Are you keen to open a tent and camping goods manufacturing business but don't know where to begin? Then you're in luck because this guide will lead you through all the steps required to check if your business idea can be profitable and, if so, turn it into a reality.
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Our guide is for prospective entrepreneurs who are thinking about starting a tent and camping goods manufacturing business no matter how far they are in their journey - whether you’re just thinking about it or in the middle of market research this guide will be useful to you.
Think of this as your blueprint: we cover everything you need to know about opening a tent and camping goods manufacturing business and what key decisions you’ll need to make along the way.
Ready? Let’s get started!
The very first step when exploring a business idea such as starting a tent and camping goods manufacturing business is to make sure you understand how the business operates and makes money (which is what we call the business model).
This will not only give you an initial idea of how profitable the business can be, but it will also enable you to make sure that this is the right business idea for you, given your skills, start-up capital and family or personal lifestyle, in particular.
The best ways to get to grips with the tent and camping goods manufacturing business's business model are to:
Experienced tent and camping goods manufacturing business owners have valuable insights and can provide practical advice based on their firsthand experiences.
They've likely encountered and overcome challenges that a newcomer might not anticipate. Learning from other’s mistakes can save you both time and money and potentially increase your venture’s chances of succeeding.
Obtaining work experience in the industry can be a crucial factor in confirming whether you truly want to start a tent and camping goods manufacturing business, as it provides insight into the day-to-day activities.
For instance, if the working hours are longer than expected or if other business requirements don't align with your personal lifestyle or preferences, you might reconsider your entrepreneurial goals.
Even if you've decided that this business idea is a good fit for you, gaining work experience will still be valuable. It helps you better understand your target market and customer needs, which is likely to be beneficial when launching your own tent and camping goods manufacturing business.
Obtaining training within your chosen industry is another way to get a feel for how a tent and camping goods manufacturing business works before deciding to pursue a new venture.
Whatever approach you choose to familiarise yourself with the business, before going any further with your plans to open a tent and camping goods manufacturing business, make sure you understand:
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Start your free trial nowThe next step to opening your tent and camping goods manufacturing business, is to decide whether to assemble an ideal team or venture solo.
The failure rate for business start-ups is high: almost half don't make it past the five-year mark, and setting up a tent and camping goods manufacturing business is no exception.
Starting with a group of co-founders helps reduce this risk as each of you brings complementary skills and enables the financial risk to be spread on multiple shoulders.
However, managing a business with multiple partners comes with its own set of challenges. Disagreements among co-founders are quite prevalent, and they can pose risks to the business. That's why it's essential to carefully weigh all aspects before launching a business.
To help you think things through, we recommend that you ask yourself the following questions:
Let's look at these issues in more detail.
To answer this question you will need to consider the following:
In simple terms, co-founders bring skills, money, or both to the table. Having more partners is beneficial when there's a lack of either of these resources.
One of the main sources of conflict between co-founders comes from a lack of alignment on the long-term vision.
To avoid any risk of disagreement, it is advisable to agree on ambitions from the outset and to provide an exit mechanism for one of the partners in the event of disagreement.
We hope your tent and camping goods manufacturing business takes off and thrives, but it's smart to have a "plan B" just in case things don't go as expected.
How you tackle potential failure can vary broadly depending on the type of co-founders (close friend, spouse, ex-colleague, etc.) and the personal circumstances of each of them.
For example, launching a family business with your spouse might seem exciting, but if it fails, you risk losing all of your household income at once, which might be stressful.
Likewise, starting a business with a friend might strain the friendship if things go wrong or if tough decisions need to be made.
Before diving in, make sure to thoroughly think about your choices. This way, you'll be ready for whatever might come your way when starting up.
The next step in launching a tent and camping goods manufacturing business is to carry out market research. Let's take a look at what this involves.
The objective here is very simple: to assess the level of demand for your business and whether there is an opportunity for it to thrive in your chosen location.
The first step will be to check that the market is not saturated with competing offers and that there is room for a new player: your tent and camping goods manufacturing business.
Your market analysis will also help you identify a concept and market positioning that has every chance of being successful in your target market, thereby helping increase your business's chances of success.
Carrying out market research for your tent and camping goods manufacturing business will also enable you to better understand the expectations of your future customers and the most effective ways to communicate with them in your marketing plan.
