A Guide to Starting an Off-Grid

Cabin Business in Lapland, Fin-

land.

Stefan Rönnberg
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BACHELOR’S THESIS
April 2023

International Business
ABSTRACT

Tampereen ammattikorkeakoulu
Tampere University of Applied Sciences
International business

Stefan Rönnberg:
A Guide to Starting an Off-Grid Cabin Business in Lapland, Finland

Bachelor's thesis 53 pages, appendices 4 pages

April 2023

The purpose of this paper is to develop a guidebook to entrepreneurs interested

in starting an off-grid cabin rental business in Lapland, Finland. In the context of
a growing tourism sector in Lapland and a global growing trend towards sustain-
able tourism this guide seeks to propose a business model that exploits these
trends. Lapland has a lot of potential within Europe as it is distinct from most lo-
cations, unique and sparsely populated.

The paper aims to conduct market research, build a customer profile and iden-
tify the key competitors in the area. Following the principles of the minimum via-
ble product and adhering to the structure of the business model canvas this the-
sis provides a step-by step guide with all of the necessary considerations ad-
dressed to start such a business.

The findings in this paper indicate that there is a growing market and there are
opportunities for an off-grid cabin rental business. This type of business does
not yet exist in Lapland as presented in this model and the benefits of off-grid
principles have not yet been fully exploited.

In practical terms the implications of this paper could serve policy makers, en-
trepreneurs, locals and any other stakeholder in the tourism industry of Lapland.

Key words: please use lower case initial letters

 4

CONTENTS

1 Introduction ........................................................................................... 8
2 Thesis plan ........................................................................................... 9
2.1 Thesis topic .................................................................................... 9
2.2 Purpose and objectives .................................................................. 9
2.2.1 Wider relevance.................................................................. 10
2.3 Working methods and data .......................................................... 11
3 Literature review ................................................................................. 13
3.1 Relevant literature ........................................................................ 13
3.1.1 Lapland Tourism Industry ................................................... 13
3.1.2 Business Planning and Entrepreneurship in the Tourism
Sector................................................................................. 13
3.1.3 Off-Grid and Sustainable Lodging Models .......................... 13
3.2 Concepts and theory .................................................................... 13
3.2.1 Business model canvas ...................................................... 13
3.2.2 Minimum Viable Product model .......................................... 16
3.2.3 Porters Five Forces theory. ................................................ 17
4 Market analysis ................................................................................... 20
4.1 Target Market Segmentation and Customer Profile ..................... 20
4.2 Target Market Segment ............................................................... 20
4.3 Customer profile ........................................................................... 20
4.3.1 Geographic ......................................................................... 20
4.3.2 Demographic ...................................................................... 20
4.3.3 Psychographic .................................................................... 21
4.3.4 Behavioural ........................................................................ 22
4.4 Market Size and Growth Potential ................................................ 22
4.4.1 Market size ......................................................................... 22
4.5 Competitor Analysis ..................................................................... 25
4.5.1 Arctic Log Cabins ............................................................... 25
4.5.2 Lapland hotels .................................................................... 26
4.5.3 Northern lights village ......................................................... 26
4.5.4 Wilderness Hotel ................................................................ 27
4.5.5 AirBnb................................................................................. 27
4.6 SWOT Analysis ............................................................................ 28
4.6.1 Strengths ............................................................................ 29
4.6.2 Weaknesses ....................................................................... 29
4.6.3 Opportunities ...................................................................... 30
 5

4.6.4 Threats ............................................................................... 30

5 Step-by-step Guide to developing your business plan ........................ 32
5.1 Business model overview ............................................................. 32
5.1.1 Business mission and vision ............................................... 32
5.2 Value Proposition ......................................................................... 32
5.3 Channels ...................................................................................... 33
5.3.1 Website .............................................................................. 33
5.3.2 Social Media ....................................................................... 33
5.3.3 Online travel agencies ........................................................ 34
5.3.4 Local partnerships .............................................................. 34
5.3.5 Email marketing .................................................................. 34
5.3.6 Content marketing and SEO ............................................... 34
5.3.7 Public relations ................................................................... 34
5.4 Key Activities ................................................................................ 35
5.4.1 Construction, maintenance and operations. ....................... 35
5.4.2 Marketing ............................................................................ 36
5.4.3 Customer service and CRM ............................................... 36
5.4.4 Staffing ............................................................................... 37
5.4.5 Partnership management ................................................... 37
5.4.6 Financial management ....................................................... 38
5.5 Key Resources ............................................................................. 39
5.5.1 Off-grid cabin ...................................................................... 39
5.5.2 Off-grid infrastructure.......................................................... 40
5.5.3 Skilled Staff ........................................................................ 41
5.5.4 Partnerships ....................................................................... 41
5.5.5 Financial resources ............................................................ 41
5.5.6 Marketing and online presence .......................................... 41
5.5.7 Licenses and permits.......................................................... 41
5.6 Key Partners ................................................................................ 41
5.6.1 Local tour operators............................................................ 41
5.6.2 Travel agencies .................................................................. 42
5.6.3 Cabin construction companies ........................................... 42
5.6.4 Off-grid Technologies ......................................................... 42
5.6.5 Marketing ............................................................................ 42
5.6.6 Local businesses ................................................................ 42
5.6.7 Legal and financial advisors ............................................... 43
5.7 Revenue Streams ........................................................................ 43
5.7.1 Accommodation rentals ...................................................... 43
5.7.2 On-site activities and experiences ...................................... 43
 6

5.7.3 Equipment rentals............................................................... 43

5.7.4 Catering, food and beverage .............................................. 44
5.7.5 Events ................................................................................ 44
5.7.6 Partnerships ....................................................................... 44
5.7.7 Merchandise ....................................................................... 45
5.8 Cost Structure .............................................................................. 45
5.8.1 Fixed costs ......................................................................... 45
5.8.2 Variable costs ..................................................................... 48
5.8.3 Estimating costs ................................................................. 50
5.8.4 Budget and projection......................................................... 51
5.8.5 Pricing strategy ................................................................... 51
6 Conclusions ........................................................................................ 53
7 References ......................................................................................... 55
APPENDICES .......................................................................................... 60
Appendix 1. Catalytic wood burning stove .......................................... 60
Appendix 2. Price Estimates ............................................................... 61
Appendix 3. Avrame Duo 75 ............................................................... 62
Appendix 4. Avrame Solo 75 .............................................................. 62
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GLOSSARY or ABBREVIATIONS AND TERMS (choose one or other)

TAMK Tampere University of Applied Sciences

cr credit

MVP – Minimum Viable product

OTA – Online Travel Agency
 8

1 Introduction
Technological advances in energy production and housing have opened the op-
portunity for many around the world to build houses in remote areas that do not
need to be connected to the electrical grid and yet still are able to provide com-
fortable living. This opens opportunities for businesses who want to exploit this
technology in ways that would otherwise be limited by having to be connected to
the grid. There is an argument to be made that this type of accomodation can
also be much more ecologically and economically friendly and so is in a position
to be favourable in the eyes of governments and organizations organizing grants
for businesses that will help them meet their carbon neutral goals.

Starting a business can be difficult and bureaucratic, especially in Finland if one

doesn’t speak Finnish, This paper aims to provide a guide as to how one could
navigate the bureaucracy and be able to receive funding and register a company.
The guide can also serve entrepreneurs well in showcasing the important statis-
tics relating to the markets and the potential for growth.

The specific aims in this paper are to provide a suggestion of tools, analyse the
market, identify the key competitors, help with considerations for developing a
marketing strategy and help with the financial planning of such a business.

The scope of the guidebook is to provide a step-by step guide with all of the
necessary considerations for the business plan addressed. Some of the limita-
tions of this paper will be that the guide is general and does not focus on any
specific locations, rather focuses on Finnish Lapland generally. Also the impact
of the Covid pandemic will make some of the data difficult to interpret accurately.

The guidebook starts with an overview of the concepts and theories that work as
its foundational principles and then goes into the market analysis which is fol-
lowed by a general SWOT analysis and then concludes with a comprehensive
step-by step look at how the business model canvas can be applied to a start-up
project of this nature.
 9

2 Thesis plan
2.1 Thesis topic
The thesis topic is to build a guidebook to help plan an off-grid cabin rental busi-
ness in Lapland Finland. The topic was chosen because of the growing demand
of eco-tourism in the region and to help address the demand with a sustainable
business model. The significance of this topic is to encourage growth and devel-
opment of the local economy, responsible tourism and development of entrepre-
neurism in the area. The novelty of this topic is in the application of new technol-
ogies and innovations that has enabled this kind of solution as a viable accom-
modation option for the growing sector of the market who seek eco-friendly op-
tions.

