How to Start a Summer Camp

Starting a summer camp can be a great way for entrepreneurs who have a passion for education and recreation to build a business that fosters growth and learning in children.

Having said that, establishing a successful summer camp involves more than just enthusiasm — it requires careful planning, a deep understanding of your market, and the development of a robust curriculum that effectively balances entertainment and skill-building for children.

In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own summer camp, from conducting market research and securing funding to selecting the right location, setting up operations, and attracting customers.

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Industry Overview

The summer camp industry was valued at USD $21 billion in 2023 and is expected to grow to USD $33.49 billion by 2030, with a projected compound annual growth rate (CAGR) of 5% from 2024 to 2030.

This expansion is driven by a growing emphasis on experiential learning and the recognition of summer camps as vital environments for fostering social development, skill-building, and personal growth in children.

Another major factor contributing to this growth is the industry’s increasing segmentation into specialized camps that attract a wider range of participants.

For instance, STEM-focused camps draw families looking to foster their children’s interest in science and technology, while creative arts camps appeal to those seeking to nurture their children’s artistic talents.

Alongside this, the rising focus on mental health and emotional well-being has further influenced demand within the summer camp industry.

As parents become more aware of the importance of fostering emotional resilience, confidence, and social intelligence in their children, they are increasingly seeking camps that offer programs designed to support these areas.

Overall, the summer camp industry is well-positioned for sustained growth, presenting a compelling opportunity for entrepreneurs ready to build a successful venture in a dynamic and expanding market.

Startup Costs

If you’re considering whether a summer camp is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own summer camp?

Well, it depends, and the initial investment for a summer camp varies widely based on factors such as the location you will choose, the facilities you’ll need, and the scale of your operation:

• Location Costs ($50,000 – $500,000+): You will need to secure a suitable camp location, which could involve renting or purchasing land, with the cost varying significantly based on the size of the property, its amenities, and its proximity to urban areas or natural attractions.
• Facilities and Equipment ($20,000 – $200,000): You will need to invest in setting up cabins, dining halls, recreational areas, and purchasing equipment for activities like sports, arts, or science-based programs.
• Staffing ($30,000 – $250,000): You will need to hire camp counselors, instructors, medical staff, and administrative personnel, with costs depending on the size of your camp and the length of the season.
• Licenses and Permits ($2,000 – $10,000): Depending on your camp’s location and local regulatory requirements, you may be required to obtain various operational licenses, safety certifications, and health permits.
• Transportation ($10,000 – $60,000): You may need to lease or purchase vehicles, though this will depend on your camp’s size, the number of participants you allow, and whether transportation is needed for daily commutes or off-site activities such as field trips.
• Marketing and Advertising ($3,000 – $15,000): You will need to allocate funds for promotional efforts to attract campers, which may include online marketing, social media ads, and local community outreach.
• Food and Supplies ($15,000 – $80,000): You will need to cover the cost of food services for campers and staff, along with supplies such as cleaning products, bedding, first aid kits, and any materials required for activities and general camp operations.
• Utilities and Maintenance ($10,000 – $40,000 annually): You will need to account for ongoing utility costs like electricity and water, along with regular maintenance of the campgrounds and facilities.

Note: It’s also important to have an emergency fund in place — typically around $50,000 for a small summer camp — to cover unforeseen expenses such as facility repairs, last-minute staffing needs, and medical emergencies.

Earning Potential

Summer camps can be surprisingly profitable, typically operating at profit margins of 60% or more — with some of the most efficiently run camps even surpassing the 100% mark.

However, this profitability must be understood in the context of the camp’s seasonal operation, which significantly limits the time available to generate income.

In other words, you could generate $300,000 in revenue over an eight-week period, but that income will need to cover all operational costs for the season, as well as any year-round expenses, such as insurance, marketing, and facility maintenance.

Even so, it is possible to generate substantial returns, with the average summer camp typically earning between $100,000 and $200,000 in profit over the course of the season.

One thing to keep in mind is that — similarly with your revenue — the majority of your costs will also be seasonal – since most operational expenses, such as staffing, food, and supplies, only occur during the camp’s active months.

Therefore, by strategically managing both revenue and costs during the active months, the potential for substantial profits within that window makes starting a summer camp a lucrative venture for individuals who are skilled at organizing large-scale activities, managing teams, and creating engaging experiences for children.

7 Steps to Starting a Summer Camp

In order to start a summer camp, you’ll need to complete the following steps:

1. Planning Your Summer Camp
2. Registering Your Business
3. Securing Funding (If Applicable)
4. Finding and Securing the Right Location
5. Getting a Business Bank Account and Credit Card
6. Getting all Applicable Licenses and Permits
7. Obtaining Business Insurance

We’ve broken each one of these down in more detail below.

