Do you want to start summer camp 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. Other than that, you will also have to prepare a comprehensive business plan which will not only help you in startup but will also help you in deciding the business strategies of your company over the next few years. For helping you create an effective business plan, we are providing the business plan of a summer camp business startup, ‘The Summer Town.’
2.1 The Business
The Summer Town will be a summer camp located beside Mitchell’s Cove Beach in Santa Cruz, California.
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.
Our customers will primarily be the kids, teens and young adults from across the country.
2.4 Target of the Company
Our company targets are summarized in the chart below.
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.
3.2 Why the 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.
3.3 How the 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:
|Research and Development||$32,750|
|TOTAL START-UP EXPENSES||$187,300|
|Other Current Assets||$232,500|
|Start-up Expenses to Fund||$11,875|
|Start-up Assets to Fund||$15,000|
|TOTAL FUNDING REQUIRED||$0|
|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|
|Liabilities and Capital||$0|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$695,000|
|Loss at Start-up (Start-up Expenses)||$313,125|
|TOTAL CAPITAL AND LIABILITIES||$251,875|
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
Marketing Analysis of summer camp business
The most important component of effective summer camp business plan is its accurate marketing analysis that’s 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’re 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.
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:
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.
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:
|Potential Customers||Growth||YEAR 1||YEAR 2||YEAR 3||YEAR 4||YEAR 5||CAGR|
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.
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
|Unit Sales||Year 1||Year 2||Year 3|
|Weight Loss Course||539,320||770230||1,002,310|
|TOTAL UNIT SALES||3,494,170||4,588,370||4,807,410|
|Unit Prices||Year 1||Year 2||Year 3|
|Weight Loss Course||$700.00||$800.00||$900.00|
|Weight Loss Course||$50,110||$71,600||$93,000|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Weight Loss Course||$0.30||$0.35||$0.40|
|Direct Cost of Sales|
|Weight Loss Course||$17,900||$35,000||$52,100|
|Subtotal Direct Cost of Sales||$1,294,100||$1,699,400||$2,104,700|
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.
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
|Year 1||Year 2||Year 3|
|Front Desk Officer||$35,000||$38,000||$41,000|
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.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||10.00%||11.00%||12.00%|
|Long-term Interest Rate||10.00%||10.00%||10.00%|
8.2 Brake-even Analysis
|Monthly Units Break-even||5530|
|Monthly Revenue Break-even||$159,740|
|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
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$15,100||$19,153||$23,206|
|TOTAL COST OF SALES||$15,100||$19,153||$23,206|
|Gross Margin %||94.98%||94.72%||94.46%|
|Sales and Marketing and Other Expenses||$1,850||$2,000||$2,150|
|Total Operating Expenses||$188,766||$220,744||$252,722|
|Profit Before Interest and Taxes||$105,205||$146,040||$186,875|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
|SUBTOTAL CASH SPENT||$35,296||$35,489||$43,882|
|Net Cash Flow||$11,551||$13,167||$15,683|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$201,259||$237,468||$273,677|
|TOTAL LONG-TERM ASSETS||$980||$610||$240|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$9,482||$10,792||$12,102|
|TOTAL LIABILITIES AND CAPITAL||$198,839||$232,978||$267,117|
8.6 Business Ratios
|Year 1||Year 2||Year 3||Industry Profile|
|Percent of Total Assets|
|Other Current Assets||1.75%||2.02%||2.29%||27.40%|
|Total Current Assets||138.53%||150.99%||163.45%||54.60%|
|Percent of Sales|
|Selling, General & Administrative Expenses||74.29%||71.83%||69.37%||65.20%|
|Profit Before Interest and Taxes||26.47%||29.30%||32.13%||2.86%|
|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.|
|Accounts Receivable Turnover||4.56||4.56||4.56||N.A.|
|Accounts Payable Turnover||14.17||14.67||15.17||N.A.|
|Total Asset Turnover||1.84||1.55||1.26||N.A.|
|Debt to Net Worth||0||-0.02||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$120,943||$140,664||$160,385||N.A.|
|Assets to Sales||0.45||0.48||0.51||N.A.|
|Current Debt/Total Assets||4%||3%||2%||N.A.|
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