2.2 Purpose and objectives

The objective of this paper is to build a comprehensive guidebook that can enable
entrepreneurs to create a viable and competitive off-grid cabin rental business
plan. The goal is to address all of the necessary considerations, challenges and
opportunities while maintaining a focus on sustainable business practices.
The purpose of this guidebook is to:
1. Investigate and identify the off-grid rental market in Lapland to understand
the relevant factors contributing towards success.
2. Build a detailed guidebook that covers all of the important aspects of cre-
ating a viable and competitive business plan. This includes market analy-
sis, financial planning and operational considerations.
3. Contribute to the pool of academic literature of the industry with insights
from this thesis.
Main research question:
How can a comprehensive guidebook for a competitive and sustainable off-grid
cabin rental business plan in Lapland, Finland be developed to support entrepre-
neurs.
Sub-questions:
1. What relevant factors are crucial in understanding the potential success of
an off-grid cabin rental business in Lapland?
 10

2. What are some of the key contributing components of a viable and com-
petitive sustainable off-grid cabin rental business plan? Especially regard-
ing market analysis, market strategies, financial planning, product and ser-
vice offerings.
3. How can a guidebook be structured in such a way that ensures accessi-
bility for a large audience namely, optimizing for user friendliness, reada-
bility, simplicity and comprehension to better enable entrepreneurs’ effec-
tive development of viable and competitive business plans?

2.2.1 Wider relevance

Lapland is heavily reliant on tourism. The hospitality industry will always be rele-
vant for Lapland and lodging businesses play a crucial role in this respect. This
research question can therefore have broader implications to Lapland’s economic
and social development (Lapin Liitto, ym., 2021).

This guidebook can play a vital role helping small businesses and entrepreneurs
be more informed in their decision making which can have a direct impact on the
economic and social outcomes of said groups.

There is academic relevance for any researchers looking to inform themselves

on a general sense regarding the hospitality industry, tourism industry and gen-
eral entrepreneurship. This could include industry movers, government officials
and policy makers and any other stakeholder.

Other places in Finland, the Nordics and in the wider world may find themselves
in similar circumstances and could use this research and find ways to apply it to
their own needs.

There is also the greater question of how this could help with sustainable devel-
opment of the tourism industry in Lapland. As the demand grows there will need
to be someone there to fill the void and do it sustainably. This research can help
locals who are native and have a lot of pre-existing knowledge on how best to
implement sustainable practices in Lapland.
 11

2.3 Working methods and data

This thesis will rely primarily on the collection and analysis of secondary data.
Secondary data being information that has been collected, analysed and pub-
lished by others. Using secondary data for this thesis is beneficial in saving time
and resources while providing proven and well-established data to inform the
reader and support the building of an effective business plan (Saunders;Lewis;&
Thornhill, 2012).

This data collection method will involve the gathering and processing of infor-
mation from relevant sources such as government publications, market research,
online articles, industry reports, academic articles and online publications from
relevant industry movers and businesses. The aim is to use these sources to
gather valuable insights into the eco-tourism sector in Lapland and evaluate the
customer preferences, best practices and competitive landscape for starting an
off-grid cabin business. The analysis of this data will help to provide a solid evi-
dence-based foundation for informing the best recommendations for entrepre-
neurs reading this thesis.

To best employ these methods and ensure a comprehensive understanding of

the literature and information, a systematic approach to data collection will be
used. Involving thorough literature review using online databases such as internet
archive, Google Scholar, Perlego, Sci-hub and other academic databases. The
relevance of internet websites will also be significant such as those of businesses
relevant to the industry, government agencies and websites related to tourism in
the area.

Following the collection of data, analysis will be conducted to identify the relevant
trends, insights and patterns that can work towards informing the development of
the guide or business plan. Employed analysis methods such as thematic, com-
parative and content analysis will be used appropriately according to the nature
of the data and how best to analyse it.

Being that the goal of this thesis is to construct a functional guide to building an
off-grid lodging business, and that a business plan can very dynamic and multi-
faceted. The secondary data being used is varied and is of both qualitative and
 12

quantitative nature. There will be a need for mixed-methods approach, employing

both quantitative and qualitative data and interpretation methods.
 13

3 Literature review
3.1 Relevant literature
3.1.1 Lapland Tourism Industry
Related to the tourism industry in Lapland there are a number of sources to pull
relevant information from. These will help especially for the market analysis. mar-
ket analysis to determine the demand for such a product and the general quantity
and quality of competition in the area. Identifying target demographics and cus-
tomers, analysing available published data to determine the current state of in-
dustry and tourism. Such data is available through online sources and there is
data to suggest that tourism is a strong and growing industry in Lapland (Finland,
2022)

3.1.2 Business Planning and Entrepreneurship in the Tourism Sector

For knowledge on business planning in Finland there are publishers such as
Uusyrity-keskus (Uusyrityskeskus, 2023) with tools and tips for entrepreneurs.
These will be relevant for informing the guide from an entrepreneurial business
plan perspective.

3.1.3 Off-Grid and Sustainable Lodging Models

There are a lot of resources online and in print with information regarding off-grid
sustainable living. The sources will help inform the guide especially regarding
types of buildings and sustainability. There are example drafts available online
(Viktor, 2022) as well as kit build providers with a large amount of available infor-
mation on the builds. (avrame, 2023)

3.2 Concepts and theory

3.2.1 Business model canvas
The business model canvas was developed by Osterwalder and Pigneur as a
visual framework for anyone looking to start a venture. Application of the business
model canvas for this thesis can help greatly in identifying the key components
of the business needs and help to inform and facilitate effective decision making.
(Osterwalder & Pigneur, 2010) The model is made to be an easy tool for design-
ing, analysing and illustrating a businesses’ core needs such as:

1. Value proposition.
 14

This section focuses primarily on the specific combinations of the product and
services being offered and how they can offer uniqueness or desirability to the
customer. This thesis will explore several value propositions that differentiate it
from its competitors and help make the concept stand out from the competition.

2. Customer segments.
Here the goal is to identify the target market segments and create a customer
profile. This is crucial for informing the decisions that will make a good business
plan. This guidebook will look explore the potential size and quality of the cus-
tomer segment that identifies with or shares the values that base the principles
of off-grid living. This information can help inform the decisions made for market-
ing, pricing and the type of required service offerings.

3. Customer Relationship Management

CRM refers to all of the components that go into managing and maintaining rela-
tionships with customers. This includes processes, tools and strategies. This is
relevant for this business in optimizing customers’ communication flow and expe-
rience with the business.

4. Channels.
These are the communication channels through which the business communi-
cates with it’s customers and through which the value propositions are communi-
cated. This thesis will explore all of the relevant channels such as; social media,
booking agencies, travel agencies and local organizations.

5. Key activities
The key activities are the necessary tasks required to deliver the value proposi-
tion, reach the desired customers, and generate income. For off-grid cabin busi-
ness this would include initial start-up phase tasks such as construction and in-
frastructure and ongoing tasks such as marketing, scheduling, management and
customer service.

6. Key resources
These are the necessary resources that are needed to deliver the value proposi-
tion. This include an examination of local activities and partners, collaborations
 15

and other operational assets required to deliver the value proposition. In this case
the thesis will explore resources such as land, cabin related products and staffing
needs and partners like those providing activities such as skiing, snowshoeing,
hunting, fishing and dog sledding. Other partner needs will be related to supplies
and other local businesses providing operational needs.

7. Key partners
The key partners are those required to start and operate the business success-
fully. This includes all relevant organizations and businesses that can help con-
tribute to the successful execution of the key activities. This can include providers
of materials, consumables, off-grid technologies, marketing agencies, travel
agencies, tour operators, and people and organizations who can provide relevant
knowledge.

8. Revenue streams
Revenue streams consist of all of the potential sources of income that the busi-
ness can exploit. The thesis will identify and analyse all of the possible revenue
streams for off-grid rentals. This includes, rental income, service offerings, part-
nerships with local attractions and equipment rental.

9. Cost structure
The cost structure is about identifying the costs associated with starting and op-
erating the business. This is crucial for understanding the financial needs of the
company, evaluating start-up costs and financial projections such as break-even
points. The thesis will analyse the potential costs associated with the establish-
ment and operation of the off-grid cabin rentals. This will include construction,
maintenance, staffing and marketing.

Online tools are available where one can construct an plan using a dynamic busi-
ness model canvasing interface, such as Canvanizer. (Canvanizer, 2023) or
Strategyzer. (Strategyzer, 2023)
 16

3.2.2 Minimum Viable Product model

The minimum viable product model is very relevant concept for this thesis be-
cause it enables the entrepreneur to start small and explore the viability and learn
the operations of the business before investing in any expansions. Upfront invest-
ments are smaller and more accessible to potential entrepreneurs. The MVP
model is a concept coming from lean start up methodology and emphasises the
relevance of customer feedback and market validation. MVP’s lend themselves
well here since they offer most of the core value propositions that the customers
want but only work towards building additional services with information customer
information and other metrics such as market validation. (Ries, 2011). Application
of this model in off-grid cabin business can serve the entrepreneur well in under-
standing how to gain valuable insights about the market demand, customer pref-
erence and expanding potential revenue streams. This is a good model for sys-
tematic, continuous, affordable and informed business optimization.

The model suggests to the entrepreneur an emphasis on product and service

development that meets the bare minimum of features to satisfy the needs of the
customer segment or profile. An example for the case of off-grid cabins could be
the initial installation of a single cabin or whatever the minimum number would
 17

need to be to break even on costs and possible purchase cabins as a kit build
rather than building yourself. It may also mean the minimum basic amenities that
would be required to effectively sell the service and limited or well targeted mar-
keting strategies. This can be useful because the entrepreneur may learn that the
customer segment best suited for his business may prefer a certain type of struc-
ture over another. By starting small and remaining functional, it can then be easier
and faster to adapt to the customer needs as they present themselves.

