A Recreational Vehicle Park (RV Park) is a business that provides a facility where people with recreational vehicles can stay overnight, or longer, in allotted spaces known as “sites” or “campsites”.
An RV park in some cases also provides facilities for electric vehicle owners to charge their cars – especially in rural areas where charging facilities are usually unavailable. It is projected that the revenue of RV Parks and Recreational Camps in Texas will amount to approximately 534,2 million U.S. Dollars by 2024.
Statistics have it that there are over 450 RV parks in Texas, and currently, there are over 13,000 privately owned RV parks and over 1,600 state parks that cater to RVers in the USA.
Steps on How to Start an RV Park in Texas
Table of Content
Conduct Market Research
If you are considering starting a recreational vehicle park business in Texas, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your recreational vehicle park business should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, data that will help you know what your potential market will be looking out for from recreational vehicle parks, and also help you operate your RV Park business in Texas with less stress and of course, build the business to profitability.
a. Who is the Target Market for the RV Park Business in Texas?
- Recreational vehicle owners
- Electric vehicle owners
- Campers
b. Is Recreational Vehicle Park (RV Park) Business a Profitable Business in Texas?
Yes, the RV Park business is very profitable. Available data shows that an average recreational vehicle park business can make around $240,000 (USD) and above per year gross. In Texas alone, new RV parks and campgrounds totaling over 2,500 sites have opened in 2021 or are scheduled to open in 2023.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the RV Park business.
d. Who are the Major Competitors in Texas?
- Grand Texas RV Resort
- Shady Creek RV Park and Storage
- I-35 RV Park & Resort
- Fredericksburg RV Park
- Hidden Valley RV Park
- Texas 281 RV Park
- Spring Branch RV Park
- Marshall RV Park
- Bluebonnet Ridge RV Park
- The Texas Oasis RV Park and Campground
- Hardy’s Resort RV Park
- Paradise Park RV Resort
- Pine Gardens RV Park and Campground
- Dunn Right RV Park
- Country View RV Park
- Jamaica Beach RV Park
- Paradise RV Park!!! Paradise TX
- Oak Forest RV Resort
- Pecan Park Riverside RV Park
- Alamo Rose RV Resort.
e. Are There County or State Regulations or Zoning Laws for RV Park Businesses in Texas?
Zoning laws require recreational vehicle park operators to follow specific rules and regulations, including some that apply only to players in the campground and recreational vehicle park industry. R.V spaces shall be a minimum of 22 feet wide and a minimum of 36 feet in depth.
Please note that in many communities, zoning laws require recreational vehicle park (RV Park) facilities to apply for a permit from the city. This application process allows the city’s zoning department to determine whether the recreational vehicle park meets the zoning rules of the community.
Permits also ensure that all recreational vehicle facilities are properly licensed by county or state agencies. RV parks shall be located only in those zoning districts in which RV parks are permitted to use pursuant to the city zoning ordinance.
f. Is There a Franchise for Recreational Vehicle Park Business?
Yes, there are franchise opportunities for recreational vehicle park businesses. Here are some of them;
- Yogi Bear’s Jellystone Park Camp-Resort
- Kampgrounds of America Inc.
g. What Do You Need to Start Recreational Vehicle Park Business in Texas?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Well-Equipped and Secured Recreational Vehicle Park (RV Park)
- Insurance
- EIN (Employer Identification Number) / Federal Tax ID Number.
- A Corporate Bank Account
- Employees
- Operational Capital (For Ongoing Expenses)
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for an RV park business are;
Creative RV Park Business Name ideas
- Grand Cannon© RV Park, Inc.
- Michael Dixon® RV Park, LLC
- Fulton Joe® RV Park, Inc.
- Tree Land® RV Park, Inc.
- O’Neal Sydney™ RV Park, Inc.
- Grandeur Facility™ RV Park, LLC.
- York Island© RV Park, LLC
- Mount Camel® RV Park, Inc.
- Sally Tally© RV Park, Inc.
- Barrow Wackey© RV Park, Inc.
- Aubery Properties® RV Park, LLC
- McNeil Williams® RV Park, LLC
- Austin Connect™ RV Park, LLC
- The Base© RV Park, Inc.
- Christian Rowland® RV Park, Inc.
- Pius Global™ RV Park, Inc.
- Serial Base™ RV Park, Inc.
