Should you buy an existing campground or build one on raw land?
Buying a running campground gives you bookings, seasonal campers and working water and septic from the first day, but you inherit its condition. Building on raw land lets you design the park, yet approvals, servicing and a slow ramp-up come first. Talk to a lawyer and a planner before you commit to land.
Some people who want a campground start by looking for land, and others look for a park that is already open. The two paths feel similar at the start and then pull far apart. One gives you a business with a history. The other gives you an idea and a long list of steps before a single site can be sold. It helps to be honest about how much of that list you want to carry.
What an operating park gives you
A running campground comes with a booking record, a base of seasonal campers, and water and septic systems that have been proven in use. You can read the history and talk to guests. You also inherit tired buildings, deferred repairs and any habits guests have grown used to. Campground and RV park due diligence lists what to inspect.
What raw land asks of you
Raw land means you design the park, but you also need to find out whether a campground is allowed there at all. Zoning, approvals, access, water, septic and electrical servicing all have to be settled, and none of it earns anything. Your lawyer and a land-use planner can tell you what applies and how long it usually takes. Settle the approvals before you buy the land.
Time and cash through the early years
A new park has to build its reputation, fill its sites and earn repeat guests, and the first seasons are usually lean. An existing park may already carry seasonal agreements and returning guests. Ask yourself how long you can fund the gap, and what your lender would want to see for each path.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a campground and RV park in Canada
- Expert answerWhat should I check before buying a mini golf business?
- Expert answerWhat should I check before buying a closed golf course?
- Expert answerHow does buying an existing daycare compare with opening a new one?
- Expert answerWhat should a business plan for buying a campground or RV park cover?
- Expert answerWhat questions should you ask the owner when buying a campground?
- Expert answerWhat should you check about insurance when buying a campground?
- Expert answerHow does a campground or RV park make its money?
- Expert answerHow can a new owner grow a campground’s income after buying?
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 04Business Development Bank of CanadaGovernmentBuying a business? How to protect yourself from potential liabilities
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