Identifying areas of improvement is the largest potential benefit of the MVP

model. Not only is feedback the primary functional mechanism of this concept but
it is also easiest to manage, grow, adapt and optimize over time. Starting large
and not having an effective feedback response strategy in place can be devas-
tating and the MVP model helps to incrementally build up the capacity to process
feedback.

The MVP model also helps to encourage entrepreneur in validating assumptions.

Committing big with unvalidated assumptions can be a costly gamble. Before
committing significant resources to scaling a business it is important to be in-
formed and this model can help greatly here. The risk mitigation potential of this
model when it is properly understood and implemented is based on it’s ability to
make informed decisions, optimize service and product offerings and improve the
competitive position of the venture in the market.

3.2.3 Porters Five Forces theory.

This thesis will need a theorical basis to analyse the competitive landscape of the
off-grid cabin rental market in Lapland. Porters Five Forces theory offers a solid
foundation for analysis. (Porter, 2008) This will be done by addressing the follow-
ing forces:

1. Threat of new entrants

This forces is about assessing the ease of entry for new businesses that
could complicate the competitive landscape of the market. This include
factors such as the regulatory limitations, capital requirements and power
of competitors to scale businesses to an extent that it could threaten busi-
ness developments, In this thesis the application of this factor will be in
 18

assessing the extent to which the market is attractive for potential new
competition.

2. Bargaining power of suppliers.

The bargaining power of suppliers is also important to understand. The
extent to which their influence over the market can pose a threat to busi-
ness development by assessing factors such as availability of goods,
prices and quality of goods. Here it is important for the thesis in helping to
identify the key suppliers and their potential bargaining power and it’s im-
plications for business development.

3. Bargaining power of buyers.

Here the emphasis is on determining the extent to which customers have
control over the influence of pricing and quality. The amount of options
available to customers will determine their willingness to spend and there-
fore their bargaining power. The examination of factors such as customer
preferences, availability in competition and pricing will help to inform the
reader about how to determine the bargaining power of customers in this
market.

4. Threat of substitute products or services.

Understanding the significance of competitors outside of the niche of off-
grid cabin rentals is important. Here the goal is to identify the potential
threats of substituting products, services and offerings. Namely, busi-
nesses such as traditional hotels, grid connected cabins or other types of
accommodations that could potentially attract the target market segment
this niche caters to. The goal is to analyse the attractiveness of these po-
tential threats and come up with mitigation options or strategies to remain
relevant and competitive.

5. Rivalry among existing competitors.

The current competitive landscape is important to understand. Here the
emphasis is on assessing the intensity of the current competition, identify-
ing factors such as the number of competitors, the size of the businesses
 19

and the type of strategies that they employ. The thesis will use this to de-
termine how best to develop competitive advantages.

The following visualisation gives a good visual representation of the theory.

(Bruin, 2016)
 20

4 Market analysis
4.1 Target Market Segmentation and Customer Profile
Identifying the target market segment is important and building a customer profile
can help inform marketing decisions and location choice. The target market seg-
ment is a generalization, and the reader should note that customers outside of
this segment are also welcome and considered. The customer profile will be de-
fined by four key factors. These are: Geographic, demographic, psychographic
and behavioural.

4.2 Target Market Segment

European travellers who are eco-conscious, adventurous and off-grid curious.

Travelers who value: unique arctic experiences, sustainable practices, nature

and off-grid living are included in this segment. They will be interested in cultural
experiences such as those related to Sámi culture, winter activities such as ski-
ing, snow shoeing, husky sledding and hunting for northern lights. Summer &
autumn activities including hiking, canoeing, hunting, fishing and wildlife photog-
raphy.

4.3 Customer profile

4.3.1 Geographic
Most foreign tourists coming into Lapland come from other European countries,
such as: the United Kingdom, France, Germany and the Netherlands. Looking at
overnight stay statistics, 62% are domestic and 38% foreign. (Lapland Business,
2020) (Tilastokeskus, 2023). So primarily the focus is on customers who have
easy access to Lapland and it is suggested that Europeans are more eco-con-
scious then the rest of the world. (Martin, 2020)

4.3.2 Demographic
Age range will likely be between 25-60 years old. The thought here is that at 25
one would have the financial capacity and mature interests that make the arctic
appealing. Past 60 years old, most retirees are not interested in exhausting sports
or adventurous experiences such as those previously mentioned.
Couples and small groups of people are the most likely size. Larger groups are
simply not common enough to be realistically considered or accommodated for.
 21

Solo travellers are also possible and will be accommodated for, especially during
the hunting and fishing seasons.
Income class we be middle to high class. Even though the off-grid cabin seeks to
be as low cost as possible, traveling to Lapland and participating in Lapland ac-
tivities is expensive. Low-income earners simply can’t justify the cost to travel to
Lapland and once in Lapland services are far away from each other and generally
cost more. Since the off-grid cabins will not be the cheapest option available in
Lapland, the customer must be able and willing to pay a slight premium for the
off-grid experience.

Figure 1 Demographic distribution of Tourism

4.3.3 Psychographic
The travel motivations for the customer profile would be: those looking for adven-
ture, nature lovers, those interested in winter sports and activities, hunters, fish-
ers, hikers, people interested in experiencing off-grid living first hand and those
interested in Nordic culture and lifestyle. Those highly eco-conscious travellers
who prioritize sustainability in their travel and accommodation choices and wish
to minimize they’re impact on the environment. There is also a trend moving away
from extravagant living and more towards simple living will minimalist housing
and off-grid housing. Those who are interested in detoxing from their digital-city
 22

high speed lifestyles by fully embracing experiences such as those attainable

from off-grid living in the wilderness.

4.3.4 Behavioural
The typical modern customer who will prefer to book online and be sure to re-
search all other options available in the area. The significance of online presence
is important to them. Reading online blogs, reviews, social media content and
other information available online. Travelers who save vacation days for ex-
tended trips who are looking for a different, more unique experience than what is
typical for European travel. Their behaviour is very much informed by their need
to find sustainable eco-conscious options for accommodation and will be pre-
pared to pay a premium for it.

4.4 Market Size and Growth Potential

The Covid-19 pandemic makes working out an effective market size and growth
potential for Lapland difficult. The year 2020 had still seen strong growth of more
then 12% in January and more then 7% in February. In March the travel re-
strictions came into action and the number of overnight stays in Lapland saw an
immediate 40% decrease relative to 2019. (Tilastokeskus, 2023)

Figure 2 Tilastokeskus Yearly nights spent and arrivals by country of residence

by Region.

4.4.1 Market size

The current total market size is as illustrated bellow. The metric used here is total
nights spent per year. This number represents the total number of tourist nights
spent in Lapland region between 2018 and 2022 and helps to illustrate the size
of the current operating market.
 23

The market is separated regionally most significantly by it’s airports. These sta-
tistics help understand the distribution and capacity of tourists flying into Lapland.

To identify the relevant market size for the off-grid cabin concept we need to refer
back to our target segment and customer profile and build an estimate of the
 24

number of travellers coming to this region who fit the profile. This is difficult to do
accurately, however there are some resources that can help with determining the
potential demographic size of European eco tourists. Research conducted by
Booking.com showed some promising news. Typically, when asked about eco-
conscious tourism anywhere between 30%-70% of responses were in favour sus-
tainable travel and most of the responses opposing it where because of financial
limitations. (Booking.com, 2018) When asked whether or not travellers intend to
stay in an eco-accommodation the percentage in favour rose from 62% in 2016
to 68% in 2018.

Other reports show more promising data. This table shows some of the countries
that were examined for the biggest share of outbound trips with nature as the
primary motive. This is a great indicator for a general sense of the number of
potential customers fitting our profile.

The growth potential of the market has been examined by Statista. They counted
the 2019 market size of the ecotourism sector at 181.1 billion USD and forecasted
a potential growth to 333.8 billion by 2027. (Statista, 2021) It should be noted that
the corona pandemic started at the end of 2019 and halted growth for a couple
of years. However this research was published at the end of 2021 and therefore
takes this into consideration.
 25

These statistics confirm the significance of sustainable tourism as being notable

or sizable enough for a small off-grid cabin business. Even if we where to interpret
the data conservatively and say that only 15% are driven by sustainable needs
and would be willing to spend some premium to achieve. That would still account
for a potential market size of over 465 thousand overnight stays in 2022. That is
spread across Lapland and certain areas may see more traffic then others, how-
ever the potential market size is still significantly larger then what would be nec-
essary to run a small lodging business.

4.5 Competitor Analysis

This competitor analysis will go over the main businesses operating in the hospi-
tality industry currently in Lapland, Finland. Most of the competitors are chains
and operate in several locations. Businesses such as:
4.5.1 Arctic Log Cabins
This business is relatively small with only 19 employees (asiakastieto, 2022).
They operate in northern Lapland and focus on wilderness and northern light
hunting. Offering husky safaris, snow shoeing and skiing. They are under a parent
company called Aikamatkat Oy that is registered in Helsinki.
 26

Their competitiveness is in their traditional log cabins and proximity to nature,

wildlife and winter activities. The cabins are not off-grid and are relatively large.
They are considered ‘’chalets’’ and target a different market segment.

