IN THE APPLICATION STAGE OF THE PROCESS.I CURRENTLY OWN 100 SITE CAMPGROUND , APPLICATION IS TO BUILD 38 TINY HOMES , REPLACING 55 CAMPSITES CITY IS ONBOARD WITH THE IDEA . APPROVAL EXPECTED EARLY 2025 . ATTACHED IS THE BUSINESS PLAN FOR THE NEW VENTURE
Business Plan for Campground and Tiny Home Community
Executive Summary: Our existing campground has been successful in generating revenue for 6 months of the year, with use of only 45 sites (this is what we average approx.) currently providing income of $300,000 per year. By introducing a new tiny home community with 45 homes, we aim to increase our revenue to over $600,000 per year and sustain current and future debt for the completion of the tiny homes. We will be partnering with a local developer to build the homes, which is expected to bring in additional revenue of $800,000 to $1,000,000.
Market Analysis: The demand for tiny homes and unique accommodations is on the rise, making it an attractive option for homeowners looking for a distinct experience at a reasonable price. Our campground's existing customer base and location make it an ideal spot for a tiny home community, offering the perfect balance of nature and modern amenities.
Business Model: Our business will consist of two main revenue streams: the campground and the tiny home community. Both segments will be managed by a total of 3 employees, including 1 full-time employee and 2 seasonal employees. The campground will operate for 6 months, while the tiny home community will generate income for 12 months of the year.
Marketing Strategy: We will launch a presale of the tiny homes starting in mid-October to mid-November, aiming to sell15- 20% of the homes (8 homes) before the start of construction. Our marketing strategy will include targeted social media campaigns. The marketing will be centred around the Moosejaw area, including radio and any local advertising we can source.
Financial Projections: Based on our current revenue and the projected income from the tiny home community, not including the construction of the homes, we expect to generate over $600,000 in annual revenue. This will allow us to sustain our existing debt and invest in the completion of the tiny homes. With the potential for additional revenue from the construction of the homes, we aim to further the repayment of debt.
Overall, our campground and tiny home community business model presents a unique opportunity to diversify our revenue streams, attract new customers, and solidify our position in this unique market. By leveraging our existing assets and partnerships, we are confident in the success and growth of our combined business venture.
FINANACIAL PROJECTIONS AND IMPROVEMENT COSTS
Currently the campground grosses approx. 280,000 to 320,000 best yr was 415,000 to date. costs to operate are approx. 200-220,000 per yr. cost to borrow is approx. 150,000 per yr interest and principal. this leaves a loss of approx. 40-60,000 per season.
Projected gross income from the tiny homes would be 300-330,000, due to the fact that the campground already assumes 6 months of the expenses, this would bring the cost to operate the tiny home infrastructure for a 6-month period as well, an estimate on this cost would be approx. 100,000 per 6-month period
ANNUAL COST BREAKDOWN
CAMPGROUND (based on real averages)
Labour- 3 full time for 6 months (plus one part time for July /Aug. only) cost per season 90,000
Water- 6-month period 8,000
Electric 12 months (heating wash room and office during winter) 40,000
City tax 15,000
Garbage /maintenance 6 month period (5000 per yr on gravel) 13.000
Insurance / wcb campground only 7,000
Internet / phone 12-month period 4,000
Share holder interest 7 shares @2500 per 17,500
Software/advertising/bookkeeping 2,500
Gst average per yr @ 300,000 income 20,000
Total cost to operate 217,000
TINY HOMES
Labour I full time during Nov 1st to May 1st 40,000
Water 6-month period 8000
Electric may be required to put in streetlights 12 month estimate 3000
City tax (currently city collects 700 per mobile home) 35,500