From sausage farmers to caravan park owners

BusinessesForSale: So I understand you’re not new to running a business, having run a livestock farming business. Why the switch to a caravan park?

Andrew Keeble: Just over 10 years ago we were struggling pig farmers who diversified into sausage making as we needed to find an alternative and more profitable income. With our own 800-acre farm to manage we’ve always been used to having lots of outdoor space and, nestled between the Yorkshire Dales, we’re treated to stunning views of the countryside every day.

The caravan park is the ideal way for us to earn extra income but also encourage others to come and explore the area. The park is actually on our parents’ farmland just a few minutes in the car from where we live, and we initially got involved when an extra pairs of hands were needed to help out there.

BFS: How profitable can a mobile home park for sale be in your experience?

AK: As it’s all fairly new to us it’s too early to say how profitable the business will be, but we’ve got high hopes! In any line of business, though, and as we’ve learnt from the experience of setting up our own food business, it’s all about knowing your customer, knowing what they what and then going the extra mile to surprise them and give them things they didn’t know they needed!

There’s lots of competition out there but if you get it right then you’re destined for repeat business and new customers through word-of-mouth recommendation.

When we started our sausage business we had nothing and in fact we got things started from scratch on the back of a Tesco credit card loan

BFS: For someone wanting to buy their own caravan business, what are the most important factors to consider?

AK: If you are starting from scratch and buying a green-field development, then it’s essential to speak to your local planning team first as, depending on the area, they may not grant permissions for the development of new caravan or camping parks.

Our local authority has strict planning conditions related to any future development and this is important to consider when buying an existing business as you may be restricted in terms of development and extensions.

Also, research your market well, understand who you want to target and be realistic about what you can offer. Families will want something totally different to a younger or older audience. Once you’ve identified your target audience you can really go for it in terms of what to offer, facilities, services and added extras to suit that market.

But bear in mind that licences awarded by Environmental Health Departments which permit the park to run may have certain conditions including pitch numbers, types of caravan, toilets, park layout, play areas and on-site entertainment.

It’s also worth bearing in mind that site licences only apply to caravans and not tents, so another licence needs to be granted if you want to extend your capacity and rent out tent space for longer than 28 days in a year.

BFS: How difficult is it to get financial help?

AK: We are lucky in that we didn’t need finance for our project, but we have in the past when we diversified from farming. When we started our sausage business we had nothing and in fact we got things started from scratch on the back of a Tesco credit card loan.

For us, a decent business and marketing plan was essential, and this helped us secure various local and agricultural grants which enabled us to expand our production and grow the business, so it would be worth looking into local, small business and community grants to see what’s available.

BFS: I understand you launched the business this summer - what the main obstacles you’ve faced so far and how have you overcome them?

AK: Having a good base from which to start has really helped us focus on what new things we what to do and offer the guests who come to stay. So, in a way, getting set up has been the easy part. Getting our name out there and keeping us front of mind is going to be the challenge.

BFS: How much preparation is needed when setting up a caravan park?

AK: Our caravan park is small and quiet compared to others but with well set out pitches for up to 12 caravans of any size there was still a lot of work involved in getting it ready. The park was pretty well established but out of date so it needed modernisation and we’ve work on this over the winter and spring to get it ready for the summer season. We’ve had to update some of the facilities including the washing area and toilet blocks.

In our marketing we have highlighted our quiet and secluded location and beautiful views. The park is situated within a large, walled enclosure which gives it the feeling of a large garden.

It’s next to a late 17th century banqueting house and adjacent to a working arable farm with the farmhouse nearby. Nearby to the site is a deserted medieval village, we think probably Saxon in origin, and what is visible today are the remains of a substantial village represented by a small number of house platforms and a sunken road through the village.

All of these elements have been key to include in our marketing information to attract the right audience.

The 17th century banqueting house – a grade two listed building - has been carefully restored over the past 18 months with the help of an ‘enabling development’ grant, and has been converted into a luxury holiday cottage to secure its future survival. The detached accommodation caters for up to six lodgers, with three double bedrooms and two bathrooms, a big kitchen and living room.

BFS: So would you say your location is vital to the marketing and success of your caravan park?

AK: You need to know who you want to target market to be, and then really get to know your market. Research the area well and find out about local attractions, shops, pubs, restaurants and entertainment.

Our park is in a very quiet and secluded spot, and our guests mainly come for the stunning Dales countryside, so we get a lot of walkers and families who enjoy outdoor activities and the peace and quiet. But we are also just a short car drive away from many local tourist attractions, beauty spots and places of historic interest, so there is plenty to offer beyond the scenery.

BFS: What are the legal restrictions and what paperwork needs doing when setting up a caravan park?

AK: There are various areas you need to consider but the following are the key ones:

• Planning and site licences
• Health and safety
• Employment law (if you are hiring staff)
• Consumer law
• Environmental and social responsibility
• Codes of practice

BFS: What are the benefits and disadvantages of taking over an established caravan park?

AK: Our advice is always to go in with your eyes wide open, do plenty of research, know your market inside out and be fully aware of the park’s potential before you commit.

If you are buying an existing park check it has the proper planning permissions in place and licences which permit the park to run, and check what conditions are attached such as maximum number of pitches, types of caravans permitted, toilet facilities, roads, services, fire prevention, pitch spacing and entertainment etc.

BFS: What’s the best way to market a caravan business, and how important is having an online presence?

AK: There are a number of ways to market your caravan park:

• PR should be at the top of everyone’s list because it’s free publicity and carries more credibility than paid for advertising. Some well-placed advertising wouldn’t do any harm but, in our experience, PR is generally cheaper and carries more clout.
• A good and well-designed website is key and we’ve just linked our holiday lettings site to our sausage business site to drive traffic between the two.
• Social networking sites like Facebook and Twitter are becoming increasingly popular as ways to spread positive word of mouth recommendation, plus they are a great way of staying in touch with your audience.
• If you have another business that compliments your caravan park, then use it to cross-promote. We are just about to start offering our holiday cottage and caravan guests a breakfast bundle delivered to their door each morning including our freshly made sausages, bacon and other English breakfast goodies.
• You can also apply for different types of awards for your park that can be very useful when promoting your business.

BFS: Have you got a fixed business plan for the future?

AK: We don’t have a long term plan at present and this is intentional. We want to see how the next couple of seasons go and work out how guests are responding to the park and the changes we’ve made.

The plans will come once we’re more established and have made our mark but we do have lots of ideas buzzing around in our heads which we’re looking forward to getting off the ground.