Your market research should start with an industry analysis in order to gain a good understanding of the main players and current trends in your sector.
Once you've delved into the current state of the market, it will be time to assess what proportion of your target market can be seized by your tent and camping goods manufacturing business. To do this, you will need to consider both the demand and supply side of the market.
After checking out the industry, let's shift our focus to figuring out what your potential customers want and how they like to buy.
A classic mistake made by first-time entrepreneurs is to assess demand on the global or national market instead of concentrating on their target market. Only the market share that can be captured by your company in the short term matters.
Your demand analysis should seek to find answers to the following questions:
The aim of the demand analysis is to identify the customer segments that could be targeted by your tent and camping goods manufacturing business and what products and services you need to offer to meet their expectations.
For example, your target market might include outdoor enthusiasts who are looking for high-quality and durable camping equipment. These customers are typically adventure seekers who enjoy spending time in nature and require reliable gear for their expeditions. They may also be frequent campers who prioritize comfort and convenience while camping. Another potential customer segment for your business could be event planners or companies in the outdoor recreation industry. These clients may require large quantities of tents and camping goods for events such as music festivals, corporate retreats, or team-building activities. They value functionality, versatility, and cost-effectiveness when choosing camping equipment for their events.
You will also have to familiarize yourself with the competing tent and camping goods maker on the market targeted by your future business.
Amongst other things, you’ll need to ask yourself:
The aim of the competitive analysis is to identify who your competitors will be and to gather information that will help you find a differentiating commercial positioning (more on that later in this guide).
Conducting market research is also an opportunity to look at the regulations and conditions required to do business.
You should ask yourself the following questions:
Given that your project is at an early stage, your focus should be to ensure that there are no roadblocks from a regulatory standpoint before you deep dive into the planning process.
Once your project is more advanced, you will have the opportunity to talk about regulation more in-depth with your lawyer.
By the time your market research is completed, you should have either:
If the conclusion is that there is an opportunity in the market to cater to one or more customer segments currently underserved by competitors, that's great!
Conversely, if you come to the conclusion that the market is already saturated, don’t panic! The good news is that you won’t spend several years working hard on a project that has little chance of success. There is no shortage of business ideas either - at The Business Plan Shop, we have identified more than 1,300 potential business ideas!
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Check out our templatesOnce your market research is completed, it's time to consider the type of tent and camping goods manufacturing business you want to open and define precisely your company's market positioning in order to capitalise on the opportunity you identified during your market research.
Market positioning refers to the place your product and service offering occupies in customers' minds and how they differ from competing products and services. Being perceived as the premium solution, for example.
There are four questions you need to consider:
Let's look at each of these in a little more detail.
When you choose to start up a tent and camping goods manufacturing business, you are at a disadvantage compared to your rivals who have an established presence on the market.
Your competitors have a reputation, a loyal customer base and a solid team already in place, whereas you're starting from scratch...
Entering the market and taking market share from your competitors won't happen automatically, so it's important to carefully consider how you plan to establish your presence.
There are four questions to consider here:
Also, think about how your competitors will react to your arrival in their market.
An alternative to opening a new business is to take over a tent and camping goods manufacturing business already trading.
Purchasing an existing tent and camping goods manufacturing business means you get a loyal customer base and an efficient team. It also avoids disrupting the equilibrium in the market by introducing a new player.
A takeover hugely reduces the risk of the business failing compared to starting a new business, whilst giving you the freedom to change the market positioning of the business taken over if you wish.
This makes buying an existing tent and camping goods manufacturing business a solid alternative to opening your own.
However, buying a business requires more capital compared to starting a tent and camping goods manufacturing business from scratch, as you will need to purchase the business from its current owner.
Regardless of how you choose to establish your business, it's crucial to make sure that the way you position your company aligns with the expectations of your target market.
To achieve this, you'll have to meet with your potential customers to showcase your products or services and get their feedback.
The next step to opening a tent and camping goods manufacturing business is deciding where you want to set up your business.
Choosing the right location for your business is like finding the perfect stage for a play. Without it, your business may lack the spotlight it deserves.
Whilst there is no “perfect” location for your tent and camping goods manufacturing business, one that meets as many of the following factors as possible could be ideal:
This list is obviously not exhaustive and will have to be adapted to the particularities of your project.
Once you’ve considered the factors above, it’s important to think about the budget that your startup has at its disposal. You’ll need to find a location that meets your business requirements but is affordable enough, especially short-term.