- Holland Parks© RV Park, Inc.
- Montgomery Parks® RV Park, Inc.
- Rodney Erick™ RV Park, Inc.
Register Your Business
a. What Type of Business Structure is Best for an RV Park Business in Texas?
When it comes to the business structure of a recreational vehicle park business in Texas, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Recreational Vehicle Park Business in Texas?
- General Business License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections for your facility
d. What Type of Certification is Needed to Start Recreational Vehicle Park Business in Texas?
You don’t need any certifications to start a recreational vehicle park business in Texas.
e. What Documents are Needed to Open Recreational Vehicle Park (RV Park) Business?
- DBA
- EIN
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (For your recreational vehicle parks)
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a recreational vehicle park business in Texas, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start Recreational Vehicle Park (RV Park) Business in Texas?
A recreational vehicle park will cost from $20,000 – $600,000 to start and that can easily go higher depending on your overall business goals and objectives. Please note that you can as well spend between $15,000 to $50,000, with 10 RV-ready sites per acre and this is excluding non-equipment costs.
b. What are the Costs Involved in Starting Recreational Vehicle Parks in Texas?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding, and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $750,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $60,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $550,000
- Website: $600
- Opening party: $3,000
- Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening Recreational Vehicle Park in Texas?
- The size of the recreational vehicle park
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost of branding, promotion, and marketing of the recreational vehicle park business
- The cost of furnishing and equipping the recreational vehicle park
- The cost of the insurance policy covers
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost of the grand opening of the recreational vehicle park
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Yes, it is essential to build a new facility for your recreational vehicle park business, and it will cost you a minimum of $120,000. Please note that on average, RV parks in Texas cost about $20,000 per pad site to build. Over half of that cost is related to roads, driveways, pad sites, utilities, landscaping, and other infrastructure.
e. What are the Ongoing Expenses of a Recreational Vehicle Park Business?
- Electric bills
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
- Maintenance
- Insurance
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $55,000 per year
- Recreational Vehicle Park (RV Park) Facility Manager – $38,000 per year
- Accountant/Cashier – $34,0000
- Marketing and Sales Officer – $32,000 per year
- Attendants (5) – $30,000 per year
- Customer Care Executive/Front Desk Officer – $23,396 per year
- Cleaners – $18,000 per year
- Security Officers – $21,150 per year
g. How Do You Get Funding to Start Recreational Vehicle Park Business in Texas?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
McNeil Williams® RV Park, Inc. is a standard and well-equipped recreational vehicle park that will be located in a serene community in San Marcos, Texas. We have a state-of-the-art facility that will be attractive to recreational vehicle owners and campers.
McNeil Williams® RV Park, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
b. Products and Service
- Operating RV parks
- Operating overnight recreational camps
- Operating travel trailer and caravan campsites
- Operating wilderness camps
- Food and drinks court
c. Mission Statement
Our mission is to develop a highly successful and profitable chain of recreational vehicle parks with a state-of-the-art facility and the latest technology; a business that will not only meet the needs of her clients but also supersede their expectations.
Vision Statement
Our vision is to become the “go-to” recreational vehicle park in the whole of Texas.
d. Goals and Objectives
The goals and objectives of the recreational vehicle park business are to provide a safe and secured camp facility for owners of recreational vehicles and campers.
e. Organizational Structure
- Chief Executive Officer (Owner)
- Recreational Vehicle Park (RV Park) Facility Manager
- Accountant/Cashier
- Marketing and Sales Officer
- Attendants (5)
- Customer Care Executive/Front Desk Officer
- Cleaners
- Security Officers
Marketing Plan
a. SWOT Analysis
Strength:
- Ideal Location for recreational vehicle park facility in Texas
- Highly Experienced and Qualified Employees and Management
- Availability of electric vehicle charging ports as an additional service offering
- Highly Secured and Clean Facility
- Excellent operational history
Weakness:
- Not enough existing clientele to run at full capacity immediately
- The owner is new to large-scale marketing
- We will need a loan to build our facility
- The owner is currently running the business solo and will need to manage construction/build out the existing business
- Lack of economies of scale.
Opportunities:
- A growing number of recreational vehicles and electric car owners in Texas (Texas is the second state that caters to full-time RVers.)
- Build upon existing clientele
- Online market, new services, new technology, and of course the opening of new markets.
- Favorable government policies.