Still exploring your options? Check out other small business ideas.

Step 1: Plan Your Summer Camp

Before diving into your summer camp, you’ll need to spend some time conducting thorough market research.

This should involve analyzing local demand for different types of camps, identifying your target audience, and assessing competitors in your area.

This research will help you determine the types of programs or activities that will appeal most to potential campers (and their parents), as well as guide your pricing strategy, marketing approach, and overall camp structure.

Finding a Suitable Name

Choosing the right business name is both important and challenging.

This is because your name will need to be eye-catching, memorable, and (at least somewhat) related to your industry.

If you don’t already have a name in mind and need help, you can visit our How to Name a Business guide or use our Summer Camp Name Generator tool.

If you do have a name in mind, we recommend researching the following:

• Your state’s business records
• Federal and state trademark records
• Social media platforms

You will also need to make sure that your business’s name is available as a domain — this is your website’s URL address.

Note: If you’re planning to operate a sole proprietorship, you might want to operate under a business name other than your own name — known as a “Doing Business As” (DBA) name. Keep in mind that this is not recommended for a summer camp.

Designing Your Camp’s Activities

You will also need to spend some time deciding on the types of activities and programs your camp will offer, which will be heavily influenced by your target audience.

Are you interested in offering traditional outdoor experiences such as hiking, swimming, and team sports, or would you prefer to create more niche programs focused on personal development, adventure, and other specialized skills?

When making these decisions, it’s important to consider the potential costs associated with each option, such as equipment, staffing, and facilities, as well as whether your target audience can afford the price point these programs require.

Remember, you’ll need to stay competitive with other camps in your area while offering activities that provide value and resonate with your campers and their families.

Step 2: Register Your Business

One important aspect that cannot be overlooked when starting your summer camp is the importance of establishing a solid business foundation. While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs.

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.

In practice, this means that if your summer camp were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

Note: If you’re interested in more information before getting started, we recommend having a look at our How to Start a Business guide (DIY) or our in-depth Best Business Formation Services review (for those opting for a professional service).

Step 3: Secure Funding (If Applicable)

Securing funding is a critical step in starting your summer camp, with the most common options being bank loans, SBA loans, private investors, and crowdfunding campaigns.

Each option has its pros and cons, and the best choice will ultimately depend on your financial situation and business plan.

One thing you should always keep in mind is not to conflate revenue with profit. When the season concludes, you will likely have a large amount of cash on hand, but this revenue will need to sustain your business until the following year.

Therefore, it’s important to be cautious with loans when launching your camp, as interest payments can accumulate during the off-season — when you’re not generating income — and potentially strain your finances, placing your business at a disadvantage.

Of course, the extent that this step will be applicable to you will depend on your individual financial situation.

Step 4: Find and Secure the Right Location

The next step you’ll want to take is to find (and secure) the right location for your summer camp.

A good way to go about this is to compile a comprehensive list of all potential locations in your area that offer the necessary features required for your camp’s programs.

Once you have this list, you will be able to start eliminating options based on factors such as cost, ease of access, the availability of amenities available (like water and electricity), and the condition of any existing facilities within each potential location.

Realistically, you may need to compromise on some factors, as it is unlikely that you will find a location that will meet all your criteria perfectly. As a result, we recommend focusing on the features that will (generally speaking) be the most essential to your camp’s initiatives.

For example, if your camp emphasizes outdoor activities like hiking or nature exploration, proximity to forests, lakes, or natural springs would be far more important than modern indoor facilities or easy access to urban amenities.

Note: You will also need to ensure that your prospective property is zoned appropriately and complies with all applicable local and state regulations (discussed in more detail in Step 6).

Step 5: Open a Business Bank Account and Credit Card

Using dedicated business banking and credit accounts is essential when operating as a business owner; this is because when your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) can be at risk in the event your business is sued.

In business law, this is referred to as piercing your corporate veil and is a result of the fact that not having a separate business bank account can be interpreted by some courts as evidence that you are not treating your business as a separate financial entity.

As a result, you could lose your limited liability protections even if you’ve registered a separate business such as an LLC or C Corp.

There are also a variety of practical and economic benefits to this step, such as a larger access to business loans and a more legitimate look.

Getting a business credit card can also be a great idea as it can help you build your company’s credit history from the start.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Step 6: Secure All Required Licenses And Permits

The applicable licenses and permits that you’ll need will largely depend on your state and local regulations.

Even so, we’ve compiled a list of some of the common licensing regulations that you’ll likely need to satisfy in order to operate legitimately.

Zoning and Land Use Permits

Before establishing a summer camp, you’ll need to ensure that the land is zoned appropriately for camp activities.