If you opt for renting instead of buying your premises, make sure to take into account the terms of the lease, including aspects such as the duration, rent increase, renewal, and so on.
The lease contractual terms vary greatly from country to country, so be sure to check the terms applicable to your situation and have your lease reviewed by your lawyer before signing.
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Check out our templatesThe next step to start a tent and camping goods manufacturing business is to choose the legal form of your business.
The legal form of a business simply means the legal structure it operates under. This structure outlines how the business is set up and defines its legal obligations and responsibilities.
Choosing the right legal form for your tent and camping goods manufacturing business is important because this will affect:
Taxation:
your tax obligations depend on the legal structure you choose, and this principle applies to both personal income tax and business taxes.Risk exposure:
some legal structures have a legal personality (also known as corporate personality) and limited liability, which separates them from the owners running the business. This means that the business would be liable rather than the owners if things were to go wrong (lawsuit, debt owed in case of bankruptcy, etc.).Decision-making and governance:
how you make key decisions varies based on the legal form of your business. In some cases you might need to have a board of directors and organise general assemblies to enable shareholders to influence major decisions with their voting rights.Financing:
securing funding from investors requires you to have a company and they will expect limited liability and corporate personality to protect them legally.Paperwork and legal formalities:
the legal structure you select determines whether certain obligations are necessary, such as producing annual accounts, or getting your books audited.The specific names of legal structures vary from country to country, but they usually fall within the two main categories below:
Individual businesses, like sole traders or sole proprietorships, are made for self-employed entrepreneurs and freelancers rather than businesses which employ staff.
They benefit from straightforward administrative requirements, minimal paperwork to start, simpler tax calculations, and streamlined accounting procedures.
However, the downside is that there's typically no legal distinction between the business and the person responsible for day-to-day operations. This means the owner's personal assets are at risk if the business faces problems or goes bankrupt.
There is also no share capital in such a structure, meaning that individual businesses cannot raise equity from investors which seriously limits funding options.
Companies are versatile structures suited to projects of all sizes in terms of number of founders, number of employees and amount of capital.
They are a bit more complex to operate than individual businesses with more formalities, stringent accounting requirements, more complex tax implications, etc.
In return, they offer stronger protections to their shareholders. They usually benefit from having their own legal identity and limited liability, meaning co-founders and investors can only ever lose the amount of money they have put into the company.
For instance, if things were to go south (the company files for bankruptcy or there is a legal issue), the company would take the hit, safeguarding the personal assets of the founders and investors.
Deciding on a legal form is easy once you've estimated your sales, decided whether or not you need employees and figured out the number of co-founders joining you.
It's essential to remember that a solid business idea will succeed no matter which legal structure you pick. Tax laws change regularly, so you can't rely on specific tax advantages tied to a particular structure when starting a business.
A proven approach is to look at what legal structures your top competitors are using, and go with the most common option as a working assumption. Once your idea is mature enough, and you're getting closer to officially registering your business, you can get advice from a lawyer and an accountant to confirm your choice.
Yes, changing your legal structure later is possible, though it may involve selling the old entity to a new entity in some cases, which adds further expenses. If you want to save on such costs, it makes sense to pick the correct legal form for your business the first time around.
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Start your free trial nowThe next step in creating a tent and camping goods manufacturing business involves thinking about the equipment and staff needed for the business to operate.
After figuring out what you need for your business, your financial plan will reveal how much money you'll need to start and how much you might make (check below for more details).
Because every venture is distinctive, providing a reliable one-size-fits-all budget for launching a tent and camping goods manufacturing business without knowing the specifics of your project is not feasible.
Each project has its own particularities (size, concept, location), and only a forecast can show the exact amount required for the initial investment.
The first thing you'll need to consider is the equipment and investments you'll need to get your business up and running.
