Blog: BUSINESS IDEA FOR ESTABLISHING A CAMPSITE

BUSINESS IDEA FOR ESTABLISHING A CAMPSITE

Introduction

This business idea is for establishment of a Camp Site. This is setting up a site with facilities where Travelers and, or Tourists can camp and stay overnight or for some days. This involves acquiring land of more than an acre and secures it. Avail facilities like lavatories or washrooms, tents, laundry faculties, kitchen, a canteen or bar. There could be some dormitory facilities with some bedding provided. There must be mattresses and blankets for use when you hire the tents. A business center could be established or at least an Internet connection with a computer and possibly photo copying and Fax facilities. There could be some reliable transport that could be hired if need arise. The travelers or tourists come and stay and use the facilities while enroute to their next destination. All facilities are paid for at modest fees and thus the guest chooses what to use depending on his financial ability.

Requirements

The Campsite is registered as the law prescribes and the facilities put in place. These include:

Capital Investment Requirements

Capital Investment Item Units Qty @ Total
Capital Investment Item Units Qty @ Total
Land Acre 1 25000 25,000
Premises No 60,000
Kitchen Facility No 1,500
Tents No 50 150 7,500
Beddings No 1500 1,500
Dinning Equipments No 500
Furniture No 1,000
Games Equipment No 500
TV and Music Systems 1000 1,000
Business Center Establishment No 3,000
Total 101,500

Production and Operating Costs

Cost Item Units @ Qty/day Pdn Cost/day Pdn Cost/mth Pdn Cost/yr
Direct Costs
Restaurant materials Costs 100 2,600 31,200
Bar materials Costs 81 2,106 25,272
Subtotal 4,706 56,472
Cleaning and Toiletries
Advertising 200 2,400
Labour 500 6,000
Utilities 150 1,800
Internet&DSTV Subscription 140 1,680
Cleaning and Toiletries 200 2,400
Miscellaneous 100 1,200
Depreciation 1593.75 19,125
Subtotal 2883.75 34,605
Total Operating Costs 7,590 91,077
  1. 1) Production costs assumed 365 days per year with daily capacity of serving 20 guests. 2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
  2. 3) Direct costs include materials, supplies and other costs that directly go into production of the product.
  3. 4) Total monthly days assumed are 30-days.
  4. 5) The valuation currency used is United States Dollars.

Market Analysis:

Tourism is one of the fast growing sectors of the economy and the number of foreign guests is increasing steadily. There is demand for Camping facilities in different parts of the country. Places like Lake Mburo Sanctuary Reserve, Budadiri, Murchison Falls National Park, Queen Elizabeth National Park, and Kidepo National park are potential areas where this proposal can profitably start. Some of the existing facilities are very inadequate. A very aggressive marketing is required especially in the Tourist sector to cause awareness of the presence of these types of facilities at modest Prices.

Project Product Costs and Price Structure

Service gst/day Gsts/yr Servcost Rngcosts/yr Charge/gst Total Rve
Hospitality 20 6,240 14.60 91,077 35 218,400

Profitability Analysis Table

Profitability Item Per day Per Mnth Per year
Revenue 700 18,200 218,400
Less: Production and Operating Costs 292 7,590 91,077
Profit 408 10,610 127,323

Government Incentives:

The government trough Uganda Tourist Board, took the initiative to advertise Uganda on the International scene which has partly boosted the said growth in the sector. Furthermore there are some facilitations accruing to the developers in Tourism sector, like access to tax free importation of some of the items to facilitate the services. There is campaign to develop and boost domestic tourism.

PROJECT PROFILE FOR A TENT HOUSE

Introduction This business idea is a service provider activity. It entails the hiring out of tents, utensils, plastic chairs and tables, tarpaulins mobile toilets stage mounting equipment etc. These items are stocked and hired to people organizing various functions such as weddings, birthday parties and public ceremonies. This is a business that is easy to run. The project requires estimated fixed capital of US$ 191,210 and operating costs of US$ 62,843 generating revenue of US$ 113,620 , with a net profit margin of 40% and a payback period of 1 year 7months. Process and Capacity The items are hired out and arrangements are such that they are delivered and tents are fixed for the functions and are picked after the functions. For success of this business cleanliness and time consciousness are taken very seriously. High ethical standards must be maintained to build a strong clientele and confidence. Capital Investment Requirements in USS

Capital Investment Item Units Qty @ Total
Tents(50seater) No 20 1,100 22,000
Tents(100Seater) No 20 1,640 32,800
Tents(150Seater) No 15 2,180 32,700
Tents(200Seater) No 10 3,080 30,800
Utensils No 1,450
Plastic Chairs No 1,000 44 44,000
Plastic Tables No 20 48 960
Service Vehicle No 2 26,000
Office Furniture No 500
Total 191,210

Production and Operating Costs (a)Direct Materials, Supplies and Costs

Operating Costs Per yr
Rent 150 1,800
Labour 800 9,600
Selling and Distribution 600 7,200
Cleaning and Toiletries 100 1,200
Utilities 40 480
Miscellaneous 42 504
Depreciation 3,984 47,803
Total Operating Costs 5,237 68,587

1) Production costs assumed 365 days per year with daily capacity of hiring out 4 times. 2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets. 3) Direct costs include materials, supplies and other costs that directly go into production of the product. 4) Total monthly days assumed are 26-days. 5) The valuation currency used is United States Dollars. Market Analysis There is a lot of potential in this area as many functions are organized almost daily ranging from wedding ceremonies to funeral vigils, get-together to graduation parties etc. Once the service is impressive the business potential is unlimited. People always expect to receive the best. Project Product Costs and Price Structure

Service Fcns/wk Fcns/yr Fcn hng cost Optg cost/yr HiringChge Total Rve
Tent Hiring
Tents 50Seater) 7 364 42 15,169 50 18,200
Tents (100Seater) 6 312 35 10,920 60 18,720
Tents (150Seater) 5 260 35 9,100 75 19,500
Tents (200Seater) 4 208 35 7,280 100 20,800
Chairs 7 364 35 12,740 100 36,400
Total 1,508 55,209 113,620

Profitability Analysis Table

Profitability Item Per day Per Month Per year
Revenue 364 9,468 113,620
Less: Production and Operating Costs 220 5,716 68,587
Profit 144 3,753 45,034

Government Incentive The government maintains a liberalized trade and commerce policy which reduces encumbrances to the trading community. It encourages any entrepreneur who creates some form of employment.

John Doe
John Doe

Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Leave a Reply

About Organizers
Hi, jenny Loral
Hi, jenny Loral

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor dolore magna aliqua.

Categories
Social Media
Facebook
Twitter
WhatsApp
LinkedIn