We don’t know how you came up with the idea of starting a parking lot business, but you’re off to a great start! It’s like investing in real estate with a smaller budget. Real estates are without a doubt expensive, require high maintenance and have low flexibility.
So, if you want to generate a regular income, a parking lot venture is a smart choice. From being an afterthought, parking lots have gone to being a nearly 25-30-billion-dollar industry annually in the US. In order to maintain the status of your big business, you need to take numerous considerations into account.
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How to Start Parking Lot Business
We’ve compiled the best information that caters to a modern parking lot business and gets you ready for the real world!
Advantages of A Parking Lot Business
- Less risky venture. First of all, it’s the next best thing to real estate. Since you’re off to a good start, there’s room for growth and expansion. Besides, just think logically. If anything, people are owning more vehicles so the demand for a parking space will potentially never die.
- You can start out small. Initially, you don’t have to go all-in with huge capital. It’s not a big deal to start with a low bar because with any business there’s a scope of development.
If you’re literally placing orange cones and ropes to allocate a parking space, then by all means go for it. This is your business and you get to decide everything. Be creative and do wat’s feasible to you.
In many cases, if you can afford to rent a small space, it’s an easy way to begin your parking lot business too. Here your landlord gets to have some advantage.
- Management can be super easy. A parking lot business is flexible so you want to step in without any management knowledge. There are specialized companies that are experts in handling such matters.
Before You Start Out
Taking upon a new venture when you have no real-world experience can be a daunting thought. But anyone can start a business and be successful in it if they know what they need. So, before you invest, you need to think through a few things.
Location – Where the parking space should be located is the prime factor to think over. Find out which areas in your locality have a missing parking zone. If people have a demand for a parking lot there, it’s your scope to swoop in.
From the experiences of other similar ventures, the hot spots are corporate and industrial regions and anywhere with shopping malls and restaurants.
Equipment – The absolute parking lot equipment requirements are the following types of setup systems that:
- Stamp times for vehicle entries and exits
- Accept cash and credit cards
- Show price rates based on time period, or by vehicle standards
Employees – Even if not machinery, you might need an employee or two to accept payment, to help with directions for safe parking, and enough people to ensure security. And although parking lots aren’t the most high maintenance, you need staff to manage and maintain the space.
A ground-level parking space may need more cleaning. You might have to start keeping trashcans to keep it as clean as possible.
Taxes – Real talk is you have to pay taxes. Your local government offices look into the amount you charge every customer. So to keep business running without interruptions, you are required to pay a percentage of taxes on your decided amount.
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Parking Lot Design Matters
You can maximize profits through optimal design. The days of parking lot design being just a matter of eyeballing the spots and painting the stripes are over. Since the industry is now highly competitive and lucrative, incorporating new methods is mandatory.
To run a parking lot business, do extensive research on CAD programs. A computer-aided design (CAD) is the technology that has changed the game. It has helped to transform the parking lot planning into a science.
Clever Parking Space Design
One way to up the ante with designing a parking lot is by introducing angled space. An angled design capitalizes maximum efficiency and profits. How so, you may ask.
If your parking lot is angled, it helps with irregularly shaped space. It helps vehicles to park around obvious obstacles like trees, medians and buildings. Not only that, but it also may require a lesser area of space per vehicle.
The Benefits of CAD
Whether you’re hiring a parking lot designer or you’re the expert yourself, computer-aided design is the way to go. As a businessperson, your mind races after profits. When you’re prepping a parking lot for business, keep in mind that every square space matters. So to make it all count and maximize profits, take advantage of a CAD program.
Maximize Stall Width
Parking lots should accommodate changing vehicle dimensions. As larger vehicles go in and out of trend, so why should you keep any limitation? The dedicated parking lot space should include a proportionate number of wider sections. This gives a chance to maximize space while still including small stalls.
Allows Optimal Calculation
Because of CAD, parking lot designers can draw out accurate calculations. This ensures appropriate usage of the parking space per vehicle. By engaging maximum efficiency and comfort, this can be achieved. No space goes wasted and no stall has disproportionate or excessive length.
Current Technological Demands
For your parking lot business to take off, incorporating technology is important. You’ll be surprised to know how technology is playing a bigger role than ever.
Here are some of the latest demands your target audience might make:
- Automated cashless payment options
- Mobile apps to help with directing to open spaces
- Mobile apps for real-time pricing
- Wireless sensing devices for traffic management
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No matter what your capital looks like, there are bright opportunities ahead of you. Who knows, you might even land on multiple investors and expand your parking lot into an entire building! We only hope that our unique tips will help you grow sustainably. Good luck!