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Do you want to start Mobile Home Park business plan?
Are you thinking, “I wanna start a mobile home park business plan?”. If so, you will need to read through a mobile home park business plan sample. This business can be a great choice if you want a flexible business that will give you enough profit.
You can start a mobile home park business at any scale and any place. However, you will need to consult best business plan experts. They will guide you on how to start a mobile home park business.
You must consult a mobile home park business plan whenever you need to create a business. You can consult any business plan; may it be a business plan for banquet hall or any generalized business plan.
Executive Summary
2.1 The Business
Move Along will be a mobile home park company started by Richard Hansen. The main target of the business will be to provide a stable park in the Washington area where people can just bring their trailers and park at a reasonable rent per night. It will offer a wide range of services and a good parking space including cleaning, food and maintenance services.
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2.2 Management of Mobile Home Park Company
Before you start mobile home park, you need to make sure that you have a game plan to manage all of its resources. This game plan is referred to as a business plan. A mobile home park business plan lays out all the details telling you how to manage a mobile home park. It also advises you on efficiently managing your money, time and resources.
To develop a mobile home park business plan for your company, you will need to consult some business that creates a professional business plan. When building mobile home park, you will need to study the logistic and financial resources you possess.
In this document, we are highlighting all the details necessary to Richard for owning mobile home park.
2.3 Customers of Cleaning Services Company
Our customers will mostly belong in the working class domain as they require mobile homes and their services the most. The list of major customers is as follows:
- Working-Class People
- Vagabonds
- Investors
- Tourists
2.4 Business Target
Our primary target is to provide affordable housing to wage-bound people living in and around Washington.
The logistic goals that we want to achieve within the first four years of launch are demonstrated below:
Company Summary
3.1 Company Owner
Move Along will be owned and operated by Richard Hansen, who completed his MBA from England five years ago. Since then, he has worked as a professional consultant to many big marketing firms. However, he wanted to start his own business in a unique niche. Thus, he will now work to develop his dream into reality and start a mobile home park business.
3.2 Why the Mobile Home Park company is being started
Ever a keen observant of his surroundings, Richard realized that many people in the US prefer to invest in a mobile home instead of a traditional brick house. He realized that the shift in the trend was because of the excessively increasing price of real estate. Here, Richard saw an opportunity and decided to start an affordable housing business in the form of a mobile home park.
3.3 How the Mobile Home Park company will be started
Step1: Plan Everything
Before you start working on a mobile home park business plan, you need to know what is mobile home park. Only then can you plan your business. A good mobile home park business plan is of absolute importance when learning how to open a mobile home park. It will not only tell you how to run a mobile home park but also guide you through the trials and tribulations of starting a company.
Step2: Define the Brand
The next step is to attract customers to your budding business. The best way to do this is by developing a brand for your business. A brand will include your aims, faith and values as a company. It will tell your customers how you will service and benefit them and, hence, attract your target customers to your doorstep.
Step3: Establish Your Corporate Office
To start his company, Richard decided to purchase land near the centre of Washington. He will now work on procuring contracts from mobile home suppliers. He will also start hiring his workforce to manage the business on land.
Step4: Establish a Web Presence
Any business today demands an online presence for its success. Understanding the paramount necessity of a web existence, Richard decided not only on a website for his company but also on social media in the form of business accounts.
Step5: Promote and Market
The final step in starting your business is to promote it through a well-developed and refined marketing plan.
| Start-up Expenses | |
| Legal | $134,100 |
| Consultants | $0 |
| Insurance | $26,000 |
| Rent | $35,000 |
| Research and Development | $10,000 |
| Expensed Equipment | $52,500 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $261,000 |
| Start-up Assets | $200,000 |
| Cash Required | $224,600 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $140,000 |
| Long-term Assets | $212,000 |
| TOTAL ASSETS | $815,600 |
| Total Requirements | $1,076,600 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $261,000 |
| Start-up Assets to Fund | $815,600 |
| TOTAL FUNDING REQUIRED | $1,076,600 |
| Assets | |
| Non-cash Assets from Start-up | $1,054,600 |
| Cash Requirements from Start-up | $162,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,301,600 |
| Liabilities and Capital | |
| Liabilities | $18,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $58,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $76,000 |
| Capital | |
| Planned Investment | $1,076,600 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,076,600 |
| Loss at Start-up (Start-up Expenses) | $149,000 |
| TOTAL CAPITAL | $1,225,600 |
| TOTAL CAPITAL AND LIABILITIES | $1,301,600 |
| Total Funding | $1,076,600 |
Services
Mobile home parks investment opportunities are increasing day by day. But before you start going into the details of how to develop a mobile home park, you need to settle on the services you will provide to your customers. For determining which services you should include in the initial plans of your business, you can refer to mobile home parks business plans or even amusement park business plans to get a general idea.
