PEANUT HILLS TINY HOMES AND CAMPGROUND

                                                   

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

Garbage /maintenance 6 months (3000 snow removal) 8000

Internet / phone 0

Bookkeeping 6 months 2500

Insurance (land and liability only -estimated cost added to policy) 3000

Gst not collected 0

Total cost to operate 100,000

PROJECTED INCOME FROM BOTH SOURCES

Campground annual 300,000

Tiny homes annual 324,000 ( 45 homes x 600 per month =27000 x 12 months =324,000)

Total gross annual income 624,000

Total cost to operate 317,000

Net Profit 307,000

Subtract fed tax 45,000

After tax estimated profit 262,000

Allowing for up to 20,000 per month to pay off debt

PROJECTED COST TO COMPLETE TINY HOME INFRASTRUCTURE

TASKS TO BE COMPLETED (prior to phase 2 of construction)

Remove all fences from 50 sites 5,000

Lower and extend to surface water and sewer lines for approx. 400 ft 80,000

extend 1-man hole. 5,000

sask energy gas install main line 90,000 plus 45 hookups 180,000

Run gas line to each site from the meter block of 45 METERS 15,000

Re install fences between new lots 15,000

Total cost to prep lots 300,000

POENTIAL INCOME FROM THE CONSTRUCTION OF 45 HOMES

there are a few ways to earn income from the building of the homes.

if I stay arms length away from the construction, I will require a 10,000-construction charge for

each Home built. this should more than cover all costs associated with the upgrades, and leave a

small profit of approx. 150,000

If I decide to build the homes as well, then the profit increase dramatically. ill break this down

largest home would be 600 sq ft 450 living 150 indoor garages, I have priced out the cost to build.

this type of home, total estimated cost for a show home would be 100,000 ($167 per sq ft).

they are very simple just a garage package upgraded to a home. A full garage package 30x20 cost

40,000 interior is 30,000 and cement for garage and driveway is 10,000 add 20,000 labor for a

total cost of approx.100,000. Estimated sale price would be 150-160,000 leaving an easy profit.

Of 30-40,000 per home @ 20,000 per x 45 would be another 900,000 profits from the homes

construction at 30,000 per home, profit would be 1,350,000 and at 40,000 profit the total would be.

1,800,000 profits from 45 homes. if I decide to go this route I will shoot for the 30,000 profits per

home average.

So, in summary, as a stand-alone business peanut hills is not able to meet its debt service.

obligations. as the owner I have only one option to choose from, that is to increase the revenue.

earned from the property’s assets, this can be done, but will require another 400,000 to

complete the work needed to accommodate the tiny home community. along with build a show.

home for potential buyers to view.

With your help I will make this a reality, this will give me a sure method to meet my debt.

obligations, in all aspects. not only will the facility have enough net profit to meet its obligations.

with the upgrade funding required. 2,150,000 will be owed. this 2.150.000 will drop dramatically if

I build the homes my self. Using Conservative numbers. At 25,000 profit per home

, would be 1,125,000 subtract the 300,000-upgrade expense would leave approx. 800,000 be paid.

off the mortgage over a 2-3 yr period.

Best case I would like to make 1,350,000 (30,000 per home) before tax profit, all of which.

can go to debt owed (minus tax of approx. 200,000) leaving approx. 1,150,000 to pay down the

mortgage. this would bring my mortgage down to less than one million. and servicing this amount

will be covered by the 260-300,000 profit generated annually. The new valuation on the facility

should be 5,000,000 to 6,000,000 depending on the multiple used, witch in turn gives the WCU a

nice debt to asset value ratio, even at the 2,150,000 debt limit it would run at 35% give or take, if

the mortgage is down to 1,000,000 the ratio would be around 15-18% 0f debt owed. And lets not

forget there is a potential WCU could sign on 5,000,000 in mortgages, on property WCU already

holds title to.

To update you to current events with the city approval process. my planner hopes to have the

package sent to the city planner first of sept. this will need to be reviewed and a report written.

by the city planning department. we are all shooting for a council presentation on oct 15. Followed

by councils’ approval with in 2 weeks. I have spoke to all, but one councilor and they are all in

favor. of the idea as it stands today, so I am expecting an approval for the city council to move.

forward with the project. I have been in negotiations with a real estate company to do a presale on

the homes. once we get the councils approval. I will require some info from you as well regarding.

the financing. we had spoke before about the WCU financing these homes, what type of down

payment- terms. would you be offering to potential buyers. the real estate team will need this info.

to assist with sales. I have set a min of eight homes be presold prior to start of construction.

, excluding the show home, we will see if this is realistic or not in the next 6 to 8 months, there has.

already been interest from various people, but to early to make any sales. Even one multiple buyer

looking for rental properties. I’m confident with the pricing and the need for cheap residential.

homes, we will certainly be able to sell out in a 2-3 yr period, it may be a lot sooner than that !