For a tent and camping goods manufacturing business, the initial working capital requirements (WCR) and investments could include the following elements:
Machinery and Equipment:
This includes the cost of purchasing or leasing equipment such as cutting machines, sewing machines, and printing equipment for creating and finishing tent and camping goods.Facility Renovations:
If you plan to manufacture your products in a physical location, you may need to make renovations to the space to accommodate your equipment and materials. This can include things like installing ventilation systems, upgrading electrical systems, and creating designated production areas.Raw Materials Inventory:
As a tent and camping goods manufacturer, you will need to purchase raw materials such as fabric, zippers, and hardware to create your products. These materials should be included in your expenditure forecast as they will be a significant cost for your business.Packaging and Shipping Supplies:
In addition to the cost of manufacturing your products, you will also need to account for the cost of packaging and shipping them to customers. This can include things like boxes, tape, and shipping labels.Software and Technology:
To streamline your manufacturing process and manage your business operations, you may need to invest in software and technology. This can include inventory management systems, accounting software, and design programs for creating product prototypes.Of course, you will need to adapt this list to your business specificities.
In addition to equipment, you'll also need to consider the human resources required to run the tent and camping goods manufacturing business on a day-to-day basis.
The number of recruitments you need to plan will depend mainly on the size of your company.
For example, you could recruit a production manager to oversee the manufacturing process and ensure that tents and camping goods are produced efficiently and to high quality standards. Additionally, you may want to consider hiring a sales representative to promote your products and secure new business opportunities. Another valuable addition to your team could be a supply chain coordinator who can manage inventory levels and ensure timely delivery of materials for production. These staff members will play crucial roles in the day-to-day operations of your business, helping to drive growth and success.
Once again, this list is only indicative and will need to be adjusted according to the specifics of your tent and camping goods manufacturing business.
While you're thinking about the resources you'll need, it's also a good time to start listing the operating costs you'll need to anticipate for your business.
The main operating costs for a tent and camping goods manufacturing business may include:
Staff costs:
This includes salaries, wages, and benefits for your employees, such as production workers, designers, and sales staff.Accountancy fees:
You may need to hire an accountant to help you with financial tasks, such as bookkeeping, tax preparation, and financial analysis.Insurance costs:
As a manufacturer of tents and camping goods, you will need to have insurance to protect your business from potential risks, such as product liability and property damage.Software licenses:
You may need to purchase software licenses for programs that help with product design, inventory management, and accounting.Banking fees:
This includes fees for bank accounts, credit card processing, and other financial services.Raw materials:
You will need to purchase materials, such as fabric, zippers, and hardware, to manufacture your tents and camping goods.Production equipment:
This includes the cost of purchasing, maintaining, and repairing equipment used in the manufacturing process, such as sewing machines and cutting tables.Utilities:
You will need to pay for electricity, water, and other utilities to operate your manufacturing facility.Marketing expenses:
This includes costs for advertising, promotions, and trade shows to promote your tents and camping goods.Transportation costs:
You will need to factor in the cost of shipping raw materials and finished products to and from your manufacturing facility.Rent or mortgage:
If you do not own your manufacturing facility, you will need to pay rent or a mortgage for the space.Maintenance and repairs:
This includes the cost of maintaining and repairing equipment, as well as any necessary repairs to your manufacturing facility.Legal fees:
You may need to hire a lawyer for legal advice or assistance with contracts and other legal matters.Training and development:
It is important to invest in training and development for your employees to ensure they have the necessary skills to manufacture high-quality tents and camping goods.Taxes and licenses:
You will need to pay taxes on your business income and obtain any necessary licenses to operate your manufacturing business.Like for the other examples included in this guide, this list will need to be tailored to your business but should be a good starting point for your budget.
The next step to start a tent and camping goods manufacturing business is to think about how you are going to attract and retain customers.
You need to ask yourself the following questions:
How you will attract and retain customers depends on your ambition, the size of your startup and the nature of your exact concept, but you could consider the following initiatives.
For example, your tent and camping goods manufacturing business might consider partnering with outdoor retailers to reach a wider audience. By showcasing your products in their stores and offering special promotions or discounts, you can increase your visibility and attract new customers. Additionally, you could attend trade shows and industry events to network with potential buyers and showcase your high-quality products. Another effective strategy could be to invest in targeted digital marketing campaigns, using social media and search engine advertising to reach customers who are actively searching for camping and outdoor gear. These initiatives can help grow your business and establish it as a leader in the market.
Your sales forecast may also be influenced by seasonality related to your business type, such as fluctuations during busy holiday periods, and your competitive environment.
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A forecast is a quantified decision-making document that shows the initial investment required to open a tent and camping goods manufacturing business and the company's potential profitability and cash flow generation over the next 3 to 5 years.
As you think about your tent and camping goods manufacturing business idea, the main role of financial projections will be to help you decide whether it makes sense to create the company.
