Starting a campground business is a rewarding venture that blends a passion for the outdoors and hospitality with smart business sense. The growing demand for outdoor getaways makes the market attractive, but a successful launch depends on more than just a great location.
This guide will take you through the practical steps of validating your concept, selecting the right location, securing funding, and obtaining the necessary permits to help you launch a successful campground business in the U.S.
Step 1: Plan your business and validate your concept
Define your niche and research the market
Start by checking data from your local tourism board and the National Park Service for visitor trends. This helps you spot gaps. Are travelers looking for full RV hookups, primitive tent sites, or luxury glamping experiences in your target area?
Next, use Google Maps to identify all campgrounds within a 50-mile radius. Study their websites, pricing, and online reviews on platforms like TripAdvisor. Note their amenities and what guests praise or complain about. This is your roadmap for what to offer.
Estimate your startup costs
The initial investment requires careful planning. A frequent oversight is underestimating infrastructure. Bringing in water, power, and septic systems can be a major expense, so you might want to get contractor quotes before you commit to a piece of land.
Here’s a rough breakdown of potential costs:
- Land Acquisition: $3,000 - $10,000+ per acre
- Infrastructure (roads, utilities): $50,000 - $250,000+
- Site Development (pads, hookups): $3,000 - $8,000 per site
- Buildings (office, bathhouse): $100,000 - $300,000+
- Permits and Fees: $10,000 - $50,000
Here are 3 immediate steps to take:
- Contact your local tourism office for regional visitor statistics.
- Create a spreadsheet comparing the amenities and pricing of three local competitors.
- Request preliminary quotes from local contractors for utility installation.
Step 2: Establish your legal structure and secure licenses
You will want to form a Limited Liability Company (LLC). This structure protects your personal assets from business debts and lawsuits. It also provides pass-through taxation, so profits are taxed on your personal return, which avoids the double taxation common with C-Corporations.
File your LLC with your state’s Secretary of State, which typically costs $50-$500. After that, get a free Employer Identification Number (EIN) from the IRS website. You will need this for banking and taxes.
Key permits and licenses
Navigating permits is a detailed process, so start early. A frequent misstep is buying land before confirming its zoning. Always verify with the county planning department that the property is approved for commercial recreational use before you purchase.
- Zoning and Land-Use Permits: Expect to need a Conditional Use Permit from your county. This can cost $1,000-$5,000 and take 3-9 months for approval.
- Health Department Permits: Your local health board will regulate your water supply, septic system, and any food service. Plan for $500-$2,000 in fees and a 2-6 month approval timeline.
- Building Permits: Any new structure, from a bathhouse to an office, requires a building permit from your city or county. Costs vary based on the project's scope.
- Business License: You will need a general business license from your state or city, plus a seller's permit from the state tax agency if you plan to sell merchandise.
Here are 3 immediate steps to take:
- Check your county’s online zoning map to confirm land is approved for recreational use.
- Contact your state’s Secretary of State office for LLC formation documents and fees.
- Request a full permit checklist from your local planning and health departments.
Step 3: Secure insurance and manage risk
Find the right insurance coverage
Many new owners get a generic business policy, which often leaves gaps for outdoor recreation risks. You need coverage designed for campgrounds. Work with an agent who understands the industry to avoid this mistake. They can find policies that cover your specific operations.
Your insurance package should include several key policies. Here is what you can expect to need and typical costs:
- General Liability: $1M per occurrence / $2M aggregate is standard. Premiums often run $2,500-$7,000 annually.
- Commercial Property: Covers your buildings and equipment. Coverage amounts depend on your asset value.
- Workers' Compensation: Required if you have employees. Rates vary by state and payroll size.
- Commercial Auto: For any vehicles used for the business.
When you look for quotes, consider providers like CBIZ, Leavitt Recreation & Hospitality, or Marshall & Sterling. These firms specialize in the outdoor hospitality sector and understand its unique exposures, from guest injuries at a swimming pond to property damage from a storm.
Address unique campground risks
Beyond insurance, you need to actively manage risks on your property. Simple things like clear signage for hiking trails, posted rules for campfires, and regular inspections of playground equipment can prevent accidents. You might also have guests sign a liability waiver upon check-in.
Here are 3 immediate steps to take:
- Request quotes from at least two insurance providers that specialize in campgrounds.
