Blog
Why You Should Look Into Having a Parking Lot Business
Finding a thriving niche for a new business is more than half the battle for future profitability. The best fields have a large number of potential customers and the need for repeated purchases. When those two factors are present, you are on your way to a thriving business.
And that's exactly what the parking lot business is. Next time your drive to the grocery store, a ball game, your doctor, or anywhere else, check out the number of cars on the road and in the lot where you park. If you've got a car, and 95% of the householdsin the U.S. do, then you need to park it regularly.
According to TRUEGRID (click here), getting your slice of this essential pie can provide a reliable, lucrative income. Here is a look at the steps involved in becoming a parking lot entrepreneur.
The Right Business Plan
Every startup should have a solid business plan in place. This helps you determine what licenses and permits you need, how you will finance the lot, and ways you can advertise it.
You will need to think about what type of parking lot business you want to operate. The most common is simply to charge for people to park their cars themselves and pay using the processing system you set up.
You can also start a valet parking business, having attendants park the cars for busy drivers. This can be an in-demand service in upscale parts of town, around nightclubs, sports arenas, and other venues in the entertainment or business districts.
Once you decide, check with a lawyer and accountant to find out what insurance, licenses, and permits are needed. If you plan to employ attendants, you will need to become familiar with the rules and regulations issued by the Occupational Safety and Health Administration, or OSHA, as well as local employment and labor laws.
The Right Real Estate
You'll get the best return on your investment when you buy a lot in an area with heavy traffic. This ensures a steady stream of drivers using your lot. Good locations are near airports, sports arenas, malls, entertainment areas, and college campuses.
Foreclosed property often provides good deals. If you buy an existing parking lot, you can start your cash flow right away. Leasing a lot in a busy downtown or business area is also an option.
Check the lot you are interested in for zoning regulations. This is the time to contact an attorney, who can help you navigate the legal issues and the array of local regulations that will affect the setting up of your business in the specific area you are looking at.
The Right Equipment
If you are buying an empty lot, you will need to clear and level it, add drainage, cover it with asphalt, and paint the parking stripes on the pavement. Even if you plan to do this yourself, you will need the help of a contractor to make sure you handle the leveling and drain work properly and according to code. Though you can do much of the work yourself, it is usually cost-effective to hire a parking lot contractor.
If you are offering valet parking, you will need to invest in:
• Uniforms for the attendants
• Ticketing or time-stamp devices
• A way to process payments
According to TRUEGRID (www.truegridpaver.com), parking lot profits can be yours if you follow a business plan and get professional advice. Research the area carefully and prepare your lot properly for cars.
Comments