How to Write an RV Park Business Plan: 7 Steps to Funding
How to Write a Business Plan for RV Park
Follow 7 practical steps to create an RV Park business plan in 10–15 pages, with a 5-year forecast, breakeven at 25 months, and initial CAPEX of $1245 million clearly explained in numbers
How to Write a Business Plan for RV Park in 7 Steps
Modeling 150% total variable cost rate against site rentals.
Calculated contribution margin structure.
5
Calculate Fixed Overhead and Wages
Financials
Summing $285,600 fixed costs and $201,000 wages.
$486,600 total 2026 operating expense base.
6
Determine Breakeven Point and Funding Needs
Financials
Projecting cash flow trough and required runway.
Jan-28 breakeven date; -$502,000 max cash required.
7
Identify Key Risks and Exit Strategy
Risks
Addressing 2026 negative EBITDA and 5-year growth.
$125 million revenue target by 2030.
What is the actual market demand and pricing power for my RV Park location?
The actual market demand for your RV Park location depends heavily on whether you capture stable, long-term 'snowbirds' or fluctuating daily travelers, and this directly impacts your revenue stability; for context on potential earnings based on these dynamics, look at How Much Does The Owner Of An RV Park Typically Earn?. If your location sees heavy seasonal swings, your pricing strategy must aggressively capture peak demand to cover off-season fixed costs.
Segmenting Demand & Pricing
Long-term guests (monthly) offer predictable income streams.
Digital nomads require reliable high-speed internet, justifying premium pricing.
Ensure monthly rates offer at least a 15% discount versus 30 daily bookings.
Assessing Local Rate Power
Map competitor daily rates against your full-hookup premium offering.
If peak season occupancy hits 95%, you have pricing leverage.
Off-season occupancy below 60% signals high risk for fixed costs.
A four-month peak season requires aggressive pricing to offset slow months. I think this is a defintely key factor.
How will site utilization and variable utility costs impact overall contribution margin?
The RV Park needs to generate $32,118 in monthly revenue to cover all fixed costs, including planned maintenance scaling, because the 85% contribution margin leaves a significant gap to close; site utilization directly dictates if you hit this revenue target before variable utility costs erode profitability. If you're looking closer at the operational side of things, you might want to review Are You Currently Monitoring The Operational Costs Of Your RV Park? Honestly, managing utility spend is a major lever here.
Contribution Margin Math
Variable costs are pegged at 15% of revenue.
This yields a contribution margin of 85%.
Total fixed costs are $23,800 monthly overhead plus $3,500 for maintenance scaling.
Break-even revenue is fixed costs divided by CM: $27,300 / 0.85.
Utilization Drives Profit
Hitting $32,118 in monthly sales is the immediate goal.
High site utilization is defintely critical to absorb the $27,300 fixed base.
Variable utility costs scale with occupancy, but fixed site costs don't move.
You must model the required occupancy rate based on your Average Daily Rate.
What is the total capital expenditure required before launch and when is the cash trough expected?
The total initial capital expenditure for launching the RV Park is $1,245,000, and you should expect your minimum cash balance, or cash trough, to hit negative $502,000 before operations stabilize, so securing funding for that gap is critical. Before you finalize your funding structure, it’s smart to review how you Are You Currently Monitoring The Operational Costs Of Your RV Park? to ensure these upfront costs don't sink your runway.
Initial Spend Breakdown
Utilities infrastructure requires $450,000.
Site preparation and grading cost $150,000.
Total required pre-launch capital is $1,245,000.
This estimate covers only the minimum buildout requirements.
Funding the Trough
The minimum cash needed, the trough, is negative $502,000.
You need $502,000 secured beyond the initial CAPEX spend.
Equity financing covers riskier early capital needs.
Debt financing works defintely better for asset-backed expenditures later on.
Do I have the right management and staffing structure to handle peak season demand and maintenance?
Assessing 2026 staffing, your current 10 Maintenance Technicians might be tight supporting $1.245 million in assets, while the planned Front Desk growth from 15 to 25 FTEs needs careful capacity planning now.
Maintenance Staffing Ratio Check
In 2026, you project $1,245,000 in total assets requiring upkeep.
You plan to staff 10 Maintenance Technicians for that year.
This yields an asset coverage ratio of $124,500 in assets per technician.
Review if this asset-to-technician ratio supports amenity uptime expectations.
