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How to Start a Parking Lot Business

Written by: Natalie Fell

Natalie is a business writer with experience in operations, HR, and training & development within the software, healthcare, and financial services sectors.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 3, 2022 Updated on March 13, 2024

Investment range

$9,550 - $18,550

Revenue potential

$164,000 - $328,000 p.a.

Time to build

1 - 3 months

Profit potential

$98,000 - $148,000 p.a.

Industry trend

Finding parking is one of the great hassles of driving. In cities across the US, frustrated drivers spend countless hours each year searching for a decent spot. More cars are on the road today than ever before, which means demand for parking has never been higher. In addition, as the pandemic recedes, more and more people are heading back out to enjoy the town. The global parking lot and garage industry is expecting strong growth through 2023.

There has never been a better time to start your own parking lot business  — you’d be providing an invaluable service while making good money. But before you start, it’s important to understand the fundamentals of running your business. This step-by-step guide will help you build the foundation to succeed as a parking lot entrepreneur. 

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Step 1: Decide if the Business Is Right for You

Pros and cons.

Before starting a parking lot business, it’s important to weigh the pros and cons.

• Low Maintenance – It’s easy to keep a parking lot well-maintained
• In-demand Product – More cars on the road means higher demand
• Good Money – Charge up to $60 per space per day in a urban location
• Expensive Leases – Renting a lot in a desirable location can be expensive
• High Competition – Compete with established parking lots in popular areas

Parking lot industry trends

Industry size and growth.

• Industry size and past growth – The US parking lots and garages industry is worth $9.9 billion in 2022. The pandemic led to a decline, but the market is bouncing back.(( https://www.ibisworld.com/industry-statistics/market-size/parking-lots-garages-united-states/ ))
• Growth forecast – The global parking lots and garages industry is expected to grow 4.8% annually through 2023.(( https://www.businesswire.com/news/home/20210107005376/en/ ))

Trends and challenges

Trends in the parking lot industry include:

• New technology allows for gateless entry and exit into parking lots. This cuts down on the need for parking lot attendants and makes parking more convenient for customers.
• Parking apps like SpotHero are on the rise. These apps make finding and reserving a parking space quick and easy for customers. 

Challenges in the parking lot industry include:

• Securing a viable parking lot for your business can be challenging in high-demand areas. In urban locations, real estate is expensive and you’ll be competing with existing lots and garages.

Local zoning and real estate regulations may prevent the establishment of parking lots in desirable locations. 

How much does it cost to start a parking lot business?

Startup costs for a parking lot business range from $9,000 to $18,000. The average cost is around $13,000. This figure includes the parking lot lease, wages for attendants, website setup, and lot maintenance costs.

You’ll need a handful of items to successfully launch your parking lot business, including:

• Parking lot
• Parking lot management software

How much can you earn from a parking lot business?

Daily parking rates cost an average of $30. After parking lot lease costs, wages for employees, insurance, and maintenance, your profit margin should be around 60%.

In your first year or two, you could lease a small lot with 15 spaces at a rate of $30 per day, resulting in $164,000 in annual revenue. This would mean $98,000 in profit, assuming that 60% margin. As your business grows, you could lease an additional lot, doubling your capacity to 60 spaces. At this stage, you’ll also be hiring more employees, reducing your profit margin to around 45%. With an annual revenue of $328,000, you’d still make a handsome profit of $147,000.

What barriers to entry are there?

There are a few barriers to entry for a parking lot business. Your biggest challenges will be:

• Finding available lot space for rent in a viable location
• Competition from other parking facilities

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Step 2: fine-tune your parking lot vision.

Now that you know what’s involved in starting a parking lot business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research parking lots in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a parking lot with valet services or an on-site car wash. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as parking specifically for mobile homes or local concerts and sporting events.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

You’ll be providing parking solutions for customers. You could also offer additional services, such as on-site car wash or valet parking. Here’s a list of potential services:

• Basic Parking Solutions : Provide secure, well-maintained spaces with efficient layout for easy vehicle access and parking.
• Valet Parking : Offer premium valet services for convenience and enhanced customer experience, especially in upscale areas.
• On-site Car Wash and Detailing Services : Introduce car wash and detailing while customers park, adding value and convenience.
• Electric Vehicle Charging Stations : Attract eco-conscious drivers by installing EV charging stations.
• Parking Reservations : Implement an online reservation system for guaranteed parking spots, streamlining the process.
• Security Services : Enhance safety with 24/7 surveillance and patrolled monitoring.
• Shuttle Services : Provide shuttle transport to nearby destinations for large or remotely located lots.
• Loyalty Programs : Develop loyalty programs for regular customers to encourage repeat visits.
• Mobile App Integration : Create a mobile app for real-time parking availability, mobile payments, and car location services.
• Bicycle Parking and Rentals : Cater to cyclists with secure bicycle parking and rental options.
• Temporary Storage Lockers : Offer storage lockers for convenient luggage or shopping bag storage.

How much should you charge for parking?

The cost of a parking space varies greatly depending on location. Many parking lot businesses charge per hour or per day, with some places offering monthly rates. Average daily rates typically range from $20 to $60. 

Once you know your costs, you can use our profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Where? Choose your parking lot location

To generate the most business, you’ll want to choose a parking lot in a desirable location close to businesses, schools, or local attractions. Here’s what to consider:

• High Traffic Areas : Choose a location near areas with high foot or vehicle traffic. This could be near shopping centers, business districts, hospitals, airports, or tourist attractions.
• Accessibility and Visibility : Ensure the location is easily accessible from main roads and is visible to passersby. Good signage can also help increase visibility.
• Demand for Parking : Research the demand for parking in the area. Locations with limited street parking or expensive parking facilities are ideal.
• Competitor Analysis : Analyze the competition. If there are many existing parking lots, ensure your business can offer something unique or more convenient.
• Zoning and Legal Regulations : Check the local zoning laws and obtain necessary permits. Some areas may have restrictions on the type of commercial activity allowed.
• Future Development Plans : Be aware of future development plans in the area. Changes in infrastructure or new construction can affect the demand for parking.
• Safety and Security : Choose a location where you can provide safe and secure parking. This might include good lighting, surveillance cameras, and regular patrols.
• Size and Layout Potential : The location should allow for efficient layout of parking spaces and smooth traffic flow.
• Cost Analysis : Consider the cost of the land and the return on investment. Prime locations can be more expensive but may offer higher revenue potential.
• Community Impact : Understand the impact on the local community and environment. Engaging with community leaders and residents can provide valuable insights and support.

Step 3: Brainstorm a Parking Lot Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “parking” or “parking lot”, boosts SEO
• Name should allow for expansion, for ex: “ParkSmart” over “ConcertPark”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Parking Lot Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief summary of the parking lot business plan, highlighting its key points and objectives.
• Business Overview: An introduction to the parking lot business, including its purpose and location.
• Product and Services: Explanation of the parking services offered, such as hourly parking, valet, and monthly parking passes.
• Market Analysis: An assessment of the parking industry, including demand, customer demographics, and trends.
• Competitive Analysis: Examination of competitors in the parking industry, identifying strengths and weaknesses.
• Sales and Marketing: Strategies for promoting the parking lot business and acquiring customers.
• Management Team: Information about the individuals responsible for running and managing the parking lot business.
• Operations Plan: Details on how the parking lot will be operated, including hours of operation and staffing requirements.
• Financial Plan: Projections of the parking lot’s financial performance, including revenue, expenses, and profitability.
• Appendix: Additional supporting documents and data, such as market research, legal documents, and resumes of key team members.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to parking lot businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your parking lot business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a parking lot business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Parking Lot Business Licenses and Permits

Starting a parking lot business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your parking lot business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  Parkable , Wayleadr , or Premium Parking to manage lot capacity, collect payments, and run financial reports.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Starting a parking lot business can be a lucrative venture, and to ensure success, it’s essential to implement effective marketing strategies beyond just creating a website and networking. Here are practical tips to boost your parking lot business.

• Strategic Partnerships: Cultivate partnerships with local businesses, event venues, and offices to secure exclusive parking agreements, creating a steady revenue stream and increasing your visibility in the community.
• Customer Loyalty Programs: Implement a loyalty program offering discounts, free parking hours, or priority spaces to frequent customers, encouraging repeat business and fostering customer loyalty.
• Digital Advertising: Leverage targeted digital advertising on social media platforms to reach local audiences, using geo-targeting features to promote your parking services to users in your vicinity.
• Mobile App Integration: Develop a user-friendly mobile app that allows customers to easily locate and pay for parking spaces, offering convenience and a seamless experience.
• Seasonal Promotions: Create seasonal promotions or discounts during peak periods, events, or holidays to attract more customers and maximize revenue during high-demand times.
• Customer Reviews and Testimonials: Encourage satisfied customers to leave positive reviews on popular review platforms, enhancing your online reputation and influencing potential customers to choose your parking services.
• Community Involvement: Sponsor local events, sports teams, or community activities to increase brand visibility and build a positive reputation as a supportive and engaged business in the community.
• Green Initiatives: Implement eco-friendly practices, such as offering electric vehicle charging stations or reserving spaces for carpooling, to appeal to environmentally conscious customers and differentiate your business.
• 24/7 Security Assurance: Emphasize and promote your parking lot’s security measures, such as surveillance cameras and well-lit facilities, to assure customers of their vehicle’s safety, building trust and confidence.
• Referral Programs: Introduce a referral program that rewards existing customers who refer new clients, creating a cost-effective way to acquire new business while rewarding your loyal customer base.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your parking lot meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your parking lot business could be:

• Convenient parking in the heart of the city
• Fast, easy parking for busy professionals
• Going to the concert or big game? We’ll keep your car safe 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a parking lot business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in parking for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in parking lots. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a parking lot business include:

• Parking Attendants – Assist customers with parking, collect payments
• Office Manager – Bookkeeping, payroll, customer service
• Facilities Manager – Maintain parking lot cleanliness, fix broken equipment

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Parking Lot Business – Start Making Money!

Driving around and looking for parking before a big meeting or event is one of life’s major headaches. Becoming a parking lot business owner allows you to help frustrated drivers and make great money doing so. Over time, as you scale your business and enhance your reputation, you could start building yourself a local parking empire! 

Now that you’ve reviewed this guide and studied the parking lot business basics, it’s time to begin your entrepreneurial journey.

• Parking Lot Business FAQs

Parking lot businesses can be extremely profitable. Securing a lot in a viable, high-demand location is the key to a lucrative venture.

Rates will depend on your geographic location and the lot’s proximity to desired places. Daily rates for parking can range from $10 to $30.

Determine the number of parking spaces needed based on the expected capacity, plan the layout for efficient vehicle circulation, designate entry and exit points, and incorporate features like lighting, signage, and markings to enhance safety and organization.

The minimum size of a parking space can vary depending on local regulations and specific requirements. In the United States, a typical standard size for a parking space is 9 feet wide by 18 feet long. However, accessible or ADA-compliant parking spaces are generally wider to accommodate wheelchair accessibility.

To differentiate your parking lot business from competitors, focus on providing exceptional customer service, maintaining a clean and well-maintained facility, and implementing technology solutions like parking apps or automated payment systems.

The material commonly used for parking lot striping is paint or thermoplastic. Paint striping is typically done with durable and reflective traffic paint, while thermoplastic striping involves using heated thermoplastic material that adheres to the pavement and offers enhanced longevity and visibility.

This is a very well-written and informative article on setting up a parking lot business business. I have gleaned valuable info on how to proceed with setting up this venture. Thank you.

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• Decide if the Business Is Right for You
• Fine-Tune Your Parking Lot Vision
• Brainstorm a Parking Lot Business Name
• Create a Parking Lot Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Parking Lot Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Parking Lot Business - Start Making Money!

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How to Start a Parking Lot Business in 14 Steps (In-Depth Guide)

Updated:   February 22, 2024

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The parking lot industry is a major market in the United States. As urban populations grow and land availability decreases, the demand for parking continues to increase. Currently, projections show the global market reaching $20.3 billion by 2032.

Launching a profitable parking operation requires careful planning and preparation. You need to research and select an appropriate location, equipment, and parking layout to accommodate customer demand. It’s also vital to understand local zoning laws and obtain necessary permits and licenses.

This guide will walk you through how to start a parking lot business. Topics include how to market your parking services, scoping out local competitors, opting into business insurance, registering your EIN, and forming a legal business entity.

1. Conduct Parking Lot Market Research

Market research is essential to parking lot businesses. It offers insight into local trends in parking services, your target market, and local market saturation. All market research helps develop a well-rounded business plan to get your parking lot business off the ground.