4.5.2 Lapland hotels

A large hotel chain that operates all over Finland. They had a revenue of 75 mil-
lion euros in 2022 and they have some 14 hotels in Lapland, another 5 across
Finland and 5 skii centres. They are by far the largest competitor in the area and
have a wide offering of accommodations and services. The company was
founded in 1965 in Muonio.

Their pricing is varied and ranges anywhere from 50€ per night to 200€ per night.
The scale of operation is their greatest strength. Being that they own ski centres
they can attract customers with the convenience of access to these activities.
They also run and partner with a lot of adventure driven activities such as Lapland
safaris. The one stop shop principle of their business appeals to tourists who seek
convenience and fair pricing. The business also has a strong presence online
with websites, blogs and social media activity.

Lapland hotels however is not seen as a direct competitor. They target a different
target market and do not offer off-grid cabin for rental. They are typically localized
in areas like ski centres and are not likely to expand to cabin rentals.

4.5.3 Northern lights village

Located in Saariselkä, the Northern Lights Village company employs 31 people
and had a revenue of 4,4 million euros in 2022 (Finder, 2023). The business fo-
cuses on luxury accommodations with a focus on northern lights. They have Au-
rora cabins with glass roofs. Their target market is focused more towards higher
paying customers who want packages that include activities. They offer anywhere
from 2 night packages to 6 night packages ranging from 500€ to 2,050€ per cus-
tomer. The packages include activities such photography workshops, husky sa-
faris, aurora camping, day trips to certain locations, snow mobile trips, skiing and
snowshoe expeditions.
The wide offering of services and well scheduled activities is well refined and very
attractive. They offer a one-stop shop experience to customers who are willing to
 27

pay. Being able to offer everything in one place can be seen as great value and
convenience to potential customers.

They may not be seen as direct competition since their messaging is not focussed
on eco-tourism and they are also fully connected to the grid. They currently have
no package offering for the summer season so their competition is seasonal.

4.5.4 Wilderness Hotel

With 5 locations across Lapland, 84 employees in 2022 and a revenue of 18.5
million euros (Asiakastieto, 2023) this company has a large presence in Lapland.
Their focus is relatively broad with packages to cater to a wide variety of custom-
ers. All of the common Lapland activities are available.

The pricing is similar to that of the northern lights village and their service offering
is also very similar. They are a larger company and have more locations so could
be seen as greater competition. They are not focused on eco-tourism however
and cater mostly to families, couples, groups and adventurers. The properties are
also all fully connected to the grid.

4.5.5 AirBnb
AirBnb is a large multi-billion dollar international player in the hospitality industry
and touches all sectors of the industry. They are a platform for individuals to rent
out accommodations, often personal houses and cabins owned by individuals
looking to rent them out for profit. The pricing therefore is varied. Accommoda-
tions could come as cheap as 50€ per night and be as high as 500€ or more
depending on the premises being rented out and the individual demand for them.
These are typically just strictly accommodation rentals however and don’t focus
on activities or packages.

Cabins being rented through AirBnb could be seen as the main competitors. As-
suming the business is founded on MVP principles it is likely that AirBnb will be
used as a platform for getting customers. The threat levels of the competition
coming from AirBnb must be evaluated on a case-by-case basis. This will be
heavily dependant on the choice of location and proximity to places of interest.
 28

Competitor Business Location Services and Target Pricing Reputa-

model amenities market tion
Artic log cab- Traditional log Saariselkä On- grid lodg- Groups of 80-155€ Excellent
ins cabins. ing all ameni- tourists, per night
ties adventur-
ers, wilder-
ness.
Lapland ho- Mixed. Con- Levi, Ylläs, Mixed hospi- Broad. 50-200€ Very
tels. ventional hotel Olos, Rova- tality offering. Global skii Per night good
business. niemi, Pal- tourists.
las, Saari- Usually
selkä, Kilpis, near ski re-
Hetta, sorts.
Luosto
Northern Luxury, unique Saariselkä All basic Adventure 170-250€ Excellent
lights village architecture. amenities, tourists, per night
hot tubs, Northern-
bowling, lights tour-
sporting rent- ists. Luxury
als and activi- travelers
ties.
Wilderness Adventure fo- Inari, Nangu, All basic Adventure From Excellent
Hotel cus Muotka, Nel- amenities. and wildlife 125€ per
lim, Juutua Sporting rent- toursists night
als.
AirBnb Rental platform Global Varied Varied 65-500€ Mixed
per night

4.6 SWOT Analysis

A SWOT analysis is a tool for better understanding the businesses strengths,
weaknesses, opportunities and threats. The following information is somewhat
generalized and a specific SWOT analysis should be made that is tailored to spe-
cific business plans.
 29

4.6.1 Strengths
Lapland offers a unique experience for European tourists. The only location that
can offer a similar experience is in northern Canada or Alaska and this is cost
prohibitive for most European tourists. Lapland also has some unique traits that
can no be found in Northern Canada or Alaska.

There is a growing interest in eco-tourism (Statista, 2023) and it is projected to

keep growing in the near future. (Statista, 2021) Most of the accommodations in
Lapland are still conventional hotels and lodges.

Laplands access to unique natural beauty, unique activities and sports attracts a
lot of tourists. Northern lights, pristine lakes and large forests all offer something
that cannot be found elsewhere in Europe.

If the MVP model is followed appropriately initial start-up costs could be lower
with off-grid cabins as well as upkeep costs.

Interest in off-grid living has seen an increase in recent years. This trend will likely
continue to grow and those with interest in building their own off-grid homes will
see value in using off-grid rentals during travels as-well (Nagy, 2020).

4.6.2 Weaknesses
The remoteness of Lapland is one of the greatest weaknesses. Access can be
difficult and distances between attractions within Lapland can also be great.
Meaning that tourists must either remain in the resort locations or rent vehicles.

The vast majority of the tourism demand is seasonal and focuses during the win-
ters. Summers see less tourism and so pricing will need to adjust for lack of traffic
off season. (Visit Finland, 2022)

It is possible that initial start-up costs can be higher than expected. This depends
on location specific limitations such as plot prices, suppliers, legal fees and
transport costs.
 30

4.6.3 Opportunities
The rising demand of eco-tourism can be beneficial to off-grid cabin rentals. The
off-grid concept is a great way to differentiate and stand out for this demand.

There is a global push to move more and more towards sustainable practices in
all industries. This typically means that there could be more government assis-
tance and incentives to help fund development and growth. The Finnish govern-
ment has already started some initiatives and has devised a strategy to reinforce
sustainable development in the tourism sector. (Valtioneuvosto, 2022) This strat-
egy covers a roadmap from 2022 until 2028.

The opportunity for partnerships with local activity providers and tour operators is
vast. Most all locations across Lapland offer some kind of activity that can attract
travellers to your locations. They will inevitably be interested in collaboration as it
works both ways to the benefit of both parties.

Business Lapland produced a paper in 2020 titled ‘’Above Ordinary Business Op-
portunities in Lapland, Facts and Contacts’’ (Business Lapland, 2022). In this pa-
per Business Lapland states 8 reasons to do business in Lapland as the following:
1. An excellent location
2. A stable operating environment and functional logistics
3. A truly international region
4. World- class natural resources
5. Many industries are growing in Lapland
6. Experts for businesses’ needs
7. Knowledgeable services and established networks
8. A first class living environment
This paper shows lots of promising statistics including the rise in tourism industry
and available support networks for new companies.

4.6.4 Threats
Competition is always the main threat. In this case it will be from businesses of-
fering similar accommodations and services. The off-grid trend is growing and
there are bound to be more of them in the future. However, the demand is also
 31

growing and so it is hard to say currently how much competition will grown in any
given location.

Lack of staffing could be an issue. Lapland has recently had difficulties attracting
workers for the seasons. Job centres in Lapland noted that they had about 50,000
open jobs last year that where not filled. (Kuivas, 2023) This is likely due to sea-
sonality of the industry and attracting seasonal labour can be difficult.

The threat of global warming could have significant impact on the future viability
of tourism in Lapland. Lapland shares a latitude with the north of Greenland and
is kept warm by the gulf stream. As ice melts in the poles the gulf stream slows
and cools. Without the golf stream Lapland could turn into an arctic wasteland of
year-round snow and temperatures similar to those of Greenland. (Flis, 2022)
 32

5 Step-by-step Guide to developing your business plan

5.1 Business model overview
5.1.1 Business mission and vision
The self-sufficient off-the-grid cabin concept seeks to eventually build fully self-
sufficient locally supported off the grid cabins for those who wish to experience
the wonders and magic of Lapland’s pristine wilderness to reconnect with nature
and doing so in a way that preserves the land by not leaving our footprints behind.

Envisioning a future where lodging in Lapland can be done in a responsible way,

reducing the impact on the environment and with unique experiences, help to
inspire others to see the potential in self-sufficiency.

