Camping, glamping, and various other multi-day outdoor adventures have skyrocketed in popularity. Since 2014, the number of people that go camping has increased by 22%. This growth, driven by nomadic lifestyle trends and a healthy sense of adventure has created a high-demand, low-supply situation in many camping-related business segments. This has led to many entrepreneurs to consider if they should buy a camping business.
In fact, a camping business might be the perfect opportunity to buy a business in 2023 that offers a lifestyle change as well as a great investment opportunity. Here are six reasons you should consider the investment.
1. Potential for Supply Chain Independence
Supply chain bottlenecks have become an unfortunate part of doing business over the past few years. At the end of 2019, manufacturers around the globe halted production, ships sat in docks, and cargo backed up due to a global public health crisis.
Businesses that rely on real estate and experiences rather than commodities have some natural protection from supply chain disruptions. Buying a camping business allows investors to enjoy a diversified business model like a campground that offers guided hiking retreats and sells camping equipment.
2. High-Demand Lifestyle-Based Business with Scalability
Camping is more than a hobby, it’s a lifestyle. This means that customers are likely to be primed for loyalty, allowing businesses to take advantage of long-term customer value over the high cost of customer acquisition. It’s also a versatile activity that works well for both individuals and groups.
Buying a camping business allows investors to start small and scale easily by adding additional units to existing land. Plus, these businesses are likely to see loyal, repeat customers with minimal impact caused by future public health emergencies.
3. Camping is a Pandemic-Resistant Industry
The versatility of camping and the fact that it’s naturally an outdoor activity makes camping businesses more resistant to the impact of public health emergencies. During the COVID-19 pandemic, cruise ships were docked and hotels sat empty while would-be travellers cancelled plans worldwide. During this same period, campgrounds and RV sales grew in popularity.
4. Camping is a ‘Feel-Good’ Activity that Helps Release Endorphins
There is a primal drive in human nature to connect with the outdoors. It might be the abundance of fresh air, the awe-inspiring mountain-top views, or the purity of the natural world around us–one thing is sure, camping makes people feel good.
And anything that makes people feel good is an easy product or service to sell. If you want to buy a camping business and especially if you start looking for camping sites for sale, know that it can be a good way to get into a family-friendly or active lifestyle niche that is relatively easy to market as a spin on traditional travel, vacations, or family bonding.
5. Camping Businesses Often Require Minimal Startup Costs
If you’re looking for a small business opportunity that doesn’t take millions in seed money, camping businesses are a great option. Since camping is one of those accommodations where guests tend to bring their own gear, you can start small with the purchase of land and primitive camping spots, adding amenities as you begin to bring in money.
As you begin looking for ways to diversify, consider offering equipment rentals to supplement your current services. With rentals, you are making single investments with a quick return on investment as you loan the equipment out to new guests with every stay. As an add-on, you can sell additional insurance on rental equipment to cover the cost of replacements.
6. Campgrounds Have Good Profit Margins with Minimal Commitment
From small campgrounds to full-scale RV resorts, camping businesses are primarily all-cash businesses with seasonal demand and a steady supply of on-site workers willing to trade labor for lot rent. In many areas, camping is also a seasonal business, leaving investors free to work the business during the summer and take long breaks during the winter.
Final Thoughts on Buying a Camping Business
Camping is a popular pastime, a pandemic-friendly vacation option, and a beacon for those who enjoy an active lifestyle. It’s good for family bonding and summers spent outdoors–and with a significant uptick in the popularity of camping, these businesses are in high demand and often have minimal competition.
For anyone who loves the outdoors–or people, it’s a near-perfect opportunity to utilize small business grants to achieve your business investment and lifestyle goals. So if you are pondering whether or not to buy a camping business, remember how good it will feel to work outdoors more and give others a vacation they will remember forever.