Some details you might learn about opening a successful parking lot business through market research include:

• The industry has exhibited consistent and steady growth over the past five years.
• There’s a huge market in shopping malls and commercial real estate parking lots. By the square foot, these lots offer more income for small business owners in the parking industry.
• Revenue has grown at an annualized rate of 1.5-2.5% to reach current levels due to increasing construction activity and vehicles per household across the country.
• Key external drivers fueling this growth include rising urban density, increasing vehicle ownership, constrained supply of parking in cities, and greater consumer spending power.
• With more people moving to cities and owning cars, demand for convenient parking access continues rising.
• Supply constraints further increase the value of existing parking real estate in prime locations.
• Well-run operations can expect 20-25% profit margins. This gives parking lots high cash flow potential from both monthly permit holders as well as single-use customers.
• The relatively low capital requirements to start also create an attractive business model.
• Basic needs include payment collection systems, lighting, security cameras, paint for parking space delineations, and insurance.
• startup costs often range from $50,000-500,000.

Given the essential nature of parking and rising urbanization trends, the industry outlook remains overwhelmingly positive. With careful planning and execution, parking lot operation is an appealing small business opportunity in terms of startup costs, profitability, cash flow, and future growth prospects.

2. Analyze the Competition

Understanding the competitive landscape is critical for any new parking lot operation. When assessing competition, start by identifying other lots in the immediate vicinity and within a several-block radius.

For brick-and-mortar analysis, conduct an on-foot evaluation examining factors like location, lot size, parking space delineations, payment systems, security features, and overall capacity. Also, note current utilization rates during peak periods. This direct observation will give a sense of competitors’ existing customer base and market position versus your own planned lot.

You can supplement the in-person analysis by researching lots online. Search Google Maps and review sites like Yelp to find additional neighborhood parking options. Compile details around pricing, hours of operation, and customer feedback.

It’s also constructive to evaluate competitors’ digital presence and marketing efforts. Search for their website and social media pages through tools like Sprout Social. Examine their online content strategy in areas like SEO optimization, search visibility, and consumer engagement. This can uncover opportunities to differentiate your own lot’s customer acquisition and branding strategy.

Analyzing competition on both a tangible and digital basis provides tremendous insights pre-launch. You can identify potential customer targets not properly served and weaknesses to capitalize on.

3. Costs to Start a Parking Lot Business

When launching a parking lot venture, there are a variety of one-time startup and recurring monthly expenses to consider. Carefully estimating these costs is imperative for securing financing, budgeting properly, and ensuring adequate profitability.

Start-up Costs

• Land Acquisition – A small 25-space lot may require 2,500 sq ft for a land cost of $50,000-125,000. Larger lots with 100+ spaces often exceed $500,000.
• Initial Construction & Equipment – After acquiring land, key startup steps involve paving, striping parking delineations, and installing payment kiosks. These construction-related costs generally total $15,000-30,000.
• Permits & Licenses – Most cities and counties require permits and business licenses to operate a commercial parking lot. These administrative fees are typically a few thousand dollars.
• Insurance – General liability insurance is necessary to cover premise dangers, damage to vehicles, and other issues customers may face. Quotes for $1 million policies generally start around $2,000-$2,500 per year.
• Professional Services – Consultants like attorneys and accountants guide business formation, taxes, and regulatory compliance. Expect one-time fees of $3,000-$5,000.
• IT & Admin Costs – Basic IT infrastructure like computers, internet, and a printer/copier may tally $2,000-$3,000 initially. Marketing materials, office supplies, and other administrative expenses require another $1,000-$2,000.

All said, total parking lot startup costs often range from around $75,000-175,000+, with land acquisition being the primary cost driver.

Ongoing Costs

• Labor – Staffing is one of the largest monthly line items. Position salaries from $15/hour up to $20-30,000 annually should be budgeted.
• Utilities – Lighting, electricity for kiosks, and other utility expenses tally $1,000-2,000 per month. Water and trash service costs another $200-500 monthly.
• Maintenance & Supplies – Parking lots require regular restriping, sealing cracks in the pavement, removing debris, plowing snow, and other upkeep totaling $3,000-4,000 annually.
• Taxes – Federal, state, and local taxes amount to 10-25% of revenues based on the entity type chosen (LLC, S-corp, etc). These scale in proportion to parking fee revenue levels.
• Customer Acquisition Costs – Marketing channels like AdWords, flyers, direct mailers, and promotions should be tested to drive customer enrollment. Budget around $300 per month to experiment across different options.

In summary, parking lot entrepreneurs must estimate both the one-time startup expenses to establish the operation as well as recurring monthly costs to keep it running smoothly. Carefully projecting these cost factors is critical for cash flow planning and profitability.

4. Form a Legal Business Entity

When establishing a parking lot operation, selecting the right legal business structure is an important early decision. The most common options—each with pros and cons for this industry—include:

Sole Proprietorship

A sole proprietorship is the simplest structure with no distinction between the business and owner. While convenience is a benefit, the owner assumes unlimited personal liability for company debts and legal issues. This poses a significant risk given parking lots’ susceptibility to auto damage claims, customer injuries, and premises liability.

Partnership

A general or limited partnership formalizes joint ownership between two or more people. Partnerships allow raising startup capital from multiple sources and splitting managerial duties. However, parking lot partners also face unlimited personal liability without additional protection.

Limited Liability Company (LLC)

An LLC provides legal and financial separation between the parking business and the owner’s assets. This protects against liability from customer vehicle damage, slip-and-falls, etc. LLCs also allow more flexible distribution of profits to multiple owners. Startup and operating costs are low. For these reasons, the LLC structure offers the best fit for launching a parking lot company.

Corporation

A corporation or S-corp offers the strongest shield from legal liability but faces double taxation of profits. Significant paperwork and formalities are also required for forming and maintaining the entity. Unless seeking external investment capital soon, an LLC provides adequate protections without the bureaucracy of a corporation.

5. Register Your Business For Taxes

An Employer Identification Number (EIN) serves as a unique tax ID number for a business entity. Parking operations must obtain an EIN for federal tax filing and reporting purposes. This identifies your company to the IRS regardless of whether you have employees.

Applying for an EIN is free and can be completed online via the IRS website in just a few minutes.

This streamlined process requires no paperwork or attachments. You will simply answer questions about the parking lot ownership structure, responsible parties, and nature of business activities. Tip: Have details like addresses, birth dates, and Social Security Numbers handy for any owners before starting.

At the end, you will be issued an instant EIN confirmation notice to print for your records. Retain this for required tax filings like self-employment or business returns.

In addition to the federal EIN, parking companies need to register for sales tax collection permits and certificates of authority in their particular state. This allows for the assessment of the required sales tax on parking fees. Registration costs and paperwork vary by state but details are available on each state government’s website.

Proper legal formation and tax compliance may involve initial tedious paperwork but ensure smooth relations with federal and state agencies. This allows focusing attention on attracting parking customers and growing your new business. Consult an accountant for advice specific to your situation.

6. Setup Your Accounting

Robust financial tracking is imperative for parking operations to maximize profits and ensure full legal compliance. With daily cash transactions and customer billing, the foundation of an accounting process must be established early on.

Accounting Software

Begin by implementing small business accounting software like QuickBooks . This allows easy invoicing of monthly parkers, tracking payments, and automating expense/revenue categorization. QuickBooks seamlessly syncs with business bank/credit card accounts to simplify bookkeeping.

Hire an Accountant

While software provides tremendous efficiency, it is still advisable to employ an accountant, at least periodically, to ensure accuracy across all financial records. A qualified accountant provides services like:

• Monthly reconciliation of bank/credit card statements with Quickbooks
• Cleaning up Quickbooks errors or miscategorizations
• Conducting fiscal year-end financial reviews and tax preparations
• Providing consulting on improving cash flow or minimizing tax burden

Hiring an accountant costs from $150-200 per month for basic bookkeeping up to $3,000+ for comprehensive tax filing assistance. At a minimum, engage one annually to maximize deductions and avoid IRS issues. If audited, an accountant acts as a tax compliance expert.

Open a Business Bank Account

Strictly separating personal and parking lot finances reduces accounting headaches. Open a dedicated business checking account to easily differentiate individual vs. company transactions.

Apply for a Business Credit Card

Applying for a small business credit card provides benefits like enhanced transaction monitoring, higher spending limits based on expected revenue, and opportunities to earn cash back. Provide projected annual sales and time in business when completing applications.

7. Obtain Licenses and Permits

While mundane, obtaining proper documentation for your parking venture is crucial. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

Nearly all cities and counties mandate a general business license to commercially operate within their jurisdiction. Fees are generally based on company size and revenue. Licensing provides official authorization to conduct business and comply with local codes.

Confirm your planned parking lot adheres to current zoning classifications before purchasing land. Some areas prohibit commercial activity outright. Seek zoning permits if variance requests become necessary after purchase. Attorney guidance proves vital whenever zoning issues arise.

Whether paving a new lot or renovating land already owned, secure building permits before major construction activity. Provide detailed plans outlining the scope of work, necessary materials, equipment uses, and waste management. Permit fees often depend on project size.

Beyond standard business licenses, some locales require specialized approval to operate parking facilities due to public safety considerations. Research if such supplemental licensing applies within your jurisdiction. Requirements may encompass liability insurance, security protocols, attendant training, etc.

Managing rain or snowmelt runoff requires environmental permits, especially for large lots. A plan must demonstrate how the site contains and filters discharge rather than letting contaminants flow freely. Consult an engineer to assess stormwater infrastructure needs specific to the property.

8. Get Business Insurance

Given constant vehicle and customer activity, parking operations require adequate insurance to hedge risk. Policies shield the owner from financial calamity if sued over injuries, damages, or other liability claims. Potential scenarios include:

• The customer slips on the ice in the parking lot and sues for medical bills
• An unattended shopping cart rolls downhill and damages 10 vehicles
• Nighttime theft of customer vehicles due to inadequate security

Without proper coverage, such incidents generate massive legal bills or court judgments against your personal and business assets.

Common parking lot policies to secure include:

• General liability – Protects from premise dangers and 3rd party bodily injury claims
• Property – Safeguards company assets like payment kiosks, fencing, equipment
• Commercial auto – For company-owned vehicles onsite like plows
• Workers comp – Covers injuries to employees

The typical process for obtaining parking lot insurance is:

• Estimate parking spaces and expected annual revenue
• Define needed coverage types and desired limits
• Solicit quotes from multiple business insurance providers like The Hartford
• Compare rates side-by-side accounting for exclusions, deductibles, etc.
• Select carrier and coverage plan that best fits your budget and risk profile

Protect your livelihood by proactively insuring the business before opening. Explore options that allow focusing on day-to-day parking operations rather than dreading the law firm’s next call.

9. Create an Office Space

While parking operations run outdoors, securing office space delivers benefits. An administrative hub allows meeting customers, storing records, and conducting daily business beyond just collecting payments onsite. When evaluating options, consider:

Coworking Space

Shared workspaces like WeWork provide an affordable office alternative at about $300 per dedicated desk monthly. Coworking spaces offer conference room access, front desk services, WiFi, printing/copying, and kitchen areas without requiring lease commitments.

Commercial Office

Lease a standalone office suite in an urban commercial building costing approximately $2,000-4,000 monthly. While most expensive, commercial spaces offer the highest professionalism for meeting clients and provide various size options to accommodate business growth. Just ensure foot traffic and parking needs match the location under consideration.

10. Source Your Equipment

Launching a parking operation requires specialized equipment like access and revenue control systems. When outfitting a new lot, explore these acquisition methods:

Major expenditures like ticket dispensers, pay stations, RFID card readers from Atlas , and license plate recognition technology generally must be purchased new. Expect to invest $15,000 to $30,000+ for these assets when buying outright. Shop options at vendors like TIBA Parking Systems .

Certain items like office computers, printers, and basic security cameras often get resold in working order after short service lives. Scout used marketplaces like Craigslist , Facebook Marketplace , eBay , and Letgo for substantial savings compared to new ones. Refurbished security and IT equipment sell 40-60% below retail on average.

Some parking operators rent or lease short-term for events or overflow periods. Construction equipment like asphalt cutters for lot prep or stripers for painting spaces can cost $300-500 daily. Events also drive demand for temporary fencing, portable toilets, barricades, and more. Party rental outfits offer an affordable option.

Leasing parking systems allows for spreading costs over 3-5 years. This preserves capital for other startup needs. Lease rates factor in residual value and generally permit buyouts should equipment needs change. Companies like Marlin Leasing specialize in funding parking infrastructure.

11. Establish Your Brand Assets

Crafting a distinctive brand identity makes an impression and attracts loyal parking customers. Define logo, name, contact info, signage, and other branding elements to stand out from competitors.

Getting a Business Phone Number

Acquire a professional business phone number through providers like RingCentral . Choose a memorable vanity number customers easily recall. Set up call routing to ring multiple employee cell phones and enable voicemail transcription. Expect costs of around $30 per month.

Creating a Logo and Brand Assets

A logo symbolizes quality and professionalism to customers. Consider an icon representing parking like a “P” lettermark or car silhouette. Simple, versatile logo marks effectively convey consistent branding across platforms. Use online logo makers like Looka to develop concepts matching your vision starting at $20.

Creating Business Cards and Signage

Business cards serve as convenient “leave-behinds” after meeting monthly parkers. Highlight vital info like parking rates, hours, location map, and phone/email. Order 500 cards from Vistaprint for under $20. Large outdoor signs displaying the parking lot name/logo grab street traffic. Prices range from $100-500+ depending on size, materials, lighting, and artwork complexity.

