In areas where there is a lot of traffic, car parking business can turn out to be a very successful business. With each passing day, the demand for cars is always on the increase, with a specific decrease in parking lots.
Starting a parking lot business is very beneficial at places where there are a number of offices, event banquets, etc. Places like these fetch a huge number of crowds on a daily basis and an equally significant number of cars.
Opening a parking lot business can be of two types – interior parking and open space parking. Where the former refers to a garage which can accommodate a significant number of cars, the latter means a designated open space which can be used as a parking lot.
Where location happens to be the primary factor, there are several other sides which needs to be considered to successfully operate a parking lot business.
Focus on selecting the right location for parking lot business. The location should not be adjacent to an existing parking lot, but should be near such places that invite traffic.
For Whom Will the Parking Business Be More Favourable?
Parking lot business is undoubtedly one of the most flourishing businesses in the metropolitan cities. The urban hubs are more prone to car traffic than the developing cities are.
Though a car parking business can bring stable income for a longer period of time, starting it can be challenging.
A favourable plot is very important for the business. Owning a suitable location amidst a square of offices will need a considerable amount of investment because of the high demand of the property.
Anyone who is ready to invest the capital can easily generate a flattering turnover annually. A parking lot business also guarantees a stable rate of profit annually and experiences an almost consistent rate of success for long periods of time.
Investment Required for Opening a Parking Lot
The investment for a parking lot business depends on the type of business one opts for. The investment required for a small-scale parking lot business is estimated to be $10,000 in the United States.
On the other hand, a large-scale parking business may require a minimum of $20,000. Depending on the amenities used and services offered, the investment can even soar higher.
Having said that, it should be noted that the investment will also depend on the location of the parking lot business.
Deciding on the Parking Rate
The rate charged for parking a car varies from place to place. It depends on the demand for parking slots and their availability.
If there are already other parking lots available in near vicinity, chances are yours will face a tough competition.
The rates are also dependant on the type of car which is being parked as it will determine the space which needs to be allotted for parking.
Make sure you form a legal business entity. This will be very helpful in cases of emergencies or legal disputes.
Guide to Starting a Parking Lot Business
Car Park Business Plan
If you are wondering how to start a parking lot business, then you have to make a business plan first. A business plan with clear mention of future prospects is the preliminary factor for every budding entrepreneur.
It should have a detailed mentioning of the investment required to start a parking lot business. Apart from that, include all the possible additional expenses which might be required for maintenance, future repair and basic amenities like electricity. You should also determine the wages of the security personnel involved.
License for Parking Lot Business
Without a parking lot business license, it is impossible to start the business. You need to register yourself and apply for several licenses to begin a parking lot business. The requirement of the licenses very as per the states and countries. Hence, take the advise of someone who is already in the business to help you guide about the necessary registration in that area.
Avail a Business Insurance
A parking lot business insurance is primarily suggested. This is very useful in cases of emergencies or property damage or any kind of accidents. Go for long term policies and make sure you understand the clauses very well.
To operate a parking lot business, you will have to register for several federal taxes, without which you will not he able to run the business. Where you are eligible for service tax to GST, or both, you have to register for taxes.
Parking lots require thorough security for both noting down the entry and exit times as well as for maintaining discipline and decorum.
For proper management of parking lot business, security should he well taken care of. However, while choosing them, make sure you take a detailed report about their past experiences.
Marketing Parking Lot Business
You need to preach about your services to help people know about your services and hence, parking lot business marketing is very important.
Start with distributing leaflets and brochures in the adjacent offices and ask them to refer to the employees.
Since it involves traffic from vicinity, fix small banners and posters to enlighten people about a parking lot in the area.
Apart from that, create a website for your car parking business which should have a proper list of all the services offered.
Make sure you have a well-maintained financial account to keep a record of the regular earnings. An accountant can be assigned for the job; however, the individual should be trustworthy and should be able to provide you a record of past working experiences.
To Conclude How to Start a Parking Lot Business
Starting a parking lot business is quite easy if you already own a plot. If not, you can easily take up a plot on lease. Besides offices and event banquets, a parking lot business will be very popular near courts, hospitals or clinics.