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Summer Camp Business Plan for Starting Your Own Business
Do you want to start a summer camp business? A summer camp, also known as sleepaway camp, is a supervised program for children/teenagers conducted during the summer months where they are offered a variety of specialized activities such as hiking, canoeing, campfires with or without academic activities.
A summer camp business is not easy to start since it requires a massive amount of initial capital along with an impeccable planning. Before starting this venture, you will have to do a thorough research so that you may get to know, how to start a summer camp business.
Executive Summary
In order to start a new summer camp business, you need a professional to help you prepare a detailed business plan for summer camp. It will help you understand what you will need to startup your business. It gives a complete overview of what you will need in the next few years to prepare the ideal strategies.
We are going to cover all the important basics of a summer camp startup in this section of the best bussiness plan template for summer camp.
2.1 The Business
The Summer Town will be a summer camp located beside Mitchell’s Cove Beach in Santa Cruz, California.
It is located on a very serene and natural environment. At Summer Town, we are going to offer the right combination of physical and mental activities to help children thrive in an active environment.
2.2 Management of Summer Camp
The Summer Town will be owned and operated by Lily Jill, who has been working for some of the biggest summer camps in the United States for the last 11 years. Being experienced in this industry, Lily knows how to run a summer camp business and make it successful.
2.3 Customers of Summer Camp
Our customers will primarily be the kids, teens and young adults from across the country.
In our summer camp, we are going to assure their parents that their kids will stay in a safe and comfortable environment. Our summer camp is ideal for all the active kids who want to try new activities.
2.4 Target of the Company
This free business plan template for summer camp has listed all the activities and services we are going to offer like academic activities, fitness, and adventure sports.
Our company targets are summarized in the chart below.
Note
In order to help you further, we are going to elaborate further with a sample business plan for starting up your summer camp.
Company Summary
3.1 Company Owner
The Summer Town will be owned and operated by Lily Jill. Lily has been working for some of the biggest summer camps in the United States for the last 11 years.
She has vast exposure in activities, which combine science, wildlife, and traditional camp activities to provide the best and fun experience to clients.
3.2 Why the Summer Camp Business is being started
Lily is passionate to start a summer camp business. She started off as a Group Leader and have since worked in a number of roles like Camp Director, Operations Support, and Trainer for companies such as Kingswood and Camp Beaumont. The reason behind her starting this business is her passion about it.
In this summer camp business plan model, you are going to discuss the passion and inspiration of the owner behind starting this business.
3.3 How the Summer Camp Business will be started
Lily has procured a beautiful building which was previously used as a small resort for starting her summer camp. The financial experts have forecasted the following costs for the start-up:
The detailed start-up requirements are as follows:
| Start-up Expenses | |
| Legal | $55,300 |
| Consultants | $0 |
| Insurance | $32,750 |
| Rent | $32,500 |
| Research and Development | $32,750 |
| Expensed Equipment | $32,750 |
| Signs | $1,250 |
| TOTAL START-UP EXPENSES | $187,300 |
| Start-up Assets | $0 |
| Cash Required | $332,500 |
| Start-up Inventory | $32,625 |
| Other Current Assets | $232,500 |
| Long-term Assets | $235,000 |
| TOTAL ASSETS | $121,875 |
| Total Requirements | $245,000 |
| START-UP FUNDING | $0 |
| START-UP FUNDING | $273,125 |
| Start-up Expenses to Fund | $11,875 |
| Start-up Assets to Fund | $15,000 |
| TOTAL FUNDING REQUIRED | $0 |
| Assets | $23,125 |
| Non-cash Assets from Start-up | $18,750 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $18,750 |
| Cash Balance on Starting Date | $21,875 |
| TOTAL ASSETS | $0 |
| Liabilities and Capital | $0 |
| Liabilities | $0 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $0 |
| Capital | $0 |
| Planned Investment | $0 |
| Investor 1 | $332,500 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $695,000 |
| Loss at Start-up (Start-up Expenses) | $313,125 |
| TOTAL CAPITAL | $251,875 |
| TOTAL CAPITAL AND LIABILITIES | $251,875 |
| Total Funding | $255,000 |
Services for customers
Before starting a summer camp business, you must decide what will you offer to the kids/teenagers who will become your customers since the planning of many subsequent things depend on this phase. The Summer Town will provide eight 4-bedroom units along with attached washrooms, laundry facilities, and fully-equipped kitchens. We will also offer a common outdoor swimming pool along with various other facilities.