Purchasing a Domain Name

Secure a domain like YourParking [dot] com that’s short and simple to remember. Explore .com availability with Namecheap domain search and register for about $15 annually.

Building a Website

Consider Wix or Fiverr for professional website development or DIY with templates. Showcase parking availability, monthly rates, hours, FAQs, and contact forms to facilitate customer inquiries 24/7.

12. Join Associations and Groups

While running a solo operation, connecting with other parking professionals and industry groups breeds success. Tap these channels to share ideas and boost knowledge:

Local Associations

Industry associations like the International Parking and Mobility Institute (IPMI) and the National Parking Association (NPA) offer networking, research, and training opportunities through local chapters. Attend mixers and conferences to discover best practices. Annual dues run approximately $250.

Local Meetups

Attend small business meetups facilitated by sites like Meetup to connect face-to-face with other parking owners plus vendors and advisors like attorneys, brokers, contractors, etc. Find or organize a “Parking Professionals” group focused on industry issues and innovations.

Facebook Groups

For everyday advice, join parking-related Facebook Groups. These forums have thousands of members discussing technology, operations, marketing tactics, and local trends. Participate in exchanging ideas. Try groups like Small Business Owners and Entrepreneurs to get started.

13. How to Market a Parking Lot Business

Implementing an ongoing marketing strategy is vital for consistent parking lot growth and profitability. With so many options now available, apply targeted outreach across channels to attract area parkers.

Personal Networking

Tapping one’s personal and professional network jumpstarts customer acquisition. Satisfied parkers gladly refer others seeking convenient parking by word of mouth or social media tags. Entice referrals by providing existing customers with discounted monthly rates or free early bird hours for each new parker they send your way.

Digital Marketing

• Run Google Ads with tailored keywords like “affordable parking near me” to get found locally during the search
• Create Facebook ads promoting current availability and easy monthly signup specials to nearby drivers
• Launch a parking lot YouTube channel with tutorials, testimonials, facility walkthroughs, etc.
• Blog about local events that will increase parking demand to position your lot as the go-to option
• Ensure proper SEO implementation on the company website highlighting accessibility, security, and amenities

Traditional Marketing

• Mail promotional flyers to residents and businesses within a half-mile radius
• Place human directional sign holders on nearby street corners during peak parking periods
• Rent a mobile billboard truck to continually circle the area displaying rates and contact info
• Run 30-second radio spots on local stations describing parking perks and availability
• Print full-page newspaper ads in the classifieds and event listings sections

Consistent multi-channel outreach focused on searchers ready to park builds awareness and brand familiarity. This drives recurring parkers and referral businesses over time through word-of-mouth. Monitor marketing performance and double down on the highest converting platforms.

14. Focus on the Customer

Providing an excellent customer experience is imperative for parking lot success. Given the routine nature of the business, individual parkers lack deep loyalty if treated poorly. However, service-focused lots create enthusiastic brand advocates.

Consider going the extra mile when customers experience vehicle issues like dead batteries or flat tires. Keep a jump starter on hand so staff can promptly get parkers back on the road rather than making them wait for tow trucks . Train attendants to assist drivers in lifting heavy items if they return to overloaded vehicles.

Make it easy for monthly parkers by proactively sending renewal reminders and prorating extended absences due to vacations or business travel so customers aren’t overpaying for unused days. Seek feedback via email surveys offering future booking discounts in return.

With nearly 40% of parkers willing to pay more for excellent service, according to Walker Sands research, high-touch efforts boost retention and referrals. Elated customers readily recommend your conveniently located, reasonably priced lot over street parking.

Parking facility success hinges on the entire experience, not just guaranteeing an open space. Go all in on customer service to lock in recurring parkers and amplification of your brand.

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April 9, 2024

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How to Start and Run a Profitable Parking Lot Business: A Complete Guide

Learn how to start a profitable parking lot business from scratch. A step-by-step guide to finding lots, permits, equipment, staffing, marketing, and maximizing revenue.

Have you ever thought about starting your own parking lot business? It may seem like a simple operation, but running a successful parking lot requires careful planning and management. If done right, a parking lot business can generate a solid revenue stream. In this post, we'll walk you through the key steps to get a parking lot business up and running: Finding a good location Determining your business model Handling permits and licenses Purchasing equipment Hiring qualified staff Setting competitive rates Marketing your new business

The Parking Lot Market

The parking lot industry serves a wide range of customers, from local residents and employees to tourists and event attendees. The target audience for your parking lot business will depend on the location and amenities. Lots located near office buildings, retail districts, airports, and event venues will cater more to commercial customers and short-term parking. Residential lots in downtown areas or near apartments will target local residents and long-term monthly parking.

Your Parking Lot Service

The core service you provide is vehicle parking spaces and the infrastructure to support it. However, there are several ways to differentiate your lot and provide added value to customers: •Offer valet parking or shuttle services to transport customers to nearby destinations. This is especially useful for lots serving commercial districts, airports, and event venues. •Provide security monitoring with video surveillance cameras, lighting, and on-site attendants. This helps ensure vehicles and their contents are safe, giving customers peace of mind. •Include additional amenities like EV charging stations, car wash services, oil change stations, or vehicle detailing on-site. These added services are convenient for customers and provide extra revenue opportunities. •For residential or long-term parking, offer reserved covered spaces or garage parking. Provide keycards or codes for 24-hour access. •Keep the lot clean, well-maintained, and clearly marked with parking space lines and directional signs. Make the payment process quick and easy. Excellent customer service and experience will keep people coming back. •Use online platforms to allow customers to reserve and pay for spaces in advance. This convenience can set you apart from competitors. Developing a user-friendly website and mobile payment options is key.

The Economics of a Parking Lot Business

A parking lot business has the potential for strong profits, but you need to manage costs carefully and set competitive rates. Your two main costs will be the lot lease or purchase payments and labor. Additional costs include equipment like payment kiosks, lighting, signage, and maintenance. To determine your rates, research what other lots in the area are charging for similar services. You'll want to price competitively while still generating a good profit margin after covering all your costs. For maximum revenue, use demand-based pricing for special events where you can charge premium rates. For budgeting, estimate your fixed costs like rent, insurance, taxes, and equipment financing. Then determine your variable costs, which will depend on factors like the number of spaces, hours of operation, staffing levels, and additional services offered. Create revenue projections based on your target occupancy and pricing. A good rule of thumb is to aim for at least 60-70% occupancy at any given time to operate profitably. With the right combination of location, competitive rates, and excellent service, a parking lot business can provide stable cash flow and profits. But be prepared for seasonal fluctuations in demand and the occasional slow period. Maintain tight control of costs and cash reserves to weather any downturns. With experience, you'll get better at predicting trends and optimizing your rates and staffing levels to maximize revenue.

Marketing Your Parking Lot Business

A good marketing strategy is key to attracting new customers and filling up your parking lot. Here are some of the most effective techniques: •Search Engine Optimization (SEO): Optimize your website content and meta tags to rank higher in Google search results for terms like "parking near me" or "affordable parking lot." This can drive significant web traffic and new customers. •Social Media Marketing: Create business pages on Facebook, Instagram, and Google My Business to help people find your lot. Post updates, share photos, and engage with your followers. Offer social media promotions and coupons to attract new customers. •Direct Marketing: Canvas local businesses and residences near your lot to spread the word. Offer discounts and promotions for customers who sign up for monthly parking plans. Place flyers and business cards on vehicles already using your lot. •Online Listings: Make sure your business is listed on sites like Yelp, YellowPages.com, and Parking.com. These listings will increase your visibility online and in search results. Offer deals and discounts for customers who check-in or leave reviews on these platforms. •Advertising: Use online ads through Google Ads and social media to target potential customers in your area. Place print ads in local newspapers, especially for grand openings and monthly specials. Sponsor relevant local events, sports teams, and organizations to raise brand awareness in your community. •Referral Programs: Offer existing customers incentives for referring new clients to your lot. Word-of-mouth marketing and personal referrals are very effective for a local business like a parking lot. •Signage: Invest in visible and attractive signs to direct people to your lot from nearby roads and destinations. Large signs with your business name, address, hours, and rates will help raise awareness and make it easy for new customers to find you.

Sales Strategies for Your Parking Lot Business

To maximize revenue for your parking lot, focus on both short-term and long-term sales. For short-term parking, make the payment process quick and convenient using cash, credit cards, and mobile pay options. Offer discounts and coupons to encourage repeat customers. Upsell additional services like car washes or valet parking when possible. For long-term monthly parking, direct sales efforts at local residents and businesses. Visit apartment complexes and office buildings near your lot to promote your monthly parking plans. Offer the first month free or at a steep discount to get people signed up. Provide keycards or codes for 24-hour access along with reserved covered spaces for premium plans. Use your website and social media to allow customers to purchase both short-term and long-term parking in advance. This convenient option may motivate more people to choose your lot, especially for one-time or infrequent parking needs. Offer package deals and bundled plans for customers to save by prepaying for multiple uses. Stay actively engaged with your customers to understand their needs and preferences. Survey users to determine how you can improve their experience and what additional services they may want. Make it easy for people to provide feedback on your website, social media, and via email newsletters. For the best results, take a multi-channel sales approach. While online and mobile options are important, don't neglect in-person direct sales and marketing. Visit local businesses, network at community events, and sponsor relevant organizations to build personal relationships. Word-of-mouth referrals and recommendations from happy customers will drive more sales than any other tactic. With a convenient payment process, valuable added services, competitive rates, and a stellar customer experience, your parking lot business will build a loyal customer base and stable revenue stream. Focus on delivering ongoing value and make sales a natural byproduct of your dedication to exceeding customer expectations every day.

Operations and Execution

For day-to-day operations, you'll need to hire qualified staff to manage the lot, handle payments, provide security, and direct traffic. Staffing levels will depend on the size of your lot and hours of operation. Consider hiring attendants to monitor the lot and help customers in addition to handling payments. Invest in high-quality payment kiosks that accept cash, credit cards, and mobile payments for maximum convenience. Include clearly marked pricing signs with rates for short-term, long-term, and premium parking options. Make sure all equipment is well-maintained and serviced regularly to avoid any downtime. Keep the lot clean, safe, and organized. Schedule regular litter removal, lot sweeping, landscaping, and snow removal. Ensure all signs, space markings, lighting, fencing, and other infrastructure are in good working order. Conduct daily inspections to identify any issues that need to be addressed. Provide on-site security during operating hours, especially for evening and overnight parking. Install video surveillance cameras for additional monitoring. Maintain adequate lighting, emergency call boxes, and clear sight lines throughout the lot. Streamline your payment and accounting processes using parking lot management software. This specialized software can automate space occupancy tracking, payment processing, revenue reporting, and more. For a small business, cloud-based SaaS options may be more affordable and easier to set up than installed solutions. Review key performance metrics like occupancy rates, revenue per space, net operating income, and customer retention rates regularly. Look for any downward trends and make adjustments to rates, staffing, or marketing efforts as needed to optimize your operations. With experience, you'll get better at predicting and managing the ebbs and flows of your business. Running a parking lot business takes diligent oversight and a dedication to efficiency, security, and service. But with the right systems and staff in place, the day-to-day operations can run smoothly, maximizing convenience for your customers and profits for your business. Focus on consistency, quality, and continuous improvement and your parking lot will operate like a well-oiled machine.

Legal Considerations

Before starting a parking lot business, research all applicable laws, permits, and regulations in your city or county. Requirements vary in different locations, so check with your local government for specifics. You will typically need a business license or permit to operate. Zoning laws must allow for commercial parking lots in the area you want to set up. There are also regulations around parking lot design, including space size, drive aisle width, lighting, landscaping, and signage. The Americans with Disabilities Act (ADA) requires provisions for handicapped spaces and access. Make sure your lot will meet all federal, state, and local accessibility standards before opening. Liability insurance is highly recommended to protect yourself from potential lawsuits. Umbrella insurance can also help mitigate risks. You may need additional permits or licenses for valet parking, shuttle services, EV charging stations, or other amenities. Stay up-to-date with any changes to laws or regulations that could impact your business. Failure to comply can result in legal trouble, fines, or even being shut down. When in doubt, check with a parking lot consultant or lawyer to make sure you meet all requirements before and during operations.

Starting a parking lot business requires careful planning but can be very rewarding. Find a suitable location, determine your business model, acquire proper permits, and invest in quality equipment to get up and running. Focus on competitive rates, excellent service, and convenience for your customers. Use online marketing and direct sales tactics to spread the word and build a loyal customer base. Streamline operations with the right software and dedicated staff. Meet all legal requirements to avoid compliance issues. With hard work and persistence, you can build a parking lot business that generates stable cash flow and profits over the long run. While not the flashiest of industries, parking lots provide an essential service and the opportunity for a successful small business. Follow the steps in this post, start small, keep costs low, and grow at a sustainable pace. You'll be well on your way to entrepreneurial success with a simple but profitable parking lot business.