- Consult with a lawyer to draft a guest liability waiver for your business.
- Walk your property to identify and document potential hazards like uneven ground or dead tree limbs.
Step 4: Select your location and purchase equipment
When you evaluate land, aim for a density of 10 to 15 sites per acre. This provides enough space for privacy and amenities. Before you sign anything, confirm the property's zoning allows for "Commercial Recreational" or a similar use, as discussed in the previous step.
If you decide to lease, you might want to negotiate a long-term agreement of 10 years or more. This protects your investment in site infrastructure. A frequent misstep is failing to include a clause that explicitly permits campground operations, so get that in writing.
Purchase your core equipment
With the location secured, you can focus on equipment. Many new owners try to save money with residential-grade items, but these often fail quickly under heavy use. You should invest in commercial-grade products built for durability.
- Picnic Tables: $200 - $500 each. Look for heavy-duty wood or recycled plastic.
- Fire Rings: $100 - $300 each. Steel rings with cooking grates are popular.
- Utility Pedestals (for RV sites): $500 - $1,500 per site for power and water hookups.
You can find these items from industry suppliers like Jamestown Advanced Products or Pilot Rock. They sell products designed for parks and campgrounds and typically do not have minimum order quantities, but bulk orders often come with better pricing.
Here are 3 immediate steps to take:
- Assess a potential property to see if it supports a layout of 10-15 sites per acre.
- Ask a lawyer to review your lease for a clause that permits campground operations.
- Get quotes for commercial-grade picnic tables and fire rings from a supplier like Pilot Rock.
Step 5: Set up your payment processing
Handle reservations and on-site sales
Most campgrounds require a deposit, like the first night's fee, to secure a booking. This protects your revenue from no-shows. You will also need a way to handle payments for walk-ins or extras like firewood and ice sales.
A frequent misstep is getting locked into a payment system with high fees and clunky hardware. Many providers charge 2.5% to 3.5% per transaction, plus monthly fees, which can quickly eat into your profits.
For campgrounds that need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone—just tap and done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful for taking payment for a last-minute booking right at the campsite.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done—no waiting for bank transfers.
Here are 3 immediate steps to take:
- Define your deposit policy for online and phone reservations.
- Download the JIM app to see how it works on your phone.
- List all the items you might sell on-site, like firewood or snacks, to plan your payment needs.
Step 6: Secure funding and manage your finances
You will likely need a significant loan. Look into SBA 7(a) and 504 loans, which can offer up to $5 million. The USDA’s Business & Industry Loan Guarantee program is another great option if your property is in a rural area. Interest rates often range from 9% to 13%.
Many new owners approach lenders with a weak business plan. Banks want to see detailed five-year financial projections, market analysis, and a clear breakdown of your startup costs. Your plan must show you have done your homework and understand the investment.
Once you secure a loan, you need to budget for working capital. This is the cash on hand to cover your expenses for the first six months before revenue becomes consistent. A healthy budget for this period might be between $50,000 and $150,000, depending on your campground's size.
Your working capital should cover:
- Payroll for any staff
- Insurance premiums
- Utilities and marketing costs
- Inventory like firewood and store supplies
- A contingency fund for unexpected repairs
Here are 4 immediate steps to take:
- Draft a five-year financial projection for your business plan.
- Research SBA 7(a) loan requirements on the official SBA website.
- Contact your local USDA Rural Development office to check eligibility.
- Calculate your estimated working capital needs for the first six months.
Step 7: Hire your team and set up daily operations
Your first hires will likely be a Camp Host or two. They are the face of your business, handling check-ins, site upkeep, and guest questions. A good host can make or break the guest experience.
Compensation for hosts often includes a free campsite plus a stipend or an hourly wage of $15-$20. For a larger park, a full-time Campground Manager might earn $40,000-$60,000 annually to oversee all operations.
Prepare your staff for success
A frequent oversight is skimping on training. All staff should have First Aid and CPR certification. If your campground has its own well or septic system, you will need someone with a state-issued water systems operator license.
With your team in place, you can map out daily tasks. Create checklists for bathroom cleaning, trash removal, and site inspections. Reservation software like Campspot or ResNexus can help manage staff schedules alongside bookings.
