Those looking to get into the glamping business will find their business a profitable one, from straightforward bookings revenue through to the potential to tap the £435 billion global wellness industry. However, running a business can be difficult and new businesses are expensive, spending on average £22,756 in their first year according to Daily Telegraph figures. Properly financing your business and keeping it in good financial order is essential for its longevity.
Financing Your Business
Any business needs capital to get going, but camp and glamp-sites are in particular need. The basic cost of land averages out at around £6,000 per acre according to researchers at Savills, and this is before planning permission and licensing, which will add hundreds to thousands on top. These aren’t huge figures for a new business, but require planning in advance. Most businesses will opt for a business loan to get started, due to generally favourable APR, or use their own savings and assets to make the initial dent. Further down the line, you can consider an equity loan on your home or an unsecured personal loan to help with temporary business expenses. This can be especially useful in businesses like glamping where the weather plays a huge role in success. The key to making these measures successful is through managing your budget carefully.
Managing A Budget
A business budget is much like your own family budget. It should be maintained with close scrutiny and considered regularly to try and pre-empt any changes. Aside from that, business owners can be pro-active to manage the budget and find savings. In the glamping world, there are plenty of ways to find such improvements. One quick win is through managing your energy supply, including wood supplies, gas and electricity.
According to climate change advocates The Carbon Trust, most businesses could reduce their energy costs by 10% by looking for quick wins, and by 20% with further work. This is equivalent to a 5% uptick in sales for most businesses. Look to find ways to improve your supply and, long-term, move to sustainable fuel, which for many outdoors sites is readily attainable. Apply these principles across all areas of the business and you’ll find countless savings to be made.
Another way that benefits can be experienced without investing more in the structure of a business is to explore where there is low hanging fruit. This is all about maximising your revenue in the easiest places. For example, a business that only has 50% occupancy can make some subtle changes to their marketing efforts and customer services to increase their revenue significantly by increasing occupancy to at least 90-95%.
Approaching Growth Carefully
Unlike many modern businesses which are straightforward to grow, once you’ve filled your plot of land, it physically becomes more difficult to grow your glamping business. Despite this, scaling up your business can be hazardous if you branch out in unknown territory or don’t complete your research first. According to an expert business consultant’s view, published in the Guardian, you should make sure your finances are completely in order; improve training for staff; carefully monitor your loss/profit margins, and document your procedures. This way you will ensure that your business runs smoothly through the transformation of growth.
If you are interested in finding out more about managing a glamping budget and increasing revenue, regular workshops are being held through Inspired Courses. To find out when the next one is due to take place, sign up to receive a notification here.
Glamping is a lucrative industry and any who become involved will feel joy and growth from their venture. However, money can be the downfall of any business, and it’s no different in ‘the field’. Keep your finances tightly under check, finance well and regularly, make the most of the ‘low hanging fruit’ and keep growth tightly under control.