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How to Start a Parking Lot Business

Looking for rare gems to diversify your RE portfolio? Investing in parking lots may be the answer.

In the U.S. alone, the parking lot and garage market is worth $10 billion , with the market on an upward trend since the pandemic in 2022. 

According to an interview with CNBC, one of the two largest players in the parking lot industry, SP Plus (SP+), estimates an accelerated growth in their business of “high single-digits” in 2023 and beyond:

But is owning a parking lot a smart investment for you ? What pros and cons should you consider?

And, if you decide to invest, how do you buy and manage a parking lot?

Read on to find out all of that and more.

Are parking lots a good investment? Pros and Cons

We touched on the potential of a parking lot business a moment ago, but let’s dive into the full pros and cons.

There are some big positives to consider, but also a few cons you’ll want to be aware of that should be factored in. 

Consider these points when thinking about whether to invest in a new parking lot business: 

Pro: Low maintenance

If you invest in rental property, you can breathe a sigh of relief: maintaining a parking lot is significantly less work.

In exchange for constantly replacing sinks, repairing roofs, and cleaning and updating entire properties when tenants move, as a parking lot business owner, you typically just need to the following:

• Keep your asphalt clean
• Reapply paint for parking lines when they start to fade
• And the occasional maintenance on your payment terminals

Pro: Offers a stable, recurring income with high profitability

Investing in a parking lot business is highly profitable due in part to low overhead as well as the ability to freely increase rental rates to protect from inflation. 

In addition, by leasing your lot to a third-party operator (as opposed to managing it yourself), you get the benefit of a stable recurring income with a high level of predictability and virtually no overhead. 

List your unused space

People are earning $1,000s per year from their garages and outdoor space.

Approve your renters

You're in control. Approve who rents and the hours of access.

Get paid monthly

Sit back and collect automatic payments each month.

Pro: Potential for conversion

An often overlooked benefit of investing in a parking lot business is that it offers the potential for conversion and redevelopment in the future.

With very little development time to get the lot up and running, you can turn a profit quickly while paying down the land.

Then, in the future, you can sell that location to someone for development for a large potential profit. 

Pro: Growing (and consistent) demand

Another benefit of investing in a parking lot business is its incredible resilience in the face of economic change.

The parking lot industry is relatively recession-proof. There are not only more vehicles on the road than ever before– more than 275 million , according to the latest statistics– but people’s driving habits remain largely unchanged no matter the economic climate: 

Even when recreational driving is down, work never stops. Especially when it comes to the city, people are always looking for affordable parking . 

That can make downtown areas and business districts particularly good areas for investing in a parking lot. 

Con: Lot leases can be expensive

Now, let’s cover a few of the cons.

Investing in a parking lot comes with several major pros, but a few cons exist as well.

One of those is that lot leases can be very expensive to take on.

Depending on how you invest in real estate– namely, rentals– you might be accustomed to this already and know that it comes with the territory.

However, if you’re primarily a flipper or use similar strategies, the high overhead could be a turn-off.  

Make sure the numbers work out for you before taking the first big step. The last thing you want is to make a big investment in a lot and realize your margins aren’t high enough to justify the investment. 

Con: You need to consider management

When it comes to investing in rental property, management is a given. It’s no different with parking lot businesses.

A successful parking lot business requires:

• Parking lot attendants (depending on how you set up payment)
• Maintenance

A moment ago, we touched on how the level of overhead and maintenance necessary with a parking lot business is far lower than a typical commercial apartment complex.

However, it still stands that you’ll need to hire a management team, namely parking attendants, to manage your lot. 

This can take time and often a little trial-and-error to find a team that works for you. 

So, make sure to factor that into your calculations when estimating expenses and your potential return. 

Con: High competition and location dependent

Where there is high profitability and demand, there’s inevitably going to be high competition.

While this isn’t something to shy away from– it’s competitive because it’s profitable, and so many want to get in on that profit– it is something to keep in mind when you consider marketing and projecting profits.

Particularly when thinking about where to purchase your lot (how much competition is there? How well are the lots in the area managed?). 

If you pick a bad location, you’ll barely get by and never realize the potential of your investment. 

Earn $1,000s per year with your unused space

How profitable are parking lot businesses.

In the last section, we touched on the fact that a parking lot can be profitable, but just how profitable?

Given you’ll likely already have one or more other investments in place, it can be useful to gauge what kind of returns you can expect to see from the average lot compared to your other properties.

Keep in mind that the location and overhead can greatly impact your level of revenue and profitability. 

However, here are a few high-level numbers to give you an idea: 

• Average initial investment: $10,000-30,000
• Development time: 1-3 months
• Revenue: $70,000 – 350,000 average (Varies greatly depending on lot size)
• Profit: 30-40% (Not factoring in third-party management) 

By all measures of real estate investing, those are great numbers. 

One important factor, however, is third-party management which can eat into your profits. 

Is a parking lot passive income?

A parking lot can be a decent source of relatively passive income if you use a third-party management company . 

While it will eat somewhat into your profits (like hiring a property manager), a great choice is to have your lot managed by an established lot management company. 

In exchange for a percentage of profits, you’ll obtain 100% hands-off management from a professional company that knows what they’re doing. 

This will turn the lot into a consistent source of near-passive income, though in exchange, you give up control. 

How to buy a parking lot and start your parking lot business

So far, you should have all the information you need to decide if investing in parking lots (or parking garages) is right for your portfolio.

Now, let’s talk about how to buy a parking lot.

By no means is this list exhaustive, but it should give you a much better idea of what to expect and look for when purchasing a parking lot or other car space:

Here’s how to start a parking lot business:

1. Find a location with (ideally growing) demand

If you’re a seasoned property investor, you know the game here.

You don’t just want to find a great price and a location where other parking lots seem profitable.

You also need to find a location where demand is high. And, preferably, where demand is growing . 

This will not only ensure profitability now but also well into the future. 

Some ideal areas to consider for your new parking facility include:

• Near airports
• Repurposing old properties in developing business districts
• Quickly growing urban areas
• Parking extensions for large community centers such as shopping malls
• Or areas without a lot of street parking or other free parking (the ideal location for many parking lot businesses)

If you have a target market, consider where they’re currently parking their vehicles during work and play and try to see if you can find a location that would offer them greater convenience. 

2. Consider how you’ll acquire the initial capital

The necessary capital for purchasing a parking lot of average size is relatively low compared to other property investment types.

With that said, you’ll still need to acquire, on average, somewhere between $10,000-30,000 initial capital for the land purchase as well as money for:

• Redevelopment (if you’re converting an old property into a lot)
• Management, and
• Initial maintenance

Private equity investors are the obvious choice here. There are dedicated firms that offer capital to developers investing in a parking lot business. 

However, they’re generally hard to get access to and shouldn’t be counted on.

Another option is good ol’ cash straight from your business bank account, as the initial capital can be relatively low (especially for a small lot if you’re just starting out).

Finally, if you have a small portfolio and you’re looking for simple ways to diversify, you could look into developers offering small numbers of parking spaces (or even a single space) of their lot to investors as a starting point.

In that kind of agreement, the developer typically uses your investment capital to maintain the lot and continues managing it themselves, offering an interesting, fully passive income opportunity on a small scale. 

3. Decide on your revenue model(s)

There are several ways to drive revenue with parking lots, but you’ll want to have an idea of what your primary methods and parking services are before development begins. 

One popular option is to set up automatic payment stations that have dynamic pricing programmed into their terminal. 

For example, higher pricing on the weekend and evenings with lower pricing in the morning and on weekdays.

Or, if it’s in a business district, you could offer a special monthly rate to encourage recurring customers to become members or valet parking.

Those members receive a discount in exchange for paying for a full month upfront, as many locations in Los Angeles offer. 

Alternatively, you can lease your entire lot to a third-party management company. 

They’ll run your lot for you, allowing you to collect recurring payouts based on a percentage of profit after paying for expenses and the management company’s cut. 

4. Set your rates

Lastly, it’s time to decide on your rates.

This will directly tie into the last point of deciding on your revenue model as the model you choose will impact your profitability.

To figure out your rates, look at the other lots in the surrounding area and see what they’re charging at various times of the year and your average week. 

Factor in their proximity to notable destinations when considering pricing differences, and how that impacts your lot’s location. 

Lastly, consider your overhead, including everything from payroll for attendants to business insurance and even one-time costs such as initial equipment investment, security cameras, business license fee, etc.

Diversify with your own parking lot business

Investing in parking lot businesses can not only diversify your RE portfolio, they can also be a profitable and worthwhile investment in their own right.

Plus, a peer-to-peer marketplace like Neighbor can allow you to make the most of your investment and drive revenue in a way you never could before.

With Neighbor, you can fill your lot vacancies– such as during a slow season– allowing you to maximize the profitability of your parking lot investment year-round.

Learn more about becoming a storage host with Neighbor .

No matter what tools you use, we hope this guide helped you get a clear idea of how to start a parking lot business and whether it’s the right investment for you.

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5-Step Guide to Creating a Foolproof Parking Lot Plan

Why Your Parking Lot Plan Matters 

If you build it, they will park.

If only launching a new parking lot were that simple. But it isn’t–to actually succeed with your new parking operation, you need to prepare for success from the beginning. And that means making a parking lot plan.

To maximize your revenue, optimize your customers’ experience, and streamline your operations, follow these five steps to build your parking lot plan. 

Step 1— Determine Your Goals

Start with why you’re building a parking lot. Do you want to accommodate overflow from events? Are you serving the residents of an apartment complex? Are you meeting future parking needs in a growing city center?

Once you’ve identified your why , it’s time to think about your who . Different drivers have different needs, and you need to anticipate and meet those needs. A shopping center parking lot may need devoted spaces and charging stations for electric vehicles. At a highway truck stop, you’ll need spots for drivers to store their 18-wheelers.

Defining your objective and your audience early is essential because they’ll guide subsequent decisions you make.

Step 2— Be Intentional With the Design 

With clear goals to guide you, it’s time to shape the parking lot itself. As you map out your project, consider:

• The size of the lot
• The number of spaces. Make sure you account for local regulations and codes. 
• The size of the spaces
• The angle of the parking spaces. In lots with high turnover you’ll need spaces angled at 45 to 60 degrees to ease ingress and egress. If you’ll primarily serve overnight parkers or employees, consider space-saving 90-degree angles.
• Pavement thickness. If you need to accommodate 18-wheelers or electric vehicles, you may need thicker pavement to support their extra weight. The soil beneath your parking lot matters, too–if your pavement is thicker than the ground can support, it will need more regular maintenance and repair.
• Number of handicap spaces
• Traffic signage in and around the parking lot 
• Location and number of concrete parking barriers
• Location and number of ramps 
• Landscaping. There’s a reason “parking” starts with “park” — with smart use of trees, bushes, and other greenspace, your parking lot can offer respite. Landscaping also helps mitigate environmental impacts.

Step 3— Implement Proper Safety Precautions 

A sound business plan and thoughtful design won’t matter if customers don’t feel safe in your parking lot. Give your parkers peace of mind with a safety and security plan that includes:

• Security cameras. Place cameras strategically to cover your entire parking lot and mitigate crime.
• Powerful, comprehensive lighting. Use high capacity lighting, and position your light sources to ensure maximum coverage. That will also improve safety by increasing visibility for drivers. 
• Access control. Studies show that open-access parking facilities have higher crime rates. An access-control system limits exposure to unauthorized users. It’s also an opportunity for integration with your parking management system , which can give you real-time data on operations and transactions.
• On-site security. Hiring a security guard isn’t cheap. But if an emergency occurs, rapid, expert response is crucial.

Step 4— Utilize Cutting-Edge Technology 

Your parking operation is a system, and your parking lot is just one (very significant) part of it. But the success of the lot depends on the technologies you adopt on and around it. Your parking technology plan should include:

• Mobile payment solution: Your parking customers expect the same seamless payment experience they get in a grocery story. Give it to them with a fast, secure, user-friendly payment solution .
• Contactless payment solution: Make payment even simpler with a trusted, PCI-compliant contactless payment system .
• Business intelligence solution: You’ll need to measure inventory, utilization, personnel, transactions, throughput, and revenue. Implement a comprehensive business intelligence solution that tracks all those metrics and gives you actionable reporting on them. 
• Parking pass solution: Tailor parking options for tenants and repeat customers with a flexible parking pass solution . Monthly passes and manual payments are relics; with a modern parking pass system, customers will get the smooth, custom experience they expect, and you’ll get the reporting and revenue you need.

Step 5— Elicit Customer and Employee Feedback 

Creating and implementing your new parking lot are essential steps–but they’re not the final ones. 

To meet ever-changing customer demands and organizational needs, continuously elicit and act on feedback from your users and employees. There are many ways of doing this, from short customer surveys to regular employee conversations. 

Respond to feedback with incremental improvements, and you’ll create a competitive advantage. Over time, the energy you invest will reap new revenue.

Speak to a Parking Expert 

It may seem daunting to make and execute a plan that covers everything from objectives, design, safety, technology, and customer satisfaction. The good news is that you don’t have to do it alone. Contact an experienced parking specialist today .