As you grow, aim to keep your total payroll costs between 20% and 30% of gross revenue. This is a healthy benchmark for the outdoor hospitality industry and helps ensure profitability.
Here are 4 immediate steps to take:
- Draft job descriptions for a Camp Host and a Campground Manager.
- Research local providers for group First Aid and CPR certification.
- Create a sample daily checklist for opening and closing procedures.
- Review reservation software like Campspot to see its staff management features.
Step 8: Market your business and acquire customers
Build your online presence
Your website and online listings are your digital storefront. Start with a Google Business Profile. Then, list your campground on platforms like The Dyrt, Hipcamp, and Campspot. These can drive 30-50% of your initial bookings.
Many new owners set up these profiles and then forget them. You should keep your availability current and respond to all reviews within 24 hours. This simple habit builds trust and boosts your ranking on those platforms.
Engage customers with targeted outreach
Use Instagram to showcase your property with high-quality photos and videos. You can run targeted Facebook ads to users interested in camping or nearby attractions. Aim for a customer acquisition cost (CAC) under $40 per booking.
Also, start an email list from your first booking. You might offer a 10% discount on a future stay for signing up. A monthly newsletter with park updates or local events keeps you top-of-mind for past guests.
Here are 4 immediate steps to take:
- Create and fully populate your Google Business Profile.
- List your campground on The Dyrt and Hipcamp.
- Outline a Facebook ad campaign targeting users interested in local state parks.
- Draft a welcome email offering a small incentive for newsletter sign-ups.
Step 9: Set your pricing and manage revenue
Choose your pricing model
Most campgrounds use a mix of dynamic and tiered pricing. Dynamic pricing means you adjust rates for demand. For example, a standard site might be $45 on a Tuesday but jump to $65 on a holiday weekend. This strategy alone can boost revenue by 15-25%.
Tiered pricing sets different rates based on amenities. A basic tent site could be $35, while a full hookup RV site with a premium view is $80. Your goal should be a net profit margin of 30-40% after all operating expenses are paid.
Analyze your competition
A frequent misstep is setting prices too low to attract initial guests. This can signal low quality and make it difficult to raise rates later. Instead, research your top three competitors. Analyze their pricing on their websites and on platforms like Campspot for different seasons and site types.
Create a simple spreadsheet to compare their rates, amenities, and booking policies. This helps you position your campground competitively. If your amenities are better, your price should reflect that. You can use reservation software to automate your dynamic pricing rules.
Here are 3 immediate steps to take:
- Create a tiered pricing sheet for your basic, partial, and full hookup sites.
- Analyze the holiday weekend rates of three local competitors.
- Set a dynamic pricing rule for your peak season, such as a 20% rate increase for July.
Step 10: Maintain quality and scale your business
Measure quality and guest satisfaction
To maintain quality, you need to measure it. Track guest feedback from your booking platform and Google reviews. A useful metric is the Net Promoter Score (NPS). You can survey guests post-stay and aim for a score above 50, which indicates strong customer loyalty.
You might also pursue a Good Sam rating. This is a well-known industry benchmark. A high rating, like a 9/10/9, can attract more RVers. A frequent oversight is to ignore negative feedback. You should have a process to respond to all reviews within 24 hours.
Know when to scale your operations
Growth should be data-driven. When your occupancy consistently hits 70-80% during peak season, it is a sign you may need more staff to avoid a drop in service quality. This prevents burnout and keeps guests happy.
If you find yourself turning away customers for more than 10-15 weekends during your busy season, it could be time to expand. This might mean adding more sites or new amenities. Your reservation software, like Campspot or ResNexus, has reporting features to track these trends.
Here are 3 immediate steps to take:
- Set up a simple spreadsheet to track guest feedback and your response times.
- Review your occupancy reports from last season to identify growth patterns.
- Research the Good Sam rating criteria to create a quality improvement checklist.
Your campground journey starts now
Building a campground is more than a business venture; it’s about creating a place where people make memories. Remember that genuine hospitality is what turns first-time visitors into regulars. You have the steps, now go make your vision a reality.
As you prepare to open, keep your payments simple. JIM lets you accept cards right on your smartphone for a flat 1.99% fee, with no extra hardware. This way, you can focus on your guests, not your transactions. Download JIM and be ready for your first sale.
