The best piece of advice I can give about starting a venture is to begin small and grow, this way you lower the risk and create a stable foundation for future development.
In order to create your investment payback schedule, you will need to work
Email - info@crownandcanopy.co.uk