Whether you’re still evaluating business ideas or on to your next profitable one, here’s what you need to know about starting a commercial parking lot business.
Congratulations, you’ve decided on the perfect business venture for your needs. Starting a commercial parking lot business is a brilliant idea, but you have got to know the ins and outs of what you are about to get yourself into.
You can’t just jump straight into running the business without having a solid plan. Here we are going to provide you with the information you need to et your commercial parking business off the ground in no time.
Commercial Parking Lot: Plan Things Out
To be successful in the business world, all entrepreneurs need to have a business plan before moving forward with production. It will help to outline all of the things you will need in order to make this business plan a reality and will also map out how you plan to achieve the goal.
There are some questions that the business plan will need to address including:
- Who do you want to attract to your business?
- What will be the cost of startup?
- All ongoing expenses of the business
- The length of time it will take to break even
- The company name
Costs Associated With Parking Lot Business
The most talked about topic when it comes to starting a business is what it will cost to start and sustain the business. The startup costs for the business will include:
- Purchasing the parking lot or parking garage
- Purchasing or leasing of necessary equipment
- Liftgates
- Security cameras
The cost of garages that are multi-level parking lots will be more expensive as well as garages that are indoor garages.
Constant Expenses for a Parking Garage
Parking lots are not a business that requires a lot of maintenance. The majority of the upkeep needed for a parking garage business is repainting of lines, replacing various signs, and paying for LED parking lot lights.
Expenses that will be reoccurring when you own a parking lot business are :
- The rent or mortgage of the garage space you are using
- Paying the parking lot employees
- Paying employer taxes
- Monthly utilities
- Monthly insurance
- Monthly supplies
How to Make Your Money
Making money in a parking lot business is quite easy to do simply fill the parking lot. When people use your parking lot, they will pay either an hourly rate or a flat rate to park there. Your business will be lucrative if it is in an area that has high traffic and little parking available to consumers.
If you partner with surrounding businesses as a service to their business, you will receive monthly revenue.
What Can You Charge?
The price that you are able to charge people for using your parking lot varies depending on the location of your business. In some places, the charge is $1 per hour whereas in higher traffic places with a need for a parking business, you’re able to charge a higher rate.
Business Ready
Now that you know what it takes to successfully start a commercial parking lot business start writing your business plan today. A business is only as strong as it’s a business plan.
Take the information we gave above and apply it to your newest business endeavor. If you want to know more about the parking lot business or becoming a better entrepreneur visit our site.
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