Has the population gets larger, more people are on the roads with their personal vehicles. Due to this, there is more of a need for car parks, especially in busy areas, commercial centres, and transportation hubs. For aspiring entrepreneurs, a car parking business can actually be a great opportunity, offering a lot of profit for very little maintenance.
Furthermore, the revenue generated can also be very predictable and can be easily scaled. Furthermore, it can be whatever size you think best, whether that is a multi-storey car park or even just a small parking lot. Here’s a quick guide on how you can start your own car parking business.
Understand The Location and Market
The success of a car park depends on where it is located. It needs to be in an area where there is a lot of footfall and where a lot of people will be driving too. Find a location where there is a lot of traffic and the parking is always full. This can be near train stations, hospitals, office districts, shopping centres, airports, stadiums/venues and more.
Once you have a rough idea of where you want to park your vehicle, you can then visit this place during times of the day. Work out when its busier times are and when it isn’t busy. Ideally, it needs to be in a spot where people will likely park all day. Additionally, you can talk to the local business owners to see when the area is at its busiest.
Remember to research your competitors nearby and the prices they charge to ensure you are being competitive. Try and give your car park something that your competitors don’t have.
Choose The Right Business Model
If you are a driver, you will know that not all car parks operate in the same way. You have the open parking lot, which is the easiest and cheapest to get started. All it requires is clear signage, a durable surface and a basic level of security. Next is the garage or multi-story car park. This will be more expensive to get started, but it offers more earning potential and is weather-protected.
Another common type of car park is valet parking. This is perfect for restaurants, events, and hotels. Not to mention that it requires well-trained staff and strong customer service. Lastly, you have managed parking for property owners. This is when some people will lease out their land or garage space to parking operators like yourself. The benefit of this is that there is less initial investment however, the negative is that there is less profitability.
Permits and Insurance
There will be local regulations that you will need to obey. You may need a business license, zoning approvals, fire safety compliance, accessibility features and more. Furthermore, if your car park is handling the vehicles, you will need the right insurance to have you covered here as well.
Get The Right Infrastructure In Place
Once you have the correct permits and the right location, you need to get your parking facility ready. This includes things like the layout, security, payment systems and signage so people can easily locate your car park. All of this is essential for getting your car park ready and operational.
Prepare Your Pricing
Up next is your pricing format. You need to ensure that your pricing is based on demand, competition, and the overall services that you offer. A lot of car parking facilities will operate on hourly fees; however, some will also offer day and monthly rates. Dynamic pricing will offer adjustable rates during the peak times and special events, which can all boost your profits significantly.
Market Your Business
No matter where you are based, whether you are a car park in London or a small car park located in a local town, you will need to market your car park. To do this, advertise through online listings, social media, and overall parking facilities. Ensure you partner with local businesses as well, so you have consistent parking on a regular basis.
Summary
Starting a car parking business can be very easy to set up once you have followed this step by step guide. Just make sure that once you have everything running smoothly, ensure you keep your customers happy so they will return. Thanks to the digital age, starting a business is easier than ever before.