Zoning regulations vary by locality and dictate the types of activities that can be conducted on a piece of land. In some areas, you may need to obtain a special use permit or a variance if the land is not already zoned for your intended use.

We recommend consulting with your local zoning authorities in order to understand the specific requirements and restrictions that will be applicable to your summer camp. Alternatively, you can consult with a business attorney if you want someone else to take care of this for you.

Camp License

Some states require summer camp businesses to obtain a designated camp license in order to operate legally.

This license ensures that your camp meets specific health, safety, and operational standards designed to protect the well-being of campers and staff, and can typically be obtained from your state’s Department of Human Services or a similar regulatory agency.

Fire Safety Permit

To operate your summer camp, you’ll likely need a fire safety permit, which will require passing an inspection from your local fire department.

This process is designed to ensure that your camp will meet all required safety standards, including the proper placement of fire extinguishers, functioning smoke detectors, accessible emergency exits, and a clearly outlined evacuation plan.

Environmental Compliance Permits

If your summer camp activities involve interactions with natural resources such as forests, lakes, rivers, or wildlife habitats, you may need to obtain some sort of environmental compliance permits.

These ensure that your operations comply with state and federal environmental regulations and do not harm local ecosystems.

The Environmental Protection Agency (EPA) provides guidelines and oversees the issuance of these permits on a federal level, though it’s important to note that some states can also impose their own regulations.

ADA Compliance

The Americans with Disabilities Act (ADA) requires all public facilities, including summer camps, to be accessible to individuals with disabilities.

This means you’ll need to ensure that your camp’s facilities accommodate everyone, which may involve installing ramps, providing accessible restrooms, and making sure pathways are navigable for those with mobility aids.

Keep in mind that compliance with ADA standards is not only a legal requirement but also ensures that your facility is inclusive and welcoming to all patrons.

Step 7: Secure Business Insurance

In addition to securing the necessary permits and licenses, you will need to obtain the appropriate business insurance to protect your company’s assets from potential financial losses.

Note

Even if you form an LLC, purchasing business insurance is still a good idea. This is because an LLC structure protects your personal assets, not your business’s.

While specific coverage needs may vary based on factors such as location, size, and unique risks, there are several key types of insurance that most summer camps should consider.

We’ve briefly outlined these below.

General Liability Insurance

General liability insurance is foundational coverage that any summer camp should have, as it protects against claims of bodily injury, property damage, and personal injury that might occur on your premises.

The average cost for general liability insurance according to recent data is $42 per month, or $504 annually, though costs can vary based on your business’s specific needs and risks.

Professional Liability Insurance (Errors & Omissions)

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects your summer camp against claims of negligence, mistakes, or failure to deliver promised services, particularly in specialized programs such as sports coaching, educational activities, and outdoor adventures.

The cost of professional liability insurance varies based on your business’s size, services, and risk level, but typically ranges between $50 and $100 per month.

Property Insurance

Property insurance is essential for safeguarding your summer camp’s physical assets, such as the buildings, equipment, and inventory.

The median cost for business property insurance is approximately $63 per month for plans with a $1,000 deductible and a $60,000 policy limit.

Having said that, rates can vary significantly based on factors such as your location, risk profile, and the value of the property in question.

Workers’ Compensation Insurance

If your summer camp will have employees, workers’ compensation insurance is likely going to be a legal requirement depending on your state.

This insurance policy provides coverage for medical expenses and lost wages to employees who are injured during work.

The average cost of workers’ compensation insurance ranges between $45 per month, but this can vary based on factors such as payroll, location, and (once again) your business’s specific risk profile.

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How to Start a Summer Camp FAQs

Is it profitable to run a summer camp?

Yes, running a summer camp can be highly profitable, with most camps operating at profit margins of 60% or higher.

Having said that, since revenue is concentrated during a short season, you must carefully manage both your operational costs and off-season expenses to maintain profitability throughout the year.

What makes a successful summer camp?

A successful summer camp offers a well-balanced mix of engaging activities, a safe and structured environment, and experienced, attentive staff.

In addition, offering programs that cater to the interests and developmental needs of children is essential for creating a positive, memorable experience that keeps families returning year after year.

How to structure a summer camp?

To structure a summer camp, you will want to start by designing a daily schedule that offers a variety of engaging activities while ensuring there’s a balance between structured programming and free time.

Next, you should organize the logistical elements of your camp, such as meal times, transitions between activities, and camper supervision, to ensure smooth operations throughout the day.

What is the downside of summer camp?

The main downside of running a summer camp is its seasonal nature, which generally limits income generation to a few months each year.

Additionally, managing large groups of children can be complex and requires thorough planning, adequate staffing, and compliance with a number of health and safety regulations.