Scaling Front Desk Operations
If you're tracking operational costs, you should review Are You Currently Monitoring The Operational Costs Of Your RV Park?. For 2026, the base staffing plan includes 40 total Full-Time Equivalents (FTEs), budgeted at $201,000 in wages. Honestly, the biggest scaling challenge looks like the Front Desk team.
Front Desk staff must grow from 15 FTEs in 2026.
The target is scaling up to 25 FTEs by 2030.
This represents a 66% increase in required guest service personnel.
Ensure onboarding processes support this rapid expansion defintely.
Key Takeaways
Creating a robust RV Park business plan involves executing 7 distinct steps covering market analysis, CAPEX detailing, and financial modeling.
The total initial capital expenditure required for development, dominated by utility installation, stands at $1,245,000.
The financial model indicates that the operation will reach its breakeven point after 25 months, anticipated in January 2028.
Successfully navigating the pre-launch phase requires securing funding to cover the maximum negative cash flow trough, projected at -$502,000.
Step 1
: Define the RV Park Concept and Target Guest
Define Concept & Rates
Defining the concept—resort versus basic stopover—sets the entire capital expenditure (CAPEX) plan. If you aim for resort status, site development costs escalate fast. This decision dictates your required daily rate and the necessary level of amenities, like high-speed internet for digital nomads.
The main challenge here is pricing parity. You can't charge premium rates without delivering premium infrastructure, like pristine bathhouses. If you undersell the luxury positioning, achieving the $450,000 total revenue goal projected for 2026 becomes incredibly difficult. You gotta nail this first.
Quantify Site Mix
Base your initial pricing structure on the target guest mix. For snowbirds needing extended stays, offer tiered monthly discounts. For vacationing families, focus on higher nightly rates. You need to model occupancy splits between short-term (high ADR, low volume) and long-term (lower ADR, high stability).
Since you are targeting a resort experience, your Average Daily Rate (ADR) must support the high fixed overhead of $285,600 annually. Honestly, if your projected ADR doesn't cover the cost of those 4 full-time employees (FTEs) needed for service, you're building a cost center, not a business. You need to defintely prove the rate structure works.
1
Step 2
: Analyze Local Competition and Pricing
Competitive Rates Check
You must know what the local RV parks charge for basic parking and extras like Wi-Fi or laundry. This competitive data validates your pricing assumptions for your premium offering. If local average nightly rates are $55, aiming for $85 without clear added value is defintely risky. This mapping prevents setting revenue targets based purely on wishful thinking rather than market reality.
This analysis directly feeds the 2026 revenue projection of $450,000 total revenue. You need to reverse-engineer that number based on expected site occupancy and your Average Daily Rate (ADR). For instance, if you project 70% occupancy across your sites, you need an ADR that hits the target after accounting for ancillary income from the store and laundry.
Pricing Validation Steps
Systematically survey nearby parks. Document their standard nightly rates, weekly discounts, and specific charges for utilities or premium amenities. Look for parks targeting similar demographics—retirees versus digital nomads—to understand price elasticity in your specific market segment. This intel helps position your resort-style offering correctly.
To hit $450,000 in 2026, define your site mix (standard versus premium). If you assume 60% of revenue comes from site rentals, you need to calculate the required ADR needed to generate that portion, factoring in seasonal dips and the mix of short-term versus long-term guests. Ancillary revenue must cover the rest.
2
Step 3
: Detail Site Development and CAPEX
CAPEX Sequencing
Getting the site ready dictates when you open your resort. The total capital expenditure is $1,245,000. You must front-load site preparation to hit your revenue targets. Specifically, land grading, costing $150,000, and utility hookup installation, at $450,000, must be completed between Q1 and Q3 2026. If utility work slips, the whole opening date moves.
Front-Loading Site Work
To manage this spend, treat utility installation as the critical path item. Since hookups cost $450,000, secure contractors early in Q1 2026. Land grading should run concurrently, finishing by mid-Q2 so utility trenches can be dug. Defintely pad the schedule for permitting delays, which often stall site work past Q3.
3
Step 4
: Build the Revenue and Cost Structure
Model Variable Costs
You need to nail down unit economics before scaling occupancy. This means separating costs that move with every rental night from costs that stay put, like land lease or insurance. We call the difference between revenue and direct costs the contribution margin (revenue minus variable costs). If this margin is negative, you’re losing money on every site rented, regardless of how many sites you fill. Honestly, this is where many parks fail to see the cliff coming.