Building a financial forecast helps determine the amount of initial financing required to start your tent and camping goods manufacturing business.
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In fact, creating financial projections is the only way to assess the amount of initial financing you'll need to open your tent and camping goods manufacturing business, and to make sure your project makes economic and financial sense.
Keep in mind that very few business ideas are financially viable. At The Business Plan Shop, we've seen nearly a million business start-up ideas, and we estimate that less than one in four is economically viable.
Your forecast will therefore require your full attention and constant revision, as your project matures. It's also a good idea to simulate different scenarios to anticipate several possibilities (what happens if your sales take longer than expected to ramp up, for example), so you're ready for all eventualities.
When seeking financing, your forecast will be incorporated into your business plan, which is the document you will use to present your business idea to financial partners. We'll come back to the business plan in more detail later in this guide.
Creating and updating your tent and camping goods manufacturing business's forecast is an ongoing process. Indeed, having up-to-date financial projections is the only way to maintain visibility over your company's future cash flow and cash position.
Forecasting is, therefore, the financial management tool that will be with you throughout the life of your company. Once you've started trading, you'll need to regularly compare the difference between your actual accounts and your forecasts, and then adjust them to maintain visibility over your future cash flows.
The following financial tables will be used to present your tent and camping goods manufacturing business's financial forecast.
Your tent and camping goods manufacturing business's forecasted P&L statement will enable you to visualise your tent and camping goods manufacturing business's expected growth and profitability over the next three to five years.
The projected balance sheet gives an overview of your tent and camping goods manufacturing business's financial structure at the end of the financial year.
A cash flow forecast for a tent and camping goods manufacturing business shows the projected inflows and outflows of cash over a specific period, providing insights into liquidity and financial health.
The simplest and easiest way to create your tent and camping goods manufacturing business's projections is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.
There are several advantages to using specialised software:
If you are interested in this type of solution, you can try our forecasting software for free by signing up here.
The next step in starting a tent and camping goods manufacturing business is to decide on a name for your entity.
For starters, you cannot take a name similar to a name already registered by a competitor or protected by a trademark without inevitably risking getting sued. So you’ll need to find a name available, and reserve it before others can.
In addition, you will probably want to use the same name for:
The issue is that you’ll need to register your name in three different places almost simultaneously, but with each place having its own timeframes:
You will therefore be faced with the choice of either registering everything at once in the hope that your name will be accepted everywhere, or proceeding step by step in order to minimise costs, but taking the risk that someone else will register one of the names you wanted in the meantime.
Our advice is to discuss the strategy with your legal counsel (see further down in this guide) and to give priority to your domain names and your registered trademark. You'll always have the option of using a trading name that's different from your company's legal name, and that's not a big deal.
To check that the name you want is not already in use, you should consult:
If the name you want is available, you can go ahead and register it.
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Check out our templatesThe next step to launching a tent and camping goods manufacturing business: defining your company's visual identity.
Your corporate identity defines how your company's values are communicated visually. It makes you unique and allows you to stand out visually from your competitors and be recognized by your customers.
Defining your corporate identity can easily be done by you and your co-founders, using the many free tools available to generate color palettes, logos and other graphic elements. Nevertheless, this task is often best entrusted to a designer or agency to achieve a professional result.
Your tent and camping goods manufacturing business's visual identity will include the following elements:
The goal is to have stakeholders identify your business logo quickly and relate to it. Your logo will be used for media purposes (website, social networks, business cards, etc.) and legal documents (invoices, contracts, etc.).
The design of your logo must be emblematic, but it's also important that it can be seen on any type of support. To achieve this, it should be easily available in a range of colors, so that it stands out on both light and dark backgrounds.
The brand guidelines of your tent and camping goods manufacturing business act as a safeguard to ensure that your image is consistent whatever the medium used.
Brand guidelines lay out the details like the typography and colors to use to represent your company.
Typography refers to the fonts used (family and size). For example, Arial in size 26 for your titles and Tahoma in size 15 for your texts.
When it comes to the colors representing your brand, it's generally a good idea to stick to five or fewer:
A rare paper medium that continues to survive digitalization, business cards are still a must-have for communicating your tent and camping goods manufacturing business contact details to your customers, suppliers and other partners.
In principle, they will include your logo and the brand guidelines we mentioned above.