Detailed Business Plan for a Parking Lot Business

Parking lot businesses, especially in big cities, are very profitable. Here you will find a comprehensive guide on how to develop a parking lot and operate it on a profit basis.

Before planning for the business you should exactly know how to start a parking lot business and it requires contacting a lawyer to find out about the laws and zonal regulations required to operate a parking lot business.

There are three different ways in which parking lots operate, these are as follows:

• Management Contract.
• Lease Agreement.
• Property Ownership.

It is quite a lucrative business and the data produced by Statista shows that by 2024, the parking lot business market would be around $ 11.27 billion.

If you are new to this, then we suggest that you should make a start in a small town to gain experience and improve your brand recognition and then expand nationally.

A step-by-step plan to develop a parking lot business

To start your parking lot business plan, you must follow these steps.

Do some research about your potential customers

Conduct a demographic and psychographic composition study to know more about your target audience who are likely to avail of your parking service. This customer base includes both males and females who are 18 years and above and have the financial resources to own their automobiles.

Level of competition

You must find out about your main competitors and try to ensure that your services are better than theirs to attract more people to avail of your parking services. Some of the top parking lot companies in America include the following.

• ABM Industries
• USA Parking System Inc
• Park Go Fly USA
• Luxe Valet and more

What is the initial cost?

When you are planning to start your parking lot business, then you have the option to either invest in the franchise of a well-known parking lot company or you can build your own from scratch. Both have their pros and cons. You must make a careful calculation of which one of the above two modes is best for you. The initial cost you have to pay to start your own parking lot business will depend upon a lot of things like the purchase or rental of the lot, outright by or lease of equipment such as lift gates, security cameras, and transaction machines.

If you are looking for a covered Garage, then it would cost more. However, if you are trying to develop a small outdoor parking lot in a smaller city in the US, then you would need $10,000 as start-up capital. However, in the cities, big undercover garages with multiple levels can cost upward of millions of dollars based on their size and location.

How much would it cost to operate a parking lot business?

Parking lots and garages are comparatively low-maintenance businesses. If you want to make your business a success, then you have to carefully analyze the operational cost of running a parking lot. You must do your cost analysis properly so that your venture is economically viable. The average monthly expenditure for a small open parking lot in a small city would be somewhere around $5000 per month. It includes the following.

• The average mortgage or rent payment is an average of $ 2000 per month (it is a $0.5 per square foot rate).
• Parking lot attendants’ wages are $2240 per month ($10 per hour and 56 hours per week). If you want to keep your parking lot open at night also, then you should double this amount.
• Employer’s portion of taxes to be paid for employees is on an average $336 per month.
• Utilities that include lighting are around $200 per month.
• Insurance is approximately $100 per month.
• Supplies approximately $100 per month.

Plan for the best suitable legal entity (C Corp, LLC, or S Corp)

If you are planning to run a small parking lot business, then sole proprietorship is ideal for you. You will need minimum start-up capital which is great for a small neighborhood. However, if you plan to expand after a few years, then sole proprietorship is not an option for you. Then you have to register your company either as an LLC or a general partnership.

Find an attractive business name

The name of a company plays an important role in its recognition. You should get a catchy business name that would help you to create a positive perception of your business in the mind of your target audience. Make sure that the name you choose is easy to pronounce and remember.

Get the best insurance policies

To operate a parking lot business, you would need insurance to safeguard your financial interests in case of an accident or other eventualities. You must create a budget for your insurance premium after you consult an insurance broker to get the best insurance policies specific to your business. Some of the insurance policies related to the parking lot business in the USA include the following:

• General insurance.
• Liability insurance.
• Workers’ compensation.
• Overhead expenses and disability insurance.
• Payment protection insurance.
• Health insurance.
• Risk insurance.
• Building/property insurance.
• Business owner’s policy group insurance.

Know about the legal documents you would need to operate

To run a parking business, you have to get some legal documents. You should get your lawyer to get these legal documents for you. Some of these legal documents include the following.

• Federal Taxpayer’s ID
• Business and Liability Insurance
• Certificate of Incorporation
• Business License
• State Permit
• Business Plan
• Operating Agreement for LLCs
• Insurance Policy
• Employment Agreement (offer letters)
• Company Bylaws
• Online Privacy Policy Document (if you have an online payment portal)
• Memorandum of Understanding (MOU)

Choosing Suitable Location

Choosing the right location for your business is also important for its success. Therefore, when you are looking for a site keep in mind these factors:

• How much traffic is in that area?
• Is the area close to the downtown shopping center?
• Does the zoning law allow you to create a parking lot there?
• Does your target audience find the place convenient to use for parking?
• The land price.
• How much area do you need to build your parking lot? And more.

Raise start-up capital

You would need start-up capital for buying customized software apps, business licenses, tags, wages for your workers, and so on. If you have a workable business plan document, then you will find it quite easy to convince your bank or investors to lend you money to start your business.

In addition to all of the above, you also have to hire employees, create an effective marketing strategy, work out reasonable pricing for the services you are providing, and so on.

A detailed business plan would help you to figure out how much start-up capital you will need, what legal documents you have to apply for, the challenges you will face from your competitors as well as the business environment. Therefore, you should hire an expert in this field to create a workable business plan that would allow you to go to your investors and convince them to invest their capital in your venture and earn profit.

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Start a Parking Lot Business

Transforming Empty Spaces: Unlock Prosperity with a Parking Lot Business

PARKING LOT BUSINESS

Related business ideas, discover your perfect domain, parking lot mini business plan, business quick facts: parking lot business, expected percent margin:, earnings expectations:, actions to hit those numbers:, location acquisition:, setting the right price:, marketing and customer acquisition:, operations:, additional revenue streams:, not what you had in mind here are more ideas, grab your business website name, overview of steps, step 1: determine if a parking lot business is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name the business, register the business name, develop a logo, create a website, step 3: obtain necessary licenses, step 4: find a suitable location, step 5: acquire the necessary equipment, parking lot equipment, security equipment, step 6: market the business, develop a marketing plan, utilize social media, step 7: hire employees, determine number of employees needed, considerations for hiring, step 8: establish policies and procedures, create employee handbook, set rules and regulations, step 9: monitor and maintain the business, explore more categories, take the next steps.

How To Start A Parking Lot Business

Parking lots can be a lucrative opportunity for small business owners, entrepreneurs, and corporations. They are in high demand, especially in large cities, and they generate revenue with little day-to-day maintenance required. If starting a parking lot business sounds like a good fit for your long-term goals, you'll need to consider many things such as location, permits, and customer service to get your business up and running as quickly as possible.

Why You Should Start a Parking Business

Starting a parking business can be a good decision for many reasons. It's a relatively easy business to get into, and all you need is a suitable piece of land and some basic infrastructure. As our cities and suburban areas continue to expand, there will be a higher demand for parking, so you are sure to have customers. Many people prefer to be close to their destination, and they are often willing to pay a small amount to park in a secure, nearby location. If you learn how to start a parking lot business correctly, it can be very lucrative, and you'll be providing a valuable service to your community.

Check Local Laws For Permits & Licensing Requirements

Before you head out and start looking for property, there are a few things you need to keep in mind. First and foremost, you'll need to check with your local laws to see if there are any permit or license requirements. Knowing the requirements will keep you from getting into any legal trouble. To get started, you'll need to contact your local zoning office to see if there are any restrictions on operating a parking business in your area.

Once you have the green light from your local authorities, you'll need to obtain a business license. You can usually apply for a business license through your state's Department of Revenue or Secretary of State office. In most cases, you’ll need a parking lot permit to operate your business. The requirements are stricter if you plan on operating a covered lot or garage.

Find a Suitable Location

During the planning phase of your business, one of the most important factors is location. The perfect spot is near high-traffic areas like shopping malls, movie theaters, and airports that already have paid parking . In this case, competition means you’ll have customers—being the only paid lot in an area likely means that people can park for free elsewhere.

Many people assume they need an empty lot, but unused buildings with existing parking lots—such as an out-of-business store—can often work just as well.

Determine Paving, Painting, & Equipment Costs

To position your parking business to earn income immediately, you must determine paving, painting, and equipment costs beforehand to be successful. Paving a lot is at least $2 per square foot, meaning you’ll likely need several thousand dollars upfront. If the existing lot is safe enough to pass inspection, you can save money by re-paving at a later date.

In addition, you need to factor in the costs of essential equipment, such as on-site parking payment machines , pay stations , line striping machines, pressure washers, or even a staffed booth. Keep in mind that your objective is to generate profits. Therefore you must implement the proper procedures to control the flow of revenue and keep it secure to prevent theft. By doing your research and learning how to start a parking lot business the right way, you can get a realistic idea of your costs and ensure your new venture will succeed.

Get Business Insurance & Determine Pricing

To protect yourself from legal issues or lawsuits, you'll need to obtain the necessary insurance coverage for your business and protect it from potential liabilities. There are a few different types of insurance coverage that you should consider for your parking lot business. The first is general liability insurance, which will protect you from any injury claims. And then there's property insurance to protect your lot and equipment from damage or theft.

Once you have your insurance and business license, you're ready to determine your pricing. The amount you charge for parking will depend on several factors, including the location of your parking lot and the demand for parking in the area. Consider offering a monthly pass to attract business people and students who need to park in the same area every day.

Call B.I.G.

By obtaining the proper zoning, permits, and required licenses, you'll be ready to start your parking business. Whether you need a simple payment machine or a secure entrance booth, contact B.I.G . We ship prefabricated materials all across the United States and are happy to answer any questions about your project. Visit our gallery to see what we can create.

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Businessing Magazine

Entrepreneuring     Lillian Connors    January 21, 2018     3 min read

How to Start a Parking Lot Business

With the increasing number of personal vehicles roaming the streets, starting up a parking lot business might seem like a profitable business venture. However, as with every business venture, there are key considerations you need to take into account in order to ensure a successful and affluent future.

People are in growing need of a place to park , however finding the right way to monetize such a demand requires prudent planning and a sound start-up strategy. From staffing and security, to pavement quality and toll options, here is a complete guide on how to start your parking lot business.

Site Consideration and Selection

When scouting for the perfect location for your new business, there are several key factors you’ll need to consider. Firstly, you want to assess the volume of daily traffic around the parking lot area. Look for places near downtown shopping centers. Make sure the site is convenient for people to use, paying special attention to its proximity to relevant buildings in the area.

Next, you want to check if the local governing bodies allow for parking lot construction, and be sure to inquire about the land prices as well. Lastly, consider the type of lot you want to run: a parking garage, or a parking lot. Although a parking garage offers much more space and can be monetized more efficiently, the costs involved in construction and management are substantially higher.

Monetizing Your Parking Lot Business

One of the most important aspects of running a parking lot is figuring out how to best monetize your new business venture. There are three ways you can go about this problem. The first is trusting customers to pay for parking based on how long they park. This method should be avoided at all costs.

The second solution would be to have a gate staffed by a cashier who collects parking fees. This is a reasonable solution although it can have its downsides associated with the risk of human error and organization. The last, and most effective and efficient solution is an automated payment system.

An electronic gate with an automated payment system will not only allow your regular customers to feel safer parking their car in your lot, but it will virtually guarantee every parking session is paid. You want to make sure people cannot take advantage of your parking lot without paying, and an automated system might be the most cost-effective long-term solution .

Paving the Lot

Another crucial element of running a parking business is the quality of your lot’s pavement. The pavement needs to be in constant top condition, if you want to stand a chance of attracting and retaining customers long-term in the overly competitive market.

In addition to regular cleaning and maintenance, you’ll first need to prepare the area for coating and sealing. Make sure the surface is clean, devoid of any dirt or debris, potholes or other irregularities. You then want to apply durable concrete sealers to the surface in order to provide the pavement the protection it needs to withstand high amounts of vehicle traffic on a daily basis.

As far as paving costs go, you can expect to pay anywhere from $1.25 to $1.50 per square foot, for a 50,000-square foot lot. Remember, the bigger the parking lot, the likelier you are to pay less for every square foot. Always hire certified professionals to handle a project of this magnitude.

Security and Staffing

Finally, you’ll need to consider the number of employees and departments your parking business is going to have. While your up-front cashier and your accountant will be the two essential people behind your success, you will need more staff members if you plan on making it big.

You will need a maintenance staff to keep the lot clean 24/7, and you can even consider a valet service if your lot experiences high volumes of traffic every day. People appreciate not having to search for an empty space themselves, so while something like a valet department is a sound investment, remember that operating costs will also rise exponentially.

The number of vehicles on the streets is increasing with each passing year. This is the right time to invest in a parking lot business; however, the process of monetizing your investment will require some prudent planning. Be sure to follow these steps and you will have a much easier time getting your parking lot business off the ground and on the road to success.

Lillian Connors

Lillian is a senior business consultant and the co-editor at Bizzmarkblog.com . She's mainly focused on business optimization and sustainable growth. In her leisure time, she likes to lose herself in a good book or drink a couple of hoppy pale ales.

