Caravan Park cash flow forecasting starts in early July every year. It should align with targets set for your caravan park in the coming year.

Caravan park cash flow forecasting is an integral part of planning your accommodation business for the next 12 months.As a Caravan Park owner, you will have an excellent insight into the seasonal functionality of your business. Recalibrating your 12-month goals will ensure that you align with your cash flow. This helps with the planning, profitability, and direction of your business

Things to consider when planning your Caravan Park Cashflow forecasting

What impacts on my cash flow planning and how will the year pan out?

Essential Caravan park cashflow forecasting should encompass the following financial analysis:

– Understanding seasonal and peak revenue times during the year

– Knowing what sites generate what income

– Calculating the average occupancy rate of each accommodation site

– Determining the average annual cost of each accommodation site type.

– Planning your marketing around events that draw travelers to your region.

– Understanding where costs can be undertaken and what costs are essential.

– Planning for what capital expenditure will be required in the coming 12 months to meet your plans.

– Forecasting essential maintenance.

– Forecasting and understanding your marketing strategy, including fees to your caravan park marketing group

– What will be your wage level requirements, and when will you need more labor during peak times.

It is essential to calculate your break-even points for the park accommodation. Break up accommodation types and other facilities such as cafes and stores. Understanding your breakeven point will therefore help you to plan when and how you need to offer marketing incentives during those quieter months.

Cost drivers

Many small businesses believe to be more profitable; it makes sense to cut costs. Ultimately reducing costs may impact growth and service. Any cash flow plan should have an element of cost review. Whereas caravan park growth relies on strategic planning around revenue and occupancy rates. What you forecast to spend money on marketing and upgrading facilities should also be a consideration.

Cash flow scenarios are worth considering and undertaking. If expansion is being considered any business improvement can be projected in terms of revenue from improved facilities and marketing.

Cloud software for your Caravan Park.

Your park should use appropriate booking systems and caravan park management software. This will enable you to obtain some vital intelligence on where the revenue streams are coming from. Need help determining what reports will give you the heads up with cashflow reporting drop us a line.

Average cost per site – example

Here is what we are talking about in this hypothetical example of the Alpine Caravan park.

Let’s say, on average, a powered caravan site. No 34  costs $7,500 per annum to maintain.

 The average cost can be determined by averaging revenue per site/accommodation facility and site size dividing by total costs. This is a good rule of thumb to help in working out site profitability.

On average Site No 34 takes in $65 x 3 nights per week (this is average) = 195 x 52 weeks $10,140

Therefore we know that that site at an average of 3 nights will generate a profit of 26% profit

To break even @ an average of $65 per night it will need to be occupied for 115 days @ at least $65 per night.

For more info on general cashflow follow this link

Planning and targets help increase profitability.

Financial knowledge will help you in your quest to understand your caravan park cash flow planning. Caravan parks are regarded as an aseasonal business by nature. This means cash flow, tax planning, and general understanding revenue peaks and troughs are all essential when it comes to mapping your caravan park cash flow for the next 12 months.

Need help reach out by contacting Geoff.

Geoff Gartly is a passionate accountant who loves caravaning and understands the financial aspect of operating a Caravan Park. He would love to zoom in and start a conversation about your park

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