Saving money while enjoying the adventure of camping is what most RVers are looking for. However, what if your passion for RV traveling will turn into your own business? You might be thinking of setting up an RV business at the moment.
With the restrictions on traveling being less strict, setting up such a business would be a good idea. However, traveling in an RV might be different from owning an RV business. You must know the ins and outs of the industry.
Do Your Research About the Industry
Before starting any kind of business, it is important to do your research on the industry you intend to enter. Knowing such will enhance your skills in handling a business, broaden your perspective in business planning, and help you gain the competitive intelligence to continue in the industry. Obtaining the needed knowledge will be a cost-efficient way of getting information before even starting the business.
You can search online for tips and tricks on how to start an RV business. Also, you can observe how your potential competitors run their business. Observing from afar is good, but directly asking them questions will give you a personal response. Do not be afraid of approaching your competitors. You might learn a lot, even have them refer their clients to you.
Aside from competition, you should also research what strategy will work well in your business. You can offer discounts on your first few days of operation or for the elderly and students. You can also throw in other benefits, such as utensils, tools, beddings, and other equipment.
Furthermore, you should also research the best location where to put your office and parking lot. Being in a big city might mean more customers, but it also means more competition. Setting up in a smaller town might mean lesser customer traffic, but you will have lesser competition. Your parking lot would also be detrimental. It’s good if your home parking is spacious. If not, then you should also look for a big parking space.
Get Familiar With the Costs That Come With Setting up the Business
Every business has expenses. The biggest expense is purchasing your RV units. You can never start an RV business without having units. However, purchasing one is not the only expense. You’ll also have to pay for an office, maintenance, licensing, and insurance expenses.
First, you will need a business license to operate and insurance as well. Ask your local officials about the requirements needed for licensing. The business will also need personal and business liability insurance in case of any defect or accident during the rental of your RV.
Second, your RVs will need maintenance. These include regular tune-ups, change oil, maintained tires, and replacement parts. Your RVs also need to be disinfected after every usage. With the effect of the pandemic, cleaning the units is more meticulous and must be constant.
Lastly, you need new tech in your office. With the pandemic, everything is moved online. You should set up a system where clients can book and make payments online. Technology will also help spread the word by marketing your services through Instagram and Facebook Ads.
Decide What Unit to Get
After doing your research about the business and the expenses, you should also tackle what RV unit to get. You can choose between a brand new one or a used one. A brand new RV has the latest tech and almost no issues, but can be expensive. On the other hand, a used RV is cheaper but might have maintenance issues and lesser tech advancements.
Aside from that, you should also decide whether to get a motorized or towable RV. A motorized RV is more convenient with all the driving and living functions in one vehicle without having to tow or attach it somewhere. Towable RV, on the other hand, is cheaper. However, you should look for a car that can carry the weight of the RV.
Financing Your RV Business
Here are some ways to finance your dream RV rental business:
Borrowing From Family and Friends
One of the safest ways to get funding for your RV business is to borrow money from your family and friends. The biggest advantage of this is the flexibility of the interest rates and the time of payment.
You can always ask for an extension if you feel like you cannot pay on a certain date. However, this agreement can also lead to strains in the family relationship and friendship, especially if one cannot follow the terms of the agreement.
Use Your Savings
Another safe way of getting funding is to use your money. If you have money stashed in your savings account, you can use it to start your RV business. Make sure that you are not using all your savings, as there might be emergencies in the future.
If your savings is not enough, you can look for other ways to earn extra money. One way would be to sell your old stuff that can still be used. Another way would be to look for a part-time job that may take up only an hour or two of your time daily.
Take Out a Loan/RV Financing
If you’re not comfortable with borrowing money from people you know and your savings is not enough, the safest bet for you is to apply for RV financing. You can get this loan from a bank or other lending companies.
There are many options for those with good and bad credit scores. This loan is usually secured with the RV as collateral. If you fail to pay on time, then the unit might get confiscated by the lender. Shop around for the best lender with rates that suit your needs and qualifications.
With travel restrictions slowly easing up, an RV business is a good way to earn money. You should research the business, know the expenses, decide what RV to get, and determine where to get your funding. If you’ve done all these and are familiar with the ins and outs of the RV business, then you can now start your own.