Our primary services to our target customers will be the all-inclusive summer camp package which includes 2 months stay along with all associated facilities, tons of interesting games, sports and hikes. In addition to this main package, we will also offer various short courses. Our main services include:
- Summer package
- Cooking course
- Computer course
- Weight loss course
In this summer camp business plan example, you need to elaborate in detail what types of courses and packages you are going to offer.
Marketing Analysis of Summer Camp Business
The most important component of effective summer camp business plan is its accurate marketing analysis that is why Lily acquired the services of marketing experts to help her through this phase. It is only after this stage that a good business plan summer camp could have been developed. If you are starting your summer camp on a small scale, you can do marketing analysis yourself by taking help from this summer camp business plan template or other summer camp business plan sample templates available online. If starting on a large scale, you must seek counsel from marketing experts.
When running a summer camp, you need to do proper market research and find what you need for your business to stand out.
5.1 Market Trends
According to IBISWorld report, the summer camp industry generates more than $3 billion in revenue as of 2016. Currently, there are more than 6,000 registered summer camps in the United States which are responsible for employing more than 28,000 people across the country. The industry is growing at an estimated rate of 3.3% but according to experts, the industry has still to grow. There are also many non-profit summer camps in the United States who aim to achieve other goals with their efforts.
5.2 Marketing Segmentation
Our target market is the kids, teens and young adults from across the United States. The psychological, health and social benefits of summer camps have been strongly established over the recent years and parents are now more than ready to send their children to these summer schools. In addition to providing a lot of fun, these summer camps also teach younger generation many moral values which they cannot learn in their classrooms.
Our experts have identified the following type of target audience which can become our future consumers:
The detailed analysis of our target audience is as follows:
5.2.1 Kids:
The first group comprises of the kids, studying in junior schools. We have prepared specific programs which contribute to the mental and psychological development of kids who join our summer camps. These kids will be subjected to various fun activities which include but are not limited to in-door and out-door games as well as various sports.
5.2.2 Teens:
The second category comprises of the teens, studying in high schools. In addition to providing fun and healthy activities for teens, we offer computer course, cooking course and weight loss course to them so that they can fully utilize their summer holidays to the fullest extent while also having the best time of their lives.
5.2.3 Young Adults:
The third category includes young adults, studying in colleges or universities. We have also prepared various programs in accordance with the mental standing of this group in addition to the three courses mentioned before.
The detailed market analysis of our potential customers is given in the following table:
| Market Analysis | |||||||||
| Potential Customers | Growth | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | CAGR | ||
| Kids | 45% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 13.43% | ||
| Teens | 38% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 10.00% | ||
| Young Adults | 17% | 8,322 | 9,455 | 10,655 | 12,867 | 14,433 | 15.32% | ||
| Total | 100% | 42,089 | 55,143 | 70,873 | 84,156 | 101,410 | 9.54% | ||
5.3 Business Target
Our main business targets are:
- To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
- To balance the initial cost of the startup with earned profits by the end of the first year
5.4 Product Pricing
After considering our market competition and various other aspects, we have decided to price our packages in the same ranges as that of our competitors.
Strategy of Summer Camp Business
Sales strategy is an important component of the summer camp business plans because it decides how you will attract customers to generate revenue for your company.
6.1 Competitive Analysis
We will have a tough competition ahead of us because Santa Cruz houses many summer camps. Still, we hope to stand out due to the quality of our services. Our second competitive edge will be our unparalleled customer service which will be the best in town. We will treat every individual with utmost respect and make sure that they spent the best time of their lives in our summer camp. We will also ensure the security and safety of all kids and teens by implementing strict policies.
6.2 Sales Strategy
- We will market and advertise our summer camps on social and print media.
- We will offer a 15% discount on our services for the first three months of our launch.
- We will conduct seminars in schools and colleges for emphasizing the benefits of summer camps and hence will promote ourselves.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Summer Package | 1,887,030 | 2,680,320 | 2,588,240 |
| Computer Course | 802,370 | 815,430 | 823,540 |
| Weight Loss Course | 539,320 | 770230 | 1,002,310 |
| Cooking Course | 265,450 | 322,390 | 393,320 |
| TOTAL UNIT SALES | 3,494,170 | 4,588,370 | 4,807,410 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Summer Package | $140.00 | $150.00 | $160.00 |
| Computer Course | $600.00 | $800.00 | $1,000.00 |
| Weight Loss Course | $700.00 | $800.00 | $900.00 |
| Cooking Course | $650.00 | $750.00 | $850.00 |
| Sales | |||
| Summer Package | $2,149,800 | $2,784,000 | $3,383,200 |
| Computer Course | $120,050 | $194,500 | $268,500 |
| Weight Loss Course | $50,110 | $71,600 | $93,000 |
| Cooking Course | $139,350 | $194,600 | $249,850 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Summer Package | $0.70 | $0.80 | $0.90 |
| Computer Course | $0.40 | $0.45 | $0.50 |
| Weight Loss Course | $0.30 | $0.35 | $0.40 |
| Cooking Course | $3.00 | $3.50 | $4.00 |
| Direct Cost of Sales | |||
| Summer Package | $989,300 | $1,839,000 | $2,679,700 |
| Computer Course | $66,600 | $119,900 | $173,200 |
| Weight Loss Course | $17,900 | $35,000 | $52,100 |
| Cooking Course | $19,400 | $67,600 | $115,800 |
| Subtotal Direct Cost of Sales | $1,294,100 | $1,699,400 | $2,104,700 |
Personnel plan
The personnel plan of our summer camp business model gives an estimate of how much cost will be incurred on the salaries of the staff.