Since Richard decided to opt for a business with a flexible domain, you can refer to this mobile home park business plan for learning how to make a mobile home park.
- Land Renting
We will offer rental services for mobile homes. Our customers can just rent out a land space and then put their mobile homes there.
- Mobile Home Rentals
We will also be offering mobile home renting services. Therefore, our customers can either rent land and mobile homes separately or rent them out in a complete package of their choice.
- Maintenance Services
We’ll offer top of the class maintenance and cleaning services. Our customers can hire these services year-round or just for special occasions to get their home rentals, and the surrounding land cleaned up and spotless.
- Transportation Services
Our last service will be in the transportation domain. Our customers can reach out to us for booking rides in taxis, vans, unique purpose cars or even moving trucks.
Marketing Analysis of Mobile Home Park Company
When opening a mobile home park business, you need to have in-depth knowledge about your target market. If you look at an entrepreneur sample business plan RV mobile home park, you will see that you can only know your market fully if you do a market analysis beforehand. You will find this advice in every mobile home park business plan template. Even business plan for artists advise the same thing.
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It requires a bit of technical knowledge to conduct a market analysis, and it can be daunting at first. But you can just refer to this guide on how to develop a mobile home park to get started. It will tell you everything you need to know about how to own a mobile home park and all your potential customers and target markets.
Here, we have described the market trends for the target market of Move Along.
5.1 Market Trends
According to Movity, about 22 million people live in mobile homes in the United States. And according to Nebraska manufactured housing stats, the population has increased by 226% since 2009. In short, the demand for alternative housing and mobile homes is not going down any time soon. More and more people prefer to live in these tiny, manageable homes. Therefore, people will always be on the lookout for an excellent mobile home community park.
5.2 Marketing Segmentation
The potential customers of Move Along are divided into the following groups:
Business plan for investors
5.2.1 Working-Class People
Our primary customers will be the working-class community. With the inflation rates ever so high, and the real estate market boasting high rates, people are trying to find suitable and affordable housing for themselves. Therefore, we expect most of our customers to belong to the working-class, looking to utilize our mobile home services.
5.2.2 Vagabonds
Many of the younger generations prefer to move from place to place in search of better opportunities. With that in mind, we expect a good amount of business from single travellers looking for a place to stay without breaking their bank.
5.2.3 Tourists
Tourism is a massive part of the economy of the US. Many tourists usually want to spend as little as possible on their living arrangements to experience as much of the culture and opportunities as they can. Therefore, we expect that with good marketing, many tourists will use what Moving Along has to offer.
5.2.4 Investors
Lastly, the real estate market is always teeming with people looking to invest. The past few years have also seen this trend shifting to the mobile home industry. Therefore, we will offer our customers a chance to invest in what is quickly becoming a viable investment option in the US.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Working Class People | 30% | 37,500 | 45,000 | 54,000 | 64,800 | 77,760 | 10.00% |
| Vagabonds | 22% | 27,500 | 33,000 | 39,600 | 47,520 | 57,024 | 10.00% |
| Tourists | 25% | 26,700 | 32,040 | 38,448 | 46,138 | 55,365 | 10.00% |
| Investors | 23% | 22,500 | 27,000 | 32,400 | 38,880 | 46,656 | 11.00% |
| Total | 100% | 114,200 | 137,040 | 164,448 | 197,338 | 236,805 | 10% |
5.3 Business Target
- To become the most affordable and stable mobile park around Washington.
- To expand our services and business to other US states as well.
- To maintain customer satisfaction above 95%.
- To be earning a net profit of $50k/month by the end of the second year.
5.4 Product Pricing
Our prices and rents will be much more affordable than our competitors in the real estate market. We aim to provide more convenience to our customers in the least amount of money.
Marketing Strategy
Starting a mobile home park is not an easy task. You need to develop many competitive advantages while developing a mobile home park just to stay afloat. You can find your advantages over your competitors by conducting a marketing analysis.
Marketing analysis will not only tell you how to open a mobile home park so that you can reap maximum benefits, but it will also give you insights on how to attract more customers to your business.
6.1 Competitive Analysis
- We have an excellent service structure built around the convenience of our customers.
- Our customers can contact us at any time through our website and social media.
- We have 24/7 customer care service available to ensure that any and every problem of our customers will be resolved immediately.
- Unlike our competitors, we offer multiple services related to housing and commute, all in one place.
6.2 Sales Strategy
- We will market our business through posters, billboards, social media and Google Ads.
- We will offer one month of complimentary cleaning services to our first 15 renters.
