How to Run a Successful Summer Camp Business

Introduction

Summer camp companies provide an invaluable service – giving children a break from their regular routine and the opportunity to explore while learning and growing in the outdoors. The summer camp industry has seen growing demand over the years, with the latest statistics showing an average annual growth of 2.8% since 2010.

Opening and running a successful summer camp business comes with a huge list of operating expenses. From renting or renting a camp and training and developing staff to providing food and supplies, there are many factors to consider in order to ensure high quality services.

In this blog post, we’ll take a deep dive into the operating costs associated with running a summer camp business – exploring the types of costs you should expect, how to budget for them, and tips for save money and resources.

Operating Expenses

Operating costs for summer camp businesses can have a significant impact on the organization’s overall profitability. These operating costs are divided into variable, fixed and semi-variable expenses which depend on the size of the camp, the expected occupancy levels and the services offered.

• Rent/lease of camp facilities
• Hiring staff
• Insurance cover
• Utilities (electricity, cleaning, water, etc.)
• Materials / equipment
• Promotional campaigns
• Administrative costs (e.g. accounting, legal, license, etc.)
• Training and professional development
• Food/beverage supplies and services

Rent/lease of camp facilities

Camp facility rent/lease is an important cost to consider when planning summer camp business operations. Annual costs can range from a few hundred dollars to hundreds of thousands. According to Statista, the average cost of renting or renting campground facilities in the United States in 2020 was estimated at ,310.

While upfront costs are an important factor to consider, it’s also important to consider the amenities the camp offers, accessibility, and the overall condition of the property. Running an outdoor camp requires many amenities like laundry, showers, restrooms, and other structures to maintain the quality of the camp experience.

In some cases, the cost of a lease or rental fee also depends on capacity and the number of activities offered to campers. For example, a camp that offers a wide range of activities, such as horseback riding, swimming, and archery, often carries higher rental fees than a campground with basic facilities.

When calculating the cost of a campground or rental of a campsite or establishment, it is important to compare the price to other similar facilities operating in the same area. Different amenities and accessories should also be taken into consideration when making the decision.

As summer camp companies look to rent or lease summer camp facilities, they should be aware that the cost of renting or renting these facilities remains relatively fixed over time. As such, businesses should create budget plans and ensure they know the cost of renting or leasing the facilities they intend to use.

Hiring staff

When running a summer camp business, one of the big components of operating costs is hiring staff. Many states have laws that require personnel to have certain qualification certificates such as first aid, CPR, SEE, and water safety. There may also be additional costs associated with obtaining or renewing these certificates. In addition to the cost associated with obtaining each of the required certificates, additional costs may apply depending on the role of staff. For example, lifeguards may require additional professional certifications or special equipment to perform their jobs.

The average cost of a camp employee in the United States is .36 per hour . This number is national average and may vary by location, as well as experience. The number of staff you need to hire will also largely depend on the type of camp you are using, the size of the camp, the type of activities offered and the age range of the campers.

When it comes to hiring processes and policies, employers are free to set their own standards and procedures, as permitted by their state and federal laws. Generally, however, camp operators should expect to cover the costs of:

• Recruitment expenses, such as job boards, travel expenses, and background check fees
• Compensation and benefits including salary, payroll taxes and health insurance
• Camp staff training, such as course-specific orientation and certifications
• Uniforms, first aid kits, safety equipment and other related items

In total, the cost of hiring and maintaining camp staff can range from a few hundred to several thousand or even tens of thousands of dollars. It is important to carefully calculate the operational and staff costs of running your summer camp before you begin.

Insurance cover

When considering the costs of running a summer camp business, insurance coverage is an important factor to consider. Insurance can have a big impact on a summer camp’s financial resources, although protecting the business against potential damage and liability is paramount. Insurance premiums can vary greatly depending on the size and scope of a summer camp and its activities, but generally camp insurance can cost between ,000 and ,000 per year .

Insurance coverage for summer camps typically includes the following:

• Liability Coverage – Protecting the camp from damage or loss suffered by guests
• Property Cover – Protect camp buildings, vehicles and equipment
• Workers Compensation – providing medical coverage and benefits to injured staff members

The cost of insurance coverage depends on several factors, such as camp size, location, and activities. It is estimated that the average cost of liability coverage generally ranges from .50 to .00 per motorhome per day . Property coverage costs typically range from 0 to 0 for a basic policy and 0 to ,000 for an all-risk policy, depending on the size and scope of camp operations. Finally, workers’ compensation coverage costs vary from state to state, but can range from 0.5% to 5% of camp payroll.