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How to Start and Operate a Parking Lot Business

Learning how to start and operate a parking lot business requires almost perfect research. When you start this type of business, you will need a sufficient cash flow to start and keep the business operating. Putting together the research and obtaining the cash is the two biggest obstacles you will face. Basically, the business owner will charge customers for parking their cars in a garage or a parking lot. You will charge the customers based on the market supply and demand. The fastest way to make money is to establish a detailed business plan. Obtain one parking lot with 20 spaces and charge $10.00 a day to each customer. You will make $200.00 each business day. Operate three parking lots and you can make $12,000 a month.

Things You'll Need:

Computer with Internet Access

Cash at least $5,000-$10,000

Home Office

Reliable Transportation

Step 1 Raise and Obtain Cash

Decide how much money you can afford to spend to help you start and operate a parking lot business. Do not borrow money or go into debt while getting your garage or parking lot company started. Work extra jobs and sell stuff around your home to raise and obtain cash.

Step 2 Work at a Parking Garage Business

Perform volunteer work to help you start and operate a parking lot business. Tell the parking lot garage owner that you want to do volunteer work at his company for 90 days so that you can write the experience on your resume. Learn exactly what the business entails and how it operates each business day. Try to interview the owner and ask him how he started this business.

Step 3 Perform Business Research

Perform business research to help you learn how to start and operate a parking lot or a garage business. Contact a real estate agent and inform him that you are trying to locate a 10 to 20 space parking garage or parking lot. Use the real estate agent as a resource to help you evaluate properties that will give you the highest income potential based on the research.

Step 4 Parking Lot Business Plan

Develop a business plan to help you start a parking lot business. Design a marketing section so that you will know exactly how you plan to get customers to use your parking services. Create a management section to help you and your staff operate the garage company efficiently each day. Make sure you implement a financial plan so you will be able to monitor the cash flow.

Step 5 Apply for Business License

Apply for a business license and you are almost ready to launch your parking lot company. Take a trip to your city or county office and complete all the necessary paperwork to start a parking lot business. Visit or call your state's department of revenue and register for a state tax identification number. Call the IRS at (800) 829-1040 and apply for your federal tax identification number. Use the tax numbers to pay your taxes.

Step 6 Operating a Parking Lot Business

Operating a parking lot business is not hard to do if you can follow these instructions. After you have obtained the property, make sure the parking lines are painted and numbered. Rent out the spaces and place signs that states you are not responsible for lost, stolen, or damaged property. Subscribe to the National Parking Association newsletter to help you learn more specific information about what is involved in operating a parking lot or a parking garage business (see reference section). Taking these steps will help you start and operate this business.

Buy general liability insurance for a parking lot or parking garage to protect the business against lawsuits.

Hire an attendant to collect fees and monitor the lot or garage during peak hours.

Market your services to businesses and residents in your parking lot area(s).

Try to get parking lots and garage parking areas where the traffic is high (i.e., convention centers, civic centers, downtown shopping centers, shopping malls, sports arenas,etc.).

Do not overlook condemned buildings because they can be convert to parking lots or parking garages.

Read books and magazines to keep you updated on new trends and new technology.

Invest money into the business by obtaining security cameras and by hiring security guards if necessary.

Find out what your competitors are doing and copy the successful companies.

Make sure you understand your strengths, weaknesses, opportunities, and threats.

Grow the business very slowly and keep a very close eye on the expenses and revenues.

Get free help from the Small Business Administration especially if you do not know how to write a parking lot business plan.

Keep in mind that your lot or garage has to meet the requirements of Americans Disability Act.

National Parking Association

National Parking Association eNewsletter

International Parking Institute

There is No Such Thing as Free Parking

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International Business Times- Paving Paradise: It's Time to Reinvent the Parking Lot

How To Start A Parking Lot Business

by Interesting Startups | Aug 24, 2023 | Business Blueprints | 0 comments

Are you looking for a lucrative business opportunity that promises steady income and long-term success? Look no further than the parking lot business. With the increasing number of vehicles on the road and the growing demand for parking spaces, starting a parking lot business can be a smart and profitable venture. In this comprehensive guide, we will take you through the step-by-step process of starting your own parking lot business. From understanding the industry to conducting market research, from navigating legal requirements to designing an efficient parking lot layout, we will cover everything you need to know to set up and run a successful parking lot business. Stay tuned for the upcoming sections, where we will dive deep into each topic, providing detailed information, tips, and examples to help you navigate the process of starting your own profitable parking lot business.

Effective Communication and Order Management

In any business, effective communication is key to success, and the parking lot business is no exception. As a parking lot owner or manager, you need to establish clear lines of communication with your staff, customers, and other stakeholders to ensure smooth operations and customer satisfaction.

One of the first steps in effective communication is to establish a reliable and efficient order management system. This system will help you keep track of incoming and outgoing vehicles, manage parking reservations, and handle any special requests or inquiries from customers. By implementing an intuitive and user-friendly order management system, you can streamline your operations and minimize errors.

To effectively communicate with your staff, it is crucial to provide clear instructions and guidelines. Ensure that your employees understand their roles and responsibilities, as well as any specific protocols or procedures that need to be followed. Regular training sessions and updates can help reinforce these guidelines and keep your team aligned with your business objectives.

In addition to internal communication, it is essential to establish effective communication channels with your customers. Provide them with multiple options to reach out to you, such as phone, email, or an online customer support system. Respond to inquiries promptly and professionally, addressing any concerns or issues they may have. By providing excellent customer service and communication, you can build trust and loyalty among your customers.

Furthermore, consider incorporating technology into your communication strategy. For instance, you can implement a mobile app or website where customers can make reservations, pay for parking, or receive updates on available spaces. This not only enhances convenience for your customers but also allows you to gather valuable data and insights for business analysis and improvement.

Listen For Feedback To Help Improve Your Parking Lot Business

Remember, communication is a two-way street. Encourage feedback from both your staff and customers. Actively listen to their suggestions, concerns, and ideas for improvement. By valuing their input and incorporating their feedback into your operations, you can foster a culture of collaboration and continuous improvement.

Market Research and Planning

Before launching your own parking lot business, conducting thorough market research and planning is essential. This step will help you make informed decisions and increase the chances of success for your venture. Let’s explore the key aspects of market research and planning for your parking lot business.

Identifying potential target markets for your parking lot business  

The first step in market research is identifying potential target markets for your parking lot business. Consider factors such as the density of vehicles in the area, the presence of commercial establishments, office buildings, shopping centers, or tourist attractions. Assess the parking needs and preferences of these potential customers to determine the demand for parking spaces.

Analyzing the competition in your desired location  

Next, analyze the competition in your desired location. Research existing parking lots in the area and evaluate their offerings, pricing strategies, and customer satisfaction levels. Identify any gaps or opportunities where you can differentiate your parking lot business from the competition. This analysis will help you understand the market dynamics and develop a competitive edge.

Understanding the demand for parking in your area

To assess the demand for parking in your area, gather data on factors such as population growth, vehicle ownership rates, and commuting patterns. Consider peak hours, weekdays versus weekends, and any special events or seasonal fluctuations that may impact parking demand. This information will help you determine the optimal size and capacity of your parking lot.

Conducting a feasibility study for your parking lot business

A feasibility study is crucial to assess the viability of your parking lot business. Evaluate the financial aspects, including initial investment costs, ongoing expenses, and potential revenue streams. Consider factors such as land acquisition or leasing costs, construction or renovation expenses, staffing, maintenance, and marketing. Analyze the potential return on investment and determine if the business is financially sustainable.

Creating a comprehensive business plan for your venture

Once you have gathered all the necessary information, it’s time to create a comprehensive business plan for your parking lot venture. A well-developed business plan outlines your goals, strategies, and financial projections. It serves as a roadmap to guide your operations and attract potential investors or lenders. Include key sections such as an executive summary, company description, market analysis, organizational structure, marketing and sales strategies, financial projections, and risk assessment.

By conducting thorough market research and planning, you can gain valuable insights into your target market, competition, and the financial viability of your parking lot business. This groundwork will set a solid foundation for your future success. So, take the time to gather data, analyze the market, and create a comprehensive business plan.

Legal and Regulatory Requirements

Starting a parking lot business involves navigating various legal and regulatory requirements to ensure compliance and operate within the law. Understanding and fulfilling these obligations is crucial for the long-term success and sustainability of your business. Let’s explore the key legal and regulatory considerations for your parking lot venture.

Registering your parking lot business and obtaining necessary permits and licenses

To establish your parking lot business as a legal entity, you will need to register it with the appropriate government authorities. This typically involves selecting a business structure (such as sole proprietorship, partnership, or corporation) and completing the necessary registration forms. Consult with a business attorney or local business registration office to ensure you meet all legal requirements.

Additionally, you may need to obtain specific permits and licenses to operate a parking lot business. These requirements vary by location but may include permits for land use, construction, signage, and environmental compliance. Research the local regulations and consult with relevant government agencies to identify the specific permits and licenses you need to acquire.

Understanding zoning regulations and land use restrictions

Zoning regulations and land use restrictions dictate how land can be used within specific areas. Before establishing your parking lot, ensure that the proposed location complies with the zoning regulations for commercial or mixed-use purposes. Some areas may have restrictions on the size, layout, or even the existence of parking lots. Research the local zoning ordinances and consult with the appropriate zoning authorities to ensure compliance.

Complying with ADA accessibility requirements

The Americans with Disabilities Act (ADA) sets forth accessibility standards to ensure equal access for individuals with disabilities. As a parking lot business, you must comply with ADA accessibility requirements, including designated accessible parking spaces, appropriate signage, and accessible pathways. Familiarize yourself with the ADA guidelines and consult with accessibility experts or professionals to ensure compliance and accessibility for all customers.

Obtaining liability insurance for your parking lot

Liability insurance is essential to protect your business from potential lawsuits and claims. Accidents or damages that occur on your premises, such as vehicle collisions, theft, or personal injuries, can result in costly legal proceedings. Secure comprehensive liability insurance coverage to safeguard your business and assets. Consult with insurance providers specializing in commercial liability insurance to determine the appropriate coverage for your parking lot business.

Familiarizing yourself with local parking regulations and laws

In addition to general legal requirements, it is crucial to familiarize yourself with local parking regulations and laws. Each municipality may have specific rules regarding parking fees, time limits, signage, towing, and enforcement. Stay informed about any changes or updates in local parking regulations to ensure compliance and avoid penalties or fines.

By understanding and fulfilling the legal and regulatory requirements, you can establish your parking lot business as a legitimate and compliant operation. Consult with legal professionals, government agencies, and insurance providers to ensure that you meet all necessary obligations. By doing so, you will operate your business with confidence and mitigate potential legal risks.

Location Selection and Design

The location of your parking lot can significantly impact its success. Choosing the right location and designing an efficient and user-friendly layout are crucial steps in establishing a profitable parking lot business. Let’s explore the key considerations for location selection and design.

Evaluating potential locations for your parking lot business

When evaluating potential locations for your parking lot, consider factors such as proximity to high-traffic areas, commercial centers, tourist attractions, or public transportation hubs. Look for areas with limited parking options or where demand exceeds supply. Assess the accessibility, visibility, and ease of entry and exit for vehicles. Additionally, consider the availability and cost of land or lease options in these areas.

Assessing the size and layout requirements for your parking lot

The size and layout of your parking lot will depend on various factors, including the expected demand, available space, and local regulations. Conduct a thorough analysis of the projected parking needs in the area to determine the optimal size of your lot. Consider factors such as the number of parking spaces, the layout for efficient traffic flow, and any additional facilities such as parking attendants’ booths or payment kiosks. Balancing maximum capacity with ease of navigation is crucial to provide a positive user experience.

Designing an efficient and user-friendly parking lot layout

The design of your parking lot layout should prioritize efficiency, safety, and convenience for customers. Consider implementing one-way traffic flow, clear signage, and designated areas for accessible parking, electric vehicle charging stations, and bicycle parking. Optimize the spacing between parking spaces to accommodate various vehicle sizes comfortably. Incorporate well-lit areas, security cameras, and landscaping elements to enhance the overall aesthetics and safety of the parking lot.

Considering environmentally sustainable practices in your parking lot design

In today’s environmentally conscious landscape, incorporating sustainable practices into your parking lot design can be advantageous. Consider implementing features such as permeable pavement to minimize storm water runoff, LED lighting for energy efficiency, and solar panels to generate renewable energy. Additionally, provide designated spaces for carpooling or electric vehicle charging stations to promote sustainable transportation options.

Deciding on the amenities and facilities to offer in your parking lot

To differentiate your parking lot business from the competition, consider offering additional amenities and facilities. This could include providing car wash services, valet parking, bicycle repair stations, or even partnering with nearby businesses to offer discounts or loyalty programs. The availability of these value-added services can attract more customers and enhance their overall experience, leading to increased customer satisfaction and loyalty.

By carefully evaluating potential locations, determining the appropriate size and layout, incorporating user-friendly design elements, considering sustainable practices, and offering desirable amenities, you can create a parking lot that meets the needs and expectations of your target market. A well-designed parking lot can enhance customer satisfaction, attract repeat business, and ultimately contribute to the success of your parking lot business.