5.2 Value Proposition

The single biggest selling point will likely be in the very nature of the concept of
self-sufficiency. With modern daily life in the city being as complex and stress
filled as is it, the serenity and calmness of the off-grid cabins will be very enticing
to the modern person. The absence of certain comforts of the new world can be
seen as having some therapeutic value in disconnecting from man’s world and
reconnecting to mother nature.

The closeness to nature can be very appealing for those who do not wish to spend
their time in the more congested tourist locations of Lapland and seek a more
authentic experience. Hikers, backpackers, snowshoers, cross-country skiers,
hunters, fishermen and other adventurers

By the very nature of being self-sufficient and off-grid locations are not limited by
infrastructure. There are many remote locations in Lapland of great splendour
and beauty that would otherwise attract tourists but lack accommodation.

These types of non-intrusive business models can potentially have better favour-
ability with local communities and with better relations the possibility for collabo-
rations with local guides, artisans and culturally significant members of the area
are more likely.
 33

Environmentally friendly can also mean economically friendly. It is true that many
modern amenities could be lacking and that comfort levels compared to modern
standards could be low, however this can also mean that the rental prices can be
lower. It is likely to not cost more to up-keep then an accommodation that is fully
equipped with modern amenities and is connected to infrastructure.

There is a growing trend of people who move off-grid and try to live full time in a
self-sufficient home. This could be a great way for those who are considering
such commitments to experience it first.

5.3 Channels
5.3.1 Website
The website or ‘’landing page’’ is likely the most important channel of communi-
cation to your customers. The website should contain all relevant information re-
garding the product and service offerings along with pricing. It is important that
the website is simple, easy to navigate, user friendly, informative and visually
appealing. This is where the value proposition is displayed to the customer.
Consider building in features such as online booking, FAQ section which can re-
duce the amount of customer service traffic and plenty of pictures depicting the
cabins, locations and attractions.

5.3.2 Social Media

A strong presence on social media is not only an extremely good way of com-
municating with customers but also considered a necessary channel. The plat-
forms worth leveraging are going to be: Facebook, Instagram, YouTube and Tik-
Tok. Each of these platform focuses on a different format or media content and
caters to different demographics. Generally speaking informative content with
long run times such as interviews or walkthroughs and discussions are best up-
loaded to YouTube. TikTok is optimized for short format videos, Instagram fo-
cuses on images and lifestyle and Facebook is mostly used as an information
billboard or discussing forum. Each of these platforms have built in advertising
services that can be used to promote your product or increase the reach.
 34

5.3.3 Online travel agencies

Collaborations with service providers such as AirBnb and Booking.com can be a
great way to extend reach. Having a presence on these service providers is a
way to showcase the cabins and attract more customers.

5.3.4 Local partnerships

Local partners can help to increase reach and drive more customers to the busi-
ness. This can be done with cross-promotion agreements between partners and
be a great way to have informed recommendations from sources who can vouch
for your product.

5.3.5 Email marketing

Some customers may be interested in joining an email list to remain informed
about business development or other relevant updates. This can be a great chan-
nel to target campaigns, special offers and other means of building a long-term
loyal customer base.

5.3.6 Content marketing and SEO

This is about updating the website with regular blog post activity. This is similar
to the email listing in messaging however intended more for potential customers
rather than return customers. This can be done in the form of articles, videos or
blog posts about interesting topics or developments in the business. For example,
showcasing passion and expertise by documenting the building process and de-
sign principles of the off-gird cabins online for others to read and share. These
types of content can help attract all kinds of customers and help to promote word-
of-mouth transmission of the value proposition.

5.3.7 Public relations

Public relations is about engaging the press. Encourage writers, reporters, jour-
nalists, bloggers and online content creators to increase the amount of positive
media coverage about your business. This can help to optimize your position on
search engines as well as help to create a good reputation.
 35

5.4 Key Activities

5.4.1 Construction, maintenance and operations.
Start with the design and planning phase, determine the specific needs and con-
sider hiring a cabin designer or architect to help. Consider also using kit builds or
prefabricated products such as Avrame to save on planning and architecture
costs.
During the construction process you will need to determine how much of the work
you can do yourself and whether or not you will need to hire a construction crew.

During the construction phase the calculations for energy requirements should
be made and the appropriate water sourcing and waste systems need to be
planned. Directing a manual water pump into the structure and insulating it ap-
propriately will prevent it from freezing and negate the need for electrical power
to pump water. Installing energy generation systems such as solar and wind
should be down in conjunction with cabin construction so that wiring can be in-
stalled correctly. The energy needs will be small enough that a simple portable
battery pack should be enough and can be replaced easily. As redundancies oil
lamps, diesel generators and propane burners can be considered. The installa-
tion of the wood burning stove must be done in conjunction with cabin construc-
tion because on required modifications to the roof/wall. A composting toilet or
septic tank are two viable options for waste management. Both require empying,
composting toilets are easier and cheaper to maintain however require that the
premises are separate to the building as it is not efficient or sanitary to have them
built into the cabin. Septic tanks require emptying by third party service which
involves pumping the waste from the septic tank into a truck.

The interior design philosophy should emphasize durability and comfort. Simplic-
ity and quality are key to reduce the amount of maintenance and repair costs.
Scheduling regular maintenance checks between seasons and maintaining
strong channels of communication with customers can help to detect repair needs
early. Keeping the electrical systems to a minimum can increase reliability and
reduce the need for repairs. Having redundancies in place such as spare units
will be important to sustain function without delays.
 36

Housekeeping services will need to be ongoing and consistent between customer

visits. Staff can also be trained to spot or repair systems within the cabins.

Seasonal inspections need to be scheduled and appropriately executed relative

to the season, type of customer needs and specific design principles of the cabins
and services surrounding it.

5.4.2 Marketing
The key activities surrounding marketing will focus on the online presence of the
business. This means building a solid website with well-designed visual appeal
and functionality. This can be outsourced, done yourself, or staffed. The upkeep
of the website is crucial as it is the landing page from which all other online pro-
motions direct to. Social media presence should be varied and captivating with
constant updates about the business and the area. It could be wise to hire some-
one with a background in marketing that would take responsibility for maintaining
the online presence and functionalities of the website. This can include blog
posts, articles, guides, videos, images and any other content that is relevant and
interesting.

5.4.3 Customer service and CRM

Managing reservations and bookings through the website or other travel agency
websites, keeping track of incoming bookings, scheduling staff accordingly, con-
firming and reminding customers and sending pre-arrival information. Handling
inquiries from potential customers contacting the business, making sure that
there are multiple channels open and that communications leave a positive im-
pression. Addressing any complaints or problems with customers and working
towards maintaining customer satisfaction.

Building a solid feedback system that encourages customer feedback. This could
be something as simple as a guestbook in the cabins or an anonymous feedback
option. Collecting feedback also digitally through the different channels of com-
munication and possibly having some sort of incentives to encourage feedback.
Improve the guest experience by communicating with the customers effectively
to learn about what they might be interested in and make offers or suggestions
for activities that would suit them and tailor their experience with personalized
 37

communications. Maintaining ongoing communications is important to encourage

repeat bookings and help improve the reputation of the business by encouraging
guests to right positive reviews and share their experiences.

5.4.4 Staffing
Determining the need for staff is the first staffing related activity because the need
for staff will vary greatly on the volume of work. The is dependant on the amount
of outsourcing and the size of the business. To find staff there are several online
services that can be used such as Indeed.com, duunitori.fi and oikotie.fi. These
are some of the more common ones in use in Finland however there is also the
possibility to use agencies or recruitment offices. Posting independently on social
media can also be a very effective way to entice potential workers. Be sure to
hire staff that are motivated to continue working, enjoy the work and area, are
motivated to learn and share values with the principles of what the business is
trying to achieve.

Investing in employee training is important in that it ensures that the staff are
knowledgeable, skilled and can deliver on key activities with professionalism and
expertise. Consider building and providing training programs around topics such
as off-grid living, wildlife of Lapland, survival/emergency readiness, customer ser-
vice and other key areas of knowledge that can help them interact with customers
in meaningful ways and improve the quality of their work. Efficient use of staff
time and labour is important to running a cost-effective business. Always consider
the staff and their needs for a balanced and fair work schedule to maintain staff
motivation. Make sure all of your staffing practices are in accordance to local laws
and regulations, consult a lawyer on occasion to stay updated with the changes
in labour laws.

5.4.5 Partnership management

Start by identifying key partners. This will vary depending on location and will
include tour guides, safari hosts, equipment rentals, restaurants, travel agencies,
construction companies, laundry services and other businesses that can comple-
ment your business. Establishing strong relationships and collaborations with
other businesses. For example creating packages where guests can fill their
 38

schedules with activities whist accommodating at the off-grid cabins. Co-opera-

tions can also be in the form of marketing, procurement or outsourcing of certain
services for example to save on costs. Transportation and other logistics can be
organized with partners as well and for this strong and effective relationship and
lines of communication are essential.

