Businesses are slowly getting back on their feet and travel bans are slowly being lifted around the country. For many RV enthusiasts, this may be the right time to hit the road again. For others, it’s the perfect opportunity to start a business, monetize their motorhomes, and contribute to helping the tourism industry to bounce back.
An RV business is a good business if started and maintained correctly. Allowing other people to rent out your RV is sharing with people the joy of traveling on the road while earning money. Thus, you will need to know things before starting such a business.
Study the business including the competitors
Doing your research about the business and your competitors will give you a gist of how the business works. This will help you gain competitive intelligence and plan your business strategy. However, keep in mind that having competition is not a bad thing.
You will have the opportunity to learn from competitors. By doing so, you can gather relevant information such as their type of business, customers they cater to, discount policy, pricing, and other marketing strategies.
Googling and observing your competitors is good, but you can also personally talk to them. There are business owners out there who are willing to lend a hand to RV business startups. If you are lucky, such competitors might refer their clients to you.
You should also define your target market. It can be couples, individuals, or families who want to travel and camp out. Knowing your market will also help you in marketing your brand.
Know costs related to starting an RV business.
Starting a business always begins with a big cost as you will be buying one or more RVs. You cannot start an RV business if you do not have a unit. You are lucky if you have an old one, meaning you do not need to purchase a unit.
Aside from purchasing an RV, you also have to think of other expenses to maintain your business. Your research about the business and your competitors will help you determine the different operating expenses you need to take into consideration.
First, you need to be abreast of the new technology with booking your RVs. With the pandemic happening, people are resorting to online booking rather than personally going to the RV shop. Also, you will need tech for marketing and tracking your RVs.
Second, you need a parking lot. You’re lucky if you already have a wide parking lot in your home. However, whether you buy a lot or rent out, such a lot is part of your expenses. A wide parking space needed if you intend to have more than one RV.
Third, you will need maintenance and other cleaning products. To keep the quality of your RVs, you need to have them repaired and washed from time to time. With the pandemic, additional cleansing measures are required, which should be part of your operating expenses.
Lastly, there will be expenses for licensing and paying for insurance. Since you are starting a business, you will need a business license. Ask from the local authorities about the requirements needed and the cost for such a license. You also need to get insurance for your RV.
Form a business plan
After doing your research, you can now plan your business plan. Know and analyze your advantages. You can plan your marketing, lowering your price point, and making a name for your business.
Acquire an RV
You should ask yourself whether you want a used RV or a brand new one. A brand new RV has the latest technology and no prior damage. However, the purchase price and insurance premium are higher than used ones. Meanwhile, buying a used RV means saving money on the price and insurance. However, there may be prior damage and upgrades may be expensive.
Also, ask yourself whether you want a towable or a motorhome. Motorhomes can be driven, while towable ones are towed by another vehicle. If you want a small RV, then you can get a motorhome. If you want a towable, then you should get a vehicle that will tow it.
There are various ways to fund your RV business. Here are your options:
Use your savings
Your first option for funding your RV business is to use your savings. However, it might take some time before you can obtain your funds. Nevertheless, it is the safest way to get funding, since you don’t need to borrow.
You can sell your unused things or apply for a part-time job. If you have big savings, then you are lucky.
Borrow from friends and family
Another safe way to get funding is to borrow from friends and family. Borrowing from them means lower interest rates and flexible payment terms.
You can freely negotiate with them for the terms of the loan. Further, there is a lesser risk of a lawsuit. However, your relationship with them may be tainted if you fail to pay on an agreed date and terms, so make sure to commit and pay your debt on time.
The best option to get funding is through bank loans or other loans from lending companies. There are options for those with either good or bad credit scores.
RV Financing is a secured loan, with the RV as collateral. Online lenders, such as My Financing USA camper loans, offer lower rates and more flexible payment terms. Shop around for a lender that fits your needs and qualifications.
Find a good location
The thing you should remember in finding your location is to be accessible. If you live in a small city, then renters would want to rent from a nearby place. It would be more convenient for them to pick up the RV and return after use.
Also, get a space with a wide parking space. Further, you will need an indoor space for your office. A wide parking lot will be beneficial if you plan to have more than one RV. It would also be convenient to make repairs and clean the unit on the wide space, rather than in a constricted place.
Traveling is slowly being allowed in many states, including camping. This is a great opportunity to start an RV business. It is important to be knowledgeable about the ins and outs of the business. Do your research, make a business plan, and execute such a plan.
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