Utilities (electricity cleaning water, etc.)

Running a summer camp business comes with a lot of overhead. One of the biggest expenses for most camps is the cost of utilities, such as electricity, heating, cooling, cleaning, and water. Here, we’ll look at the cost of any utilities you might need to run your camp, and some tips to help keep those costs under control.

Electricity

Electricity will likely be the largest of all your utility costs. According to the US Energy Information Administration (EIA), the average cost of electricity in the United States was 12.93 cents per kilowatt-hour in 2019. Of course, this cost will vary depending on where you live, so you’ll need to check with local utility providers to get a better idea of your costs.

Heating

Depending on the climate your camp operates in, heating can be a major cost. If you use natural gas to heat your facility, the EIA estimates the cost per therm in the US to be 1.13 cents in 2019. If you use propane, the cost per gallon was 2.21 cents in 2019.

Cooling

If you operate your camp during the summer months, you may incur costs for cooling. Again, the EIA estimates the average cost of electricity to cool a facility at around 15.85 cents per kilowatt-hour in 2019.

Cleaning

Cleanup is a necessary cost for any camp, and it can take many forms. You will probably need to hire a professional crew to come in and clean your facility from time to time. This cost will vary depending on the size and complexity of your installation, but a safe estimate is between 0 and 0 per cleaning.

Water

Water is an essential cost for any camp, and the costs will depend on your location and the size of your setup. According to the U.S. Department of the Interior, the average cost of water in the United States was 2.25 cents per gallon in 2018. This can vary significantly depending on location and the type of water source you you use.

Managing your utility costs can seem like a daunting task, but there are several steps you can take to help control them. Here are some tips to get started:

• Invest in energy efficient appliances and accessories, such as LED bulbs and low output accessories.
• Set thermostats to optimal temperatures during the summer and winter months.
• Look to install automated lighting systems.
• Compare rates from different utility providers to find the best deal.

By taking the time to properly manage your utilities, you can ensure that your camp runs as efficiently and profitably as possible. With careful consideration and planning, you can control your utility costs.

Materials / equipment

Running a successful summer camp requires substantial investments in materials and equipment. According to research department Statista, in 2020 the average materials and equipment costs for U.S. summer camps totaled ,430 per motorhome .

This amount includes expenses such as:

• Sporting equipment and supplies
• Theft prevention devices
• Pool equipment and supplies
• Tools and equipment
• Recreational equipment
• Educational supplies
• arts and crafts materials

These materials and equipment also have associated maintenance costs which can vary greatly depending on the type of camp and its specific needs. For example, campers who will be swimming will incur additional costs for pool maintenance and lifeguard fees.

Since materials and equipment need to be regularly replaced due to wear and tear, many camps include a 20-30% fee in their camp registration costs to cover the cost of replacement for the duration of the camp. .

Promotional campaigns

Summer camp companies often invest heavily in promotional campaigns to boost registrations. Many summer camps can spend thousands of dollars each year on advertising and marketing to reach their desired clientele and achieve high enrollment. According to data from the US Small Business Administration, promotional campaigns can range from hundreds to thousands of dollars depending on the medium used.

Paid online advertising, such as Google Ads and Facebook ads, are increasingly preferred marketing techniques for summer camps in part due to their easy scalability and ever-changing technology, allowing camps to target their intended customers more easily and effectively. Data from Clutch (2020) reports that the average cost of an online campaign is around ,500 per month and can reach as high as ,000 or more per month for large campaigns.

These figures may not include performance measurement costs, such as marketing analysis and website monitoring, or campaign design, creation or management costs, but the effects may be of great reach and return on investment can be incredibly beneficial. According to a Brightlocal survey (2020), businesses received an average of USD in return for every USD invested in promotional campaigns .

Traditional advertising methods such as radio, print, and billboard ads are still an effective way to reach out to potential customers, but can often be more expensive and result in lower conversion numbers. According to Statista (2020), The average cost of radio and TV ads can range from 0-,000 per campaign , while print and billboard ads can range from 0-,000 or more .

Ultimately, deciding on the right promotional campaigns for a summer camp will depend on its budget but also on its clientele. Whether it is a local camp or a camp that caters to international visitors, a camp should always devise a strategy to promote itself as effectively as possible.

Administrative costs (e.g. accounting legal license, etc.)