5.4.6 Financial management

Building a comprehensive budget that is regularly updated is important to ensure
expenditure expectations are accurate. The businesses financial situation must
be accurately represented on the budget. There are legal requirements to report-
ing finances. Income statements, balance sheets and cash flow statements must
all be done. Consider outsourcing finances to an accountant.
Cash flow management means to manage the inflowing and outflowing cash,
track them and develop strategies to optimize it in such a way that your business
can cover the expenses in a timely fashion. This can mean offering discounts for
early payment, extending payment terms to partner or using credit whenever nec-
essary. Review your pricing strategy regularly to ensure that you can stay com-
petitive and are adjusting to market trends and inflation. Your pricing needs to
represent the value proposition relative to the competition accurately.

Investment and financing is a difficult yet important part of starting the business.
Identify sources of funding such as loans, grants or sources of capital. Banks can
be a place loans but should not be the primary source of capital if it can be
avoided. Applying for grants is likely to be the wisest route. Here is a short list of
some potential organizations with grant programs in Finland:
Grant.fi is a company that can help in building, navigating and applying of grants
in Finland. They boast a 92% success rate of companies being able to secure
grants through them (Grants.fi, 2023). Business Lapland which is a branch of
Business Finland also has some grant programs and can help with other re-
sources in the founding of a business (Business Lapland, 2023). The Lapland
Regional Fund has been in operation since 1968 and has a grant program. They
give priority to Lapland natives, science and art however anyone can apply for
grants (SKR, 2023). Suomi.fi offers grant applications for all of Finland and have
TE offices all over Finland where these grants are processed. (Suomi.fi, 2023)
 39

Maintain tax compliance and regularly update yourself on new tax laws. Develop
a strategy whereby you will stay in constant compliance with local tax and mini-
mize liabilities. There are some resources to help with this. The Finnish Tax Ad-
ministration has published a ‘’Tax Survival Kit’’ document with the key information
about compliance also with contact information for further inquiries (Vero, 2021).
Business Finland regularly posts about tax incentives that may be applicable
(Business Finland, 2021).
Financial analysis is an important key activity in learning about the businesses’
risks and opportunities. Conducting regular analysis looking at ratios such as ef-
ficiency, liquidity and profitability will help to better understand the business and
inform you in making better decisions.

5.5 Key Resources

5.5.1 Off-grid cabin
We recommend the Avrame prefab A-frame kit builds for a few reasons (Avrame,
2023) [3]. The simplicity of the design reduces cost. The shape of the building is
suitable for off-grid living in the north since there isn’t any empty space in the
cabin to heat and the snow cannot build up on the roof. The building is easy to
integrate with off-grid infrastructure and there is very little material waste, other
benefits of the design are that there are no structural walls inside the building so
the floor plan can be modified freely. These kits are pre-cut and are transported
on a single truck and so can be build in remote locations require minimal tools.
This product follows the MVP principles well in all these respects and is also a
construction design that is not common in the area, giving it some architectural
differentiation. It is however similar in aesthetic and silhouette as the traditional
tipi style Laavu tents that the native Sámi have lived in in the past.

Suitable land will also be a key resource. Some locations to consider could be
Levi, Rovaniemi, Inari, Kemi, Ylläs and Kilpisjärvi.
Levi is a large ski resort and very well know for it’s slopes and nightlife. The are
has many accommodations and many different types of arctic activities. It is well
connected by bus but also has the Kittilä airport nearby.
Rovaniemi is a location with a relatively high population density, this is the home
of Santa and there is a city with an airport and railway. High quality of life, lots of
services, museums, and businesses.
 40

Inari is the northern part of Lapland and is known for it’s beautiful landscape,
lakes and northern light location. It has the northern most ski resort in all of Eu-
ropean union in Saariselkä. Saariselkä is also know for it’s cross-country skiing
however this are is not very busy in the summer. Saariselkä borders with Finlands
largest national park (Urho Kekkonen national park). Inari is also known as the
cultural centre of the only remaining indigenous people of the Europe Union, the
Sámi. The Sámi parliament and cultural centre archives information and artifacts
about the Sámi.
A YouTube channel called ‘’All about Lapland’’ has a great video with information
about all the key locations in Lapland. (Alex, 2020)

5.5.2 Off-grid infrastructure

The systems required to produce heat, generate electricity, draw water and man-
age hygiene. For heat production we recommend catalytic wood burning stoves.
(Blaze King, 2023) A diagram of the reburning mechanics of the catalytic wood
buring stove is in the appendixes[1]. These can also be used to heat water and
manage hygiene. For energy production we recommend a hybrid system of wind
and solar. The hybrid system is justified as a redundancy as well as a to improve
electricity production consistency. Removable battery packs are recommended
as the energy needs are not likely to be high since room and water heating will
be done with the wood burning stove. Having the battery pack removable means
replacement is quick and simple.

Water can be drawn from a simple manually operated well. This negates the
need to power a pump and reduces the need for expensive energy generation
systems. There will only be grey water waste and grey water can be drain through
simple filtration systems back into the ground. Using heated water from the stove
you can fill shower tanks that can either be drained through a shower head by
gravity or hand pump pressure. Many different solutions for showering that do not
require complex plumbing and electricity and are cheap and easy to replace or
repair.

A composting toilet or septic tank for toilet needs. Both have their own benefits
and draw backs but neither require electricity or complex plumbing.
 41

5.5.3 Skilled Staff

Training the staff to have all necessary knowledge and expertise about the off-
grid systems and have proficiency in customer service other operational tasks of
the business is important to keep the business functioning well.

5.5.4 Partnerships
Strong relationships with partners are also considered a key resource. They are
the supporting structure of any business as they help attract customers and bring
you access to other key resources like materials, technology and specialized ser-
vices.
5.5.5 Financial resources
The capital to start the business and the profit to keep it operational and profita-
ble. Financial resources are a necessary component of the business and should
be attained managed and controlled with a high priority.

5.5.6 Marketing and online presence

The business’ presence online is crucial for the success of the company. Hiring
competent marketing staff and using the tools effectively as previously discussed.

5.5.7 Licenses and permits

Keeping the company legal and to code is important and all tools and contacts
that help keep the business in compliance are considered key resources.

5.6 Key Partners

5.6.1 Local tour operators
Tour guides and operators are considered key partners as they will determine the
availability of activities for the customers. This can determine the location and
inform the pricing strategy. Having strong relations with these partners can help
you build packages for customers and increase the target market. For example
partners offering services such as husky safaris, northern lights excursions,
snowshoeing and snowmobiling adventures should be identified. Visit Lapland
has a comprehensive list of such activity providers on their website (Visit Lapland,
2023)
 42

5.6.2 Travel agencies

Online travel agencies (OTAs) are key partners as they are an important channel
for receiving bookings and promoting your business online. The main OTAs to
consider are AirBnb, and Booking.com. Having a strong presence on these plat-
forms will increase reach and attract more customers to the business.

5.6.3 Cabin construction companies

Depending on the choice to either build from own designs or buy prefabs these
companies are key partners in providing the physical cabins or designing and
constructing them. There are many companies offering prefabs and many con-
struction companies. We recommend Avrame products as they are based in Es-
tonia and the products adhere to the MVP principles with all of the necessary
specifications for the off-grid cabins. Local construction companies should be
identified, and quotes received to compare pricing between them.

5.6.4 Off-grid Technologies

Partnering with off-grid technology companies to provide good equipment and
services for maintenance. With good relations expansion of the business can be
implemented smoothly and possibly with some discounts. Solar and wind power
companies that can provide efficient and reliable equipment. If septic tanks are in
use then waste management companies will be necessary to empty the tanks.

5.6.5 Marketing
If marketing is being outsources or if certain promotional activities need outsourc-
ing, marketing agencies will be a key partner. They can help promote the busi-
ness and increase reach to attract customers. One example of such an organi-
zation in Lapland could be MMA Lappi (MMA Lappi, 2023). They organize events,
activities and offer courses in sales and marketing.

5.6.6 Local businesses

Having good relationships with local businesses is also important. This could be
with local restaurants, bars, souvenir shops, local workshops and other busi-
nesses that can be partnered with to create a community of local business to
support the economy of the area and help provide more services and amenities
to customers.
 43

5.6.7 Legal and financial advisors

Collaborations and partnerships with local organizations and businesses that can
advise and provide legal and financial aid is crucial. These key partners can range
from accountants to lawyers and local municipality officials. The ‘’Above Ordinary
Business Opportunities in Lapland’’ paper published by business Lapland pro-
vides a list of most of the key contacts in the key locations in Lapland (Business
Lapland, 2022)

5.7 Revenue Streams

Here a short guide of considerations for revenue streams will be given. These are
general recommendations and more specific information should be sought ac-
cording to specific location and business plan.

5.7.1 Accommodation rentals

The primary revenue stream will of course be the money being made from the
renting the cabins. The considerations here must be the nature of the pricing. Will
it be on a per-night basis, packages and rates of discounts for extended stays or
other incentives. How will the pricing and pricing strategy adjust seasonally to
stay competitive.

5.7.2 On-site activities and experiences

Curating activities could be a good source of income. This can be done with
guided nature tours or partnerships with local activity providers. Some options
could be husky safaris, guided expeditions and nature walks, canoeing in the
summer months, hunting and fishing in the autumn, northern lights hunting and
other outdoor activities such as survival or traditional crafts workshops.
The off-grid living is itself an experience, but this is not considered an additional
cost activity rather is accounted for in the rental cost of the cabin. Some other
options such as heated outdoor bathtubs known as palju in Finnish could be pro-
vided at additional cost.