Likewise, the theme of your tent and camping goods manufacturing business website will include your logo and follow the brand guidelines we discussed earlier.
This will also define the look and feel of the main visual elements on your website:
The next step in opening a tent and camping goods manufacturing business is to look in detail at the legal and regulatory formalities.
Although it is possible to do the formalities yourself and draft some of the documents detailed here, The Business Plan Shop recommends that you seek advice on these aspects from a law firm.
One of the first things you need to do here is to protect your company's current and future intellectual property.
One way of doing this is to register a trade mark, as mentioned earlier in this guide. Your lawyer will be in a position to do the formalities for you and to help you select the classes (economic activities) and jurisdictions in which you have an interest in obtaining protection.
Your law firm can also advise you on other ways of protecting your company's intellectual property.
Your tent and camping goods manufacturing business will need a set of legal and contractual documents to operate on a daily basis.
Your exact needs in this respect will depend on the country in which you are launching your tent and camping goods manufacturing business and the size and legal form envisaged for the company. Once again, we highly recommend having these documents prepared by your lawyer.
As a minimum, we recommend that you have the following documents prepared:
Here too, the list of licences and business permits required for your business to operate legally will depend on the country in which you have decided to start your tent and camping goods manufacturing business.
Your law firm will be able to advise you on all the regulations applicable to your business.
Likewise, your accountant will be able to assist you and take care of the formalities involved in complying with the tax authorities.
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Check out our templatesThe next step to open a tent and camping goods manufacturing business: put together your business plan.
To keep it simple, a business plan comprises two crucial components:
The business plan will enable you to verify the coherence of your project, and ensure that the company can be profitable before incurring further costs. It will also help you convince business and financial partners.
As you can see, your business plan must be convincing and error-free.
Nowadays, the modern and most efficient way to write a tent and camping goods manufacturer business plan is to use startup business plan software like the one we offer at The Business Plan Shop.
Using The Business Plan Shop to create a business plan for atent and camping goods manufacturing business has several advantages :
If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here.
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Check out our templatesOnce your business plan has been written, you’ll need to think about how you might secure the funding required to open your tent and camping goods manufacturing business.
The amount of initial financing required will of course depend on the size of your tent and camping goods manufacturing business and the country in which you wish to set up.
Financing your startup will probably require you to obtain a combination of equity and debt, which are the primary financial resources available to businesses.
Equity refers to the amount of money invested in your tent and camping goods manufacturing business by founders and investors and is key to starting a business.
Equity provides your company with stable, long-term (often permanent) capital. It also demonstrates the commitment of the company's owners to the project, since these sums can be lost in the event of bankruptcy.
Because the equity invested by the founders may be lost if the project doesn't succeed, it signals to investors and other financial institutions the founders' strong belief in the business's chances of success and might improve the likelihood of obtaining further funding as a result.
In terms of return on investment, equity investors receive dividends paid by the company (provided it is profitable) or realise capital gains by reselling their shares (provided they find a buyer interested in the company).
Equity investors are, therefore, in a very risky position. They stand to lose their initial investment in the case of bankruptcy and will only obtain a return on investment if the business manages to be profitable or sold. On the other hand, they could generate a very high return if the venture is a financial success.
Given their position, equity investors are usually looking to invest in business ventures with sufficient growth and profitability potential to offset their risk.
From the point of view of the company and its creditors, equity reduces risk, since equity providers finance the company and are only remunerated in the event of success.
From a technical standpoint, equity consists of:
Share capital and premiums:
which represent the amount invested by the shareholders. This capital is considered permanent as it is non-refundable. In return for their investment, shareholders receive shares that entitle them to information, decision-making power (voting in general assembly), and the potential to receive a portion of any dividends distributed by the company.Director loans:
these are examples of non-permanent capital advanced to the company by the shareholders. This is a more flexible way of injecting some liquidity into your company than doing so as you can repay director loans at any time.Reserves:
these represent the share of profits set aside to strengthen the company's equity. Allocating a percentage of your profits to the reserves can be mandatory in certain cases (legal or statutory requirement depending on the legal form of your company). Once allocated in reserves, these profits can no longer be distributed as dividends.Investment grants:
these represent any non-refundable amounts received by the company to help it invest in long-term assets.Other equity:
which includes the equity items which don't fit in the other categories. Mostly convertible or derivative instruments. For a small business, it is likely that you won't have any other equity items.The main sources of equity are as follows:
Another option for partially funding your tent and camping goods manufacturing business is to borrow.