Running a summer camp business can be extremely rewarding; However, there may also be numerous administrative costs incurred. The cost of required documents and licenses vary from state to state and depend on the type and size of business. Anticipated administrative costs may include, but are not limited to, accounting fees, insurance, legal counsel, license fees and taxes.

The United States Census Bureau’s 2017 annual survey of entrepreneurs estimated total administrative costs ranging from ,245 to ,587 for small businesses with paid employees and earning revenue. Approximately 32.5% of administrative costs were related to fees, while 9.7% were related to federally mandated taxes, 8.2% related to other taxes, and the remaining 49.7% related to wages and salaries. social advantages. For businesses without paid employees, the estimated total administrative costs ranged from ,222 to ,477.

Using data from the United States Census Bureau for reference, a potential summer camp business owner can begin planning and budgeting for administrative costs. Due to state-by-state regulations, it is important to research and identify potential costs for the specific region of business. Additionally, entrepreneurs should investigate any potential license or permit required for the business.

For businesses that expect to have paid employees, it’s essential to keep in mind that they may need to pay additional payroll-related administrative costs. This includes, but is not limited to, worker’s compensation insurance, mandatory wages and benefits, unemployment insurance, and payroll processing fees.

Overall, in preparation for operating a summer camp business, it is important to consider the administrative costs that may be incurred. As each business model is unique, entrepreneurs should research the expected requirements and costs for their specific region and business model. With the right planning and preparation, businesses can move forward with confidence.

Training and professional development

One of the biggest costs of running a summer camp business is training and professional development (TPD). This includes staff training and salaries for professional development activities and programs.

Recent statistical information (as of 2019) has shown that the average annual training and professional development costs for summer camp businesses range from 0 to 00 per employee. TPD expenditures in 2019 totaled more than billion according to the U.S. Bureau of Labor and Statistics.

As a summer camp business, investing in training and professional development is essential to the success of your business. This helps ensure that your staff has the skills and knowledge to deliver high quality programs and services to campers. Investing in TPD can also help reduce turnover rates and ensure your business is well equipped to meet all current and future challenges.

It is important to have an effective TPD strategy in place for your summer camp business. This should include a budget for training and professional development activities, an outline of specific TPD goals and objectives, and an implementation plan to ensure planned activities are carried out. The budget should cover the cost of materials, trainers, and any other expenses associated with running a successful TPD program.

Additionally, the strategy should identify ways the company can leverage professional development to add value to the camper experience. Examples of activities and programs that could be included in TPD include industry seminars or conferences, in-house workshops, specialized coaching, certifications, and mentorship programs.

Overall, training and professional development should be considered an important profitable investment for any summer camp business. It can support the growth and development of your people and add value to your overall business operations.

Food/beverage supplies and services

When opening or scaling a summer camp business, cost control is key. Among the largest expenses is the cost of food and beverage supplies and services provided to campers and guests. In 2019, the cost of food and beverage supplies and services accounted for 6.3% of total U.S. business operating costs, or about 4.2 billion.

The costs of food and service supplies and services depend on a variety of factors, including the size of the camp, the level of amenities offered (such as vegetarian meals, catering services, and even vending machines), as well as the quality and the amount of food provided. Each camp is different and therefore the food and beverage budget will vary accordingly. However, there are general expenses in the industry that are consistent.

Food costs

Camp food costs largely depend on camp purchasing decisions when it comes to offering fresh and prepared foods, buying organic and local produce, or focusing on processed foods pre-made. Average food costs can range from 30.7% to 50.6% of the total camp food and beverage cost, with higher quality and larger portions resulting in higher costs.

Food costs can further be broken down into categories to better understand the costs involved. These usually include the following:

• Groceries and supplies
• Catering service
• Prepared meals

Beverage costs

Beverage costs represent 15.9% to 27.9% of total food and beverage costs. These beverage costs include soft drinks, juices, water, and other non-alcoholic beverages. Campers and guests may prefer bottled drinks over tap water, which may mean higher costs per unit.

Liquor costs are usually negotiated with catering services, depending on whether the camp will offer liquor, beer, or wines. Because alcohol must be strictly regulated and served according to law, there is the cost of licensing alcohol service and the cost of the drinks themselves.

Conclusion

Ultimately, running a successful summer camp business requires due diligence when it comes to budgeting and calculating expenses. Taking a budget for their budget and how to budget it correctly is essential for businesses to remain profitable and continue to provide quality services.

With the above information in mind, you should now have a better idea of the types of costs associated with running a summer camp business and the ways you can strategically manage expenses. All that remains is to take the steps to get your summer camp business rolling.