How to Start a Mobile Home Park – Business Startup Checklist
The mobile home park business is booming so well that it does not seem to be slowing down anytime soon. With an estimated figure of more than 50,000 mobile home parks in the United States of America alone, and more mobile home parks being built each day, there is surely a great market for you if you start up a mobile home park business today.
With the economy taking a downturn, lots of people have started sorting for a cheaper alternative to traditional homes in the form of mobile home parks. In some states in America such as Florida, there is regulation as to how mobile home parks should be designed; whereas in other states, the local officials are responsible for such regulations.
Nonetheless, before you can venture into this business, there are certain things which must be put in place first. This article explores below some of these things which you must get together before setting up your own mobile home park.
Step 1: Choose your Type of Business
The first thing you will have to do is to go ahead and determine the type of business you would want to be operating.
Are you going to be operating a limited liability company so as to cover you from incurring personal and business liabilities which are typical of a mobile home business?
After deciding, quickly go ahead to the secretary of state’s office in your state to get your business registered, and also visit the IRS and make an application for an employer identification number.
Also, you will need adequate capital to be able to purchase a suitable land for your business which will serve as the park. You will also need adequate capital to be able to make the connections of the various utilities such as gas, sewer, electricity, and water. It is also at this stage you will have to determine how you intend to obtain the startup capital for your mobile home park.
Step 2: Write a Business Plan
It is important for every entrepreneur to write a good business plan for his business. This article will not have sufficient pages to exhaust the importance of a good business plan to a business.
A good business plan, no matter how few its pages are, will be very helpful in providing your business with the necessary path which it must go towards achieving success. You must, however, make sure to retain a number of things in your business plan such as the amount of capital you will require starting up the business, your vision for your mobile home park, the number of workforce, financial projections, etc.
If you will be planning on using your business plan to obtain a loan from the bank or attract investors, then you will have to include the executive summary.
Step 3: Hire Professionals to Help you Build your Home
Get assembled a team of quality experts to help you build your mobile home park. Certainly, you cannot get everything done all by yourself. At some point, you will have to seek the services of the professionals in the field to help you make your mobile home. Make sure to seek the services of professionals that are very well certified and experienced such as professional mobile home dealers or a certified architect. It will be helpful to include in the basic plan a Laundromat and office, meeting facility with storm shelter, and a small store.
Step 4: Seek Approval for Location
Determine the location you will like to use for operating your mobile home park. You will want to begin by asking your realtor to help you search for good locations for your business. Make sure this location is in a commercial area. This is so as to help you attract prospective clients.
Step 5: Build your Park
Before you start building your park, you will want to locate a very good land, as mentioned already. You can begin the whole thing by first carrying out a market research. In addition, you must make sure the land you choose is far away from floodplains, and it is relatively flat, with plenty of trees.
You can begin by considering building facilities such as laundry mart, restaurants, parks, etc which will be bringing you good cash flow.
Step 6: Market Survey
Carry out a thorough market survey before you fully launch this business. A market survey is very important to your mobile home park business since the result of your research is what you will use as a basis towards launching your own mobile home park such as how much capital is required to start up this business, who your target market is, who your competitors are, etc
Step 7: Lease or Rent out your Mobile Home
As soon as your mobile home park is ready, you can now start advertising it for lease or rent to prospective customers. Make sure of setting reasonable prices that are not too low that you make enough profit, neither too high that you scare your clients away. A good method to set your prices is to add up all of the expenses you incurred in putting up the building, together with a fixed rate of your time and effort, and a reasonable profit margin.