When starting a camp for kids, you need to describe the number of employees as well as candidates you are going to hire. You cannot just manage the whole business without a well-trained staff.
7.1 Company Staff
Lily will manage the overall operations and will initially hire following people:
- 1 Accountant for maintaining financial records
- 3 Sales Executives responsible for marketing and discovering new ventures
- 5 Chefs for preparing food and offer cooking course
- 14 Service Assistants for undertaking various day-to-day operations
- 12 Cleaners for keeping the camp in a perfectly cleaned shape and undertaking other cleaning tasks, like laundry
- 4 Drivers for Airport pick-up and transfer service
- 1 Nutritionist for providing weight loss course
- 1 Computer Technician for offering computer course
- 1 Doctor for providing medical service in case of emergency
- 1 Facility Manager for managing all facilities and equipment in the camp
- 1 Front Desk Officer for acting as a receptionist
- 4 Security Officers
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Accountant | $44,000 | $47,000 | $50,000 |
| Sales Executives | $53,000 | $56,000 | $59,000 |
| Chefs | $66,000 | $73,000 | $80,000 |
| Service Assistants | $145,000 | $152,000 | $159,000 |
| Cleaners | $166,000 | $173,000 | $180,000 |
| Drivers | $550,000 | $650,000 | $750,000 |
| Nutritionist | $410,000 | $440,000 | $480,000 |
| Computer Technician | $35,000 | $38,000 | $41,000 |
| Doctor | $44,000 | $47,000 | $50,000 |
| Facility Manager | $53,000 | $56,000 | $59,000 |
| Front Desk Officer | $35,000 | $38,000 | $41,000 |
| Security Officers | $86,000 | $89,000 | $92,000 |
| Total Salaries | $1,271,000 | $1,415,000 | $1,569,000 |
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Financial Plan
Finally, you will have to prepare a financial plan before you start summer camp business. Our financial plan outlines the development of the company over the next three years and is specifically developed to achieve the company’s short-term and long-term objectives.
If you are wondering how to start a summer camp, consider the following details.
8.1 Important Assumptions
In this section, list all the estimates of tax and interest rate over the next three years.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 11.00% | 12.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 26.42% | 27.76% | 28.12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
Here, you need to show the overall graph in which you can define the revenue of your company and milestones you are expecting to achieve.
| Brake-Even Analysis | |
| Monthly Units Break-even | 5530 |
| Monthly Revenue Break-even | $159,740 |
| Assumptions: | |
| Average Per-Unit Revenue | $260.87 |
| Average Per-Unit Variable Cost | $0.89 |
| Estimated Monthly Fixed Cost | $196,410 |
8.3 Projected Profit and Loss
In this table, you need to list all the incomes and expenses you are going to expect in your business.
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $309,069 | $385,934 | $462,799 |
| Direct Cost of Sales | $15,100 | $19,153 | $23,206 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $15,100 | $19,153 | $23,206 |
| Gross Margin | $293,969 | $366,781 | $439,593 |
| Gross Margin % | 94.98% | 94.72% | 94.46% |
| Expenses | |||
| Payroll | $138,036 | $162,898 | $187,760 |
| Sales and Marketing and Other Expenses | $1,850 | $2,000 | $2,150 |
| Depreciation | $2,070 | $2,070 | $2,070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4,000 | $4,250 | $4,500 |
| Insurance | $1,800 | $1,800 | $1,800 |
| Rent | $6,500 | $7,000 | $7,500 |
| Payroll Taxes | $34,510 | $40,726 | $46,942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $188,766 | $220,744 | $252,722 |
| Profit Before Interest and Taxes | $105,205 | $146,040 | $186,875 |
| EBITDA | $107,275 | $148,110 | $188,945 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $26,838 | $37,315 | $47,792 |
| Net Profit | $78,367 | $108,725 | $139,083 |
| Net Profit/Sales | 30.00% | 39.32% | 48.64% |
8.3.1 Profit Monthly
Here, you need to show the detailed overview of your monthly profits for the 12 months in the next 3 years.