- We will offer excellent services at reduced rates to our first ten customers for a whole year.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Land Renting | 450 | 477 | 506 |
| Mobile Home Rentals | 550 | 583 | 618 |
| Maintenance Services | 400 | 424 | 449 |
| Transportation Services | 450 | 477 | 506 |
| TOTAL UNIT SALES | 1,850 | 1,961 | 2,079 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Land Renting | $750.00 | $870.00 | $1,009.20 |
| Mobile Home Rentals | $1,000.00 | $1,160.00 | $1,345.60 |
| Maintenance Services | $550.00 | $638.00 | $740.08 |
| Transportation Services | $750.00 | $870.00 | $1,009.20 |
| Sales | |||
| Land Renting | $337,500.00 | $414,990.00 | $510,271.70 |
| Mobile Home Rentals | $550,000.00 | $676,280.00 | $831,553.89 |
| Maintenance Services | $220,000.00 | $270,512.00 | $332,621.56 |
| Transportation Services | $337,500.00 | $414,990.00 | $510,271.70 |
| TOTAL SALES | $1,445,000.00 | $1,776,772.00 | $2,184,718.85 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Land Renting | $400.00 | $440.00 | $462.00 |
| Mobile Home Rentals | $450.00 | $495.00 | $519.75 |
| Maintenance Services | $200.00 | $220.00 | $231.00 |
| Transportation Services | $200.00 | $220.00 | $231.00 |
| Direct Cost of Sales | |||
| Land Renting | $180,000.00 | $209,880.00 | $233,596.44 |
| Mobile Home Rentals | $247,500.00 | $288,585.00 | $321,195.11 |
| Maintenance Services | $80,000.00 | $93,280.00 | $103,820.64 |
| Transportation Services | $90,000.00 | $104,940.00 | $116,798.22 |
| Subtotal Direct Cost of Sales | $597,500.00 | $696,685.00 | $775,410.41 |
Personnel plan
Starting a mobile home park business can be tough if you don’t have the right people to work with you. The success of a business is heavily reliant on its workforce. Every consultant will tell you that learning how to build mobile home park without a good employee force is useless. You will find the same advice uttered in every mobile home park business plan, may it be a business plan for music industry or a water park business plan.
7.1 Company Staff
- 1 Co-Manager to help in overall operations
- 5 HCT Certified Residential Cleaning Professional
- 8 General Maintenance employees
- 1 Social Media Manager
- 2 Sales Executives to handle marketing and sales
- 1 Accountant
- 4 Drivers
- 1 Receptionist
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Co Manager | $61,000 | $67,100 | $73,810 |
| Cleaning Professionals | $142,000 | $156,200 | $171,820 |
| Maintenance Employees | $282,000 | $310,200 | $341,220 |
| Social Media Manager | $30,000 | $33,000 | $36,300 |
| Sales Executives | $50,000 | $55,000 | $60,500 |
| Accountant | $25,000 | $27,500 | $30,250 |
| Drivers | $60,000 | $66,000 | $72,600 |
| Receptionist | $15,000 | $16,500 | $18,150 |
| Total Salaries | $650,000 | $715,000 | $786,500 |
Financial Plan
The cost to build a mobile home park isn’t covered by just increased sales. It would be best to have a lot more planning to ensure that the cost of mobile home park doesn’t drown you in debts. You can do this planning by writing up a financial plan. A financial plan will guide you in smartly using your resources to achieve more with little.
Here we’re providing the detailed financial plan made for Move Along. You can use this plan to learn how to buy a mobile home park and manage it efficiently. Alternatively, you could also refer to movie theatre business plan or anything of the like.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $1,445,000 | $1,776,772 | $2,184,719 |
| Direct Cost of Sales | $597,500 | $696,685 | $775,410 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $597,500 | $696,685 | $775,410 |
| Gross Margin | $847,500 | $1,080,087 | $1,409,308 |
| Gross Margin % | 58.65% | 60.79% | 64.51% |
| Expenses | |||
| Payroll | $650,000 | $715,000 | $786,500 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $829,200 | $898,450 | $980,400 |
| Profit Before Interest and Taxes | $18,300 | $181,637 | $428,908 |
| EBITDA | $18,300 | $181,637 | $428,908 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $3,660 | $36,327 | $85,782 |
| Net Profit | $14,640 | $145,310 | $343,127 |
| Net Profit/Sales | 1.01% | 8.18% | 15.71% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
1. How to start a mobile home park business?
Starting a mobile home park business can be tricky at the beginning. But you can make sure that your journey is as smooth as possible by developing a mobile home park business plan just like the one above.
2. How to develop a mobile home park?
You can start owning mobile home park by making sure that you have every business aspect planned out beforehand. And you can achieve all this through a thorough mobile home park business plan.
3. How to make a mobile home park?
You can make a mobile home park by buying out a piece of land and then developing it. However, it would help if you lay out the financial plans beforehand to ensure that you can bear mobile home park development costs.
Download Mobile Home Park Business Plan Sample in pdf
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