By definition, debt works in the opposite way to equity:
When a company borrows money, it agrees to pay interest and repay the borrowed principal according to a pre-established schedule. Therefore, lenders make money regardless of whether the company is profitable and their main risk is if the company goes bankrupt.
To limit their risk, lenders are usually conservative and cautious in their approach. They only finance projects where they are confident that they will be repaid in full.
Companies borrow in two ways:
Against their assets:
this is the most common way of borrowing. The bank finances a percentage of the price of an asset (a vehicle or a building, for example) and takes the asset as collateral. If the company cannot repay, the bank seizes the asset and sells it to limit its losses.Against their future cash flows:
the bank evaluates the company's financial forecast to estimate its borrowing capacity and assesses the conditions (amount, interest rate, term, etc.) on which it is prepared to lend, taking into account the credit risk posed by the company.It's difficult to borrow against future cash flow when setting up a tent and camping goods manufacturing business, because the business doesn't yet have historical data to reassure lenders about the credibility of the forecasted cash flows.
Borrowing against assets is, therefore, often the only option available to entrepreneurs. What's more, the assets that can be financed with this option must be easy to resell, in the unfortunate event that the bank is forced to seize them, which may limit your options even further.
In terms of possible sources of borrowing, the main sources here are banks and credit institutions. Bear in mind, however, that each institution is different, both in terms of the risk it is prepared to accept and in terms of how the risk of your project will be perceived and what items it will agree to finance.
In some countries, it is also possible to borrow from private investors (directly or via crowdlending platforms) or other companies, but not everywhere.
There are various ways you can raise the initial financing you need to open your tent and camping goods manufacturing business. A minimum amount of equity will be needed to give the project credibility, and bank financing can be sought to complete the package.
Once you’ve secured financing, you will finally be ready to launch your tent and camping goods manufacturing business. Congratulations!
Celebrate the launch of your business and acknowledge the hard work that brought you here, but remember, this is where the real work begins.
As you know, 50% of business start-ups do not pass the five-year mark. Your priority will be to do everything to secure your business's future.
To do this, it is key to keep an eye on your business plan to ensure that you are on track to achieve your goals.
No one can predict the future with certainty, so it’s likely that your tent and camping goods manufacturing business's financial performance will differ from what you predicted in your forecast.
This is why it is recommended to make several forecasts:
If you follow this approach, your numbers will hopefully be better than your optimistic case and you can consider accelerating your expansion plans. That’s what we wish you anyway!
If, unfortunately, your figures are below your base case (or worse than your pessimistic case), you will need to quickly put in place corrective actions, or consider stopping the activity.
The key, in terms of decision-making, is to regularly compare your real accounting data to your tent and camping goods manufacturing business's forecast to:
There is nothing worse than waiting for your accountant to prepare your year-end accounts, which can take several months after the end of your financial year (up to nine months in the UK for example), to realise that the performance over the past year was well below the your base case and that your tent and camping goods manufacturing business will not have enough cash to keep running over the next twelve months.
This is why using a financial forecasting solution that integrates with accounting software and offers actuals vs. forecast tracking out of the box, like the financial dashboards we offer at The Business Plan Shop, greatly facilitates the task and significantly reduces the risk associated with starting a business.
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Check out our templatesWe hope this guide has helped you understand how to start a tent and camping goods manufacturing business. Please don't hesitate to contact us if you have any questions.
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Founder & CEO at The Business Plan Shop Ltd
Guillaume Le Brouster is a seasoned entrepreneur and financier.
Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.
Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.
Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.
It is a logical question to ask ourselves and should be a guiding question for our research. According to a report from Mordor Intelligence, the camping equipment market is over $15 billion, and the largest market for camping gear is North America. Another promising factor is the expected 7% percent growth rate in the next five years. The numbers indicate a great demand for camping equipment and the potential to gain a good profit with a camping gear rental business.
However, the success of your business will also depend on where you base your business. For example, a small town without tourist destinations will not be profitable because the demands will be low, and the equipment you put so much money into will age waiting for customers.
National and State Parks: Our research indicates that most campers select national and state parks because they consider them more predictable and safer than other ambiguous locations. Most parks have special camping spots and a range of activities and amenities to have fun. Plus, parks attract many tourists from abroad and out of towns who need camping gear. Concisely speaking, basing your camping equipment rental business near famous parks will draw many customers.