Threat:
- Loans diminish profitability until they are paid off
- The first year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase
- Management of employees requires time, money, and efforts
- Economic downturn; when the economy is bad it affects consumer spending which in turn impacts businesses negatively.
b. How Do Recreational Vehicle Parks Make Money?
Recreational Vehicle Parks make money by;
- Operating RV parks
- Operating overnight recreational camps
- Operating travel trailer and caravan campsites
- Operating wilderness camps
- Food and drinks court
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your recreational vehicle park by sending introductory letters to recreational vehicle owners, electric vehicle owners, and other stakeholders in and around your city
- Open your recreational vehicle park with a party so as to capture the attention of residents who are your first targets
- Advertise your recreational vehicle park on national dailies, local TV, and radio station
- Promote your recreational vehicle park online via your official website and all available social media platforms
- Hire the services of experts to make your brand the first choice in your city
- Making your first impression count positively
- Make use of attractive handbills to create awareness and also to give direction to your recreational vehicle park
- Adopt a direct mailing coupon marketing approach
- Position our signage/flex banners at strategic places
- Create a loyalty plan that will enable you to reward your regular customers.
Financial Projection
a. How Much Should You Charge for your Product/Service?
Most recreational vehicle parks charge between $500 and $1,200 per month, including the cost of utilities.
b. How Much Profit Do Recreational Vehicle Park (RV Park) Business Owners Make a Year?
It depends, but the available report shows that on average, a successful RV park owner can make from $50,000 to $90,000 a year. A successful RV park itself can make well over a hundred thousand dollars depending on its popularity, location, and assets.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the recreational vehicle park
- The types of related service offerings
- The location of the recreational vehicle park
- The management style of the recreational vehicle park
- The business approach of the recreational vehicle park
- The advertising and marketing strategies adopted by the recreational vehicle park
- The number of years the recreational vehicle park is in business
d. What is the Profit Margin of Recreational Vehicle Park?
According to most sources, you can expect anywhere from a 10% to 20% return on your initial RV park investment.
e. What is the Sales Forecast?
Below is the sales forecast for recreational vehicle parks. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $400,000
- Third Fiscal Year (FY3): $620,000
Set Up your Office
a. How Do You Choose a Perfect Location for Recreational Vehicle Park in Texas?
- The demography of the location especially as it relates to the number of people that own recreational vehicles
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of recreational vehicle parks in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What City is Best to Open Recreational Vehicle Park Business in Texas?
- New Caney, Texas
- Aubrey, Texas
- Elm Mott, Texas
- Fredericksburg, Texas
- Von Ormy, Texas
- Bulverde, Texas
- Galveston, Texas
- Princeton, Texas
- Austin, Texas
- San Marcos, Texas.
c. What Equipment is Needed to Operate Recreational Vehicle Park Business in Texas?
You should be prepared to purchase charging plugs, measuring meters, changeover box, transformer, safety gadgets et al. You will also need computers/laptops, an internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst other and all these can be gotten as fairly used.
Hire Employees
When it comes to hiring employees for a standard recreational vehicle park, you should make plans to hire a competent chief executive officer (you can occupy this position), facility manager, marketing and sales executive, accountant, attendants, cleaners, and security officers.
Launch the Business Proper
In recent times, no recreational vehicle park opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.
With a proper launching of the recreational vehicle park business, you will officially inform people in your city that your recreational vehicle park is open for business.
a. What Makes Recreational Vehicle Park Businesses Successful?
- Choose a good and secured location to launch the business
- Hire only competent, hardworking, and trustworthy staff
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your recreational vehicle park business
- Leverage all available online and offline platforms to promote your recreational vehicle park.
b. What Happens During a Typical Day at Recreational Vehicle Park (RV Park) Business?
- The facility is open for the day
- Administrative work is done concurrently
- The facility is cleaned, and other inventories are arranged to welcome patrons
- Recreational vehicle owners and campers come in and parking spaces are allotted to them.
- Surveillance is carried out
- Maintenance of the facility is carried out
- The facility is administratively closed for the day.
c. What Skills and Experience Do You Need to Build Recreational Vehicle Park (RV Park) Business?
- Good facility management skills
- Customer services skills
- Interpersonal skill
- Business management skills
- Bargaining skill
- Work experience in the recreational vehicle park industry
- Experience in managing people
- Experience in business administration.