After narrowing down an almost endless list of potential diversification ideas to a single, well-considered enterprise, it is time to act upon that decision. From obtaining planning permission to sourcing labour and marketing the enterprise, setting up a new business is a significant and multi-faceted undertaking with a number of potential stumbling points. However, it is also a well-trodden path and, despite a definite lack of shortcuts, there are a number of ways in which the journey to your new diversification business can be simplified and expedited.

Step 1: Due diligence and pre-requisites

Having decided upon which option to pursue, it is time to secure the necessary permissions and finance and ensure every aspect of the chosen option is thoroughly planned for. Pre-planning advice should be sought, stakeholders (including the local community) should be consulted, funding applications submitted and all necessary surveys prepared. Only once this is done should full planning permission be pursued, in order to ensure the best chance of approval and success.

Step 2: Commence works

Having secured all the relevant permissions, work on site can commence. In addition to simply constructing the facilities, staff must be recruited and stock ordered. Use this opportunity to undertake some pre-launch marketing; including prospective customers, which will ensure greater acceptance and buy-in in the future.

Step 3: Launch and evaluate

Having carefully chosen the right project for the estate, carried out all the due diligence and achieved all necessary permissions, secured funds, carried out building work, employed staff and marketed the offer, the project can be launched. This is only the beginning, however. There are numerous things you can do to ensure its long-lasting success:

• Listen to feedback, be flexible and move to accommodate the demands of customers and the market.

• Make seasonal changes and offers to keep your diversification fun and relevant.

• Diversify the diversification! Be brave and don’t be afraid to expand or change the chosen option.

Savills Virtual Estate: Establishing the enterprise

The route to successfully setting up the new campsite venture

Step 1: Engage

The Estate engaged with their neighbours, existing tenants, national campsite providers and the local council to ensure their idea was fully shared with all stakeholders. As a result of this, their idea was pared down a little to only accommodate tents. Allowing caravans on the site added further planning requirements, additional licensing, far more structural requirements and would detract from the wild feel of the venue. They accepted they could expand to this in the future but would start with tents on large pitches.

Step 2: Preparation

The Estate purchased and dug in their compost toilets and secured the field for the campsite. A large amount of time at this stage was taken up constructing a booking form, producing marketing literature and convincing their customers to come to a brand new site. A drop pin was set up on Google maps and new signage was installed.

A partnership was formed with an online campsite booking service to take camping bookings, but the Estate also decided to embed a simple booking form into their own website. The later booking option proved far more lucrative and received far more traffic than the national provider. Fortunately a family member was able to take on the role of campsite manager for the season.

Step 3: Launch and evaluation

The campsite opened at the start of July 2021 for eight weeks of the peak season. The site saw high occupancy rates, received glowing reviews and gained a great reputation. The Estate plans to continue offering the wild camping experience next year and hopefully expand into glamping, which will expand the appeal of the business to a new demographic, further enhancing the resilience of the Estate. Smaller additions will also be investigated to cater to demand for enhanced well-being, sustainable tourism and authentic experiences. This consistent approach not only attracts new potential customers but also enhances the likelihood of repeat custom from satisfied guests.

Further expanding exposure to tourism was initially questioned as travel restrictions continue to relax and international travel becomes an option once again. Market analysis also suggested that the number of overnight stays has decreased by 2% in England in recent years. Further inspection revealed that the number of trips to Northumberland has increased by 2%. This seems to be a long-term trend with the economic impact of tourism in the region increasing by 57.3% since 2009. Having analysed their own, unique situation, the Estate is satisfied that a tourism enterprise can continue to be successful, particularly as it caters to emerging consumer attitudes.

Successes

The choice of a wild camping offer worked particularly well for the Virtual Estate due to:

• Close proximity to the national footpath network and local businesses.

• Collaboration with local business boosted their income at a difficult time.

• Access to funding from FiPL.

• Interest from the local press provided excellent marketing.

• Existing website was easily adapted to take bookings.

• Staffed by family member, cutting costs.

• Excellent reviews, which should prove an excellent foundation for next year’s season.

Looking forward

When evaluating the project a number of challenges, as well as future opportunities, were discovered:

• When establishing a vision for the glamping enterprise, the Estate will allow more time for preparation. The launch of the campsite was delayed due to underestimating this.

• Research and select preferred style of glamping accommodation and secure necessary planning permissions.

• Extend meat box and bakery hamper offer so campers can continue to have them delivered to their homes after their trip ends.

• Add star-gazing kit to offers as the enterprise is located close to a Dark Sky Discovery Site.

• Consider offering a 'rewilding experience' for those campers who want to give back to nature.

• Review staffing as family member will not be available next year and the enterprise will be expanding.

_{Read the articles within Spotlight: Rural Diversification below.}