Beaches: Some people prefer to camp near beaches, especially during summer. You can set up your rental shop near the beach and offer a wide range of camping and Beach gear equipment. Tents, chairs, umbrellas, coolers, and beach gear equipment will be in high demand in those areas. If you want to focus solely on starting a beach gear rental business, read the guide here.
Lakeside Campgrounds: Campers will select the location, especially if it is a famous lake with good fishing spots. In those areas, you can rent kayaks, fishing equipment, water sports equipment, along with camping gear to maximize your profit.
RV Parks: We all know that RV parks host large groups of tourists and nature lovers. So, setting up your rental shop there will bring many customers. Also, you can add RV equipment to your inventory to increase your revenues.
College Towns: College students prefer to go to nature as a weekend getaway. Offering affordable camping gear in college towns will be profitable and the best way to collect a group of returning customers.
Mountain Towns: Mountain towns are popular destinations for outdoor enthusiasts. Renting camping gear to hikers, climbers, and other outdoor adventurers can be profitable.
Outdoor Festivals: Sporting events and music festivals may bring in a large group of tourists from abroad and all over the country. And there may not be enough accommodations for everyone, or tourists may prefer to stay in nature. Either way, basing your camping gear near outdoor festivals will be profitable. But you have to consider that those festivals are seasonal.
Near RV Rental Businesses: You may even partner with RV rental companies and offer your camping gear to turn the place into a one-stop shop. There is an excellent chance that RV renters may rent things like hiking equipment, fishing tools, grills, chairs, and generators to make the stay more fun and comfortable.
All Tourist Destinations: Tourist destinations such as amusement parks and ski resorts are great locations to set up your rental business. These places attract a large number of visitors, and many of them may be interested in renting camping equipment.
We gave the potential places to base your camping gear rental business. However, you still need to do research on the market and competition. When we say parks are a good location, it does not mean all parks will ensure you a good number of customers. Some parks get thousands of people, and some get only a few. Thorough research will help you determine which park will be ideal. Also, it would be best if you considered the competition in those areas. If the competition is high, your chances are limited unless you offer different gear with more affordable pricing.
Before procuring many items for your rental inventory, you must consider what equipment will be in high demand for your niche and target population. For instance, since there are several good locations to base your rental shop, it is important to know which items are essential in those places. For example, if your camping rental shop is located near the lakes, you may need to add kayaks, fishing equipment, or diving and snorkeling gear. If your rental is located near mountain towns, add climbing gear, mountain bikes, binoculars, etc.
In addition to niche-based items, you can also add the following to your inventory.
So far, we know that a camping equipment rental business can be profitable; there are several good places to base our rental shop and a wide range of niche-based and generic equipment to rent. Now, it is time to start developing a business plan.
Goals: We all start the business to make a profit, so we aim to gain sustainable income and develop a recognizable brand.
Startup costs: You should set a realistic budget that you can come up with using your savings or getting financing assistance from local banks, lenders, or investors. Once you set up a budget, start allocating them for the following activities:
It should be the first step after developing a business plan. Registering your business as a legal entity allows you to do the following:
Now, the question is how to register your business as a legal entity. We can refer you to our previous post to explain this in detail.
As mentioned above, we recommend starting small instead of procuring all the equipment at once. The primary benefit of this approach is that it allows business owners to see which items rent well so they can top up their inventory based on the demands. Here are some tips to consider before procuring camping equipment:
This step is critical for your business’s success because the statistics show that more than 90% of customers find new services and products through online searches. So, having a professional website will increase your chance. Also, people prefer to book things online and have them delivered to their homes or make them ready for pickup without going through lengthy rental processes.
Building a website from scratch may cost a lot, and even then, you need to add individual features, such as a booking system, scheduling tools, automated calendars, invoice tools with security deposits, waiver, and contract management tools, inventory & order management systems to streamline your camping rental business. In short, it will be a headache. To avoid such hassles, we recommend Reservety, all-in-one rental software, because it has all the mentioned features and more.
Because it is affordable, even its basic plan comes with over 200 features, free web designs, and migration assistance (if you are planning to migrate from a different system).
Primary features and tools the software provides:
The company is the world’s best Camping Tent Factory supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.