Too many campgrounds struggle because the owner has not established efficient business systems. This typically happens because the RV park owner is so caught up in the day-to-day running of the campground that the fundamentals of good business management get forgotten. Often, the owner simply doesn’t like campground bookkeeping or other administrative tasks, so these get put on the back burner.

The symptoms are familiar, and their results disastrous:

• Poor or non-existent record-keeping
• Tax Obligations (Sales, Occupancy, Payroll, Property or Income) are not met
• Tax Returns are not filed
• Payroll or Workers Compensation issues

Any of these factors can lead the campground down the slippery path to failure, but all are avoidable. The whole point of putting in good systems is that they free you to spend more time working ON your business, not in your business. Here are some tips on good business housekeeping.

Be business-like

To be in business and to remain in business, become a business person! In order to run a campground, you must be business-like. It’s not sufficient just to be very good at what you do. Lots of people who are ‘very good at what they do’ have failed. The common cry: “I’m far too busy for that” is also no excuse. Are you ‘too busy’ to be a competent businessperson? If so, your RV park won’t last long. You must continue to develop your business skills.

To be a businessperson you have to make the effort to become something of a “jack of all trades”, not just a specialist player. You can offer outstanding goods or services, but if you don’t develop good business systems then you are not a fully rounded businessperson and your campground will be in danger of failing.

Remember that other stakeholders in your RV park, such as the bankers who extend loans and financing terms, are always assessing your business skills. If you consistently pay people late or can’t meet the terms of your debt agreements, they will draw the obvious conclusions about your business skills.

How good business systems will help you

Good business systems will make your RV park stronger, more efficient and easier to run. They will also make your RV park far more attractive to future buyers because if you have developed clear operating and procedures manuals the campground business will be seen as an independently viable unit and less dependent on you.

Think for instance of what makes franchises so successful: it’s because they are designed so that people can buy a proven system and operate it after minimal training. They can do this because the business procedures are captured in simple, clear operating manuals.

Here are five steps to a better campground business:

1. Good record-keeping and bookkeeping will help keep you out of trouble with the IRS and your State’s Department of Revenue.  If you’re able to meet your tax obligations through sensible planning, you’ll sleep better at night. You won’t fear a tax audit and you’ll know how your campground is doing. You won’t be caught by a ‘sudden tax demand out of the blue’ because no such thing exists for a well-run business. You should always know which taxes are due, and when. You’ll suffer less stress.

2. Good business planning will help you set goals for your campground, with specific steps on how to achieve these goals. Without goals, where do you think you’re going? Running a business without goals is like turning up at an airport and saying, “I’d really like to go somewhere.” The person at the ticket desk would think you’re clueless, to say the least!

3. Good cash flow forecasting will enable you to anticipate a possible cash flow problem (something all growing businesses experience from time to time) and take steps before the problem becomes a crisis. Banks will respect you if you anticipate problems and make plans in advance. Banks will not respect you—and will indeed categorize you as incompetent—if you tell them you’ve been ‘caught out’ by a crisis. Banks don’t like crises. They like you to go to them well in advance of any possible crisis with a plan in hand. This shows them you’re in charge of your business.

4. Realistic pricing and cost management will ensure that you run your campground in a competitive but profitable way.   Failing to price your campsites properly or control the cost could mean that you’re failing to maximize your profits — or even operating at a loss. For example, if you let costs get out of hand (such as repairs) your profits will erode. There is no point in increasing sales if you’re not increasing your profits.

5. Have a team of advisors who you actively ask questions of and consult with.  Your CPA, attorney, and financial planner have a wealth of knowledge to share with you and should be able to help guide you and your business to make good decisions.

You don’t have to be an expert at everything. For example, you might hate campground bookkeeping. Fine—but get someone else to do it for you, don’t rely on a shoebox for your receipts.  And you should at least understand the overall accounting picture even if you don’t want to do the drudge work yourself.

Having poor systems is the road to stress and burnout. On the other hand, good business systems will enable you to work smarter, not harder. They free you to work ON your campground, not IN your campground.   That way, you’re more likely to avoid burnout and you’ll be able to take time off work because you can train others to follow your clearly documented systems and procedures. Systems are the way to build a better campground and liberate yourself from it.

At Campground Accounting, we specialize in working with Campground and RV Park owners throughout the USA.  Our industry knowledge is focused on taking the headaches out of accounting and helping you grow your campground’s value.  Don’t you owe it to yourself to see how we can help you?  Schedule a complimentary chat with us today at www.campgroundaccounting.com/meet.

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