Operations and Marketing Strategies

Once your parking lot is up and running, effective operations and marketing strategies are essential to attract customers and ensure smooth day-to-day operations. In this section, we will explore the key considerations for managing the operations of your parking lot business and implementing effective marketing strategies.

Hiring and training staff for your parking lot business

Your parking lot business relies on a competent and customer-focused team. Hire staff members who are reliable, customer-oriented, and possess excellent communication skills. Roles may include parking attendants, cashiers, customer service representatives, and maintenance personnel. Provide comprehensive training to ensure that your staff understands their responsibilities, customer service protocols, safety procedures, and how to use any necessary equipment or technology.

Implementing effective parking management systems and technologies

To streamline your operations and enhance customer experience, consider implementing parking management systems and technologies. This may include automated ticketing systems, license plate recognition systems, online reservation systems, or mobile payment options. These technologies can improve efficiency, reduce waiting times, and provide customers with convenient and seamless parking experiences.

Setting competitive pricing and payment options for your parking lot

Pricing is a critical factor for attracting customers to your parking lot. Conduct market research to determine competitive pricing in your area and consider factors such as location, demand, and available amenities. Additionally, offer various payment options to cater to customer preferences, including cash, credit cards, mobile payment apps, or prepaid cards. Flexibility in payment methods can enhance customer satisfaction and convenience.

Developing a marketing and advertising plan for your parking lot business

To attract customers and increase visibility, develop a comprehensive marketing and advertising plan for your parking lot business. Consider various channels such as online platforms, social media, local directories, and collaborations with nearby businesses or event organizers. Develop a strong brand identity and create compelling marketing messages that highlight the unique features, convenience, and benefits of parking at your lot. Additionally, leverage customer reviews and testimonials to build trust and credibility.

Building relationships with local businesses and organizations for partnerships

Collaborating with local businesses and organizations can be mutually beneficial for both parties. Establish partnerships with nearby establishments, such as hotels, restaurants, or event venues, to offer exclusive discounts or package deals for their customers. This cross-promotion strategy can increase awareness of your parking lot and attract a new customer base. Additionally, consider participating in community events or sponsoring local initiatives to enhance your brand visibility and community engagement.

By hiring and training competent staff, implementing efficient parking management systems and technologies, setting competitive pricing, developing a robust marketing plan, and building partnerships with local businesses, you can ensure the smooth operation and growth of your parking lot business. These strategies will help attract customers, enhance customer satisfaction, and establish a positive brand reputation in the market.

Conclusion: Key Takeaways

Congratulations! You’ve now gained a comprehensive understanding of how to start a parking lot business. Let’s recap the key takeaways from each section and explore the next steps you can take to turn your parking lot business into a thriving venture.

Introduction to the Parking Lot Business

In the introduction, we discussed the potential of the parking lot business as a lucrative opportunity. We highlighted the benefits and challenges of starting this type of business and provided an overview of the parking lot industry.

During the market research and planning stage, we emphasized the importance of identifying potential target markets, analyzing the competition, understanding the demand for parking, conducting a feasibility study, and creating a comprehensive business plan. Thorough research and planning will lay the foundation for your parking lot business’s success.

We explored the legal and regulatory requirements that you need to navigate when starting a parking lot business. These include registering your business, obtaining permits and licenses, understanding zoning regulations, complying with ADA accessibility requirements, obtaining liability insurance, and familiarizing yourself with local parking regulations and laws. Compliance with these requirements is crucial for the smooth and legal operation of your business.

Choosing the right location and designing an efficient parking lot layout are essential for attracting customers and ensuring a positive user experience. We discussed evaluating potential locations, assessing size and layout requirements, designing an efficient and user-friendly layout, considering environmentally sustainable practices, and deciding on amenities and facilities to offer in your parking lot.

In the operations and marketing strategies section, we highlighted the importance of hiring and training staff, implementing effective parking management systems and technologies, setting competitive pricing and payment options, developing a marketing and advertising plan, and building relationships with local businesses and organizations for partnerships. These strategies will help you provide excellent customer service, streamline operations, attract customers, and enhance your parking lot’s visibility in the market.

Next Steps To Consider

Now that you have a comprehensive understanding of starting a parking lot business, it’s time to take action. Here are the next steps you can consider:

• Secure funding: Evaluate your financial needs and explore funding options such as business loans, grants, or investments to finance your parking lot business.
• Acquire the necessary resources: Purchase or lease the land, equipment, and technology required for your parking lot operations.
• Establish your business: Register your business, obtain the necessary permits and licenses, and ensure compliance with legal and regulatory requirements.
• Build your team: Hire and train competent staff members who will contribute to the success of your parking lot business.
• Design and construct your parking lot: Utilize the insights gained from location evaluation and design considerations to create an efficient and user-friendly parking lot.
• Implement marketing strategies: Develop a comprehensive marketing and advertising plan to promote your parking lot business, attract customers, and build brand awareness.
• Continuously evaluate and improve: Regularly assess your operations, gather customer feedback, and make improvements to enhance the customer experience and drive business growth.

Remember, starting a parking lot business requires dedication, attention to detail, and a customer-centric approach. By implementing the insights gained from this guide and adapting to the evolving needs of your customers, you can establish a successful and profitable parking lot business. Thank you for reading our guide on how to start a parking lot business.

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How to Start a Parking Lot Business

If you’re looking for a business opportunity that doesn’t require a lot of investment or overhead, consider starting a parking lot business. In addition to earning a decent income, it’s also a great opportunity to work in the transportation industry. This blog post will discuss the basics of starting a parking lot business, from licensing and permits to marketing and customer service.

What is a Parking Lot Business?

A parking lot business services people who need to park their vehicles and related businesses. There are many types of packing lot businesses, from those that offer long-term parking to those that only provide short-term parking, and those businesses run around the parking areas.

To start this business, you must find a suitable location and obtain the necessary documents from the government authorities. Once you have these things in place, you can start advertising your business and attract customers.

Types of Parking Lot Businesses

In addition to offering parking lot services, there are all sorts of businesses that one can set up in parking lots. Here are just a few examples:

• Food Trucks: These mobile eateries serve everything from gourmet burgers to ethnic cuisine. They’re usually parked in high-traffic areas like downtown business districts and near event venues.
• Car Washes: A car wash is an excellent business in a parking lot because it’s compact and doesn’t require a lot of space. Plus, there’s always a steady stream of customers looking to clean their cars.
• Detail Shops: Like car washes, detail shops offer another service people need. Having one in a parking lot makes it convenient for customers to get their cars detailed while running errands or going to work.
• Food Carts: These are usually hot dog carts or ice cream trucks. They choose high-traffic areas outside of stadiums, zoos, and parks.
• Towing Services: This is more of an emergency service but can do well if located near busy roads or highways.
• Auto Repair Shops: Another service people are always in need of, and having one

How to Begin Your Parking Lot Business

To start your business, you must have the initial capital to help with the setup. You also need to know the cost of the equipment, the amount of rent you will need to pay, and any government restrictions. You also need to know how you will track your customers and general receipts for them.

You will need a parking management system to keep track of your customers. You need to invest in good software before starting your business. Finally, you also need to have goals. That is, how much on average do you want to make with your business, and how are you going to achieve that.

Key Things You To Keep In Mind Before Starting

• Do your research. It’s important to research that business well and know the challenges therein before starting
• You need to find the right location. The perfect parking lot location is close to businesses and other attractions
• Create a pricing structure. You’ll want to consider demand, competition, and time limits when creating your prices
• You need to hire employees. Depending on the size of your parking lot, you may need to hire one or more employees. They will be responsible for collecting money, directing traffic, and enforcing time limits.
• Once you have everything in place, you can start marketing your parking lot business to potential customers. You can advertise through online websites as well as in newspapers. You can also hire sales associates to help in marketing.
• You can also put up signs in nearby businesses and distribute flyers in the area. With some hard work and dedication, you can soon start earning money from your very own parking lot business!
• You need to maintain your parking lot. This includes things like sweeping up debris, painting lines and fixing any damage that may occur

Why You Should Start a Parking Lot Business

A parking lot business can be a great option if you’re considering starting a business. Below, we highlight why you should consider starting this type of business.

• You can be your boss – This means that you will be the one to control everything. No one is coming to push you around as you are your manager.
• You can choose your hours – Another benefit of being your boss is choosing your hours. If you want to work early mornings or late nights, you can do so without having to answer to anyone else.
• You can make a good income – A parking lot business can be quite profitable if done right. Depending on your services, you can increase your prices, and many people will be willing to pay if you offer top-notch services.
• You can be creative – When you own your own business, you have the opportunity to be creative and come up with new ideas to attract customers
• You can help the environment – If you choose to start a green parking lot business, you can help the environment by providing electric car charging stations or investing in solar panels.
• You can give back to the community – Another great benefit of starting a parking lot business is giving back to the community. You can donate a portion of your profits to local charities or causes.
• You’ll learn new skills – Running your own business will teach you new skills that you may not have otherwise had the opportunity to learn
• You’ll meet new people – As a business owner, you’ll have the chance to meet new people and network with other business owners
• You’ll have fun – Last but not least, owning your own business can be great! You get to set your own goals and see your hard work pay off
• You can make a difference – Finally, by starting your own parking lot business, you can make a difference in your community. You can provide employment opportunities for others and help to boost the local economy.

These are just some of the benefits of starting a parking lot business. This may be the perfect option if you’re thinking of starting your own business!

9 Things To Avoid When Running a Parking Lot Business

Running a parking lot business can be a gratifying experience. However, you should avoid a few things if you want to be successful. Here are ten things to avoid when running a parking lot business:

• Paying too much for your property: When you’re first starting, buying the most expensive property you can afford is tempting. However, this is often a mistake. It’s better to purchase a less expensive property and reinvest the money you save into other aspects of your business.
• Not doing enough research: Before starting your parking lot business, research must be done. There are many factors to consider, such as location, competition, and pricing. If you don’t take the time to do your research, you could end up making some costly mistakes.
• Not having a solid business plan: A solid business plan is essential for any successful business. Making your parking lot business profitable will be challenging without a business plan. Make sure to take the time to develop a comprehensive business plan before you get started.
• Pricing too low: One of the most common mistakes new parking lot businesses make is pricing their services too low. While it’s essential to be competitive, you must also ensure you’re charging enough to cover your costs and make a profit.
• Not marketing your business: Marketing is one of the most important aspects of running a successful parking lot business. No one will know if you don’t market your business. Use various marketing techniques, such as online marketing, print advertising, and word-of-mouth.
• Not being customer-focused: Your customers are the most critical part of your parking lot business. Without customers, you won’t have a business. Always put your customers first and provide them with the best possible experience.
• Ignoring the competition: It’s essential to keep an eye on your competition. If you ignore them, they could quickly take away your customers. Always be aware of what other parking lot businesses are doing and make sure you’re offering something better.
• Not having enough capital: One of the biggest mistakes made by new businesses is not having enough capital. Make sure you have enough money to cover your expenses, including property, marketing, and operating costs.
• Not being prepared for growth: Many businesses make the mistake of not being prepared for growth. If you want your parking lot business to be successful, you need to be prepared for it to grow. Make sure you have the necessary infrastructure to support a more significant business.

Are you ready to start a parking lot business? We hope this article has given you the information you need to start. You can always experiment with different ideas because what works for one person may not work for another.

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Until the day driverless taxis replace personal cars, there's a need for parking spaces. To open a for-profit parking lot, you need land, money for paving and some way to collect from your customers. You'll also have to decide whether you want the location staffed or automated.

Start With a Plan

Every successful business starts with a well thought-out business plan. Create a marketing section so you know whether there's a market for your parking lot and how you will persuade customers to use your parking services. Develop a management section with broad goals and objectives to help you run the parking lot business efficiently. Be sure to develop a financial plan so can attract the required level of investment and maintain a healthy cash flow.

Finding a Site

Before starting your parking lot business, you need a location. Among the factors to consider:

• Is there enough traffic in the area to make your business profitable? Areas close to downtown shopping or convention centers are often good places to look.
• Is the site convenient for people to use?
• Does the zoning allow you to build a parking lot?
• How much more parking does the area need? Talk to people in the area about parking, and see if your local government has studies of parking needs. 
• What are the land prices? 
• Would you prefer a parking garage or a parking lot? A garage uses space more efficiently by offering several floors of parking spaces, but the cost is immensely higher. 

Don't just look at empty lots. An abandoned building might offer the perfect site, though you'll have to add demolition expenses to your startup costs.

The Price of Paving

To give your lot the smooth asphalt surface it requires, you'll have to hire skilled professionals. The larger your parking lot, the lower the cost per square foot: A 50,000 square foot parking lot could cost around $1.25 to $1.50 per square foot.

Your local government probably has standards for parking lot construction. You'll have to comply to get a construction permit. As part of compliance, you'll need a drainage plan so rain doesn't flow off your lot and flood neighboring areas.