5.7.3 Equipment rentals

Providing rental equipment could be advantageous not online in attracting more
customers but also as an additional revenue stream. Providing equipment such
as skiis, snowshoes, snowmobile, fishing equipment, canoes and more. This can
 44

be location dependant and the appropriate equipment should be considered ac-

cordingly. There are some costs and considerations to be made as far as safety,
maintenance, insurance and legal restrictions such as permits.

5.7.4 Catering, food and beverage

Consider the possibility to offer dining or meal deliveries. Additional income could
be had here and provide additional value to the overall experience attracting more
customers. Depending on the target market different options may apply here.
Consider the scope of the services and what the customers expect. It may be the
case that no catering services are desired at all or that minimal services such as
self-catering, deliveries or options to dine off site will be sufficient. Other options
are full catering services even going as far as offering local cuisine however these
require staff and premise investment that may not be suitable or adhere to the
MVP principles.

5.7.5 Events
Hosting events could bring a lot of attention and income to the business. Consider
the uniqueness of the off-grid concept and consider using it to your advantage in
organizing events surrounding the topic. Most people will not be familiar with the
technicalities or lifestyle choices inherit with the concept and would be interested
to learn even if they are not necessarily considering renting the properties.

Other options include hosting business retreats, weddings, reunions or native

Sámi influenced demonstrations and workshops. This is heavily dependant on
location, size of facility and proximity to relevant event hosts.

5.7.6 Partnerships
Participating in partnerships and affiliate programs can help provide additional
income. Some opportunities could be had from tourists who are staying at other
locations but would like to spend one or two nights or maybe even just for the
day. Local providers of other activities and such as safaris, transportation and
tour providers could receive commissions based on the traffic they can provide
to the business. These types of win-win collaborations are essential for long term
success.
 45

5.7.7 Merchandise
Selling local products such as trinkets, clothing and accessories of various kind
could also be a good source of income. This could be done on a commission
bases where product providers sell through your business and allow you to profit
from a small commission fee. This could also help to support local businesses.

5.8 Cost Structure

5.8.1 Fixed costs
The fixed costs are those which do not change based off of business activity such
as volume of guests. The following costs should be considered and evaluated:
1. Land acquisition or rent cost.
The cost of purchasing or renting land to build and operate on. Prices can be
seen on websites such as etuovi.fi, oikotie.fi and also by directly contacting local
municipalities and inquiring based on location and needs. The prices vary de-
pending on location, proximity to other key locations and size of plots.

2. Property taxes and permits.

Taxes and permit should be inquired from local municipalities and administra-
tions. For permits the local municipalities will have information and contacts on
their websites. The Finnish Tax administration or Vero in Finnish will have all
necessary information regarding taxation and can be found at vero.fi. Other rele-
vant tax information for business starting and operation can be found here.
The Finnish Patent and Registration Office is where one can go to register a busi-
ness and learn about all necessary permits regarding lodging business in Lap-
land. (PRH, 2023)
Additional information relating to starting a business can be found at the Finnish
Ministry of Economic Affairs and Employment website. Resources and infor-
mation such as those related to permits and regulations can be found here. (TEM,
2023)
Lapland Chamber of Commerce can also provide more relevant information and
can offer guidance and support for business owners and starters. Specific infor-
mation on property taxes, permits and relevant regulations regarding the lodging
business should be sought from here. (Lapin Kauppakamari, 2023)
Local professional or relevant individuals in the industry could also be very useful.
Lawyers, business professionals and consultants for example.
 46

3. Construction costs.
If you are looking to build your own cabins then it would be wise to consult first
an architect with the off-grid concept and get an idea of what needs to be done.
Further information about costs can then be had from local construction compa-
nies who build similar cabins and ask them for quotes. Even with prefabricated
cabins you will likely need construction workers to piece it together and build
foundations.
Prefabricated cabins should be explored and could save a lot in construction time
and cost. Also, they are generally considered less wasteful and most eco-friendly
in that they are made in factories that have optimised processes. Here is an ex-
ample of such a business based in Estonia, they build prefabricated A-frame
structures of different sizes and have built for off-grid customers. They can cus-
tomize floor plans and designs based on customer needs and their pricing is com-
petitive. (avrame, 2023) For example, their Duo 75 product is of suitable size for
such a cabin and the full kit costs about 28 thousand euros and the owner has
stated on a video that typical total cost to build this structure would be about 35-
40 thousand euros. This is a general estimate based on his prior sales. They
also offer other products on their website for off-grid living and the business owner
himself lives in an A-frame building of theirs and is living completely off-grid.
Consider the option to convert existing structures into off-grid cabins. Consult lo-
cal real estate agents for specific locations and cabins and consult an architect
about the feasibility and cost of conversion or adaptation.
Online forums and social media groups can be a great place to find people who
have built such properties and could be of great value in providing some insights
into possible costs.

4. Infrastructure.
For infrastructure one needs to look at energy system providers. This will mostly
include solar and wind energy. Currently only 0.3% of energy in Lapland comes
from solar however more than 20% comes from wind. (TEQU, 2020)
The energy requirement for electrical power will not be great and it is possible if
the amenities are design in such a way that the customers will only need electric-
ity to power lights and charge devices that a small wind turbine will be enough. It
is recommended to build a hybrid system, typically as a redundancy and they
 47

tend to supplement each other well. The costs will vary depending on electrical
generation needs.
Water supply is another consideration. Lapland has clean water available in many
locations and typically it is possible to dig a well. Wastewater management needs
to be inquired and the possibility of installing septic tanks and other waste man-
agement systems. This depends heavily on the location and the type of waste
these cabins will produce and should be inquired on a case-by-case basis with
local municipalities.
Heating should be done with wood burning stoves to save on energy infrastruc-
ture costs. This is also a much simpler energy source that requires less material
to manufacture and in that sense is more eco-friendly. Modern catalytic wood
burning stoves can produce high efficiencies and have burn times of over 40
hours on a single load of firewood. The Blaze King catalytic wood burning stove
for examples claims an 81% efficiency. (Blaze King, 2023) This model costs
about 4 thousand US dollars and will need to be shipped. The efficiency will make
these types of stoves the more cost-effective option in the long run.

5. Insurance.
To save costs in insurances it is important to compare pricing between the insur-
ance providers. Asking locals and professional can help with recommendations
but this something that needs to be examined on a case-by-case basis.
Organizations such as The Finnish Hospitality Association and the Lapland
Chamber of Commerce can provide information or recommend insurance provid-
ers and coverage needs.
Vertaa.fi has an insurance comparing service on their website that can be used
to directly compare coverages and costs between the different insurance provid-
ers. (Vertaa, 2023)

6. Marketing.
Costs of marketing can vary greatly. On the one hand it is possible to not spend
any money on marketing and rely on simple social media posts and word of
mouth. Social Media is likely to be the main channel for marketing and communi-
cations with customers. Using platforms such as YouTube, Instagram, Facebook,
TikTok is important and having a strong presence on these platforms is a very
cost-effective way to promote your business. The extent to which these platforms
 48

are used is up to the entrepreneur and will depend heavily on the demand. If there
is a lack in demand and the business needs more promotion, then there are some
options available.
Marketing agencies can be a great place to outsource marketing to. They are
easy to evaluate based on their reputation and history of success and can pro-
duce great results. They are, however, typically quite expensive and the use of
agencies is not considered to follow the MVP principle.
Networking with local businesses and organizations can go a long way to setting
up partnerships with activity providers.

Building an attractive website or landing page is also crucial. There are many
tools to do this online such as Squarespace and it is possible to do it without the
need to outsource it. There is a cost associated with hosting a website depending
on the feature sets and providers, but the cost is minimal. Implementing search
engine optimization (SEO) is also an option and quotes should be inquired from
web development companies.

5.8.2 Variable costs

These are the costs associated with operations of the business and will vary ac-
cording to volume of customers. Here are some costs to consider and include
when budgeting:

1. Housekeeping and upkeep

Here one must consider the need for staffing and the source of employment. De-
pending on the amount or size of the cabins it will need to be calculated whether
to hire full-time, part-time or using contract-based employment. Outsourcing
needs such as laundry services or cleaning services could be more cost effective
in the beginning. This will all depend on the volume of customers and the amount
of work that is necessary.
Consider housekeeping and upkeep when planning the building and furnishing of
the cabins and look to optimize for low-maintenance materials and products that
are of high-quality and long lasting.
Schedule regular maintenance inspections to minimize risk of larger, more costly
repairs.
 49

2. Utilities
Off-grid cabins require alternate forms and sources of energy for heat and elec-
trical needs. Invest in high efficiency appliances such as the catalytic wood burn-
ing stove mentioned prior. The Blaze King is an example of such a stove which
has claimed efficiency of 81% meaning that 81% or possible heat from the fuel is
used. (Blaze King, 2023) This reduces emissions and the amount of wood that
needs to be burned and allows for it to serve as a primary heat source for the
cabin and the means to boil water and cook. For electrical energy it is only re-
quired to produce a small amount of energy to power LED lights and charge de-
vices. Commercial solar panels and wind turbines are enough and simple battery
packs that are removable and can be swapped with full batteries in case energy
production is too low. It may be the case that other sources of energy will be
needed such as propane burners or back-up diesel generators to complement
the existing energy production. This will depend on the number of appliances in
the cabin and type of use.

