When considering business options, a parking lot business if often a smart, lucrative option if you plan ahead properly. Many areas need well kept, monitored, marketed parking lots to service nearby businesses, events, venues and more. Here are 5 things that you should consider before starting a parking lot business in order to be successful and get the best return on your investment or “ROI”.
- Most importantly, you will need to develop a strong business plan and model for your parking lot business. This plan should outline the positives attributes of your location and situation. It should also observe the negatives and the potential threats and competition in the area. This allows you to weigh the pros and cons appropriately and prepare for any potential problems you may foresee in the future. Determine how you will develop your business and expand financing in the future.
- Next, you will need to find funding for your business venture. Do your research and get estimates for average sales prices of local parking lots so that you have a rough figure to use as an estimate when calculating costs. You can then talk to different loan officers to find out about loan and financing options that will work for you and if you are eligible. Often there are many small business administrations that offer low-interest rates to help entrepreneurs get a jump start.
- You will then need to decide upon a location to buy where you will open your parking lot business. It is often ideal to work with a real estate agent who specializes in commercial properties. This person will help you to find locations that will be most lucrative near highly populated areas where convenient parking lots are in demand. Also be sure to ask about license fees as well as taxes for the lot.
- Make sure the lot is safe. Once you own the lot, you will need to consider the safety of the area. Many parking lot business owners choose to install security systems, camera monitoring systems and other forms of protection to help keep an eye on the property, discourage criminals and ensure patrons that their vehicles are safely stowed in your lot.
- Finally, organize the lot properly. Make sure each space is large enough and that the lines are clear so that you can fix the maximum number of cars safely, legally and easily in your lot. If you will use a number system, ensure that all numbers are clear and legible. Also, you may need to repave the lot to eliminate pot holes and other issues by calling a company. Often paving companies will also be able to paint lines as well, making it much more cost effective and simple.
A parking lot business can fill a serious need in highly populated areas. You can provide much needed parking, a great service. If you choose your location wisely, plan ahead, and keep your lot safe and neat you will see great results and ROI as a business owner.