5 Tips to Start Car Parking Lot Business

You have a genuine passion for cars, and you wish to embed it through a business venture that helps you earn adequately. And if you have sufficient funds or a funding plan, you could get into a full-fledged automobile business without any trouble. One of the ideas that must have popped up in your mind is an automobile parking business. Yes, it is cool but needs substantial funds to start. 

You can ease up the matter by being a franchise which can help you fetch a good customer base. If you want to start a parking business- from scratch, it could take a lot of effort to buy you will be the hard-core entrepreneur of all times. No doubt this business requires you to invest a lot of money, but the returns are higher. It gives you the right to control your business, and you have a huge base of customers (and their cars, of course). 

Starting an automobile parking business could be daunting, and planning is the only key. You are required to take care of several aspects. You need to seek knowledge, essential equipment, workforce, and motivation to run this business.

Now, as you have decided to start an automobile parking business, the following are the essential tips that can help you now and in the long run.

How to start a car parking lot business

Never ignore the business plan

It happens that business entrepreneurs who pour considerable funds into a venture think that they have everything and do not need a roadmap or a direction for their business. “Money is what all matters” – they are of this opinion, and they are reluctant to admit that a business plan is crucial for the business. 

Get into the right mindset and consider crafting a business plan with your partners and a mentor. The business plan should contain every minor and major detail of the business. You are bound to make mistakes in the future, and a business plan ensures that you make the minimum of them.

Also, during the process of business planning, you will encounter the question – Why am I starting this automobile business? For a hundred times. It is best to answer when you have a mission and vision for the said venture.  Do you want to revolutionise your current lifestyle, or do you simply want to work with automobiles or both? As you reflect on this, your business will become profitable enough. 

Choose a feasible and convenient location

When it comes to the automobile business, location is important. It should be such that a person should find it extremely easy to park their vehicle in your parking lot. But when it comes to your side, you think about the costs as you should not be spending excessively and earning less than expected. A real estate agent could help you out in this matter. And believe us, you will have to fund down a few locations before you finalize one of them. The location is something that you might be having in your mind since the idea of the automobile parking business popped up. So, keep an eye on the legal matters involved if you love a place and dream of converting it into a parking lot. 

Apart from costs, you should keep in mind about parking lots because they should be spacious enough. Obviously, cars and vehicles will be fitting into that space, and there is no chance you should be compromising on the same. 

Determine your specifications in advance

Before getting into the business, you should be ready with your revenue-generation models. Do you want to work as a franchise for a reputed brand and earn your commission or rent accordingly? Do you want to rent the entire space for a specific time slot, or do you want to keep it strictly as a parking space? Analyze the rates that are currently going on in the market and set your prices accordingly. The price should be undoubtedly reasonable for the clients and must cover your costs and expenses, serving you sufficient profits. 

A mentor will surely help you in this matter. Additionally, you are supposed to conduct extensive market research concerning the existing rates and revenue models adopted by the industry experts. 

Parking lot layout design

For a service-oriented business, customer service is a vital ingredient for success. And when it comes to the automobile parking business, parking space is your biggest asset and responsible for success. So, it is your responsibility to take good care of the space and make it like a haven for the car owners. 

  1. Consult an experienced architect to design the parking space as per your specifications. You must have a fixed layout of the space accommodating a specific number of vehicles in the same. Number the spaces and ask your architect to make them comfortable for the cars to drive in and out of the parking lot. It should not be clumsy for the vehicle owners to access the parking lot. 
  2. The parking lot will have valuable and expensive cars, and that’s why we emphasize the security aspect. You cannot afford to go through litigation matters every time the car gets damaged or stolen (even if you have insurance, an incident leads to trouble). An advanced camera technology, an attendant, more staff (if required) to monitor the space – all these aspects help provide security to your parking business. 
  3. The third thing to do is get insurance, no matter how limited funds you have in your business account. Liability insurance is like a shield for your parking business. If you don’t have it, you do not have oxygen reserves in case of an accident. You need to mention it at the parking place and on your website that you are insured to let your customers know when they park their vehicles. 

Formulate a promotion strategy

Interestingly, when it comes to automobile parking businesses, the idea of promotion has a different perspective. You won’t need your online presence to let others know about your parking lot. On the other hand, you will need other businesses’ online presence to promote your business. Hope you got the beauty of this aspect. 

You can seek advantage of the banners and board signs to promote your business. Ensure that these signs are placed at prime locations to help people directly to your space. You should know that events, festivals and other special occasions increase the number of travelers visiting your place. You should seek benefits during these occasions and be serviceable at any point of day or night. 

The places that attract maximum vehicles are sports centers and stadiums, concert venues, conference and seminar centers, and tourist attractions. You should contact these places and get your parking lot advertised on their official website. So, when a traveler hops onto the website to book concert tickets or a seminar, he knows immediately that there is a [parking lot near to his destination. 

In short, the more conscious you are of your future and existing requirements, you can map out your automobile business effectively. Also, few more parameters that help determine other essentials such as engine maintenance, car servicing or repairing, etc. But as of now, the above tips will help you start a profitable automobile parking business.