Calculate Margin Impact
We model the 150% total variable cost rate against your primary income stream: RV Site Rentals. If site revenue is $100, variable costs are $150 based on this rate. If your 2026 site revenue projection is $450,000, variable costs hit $675,000 (1.5 x $450,000). This results in a negative contribution of -$225,000 before accounting for fixed overhead like the $285,600 in 2026 fixed costs. You defintely need to re-evaluate the input for Store Inventory, Propane, Utilities, and Fees.
4
Step 5
: Calculate Fixed Overhead and Wages
Fixed Cost Foundation
Establishing your fixed expense base sets the minimum revenue hurdle. This combines overhead and payroll, defining the cost floor you must cover monthly. For this resort, we must nail the $285,600 in annual fixed costs plus $201,000 budgeted for initial wages. Get this wrong, and your breakeven projection in the next step will be inflated, defintely risking your cash runway planning.
This calculation isolates expenses that persist regardless of how many RVs are parked. Think site maintenance contracts, core administrative salaries, and property insurance premiums. These costs are non-negotiable inputs for calculating the required gross margin needed to survive.
Defining the Expense Floor
Separate fixed costs from variable items now, before modeling revenue. Fixed items include insurance, property taxes, and core management salaries; they don't change if you have 10 or 100 guests. The $201,000 wage budget covers the initial 40 FTEs needed for site readiness and guest support services.
Summing these two major buckets gives us the total operating expense base for 2026. Annual fixed costs of $285,600 plus initial wages of $201,000 equals a firm $486,600 expense level. This number is the critical input for determining the required sales volume.
5
Step 6
: Determine Breakeven Point and Funding Needs
Cash Trough Defines Runway
Knowing the cash trough defines your funding runway. This point is where cumulative losses are highest, setting the minimum capital required to survive until positive cash flow begins. For this resort, the model projects the deepest cash deficit hits -$502,000. If you raise less than this, you stop operating before breakeven. That’s a hard stop.
The breakeven date tells you when the business starts funding itself. This is not when EBITDA is zero, but when cumulative cash flow turns positive. We project this happens 25 months into operations, landing in January 2028. If site ramp-up is slow, this date slips, increasing the required funding amount. You need a buffer for that delay.
Managing the Burn Rate
To manage the $502,000 trough, focus intensely on the first 18 months of operations. Since fixed overhead runs $486,600 annually, every day without revenue burns capital. You need funding secured to cover this deficit plus 3 months of operating cushion. Don't rely on the initial $450,000 revenue projection from 2026 to cover early losses.
The January 2028 breakeven date means the initial capital must sustain operations for over two years before the business pays for itself. To shorten this, accelerate site occupancy beyond the initial projections, perhaps by securing long-term contracts with snowbirds early. Defintely secure the full funding amount before breaking ground.
6
Step 7
: Identify Key Risks and Exit Strategy
Ramp-Up Reality Check
Founders often underestimate the time needed to build occupancy. If the ramp-up is slow, the business won't cover fixed costs quickly. For this resort, the initial projection shows EBITDA of -$135,000 in 2026, even with $450,000 in revenue. This deficit means you need enough runway to cover the operating loss plus the initial CAPEX burn. You'll hit the cash trough of -$502,000 before breakeven in January 2028.
Managing Cost Creep
Utility costs are a major threat when variable costs hit 150% of revenue. Watch the utility line item closely, especially for high-draw amenities. To mitigate overruns, negotiate fixed-rate contracts for electricity and propane now, before major usage starts. If you can cut even 5% from that high variable rate, it dramatically lowers the breakeven volume needed. That's a defintely smart move.
7
The Path to Exit
Reaching $125 million in revenue by 2030 requires aggressive, post-breakeven expansion beyond the initial park footprint. This means securing capital for Phase Two development immediately after achieving profitability in 2028. The growth isn't linear; it demands acquiring adjacent land or developing secondary revenue streams rapidly to compound revenue growth past the initial $450,000 base.
Growth Levers Post-Breakeven
Once cash flow turns positive, focus on site density and premium pricing. The path to $125M revenue means scaling annual revenue by over 275 times the 2026 projection. This exit strategy hinges on proving the resort model works efficiently for 24 months, allowing you to sell a proven, scalable operational blueprint to a larger hospitality group. Show them the $201,000 in initial wages scales efficiently.