3. Consumables
The main consumable will be fuel and, in this case, firewood. Depending on the
quality or type of land and the rights associated with the land it may be possible
to harvest firewood locally at small cost. Currently in Lapland the forest growth
exceeds the volume of felling and natural loss and the estimated level of stainable
felling in Lapland is 7.24 million cubic meters (Business Lapland, 2022). This
means that wood is a sustainable source of energy and is cost effective. Consider
buying in bulk and storing locally. Prices fluctuate but typically are around 10€
per cubic meter.
Consider offering additional consumables at a cost. For example, if you provide
heated bathtubs and would like to charge a small feel for the wood and water.
Costs of cleaning linen can be eased by offering linen reuse programs where
guests are encouraged to use the same linen for more than one night. This can
reduce costs by easing logistics, staffing and consumables such as detergents.

4. Employee salaries
The need for employees is highly depended on the size and scope of the busi-
ness. If the business is focused primarily on seasonal activity, then it would be
wise to consider only hiring part-time seasonal staff.
 50

The cost of training can be high especially if the business plans to offer a lot of
extra activities and services. Competitive salaries can help to reduce the turnover
rate of employees and reduce the cost of training as well as securing high com-
petence and smooth flowing customer relations and interactions.
Some tasks can be outsourced such as accounting, marketing and laundry ser-
vices.

5.8.3 Estimating costs

Here is a guide to how one can organize the estimation of costs. Pricing fluctuates
and is locations sensitive so precise estimates need to be made on a case-by-
case basis.
1. Start by listing all of the costs mentioned above and any other costs that
may come up. This includes everything from land acquisition, construction,
insurance, marketing, advertising etc…
2. Categorize them according to the types mentioned above. That being fixed
costs and variable costs. Also consider Using a category for one-time oc-
curred costs such as cabin construction and infrastructure building.
3. Research all of the costs by contacting the necessary partners and build
a strong understanding of the potential costs of each point.
4. Consider having some emergencie contingencies cash at hand for unex-
pected expenses. This could be inflation or incurring costs from overrun-
ning construction or other complications. This includes long term costs
such as taxes and salaries.
5. Estimate total costs by summing all of the estimates together and verify
the numbers.
6. Monitor your estimates and update the price estimates accordingly. Espe-
cially in regard to the long-term costs. As the business progresses contin-
uous monitoring and updating will help keep your price estimates accurate
and relevant.

A rough estimate of pricing is attached to the appendixes as a general look at

what the potential costs may be. It should be noted that these are very rough
estimates and do not necessarily reflect true values. [2]
 51

5.8.4 Budget and projection

1. Sales forecasting is about estimating the amount of expected revenue.
Estimate the number of guests based on your capacity and the value of
each guest to the business. It is generally good to try and project at least
3 years and to consider annual factors such as seasonality, competition
and market demand.
2. Estimate revenue streams based on the sales forecast. Apply all of the
relevant revenue streams previously discussed that are relevant to your
business and include partnerships and additional income.
3. Create a detailed budget that includes all of the estimated costs mentioned
prior and revenue streams. Organize it by category and allocate resources
accordingly.
4. Financial projections should be developed based on the budget. This
should include a cash flow statement, balance sheet and income state-
ment. Preferably covering the first three years of operations and account
for potential growth and other changes such as change in expenses and
market conditions.
5. Contingency plans are useful to have a better sense of security and have
measures planned ahead of time for hard times. Consider including buffers
in your financial planning for unexpected costs or revenue that does not
meet expected levels. This can help to identify and prepare for problems
that may occur.
6. Monitor and update the budget and projections accordingly to keep them
relevant and help inform decision making with greater accuracy.

5.8.5 Pricing strategy

The quality of the pricing strategy will directly affect the revenue, profitability and
competitiveness of the business. This is an important aspect to get right as it will
determine the success of the business.
1. Understand costs associated with running the business and consider them
when developing pricing. Ensure that all of the costs can be covered and
generate enough profit to make the business secure, worthwhile, ethical
and viable.
2. Analyse target market to get an understanding of how much they will be
willing to pay and what they expect from their money. Identify the general
 52

sense of their expectation and budgets to help determine a reasonable

price range.
3. Research competitors to see what they are offering and at what price
ranges certain competitors are pricing their services at. Benchmarking us-
ing businesses that offer similar lodging experiences can help better in-
form the pricing strategy.
4. Consider perceived value such as those that differentiate the business
from competition. This can be the conceptual nature of off-grid cabins but
also what it enables as far as unique locationality, exclusive activities and
sustainability.
5. Choose a pricing method that best suits your business. Some examples
could be:
- Dynamic pricing where the pricing is constantly fluctuating based on
comprehensive analysis of market condition and varying costs associ-
ated with business operations.
- Value based pricing where the pricing is based solely on the perceived
value of the business as previously mentioned.
- Competitive pricing where the pricing is directly set to undercut com-
petitors or match them. Using competitors pricing strategies as a foun-
dation for your own pricing.
- Cost-plus pricing where you count the all of the costs and simply add
an appropriate profit margin on top of your costs.
6. Test and adjust pricing once you have determined the initial price. moni-
toring metrics such as feedback, occupancy rates, bookings, reviews, rat-
ing and other metrics to evaluate the merit of the pricing.
 53

6 Conclusions
To summaries this thesis found that the market is large enough to support an off-
grid cabin rental business and the market shows strong signs of growing. There
is also great potential for funding as there are many grant programs and the busi-
ness concept is in line with a lot of the macro goals set by governments, munici-
palities and organizations in meeting carbon neutral goals and supporting entre-
preneurial efforts. If the MVP principles are followed accordingly, we feel that the
price of starting and operating such a business could lower than the competition
and that this business concept has a competitive advantage in it’s value proposi-
tion. The concept does not yet exist as a business in Lapland in the way it is being
proposed in this paper and there is a growing demand for such a business.

The hope is that the considerations and recommendations laid out in this paper
will help entrepreneurs navigate bureaucracy and be able to find sources of fund-
ing and build an effective business plan.

The implications of this paper could be to help build sustainable businesses and
employ people with meaningful work that is dynamic interesting and connected
to nature and people. The contribution to the tourism industry would not only be
in attracting more tourists but also in helping other companies consider building
similar systems and incorporating some of the principles of off-grid living that
would put Lapland in a better position to offer sustainable tourism.

The greatest limitations of this paper are in the general nature of the advice and
guidance as the location is broadly defined as Lapland. Each municipality has it’s
own set of restrictions, rules and ambitions. Generally speaking, Lapland is very
friendly to newcomers and is a vast area with great potential still in it.

In the future more research could be done when more technology becomes avail-
able that better facilitates off-grid living. Off-grid living by itself is not difficult to
achieve, the natives have lived there thousands of years without the grid. The
question is more about how a business can be run with all of the modern day
conveniences and comforts that people require today. The question in the future
 54

will likely be less about individual off-grid cabin and more about sustainable mi-
cro-grids as technology advances. This will be an interesting topic for research to
follow this work.

As for final thoughts, this type of business can offer something that isn’t currently
available in Lapland and something that people would be willing to experience.
The potential for off-grid cabins serves many people and not just the eco-friendly
tourists. Without having to worry about being connected to the grid these cabins
could be placed anywhere and even be a basis for micro loans and entrepreneur-
ial development on a small scale for locals to supplement their income or take
advantage of property that they own.
 55

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Vertaa. (2023). Vakuutukset. Retrieved from Vertaa:
https://www.vertaa.fi/vakuutukset/?gclid=CjwKCAjw9J2iBhBPEiwAErwpe
WCTQiXyqx3Yjyuc9bMmfRU7gy3vXvjmjQZ51PWDEkdLJkY4fu2VohoCv
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Viktor. (2022, October 22). How to Build an A-Frame House (Tiny House, Cabin).
Retrieved from thedyiplan: https://thediyplan.com/how-to-build-an-a-
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 59

Visit Finland. (2022). Finland's touristic demand overview 2021.

https://www.visitfinland.fi/4a38f8/globalassets/julkaisut/visit-
finland/tutkimukset/2022/finlands-touristic-demand-2021-overview.pdf:
Visit Finland.
Visit Lapland. (2023). Amazing experiences in Lapland. Retrieved from Visit
Lapland tours: https://www.visitlaplandtours.fi/en/visit-
lapland/?utm_campaign=Activities+&utm_source=google&utm_medium=
ppc&utm_term=activities%20in%20lapland&utm_content=4172050-e1-
ng-mp-c19785080530-g145403690366-a650580086303-
uCj0KCQjw6cKiBhD5ARIsAKXUdyaLee6zXn2n8tAQ
 60

APPENDICES

Appendix 1. Catalytic wood burning stove

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Appendix 2. Price Estimates

 62

Appendix 3. Avrame Duo 75

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Appendix 4. Avrame Solo 75