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.’

Executive Summary

2.1 The Business

The Summer Town will be a summer camp located beside Mitchell’s Cove Beach in Santa Cruz, California.

2.2 Management

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

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.

Summer Camp Business Plan - 3 Years Profit Forecast

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.

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:

Summer Camp Business Plan - Startup Cost

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

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:

Summer Camp Business Plan - Market Segmentation

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 CustomersGrowthYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5CAGR
Kids45%11,43313,34416,55318,74520,54513.43%
Teens38%22,33432,34443,66552,54466,43210.00%
Young Adults17%8,3229,45510,65512,86714,43315.32%
Total100%42,08955,14370,87384,156101,4109.54%

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

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

Summer Camp Business Plan - Sales Monthly

6.4 Sales Yearly

Summer Camp Business Plan - Sales Yearly

6.5 Sales Forecast

Mushroom Farm Business Plan - Unit Sales

Sales Forecast   
Unit SalesYear 1Year 2Year 3
Summer Package1,887,0302,680,3202,588,240
Computer Course802,370815,430823,540
Weight Loss Course539,3207702301,002,310
Cooking Course265,450322,390393,320
TOTAL UNIT SALES3,494,1704,588,3704,807,410
Unit PricesYear 1Year 2Year 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 CostsYear 1Year 2Year 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.

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 1Year 2Year 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

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.

8.1 Important Assumptions

 General Assumptions   
Year 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate26.42%27.76%28.12%
Other000

8.2 Brake-even Analysis

Summer Camp Business Plan - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even5530
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

 Pro Forma Profit And Loss   
Year 1Year 2Year 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/Sales30.00%39.32%48.64%

8.3.1 Profit Monthly

Summer Camp Business Plan - Profit Monthly

8.3.2 Profit Yearly

Summer Camp Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Summer Camp Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Summer Camp Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Summer Camp Business Plan - Projected Cash Flow

 Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 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
ExpendituresYear 1Year 2Year 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

 Pro Forma Balance Sheet   
AssetsYear 1Year 2Year 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 CapitalYear 1Year 2Year 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

 Ratio Analysis    
Year 1Year 2Year 3Industry Profile
Sales Growth4.35%30.82%63.29%4.00%
Percent of Total Assets
Accounts Receivable5.61%4.71%3.81%9.70%
Inventory1.85%1.82%1.79%9.80%
Other Current Assets1.75%2.02%2.29%27.40%
Total Current Assets138.53%150.99%163.45%54.60%
Long-term Assets-9.47%-21.01%-32.55%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.68%3.04%2.76%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities4.68%3.04%2.76%54.10%
NET WORTH99.32%101.04%102.76%44.90%
Percent of Sales
Sales100.00%100.00%100.00%100.00%
Gross Margin94.18%93.85%93.52%0.00%
Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
Advertising Expenses2.06%1.11%0.28%1.40%
Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
Main Ratios
Current25.8629.3932.921.63
Quick25.428.8832.360.84
Total Debt to Total Assets2.68%1.04%0.76%67.10%
Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
Pre-tax Return on Assets64.88%69.75%74.62%9.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19.20%21.16%23.12%N.A.
Return on Equity47.79%50.53%53.27%N.A.
Activity Ratios
Accounts Receivable Turnover4.564.564.56N.A.
Collection Days9299106N.A.
Inventory Turnover19.722.5525.4N.A.
Accounts Payable Turnover14.1714.6715.17N.A.
Payment Days272727N.A.
Total Asset Turnover1.841.551.26N.A.
Debt Ratios
Debt to Net Worth0-0.02-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120,943$140,664$160,385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.450.480.51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23.6627.0130.36N.A.
Sales/Net Worth1.681.290.9N.A.
Dividend Payout000N.A.