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Executive Summary

Overview: Unique Arena Campsite, LLC is a well-equipped and conventional campground and recreational complex on the outskirts of Madison, Wisconsin. Our goal in starting the company is to do our part to ensure that families, campers, religious groups, and corporations in Madison and surrounding areas have access to a place that is ideal for family fun and camping. Operating campgrounds, RV parks, overnight recreational camps, travel trailers, caravan campsites, and wilderness camps, as well as other recreational activities, are all part of our offerings.

Mission: “Unique Arena Campground, LLC’s goal is to make a community movement that promotes families and groups to experience camping and other leisure activities in a very safe and pleasurable setting.”

Vision: “With the institution of Unique Arena Campground, LLC, we would like to produce a first bivouac and recreation facility whereas additionally encouraging families and residents of Madison and therefore the close regions to participate in tenting and alternative fun-filled leisure activities.”

Industry Overview:

According to data, there are roughly 14,031 licensed and registered Campgrounds and RV Parks in the United States, employing approximately 51,211 people. The business produces a staggering $6 billion yearly, with an annual growth rate of 2.3 percent expected between 2011 and 2016. It’s vital to note that no one organization controls a significant portion of the market in this area. Over the majority of the five years leading up to 2021, the Campgrounds and RV Parks business has had robust year-over-year growth. Overall, the cost of utilizing campsite and RV facilities is less costly in comparison to other kinds of accommodations, making them particularly attractive to millennials and Generation X. Furthermore, increased disposable income and time spent on leisure and sports have supported substantial sector development during the majority of the era. However, in 2020, during the COVID-19 (coronavirus) pandemic, the business saw significant decreases owing to travel restrictions and stay-at-home orders, despite a short rise in RV sales.

Financial Overview:

Financial Highlights:

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency     
Interest coverage ratio  8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability     
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Fund Usage:

Industry Analysis:

Overview

Many companies have been impacted by shelter-in-place orders and physical barriers imposed in response to the worldwide COVID-19 outbreak. Here’s how the campground and RV park sector has been affected. When the National Park Service ordered park closures throughout the country during the early stages of the COVID-19 outbreak, campsites and RV parks that depend on national park visitation for income were hit hard. According to the 2020 North American Camping Report by KOA, the decline in outdoor activity is expected to be short-lived as both regular campers and non-campers exhibit interest in camping once restrictions are relaxed. Indeed, many individuals have become more interested in outdoor leisure as a result of the epidemic, leading to an increase in camping and other outdoor activities. In addition, when compared to other forms of lodging, such as hotels, RV camping may be the safest mode of travel. COVID-19 is, in fact, generating a boom in the RV market, with shipments up 54% in July compared to the same month last year. As they get older and become more family and health-conscious, many individuals in the baby boomer age are expected to join leisure clubs or utilize camping and recreation facilities in their areas. Patrons of campers and leisure centers, on the other hand, are expected to switch from pricey all-inclusive clubs to less expensive campgrounds and recreation centers. The tendency in the campground and RV park sector is that if a facility is well-equipped and located near a residential area or a location where people can easily reach without much stress, it will likely attract a large number of visitors.

Market Segmentation:

IBISWorld projects that the sector will generate $8.7 billion in sales in 2020, with persons aged 34 and under accounting for 41%, 35 to 54 years for 36%, and 55 years and above for 37%. (23 percent ). People aged 34 and under have expanded their engagement in outdoor activities, accounting for the majority of campsite and RV park earnings. The segment’s rise over the last five years has been aided by free Wi-Fi and music festivals with camping. People between the ages of 35 and 54 have often hit their peak earning potential, resulting in greater disposable cash and extra time for travel. People aged 55 and over presently make up the smallest group, but according to IBISWorld, they will become the industry’s fastest expanding section. Almost 10%

Marketing Plan:

Website and Social Media: Use the internet and social media platforms to promote our brand, such as Instagram, Facebook, Twitter, YouTube, Google+, and so on. Include Unique Arena Campground, LLC in local phone books and directories.

Promote our campsite on our official website and use traffic-drawing methods.

Seminar and Programs: Sponsor sports events and tournaments in your town that are meaningful to you.

Referral Marketing: Distribute our flyers and handbills at strategic locations.

Advertisement: Install our billboards in high-traffic areas in Madison, Wisconsin. From time to time, hold a road concert in a certain area. Ensure that all of our employees are wearing our branded clothing and that all of our official cars and trucks are well-branded with our company emblem and other identifying information.

Pre-Opening Events: Distribute our flyers and handbills at strategic locations. Calling families, businesses, religious groups, and schools to educate them about Unique Arena Campground, LLC and the amenities and services we provide is a good way to start.

Commute Advertising: By employing individuals to display signs alongside we will draw attention to Unique Arena Campground, LLC

Customer Loyalty Program: To honor our loyal consumers, we will develop customer incentive programs and promotions.

Organogram:

Financial Plan:

Earnings:

Break-Even Analysis :

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE     
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase 528%193%133%87%
COST of REVENUE     
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
2020A2021A2022F2023F2024F
ANNUAL REVENUE     
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase 528%193%133%87%
COST of REVENUE     
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES     
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES     
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables     
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables     
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
      
CASH FLOW from INVESTING ACTIVITIES     
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
      
CASH FLOW from FINANCING ACTIVITIES     
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS     
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
      
CURRENT ASSETS     
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
      
LIABILITIES     
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
      
EQUITIES     
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122