8.3.2 Profit Yearly
Your investors by business plan may also want to know the annual profits your business can make. It will also help you determine the estimate annual profits for the next 3 years.
8.3.3 Gross Margin Monthly
You need to show up your gross margin on monthly basis in your business plan.
8.3.4 Gross Margin Yearly
Here, you can come up with annual gross margin you are expecting for the next 3 years.
8.4 Projected Cash Flow
Here, you need to analyze the balance over the cash flow expected in your business for the upcoming year.
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40,124 | $45,046 | $50,068 |
| Cash from Receivables | $7,023 | $8,610 | $9,297 |
| SUBTOTAL CASH FROM OPERATIONS | $47,143 | $53,651 | $59,359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47,143 | $53,651 | $55,359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21,647 | $24,204 | $26,951 |
| Bill Payments | $13,539 | $15,385 | $170,631 |
| SUBTOTAL SPENT ON OPERATIONS | $35,296 | $39,549 | $43,582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35,296 | $35,489 | $43,882 |
| Net Cash Flow | $11,551 | $13,167 | $15,683 |
| Cash Balance | $21,823 | $22,381 | $28,239 |
8.5 Projected Balance Sheet
In this balance sheet, list all the assets and liabilities in your business in the long run.
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184,666 | $218,525 | $252,384 |
| Accounts Receivable | $12,613 | $14,493 | $16,373 |
| Inventory | $2,980 | $3,450 | $3,920 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $201,259 | $237,468 | $273,677 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $12,420 | $14,490 | $16,560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198,839 | $232,978 | $267,117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9,482 | $10,792 | $12,102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9,482 | $10,792 | $12,102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9,482 | $10,792 | $12,102 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 |
| Retained Earnings | $48,651 | $72,636 | $96,621 |
| Earnings | $100,709 | $119,555 | $138,401 |
| TOTAL CAPITAL | $189,360 | $222,190 | $255,020 |
| TOTAL LIABILITIES AND CAPITAL | $198,839 | $232,978 | $267,117 |
| Net Worth | $182,060 | $226,240 | $270,420 |
8.6 Business Ratios
Detail all the projected sales growth you are going to expect in percentage.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 4.35% | 30.82% | 63.29% | 4.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5.61% | 4.71% | 3.81% | 9.70% |
| Inventory | 1.85% | 1.82% | 1.79% | 9.80% |
| Other Current Assets | 1.75% | 2.02% | 2.29% | 27.40% |
| Total Current Assets | 138.53% | 150.99% | 163.45% | 54.60% |
| Long-term Assets | -9.47% | -21.01% | -32.55% | 58.40% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.68% | 3.04% | 2.76% | 27.30% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 25.80% |
| Total Liabilities | 4.68% | 3.04% | 2.76% | 54.10% |
| NET WORTH | 99.32% | 101.04% | 102.76% | 44.90% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.18% | 93.85% | 93.52% | 0.00% |
| Selling, General & Administrative Expenses | 74.29% | 71.83% | 69.37% | 65.20% |
| Advertising Expenses | 2.06% | 1.11% | 0.28% | 1.40% |
| Profit Before Interest and Taxes | 26.47% | 29.30% | 32.13% | 2.86% |
| Main Ratios | ||||
| Current | 25.86 | 29.39 | 32.92 | 1.63 |
| Quick | 25.4 | 28.88 | 32.36 | 0.84 |
| Total Debt to Total Assets | 2.68% | 1.04% | 0.76% | 67.10% |
| Pre-tax Return on Net Worth | 66.83% | 71.26% | 75.69% | 4.40% |
| Pre-tax Return on Assets | 64.88% | 69.75% | 74.62% | 9.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19.20% | 21.16% | 23.12% | N.A. |
| Return on Equity | 47.79% | 50.53% | 53.27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.56 | 4.56 | 4.56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19.7 | 22.55 | 25.4 | N.A. |
| Accounts Payable Turnover | 14.17 | 14.67 | 15.17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1.84 | 1.55 | 1.26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0.02 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120,943 | $140,664 | $160,385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.45 | 0.48 | 0.51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23.66 | 27.01 | 30.36 | N.A. |
| Sales/Net Worth | 1.68 | 1.29 | 0.9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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