85% is brilliant, i would base most of my figures on 60% occupation. Im not saying your wrong about the length of roi, there is a lot of different ways to do it and a lot of variables involved like location, marketing, if you're established or new, market saturation. I agree tourist farming has a better return its not exactly hard to beat ag, if you worked the same hours in tesco as you do on the farm you probably would be as well of financially. However a canvas based site has allowed us to grow fairly quickly and works for us. If cabins/pods fall out of fashion youre kind of stuck with them. Next season if tents are no longer popular I'll buy yurts, geo domes, teepees or whatever is fashionable. I would consider buying a couple of cabins to run through the winter for extra income and to make our site more diverse.no, based on 80%, but that is optimistic, I know someone on 85% Occupancy But that’s with cabins. Even if 14 or even 18 month there is not much else going to beat it in agriculture?
Calculate the seven acres as seven acres rent , 700 a year say ? Or if it’s capable of potatoes 1400 year ?I was thinking about ROI in relation to farming and diversification while doing the stock this morning. my clamping site covers 7 acres and is tucked away behind my yard. do you include the current value of 7 acres, which would never have been sold, or do you just include the lost opportunity cost of the land? (ie what it would have earned doing something else, or which it could never do in future) realistically the glamping site could be shut and returned to its previous use in days. my site was arable land, which I converted to grazing for my livery yard, then dug a lake and landscaped for Glamping. the lake obviously can't be returned to grazing quickly!
if you just worked on ROI and included capital costs nobody would farm. with arable land at £10k/acre, I rent all mine out and get maybe £125-150/acre is a return of 1.2% I also farm poultry which is very capital cost heavy, each shed cost half a million and returns in about 8 years, I have three of those. but my fireball business has no assets, cost about 5k to set up and turns over 700-1million on an average year and runs a very healthy profit margin, I don't even know how to calculate that as its success is based on my artistic and more importantly marketing skills, and not a physical asset? is any business that does not get at least 50% ROI bad?
I think maybe a mixed portfolio of businesses with varying ROI and more importantly varying calls on your time as the person running the business. I do little in my arable, poultry, horses, storage and rented units businesses, but spend an extortionate amount of time on my Firepit business! is there a calculation that expresses time and investment?!
sorry for the ramble, but its made me think this morning!