Getting In and Out

There are three ways to design your parking lot entrance:

• No gate. You trust customers to pay based on how long they park.
• A gate staffed by a cashier who collects the money.
• An electronic gate with an automated payment system.

The first option is cheapest but runs the highest risk of people using a space and not paying. A cashier costs more over time than a fully automated system, but a human cashier is more flexible than a machine at handling problems or complaints.

You must also decide whether you want people to pay every time they use a space or set up a payment-in-advance service, where drivers pay by the month to get a guaranteed space. In some cases you can do both: take advance payments to reserve spaces for local businesses during the day but open it up for special-event parking at night.

Staffing and Security

Your up-front cashier probably won't be the only person you employ at the lot. Someone's going to have to keep it clean, for instance. If you have a large, busy lot, customers might welcome valet parking rather than find a space themselves. The more people you employ, the more your costs rise, though.

You also need to spend to keep your lot as secure. Closed-circuit TV and good lighting are the minimum to discourage thieves and attackers. It might be worth hiring human security guards as well.

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Fraser Sherman has written about every aspect of business: how to start one, how to keep one in the black, the best business structure, the details of financial statements. He's also run a couple of small businesses of his own. He lives in Durham NC with his awesome wife and two wonderful dogs.

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Last Updated on January 1, 2024 by Arif Chowdhury

Thinking about starting a parking lot business? Many entrepreneurs should seize the opportunity in the new business industry that’s booming with investment potential and offers a niche market for profitability.

While it may seem like just an empty lot, a well-managed parking garage can be a lucrative investment. Whether you choose to pave the lot or lease it to others, there are plenty of opportunities to make money.

But before you dive in, location is key. The success of many entrepreneurs in the parking lot niche hinges on finding the right place to lease where demand for parking is high and competition is low.

Starting a parking lot business involves careful consideration of several factors for many entrepreneurs. Investment in the company and forming partnerships are essential steps in this process.

Many entrepreneurs will need to decide whether to lease or buy a lot for their business plan, choose between operating as a sole proprietorship or partnership, and navigate the legal requirements to increase sales. But don’t worry – we’ve got you covered! In this guide, we’ll walk you through everything you need to know to launch your own successful parking lot business.

So buckle up and get ready to explore the ins and outs of the parking lot industry, where entrepreneurs can use their sales skills to pay.

From finding the perfect location to understanding the financial aspects , we’ll help you make informed decisions every step of the way.

Skills needed for success in the parking lot industry

Success in the parking lot industry demands a combination of technical expertise, operational efficiency, customer service acumen, and a keen understanding of urban infrastructure.

Navigating this sector requires a blend of managerial prowess, technological innovation, and a proactive approach to address the evolving needs of both businesses and consumers.

1. Knowledge of Local Zoning and Permit Regulations

To successfully start a parking lot business, it is crucial to have solid skills in sales and be knowledgeable about the local zoning and permit regulations. Additionally, having experience working on a website can also greatly benefit your business.

This knowledge will help you work and pay for the skills required to navigate through legal requirements and ensure that your website operates within the confines of the law. Familiarize yourself with the specific regulations in your area to enhance your skills, such as parking space dimensions, signage requirements, and any restrictions on operating hours or locations.

This will greatly benefit your work and ensure compliance with the website guidelines. Explore different ways to navigate these regulations effectively.

2. Strong Customer Service and Communication Skills

Customer service is key in any business, including the parking lot industry. As a parking lot owner or manager, you will interact with customers daily.

Having strong customer service skills will enable you to provide excellent assistance to parkers in parking lots, address their concerns related to the product, and handle any conflicts that may arise at work.

Good communication skills are also essential for effectively conveying information about rates, policies, and procedures, as well as managing time, coordinating work, and handling email in efficient ways.

3. Ability to Manage Finances and Handle Cash Transactions Securely

Managing finances is an integral part of running a successful parking lot business. It involves working with various financial products and finding ways to make the most of your time.

You need to work to keep track of revenue from daily transactions, monitor expenses such as maintenance costs or employee wages, and ensure accurate record-keeping for tax purposes.

These are essential ways to ensure the accuracy of your product and save time. Since cash transactions are common in this industry, it is crucial to have secure systems in place to handle cash safely and prevent theft or fraud.

4. Understanding of Maintenance and Repair Requirements for Parking Lots

Maintaining a well-functioning parking lot requires knowledge of maintenance and repair requirements. Regular upkeep ensures that your parking spaces are safe for customers’ vehicles while minimizing potential liabilities.

This includes tasks such as regular work cleaning to remove debris or snow accumulation, ensuring proper lighting for product security purposes, and repairing potholes or cracks promptly to prevent damage to vehicles.

Having an understanding of these maintenance needs will help you create a positive experience for parkers while protecting your investment in our product.

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Identifying the target market for your parking lot business

To start a successful parking lot business, it’s crucial to identify your target market . Understanding who your potential customers are and their specific needs will help you tailor your product and attract more clients.

Let’s explore some key strategies for identifying your target audience in the parking lot industry. These strategies can help you better understand your audience and tailor your product offerings to meet their needs.

1. Analyzing Local Demand for Parking Spaces

Begin by analyzing the local demand for parking spaces in your area. Look at factors such as population density, commercial activity, transportation infrastructure, and product.

Are there any areas with limited parking options? Are there frequent events or attractions that draw large crowds to your product?

By assessing these factors, you can identify potential hotspots where demand for parking is high.

2. Identifying Potential Customers

Once you have identified areas with high demand for your product, it’s important to narrow down your potential customers.

Consider different groups that may require parking services, such as commuters, event attendees, office workers, or individuals in need of a product. Each group will have unique needs and preferences.

For example, commuters may prefer long-term parking options near public transportation hubs for their daily commute, while event attendees might look for convenient short-term parking near venues to accommodate their event attendance.

In both cases, finding the right parking product is crucial for a smooth experience.

3. Assessing Competition and Pricing Strategies

Next, evaluate the competition in your target market and study their pricing strategies to gain insights on how to position your product effectively. Take note of how they position themselves in terms of cost and service offerings.

This analysis will help you determine how to differentiate yourself from competitors and attract new customers. You could offer competitive pricing packages or additional amenities like secure facilities or valet services to stand out from the crowd.

4. Evaluating Seasonal Variations in Demand

Be aware that demand for parking spaces can vary throughout the year due to seasonal factors. For example, tourist destinations may experience peak seasons where visitor numbers surge significantly. Understanding these variations will enable you to plan and capitalize on increased demand during certain times of the year.

You may learn more about your target market by researching local demand in-depth, figuring out which possible client groups to target, examining the competition, and taking seasonal variations into account. This information will direct your decision-making and assist you in concentrating your efforts on drawing in the appropriate clientele.

Keep in mind that operating a parking lot business involves more than simply offering spots for vehicles; it also entails meeting the unique requirements of your target market. You may make a name for yourself in the market by providing competitive pricing methods and customizing your services to meet their needs.

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Cost and financial considerations for starting a parking lot business

Starting a parking lot business requires careful consideration of the costs involved to ensure a successful venture.

Let’s dive into the various financial aspects you need to take into account when embarking on this entrepreneurial journey.

1. Estimating Startup Costs

To get your parking lot business up and running, you’ll need to estimate the initial expenses. These include costs such as land acquisition or lease expenses, construction, equipment, and signage. Researching local real estate prices and assessing the size of the lot you require will help determine the approximate cost of acquiring or leasing suitable land.

Once you have secured the location, construction costs come into play. This involves preparing the site, paving it with asphalt or concrete, installing lighting fixtures, erecting barriers or gates, and creating designated parking spaces. Obtaining quotes from contractors will give you an idea of how much these construction-related expenses might amount to.

Don’t forget about equipment costs. This includes purchasing parking meters or ticketing machines, surveillance cameras for security purposes, payment systems like credit card readers, and signage to guide customers efficiently.

Quick Note: The initial capital required for a parking lot business can vary significantly based on location, size, and amenities. A rough estimation for a small-scale operation might range between $50,000 to $100,000, covering expenses such as land acquisition or lease, equipment (payment machines, barriers), lighting, signage, insurance, permits, and initial staffing. Larger or more urban-centric lots may require considerably higher startup capital.

2. Calculating Ongoing Expenses

In addition to startup costs, it’s crucial to consider ongoing expenses that will be incurred while operating your parking lot business. These include utilities such as electricity for lighting and any automated systems in place. Insurance is another essential expense that protects your business from potential liabilities.

Staffing is an important aspect too; depending on the size of your parking lot, you may need attendants or security personnel to assist customers and ensure a safe environment. Maintenance costs should also be factored in for regular upkeep such as cleaning services and repairs.

Marketing costs are often overlooked but can greatly impact your business’s success. Allocating funds towards advertising efforts like online promotions or local advertisements will help attract customers and increase occupancy rates.

3. Exploring Financing Options

With an understanding of both startup and ongoing expenses, you may find that financing is necessary to kick-start your parking lot business. Several options are available, including obtaining loans from financial institutions or seeking partnerships with investors who believe in your business idea.

When approaching lenders for a loan, having a well-prepared business plan that outlines your revenue projections and anticipated costs will greatly increase your chances of securing funding. Investors may be enticed by the potential profitability of your parking lot business and offer capital in exchange for a share of the profits.

4. Developing Revenue Projections

To ensure the financial viability of your parking lot business, it’s crucial to develop revenue projections based on expected occupancy rates and pricing structures. Conduct market research to determine the average fees charged by other parking lots in the area and set competitive prices accordingly.

Consider factors such as location, demand, and any additional services or amenities you can provide to attract customers. Calculate how many vehicles you expect to park daily or monthly and multiply it by the price per hour or day to estimate potential revenue. This projection will help you gauge whether your business will generate enough income to cover expenses and make a profit.

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Steps to register and comply with legal requirements for your parking lot business

Starting a parking lot business requires more than just finding the perfect location and setting up the physical infrastructure.

It’s crucial to ensure that your business is registered and compliant with all the necessary legal requirements. Here are the steps you need to follow:

Registering Your Business with Relevant Government Authorities or Agencies

To operate a legitimate parking lot business, you must register your company with the appropriate government authorities or agencies. This process typically involves obtaining a business license , which allows you to legally conduct your operations.

Check with your local government office or small business association for specific registration requirements in your area.

Obtaining Necessary Permits or Licenses Required to Operate a Commercial Parking Facility

In addition to registering your business, you will likely need to obtain permits or licenses specifically related to operating a commercial parking facility. These permits ensure that your business meets certain safety standards and regulations set by local authorities.

Be sure to research and apply for the required permits, such as zoning permits, occupancy permits, or special event permits if applicable.

Complying with Local Building Codes and Safety Regulations

When establishing your parking lot, it’s essential to comply with local building codes and safety regulations. These codes are put in place to ensure that structures are constructed safely and meet certain standards.

Familiarize yourself with these codes and work closely with architects, contractors, or engineers who can help design and construct your parking facility according to these regulations.

Ensuring Compliance with Accessibility Laws by Providing Accessible Spaces

Another important aspect of running a parking lot business is ensuring compliance with accessibility laws . These laws require businesses to provide accessible spaces for individuals with disabilities. Make sure that a portion of your parking spaces are designated as accessible spots, complete with proper signage and markings according to accessibility guidelines.

You may correctly register your parking lot business and adhere to legal regulations by following these steps. Keep in mind that local rules and regulations may differ, so it’s important to learn about and comprehend the particular needs in your area.

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Setting up operations, staffing, and ensuring security for your parking lot business

Designing an efficient layout for maximizing space utilization:

The first thing you should think about is creating a layout that makes the most use of available space. To guarantee efficient traffic flow, parking spots, driveways, and entrances/exits must be carefully planned. You can fit more cars and provide your clients with a better experience by optimizing the arrangement.

Some key considerations when designing your parking lot layout include:

• Determining the number and size of parking spaces based on local regulations and market demand.
• Creating clearly marked lanes and aisles to guide drivers and prevent congestion.
• Providing accessible spaces for individuals with disabilities.
• Incorporating green spaces or landscaping elements to enhance aesthetics.

Implementing ticketing systems or technology solutions for tracking vehicles:

To effectively manage your parking lot business, implementing a ticketing system or utilizing technology solutions can greatly streamline operations. These systems help track vehicle entry and exit times, monitor occupancy levels, and provide accurate data for billing purposes.

Here are some popular options for ticketing systems or technology solutions:

• Traditional ticket dispensers: These machines issue paper tickets upon entry that customers use to pay when leaving.
• Automated payment kiosks: Customers can enter their ticket or license plate number into a self-service kiosk to calculate their fees and make payments.
• License plate recognition (LPR) systems: Cameras capture license plate information upon entry/exit, eliminating the need for physical tickets.
• Mobile apps: Customers can use mobile applications to reserve spots in advance, pay fees digitally, and receive notifications about availability.

Hiring reliable staff members to manage operations effectively:

Managing a parking lot business involves various tasks such as directing traffic flow, assisting customers with payments or inquiries, and ensuring overall smooth operations. Hiring reliable staff members is crucial to providing excellent customer service and maintaining efficient day-to-day operations.

Consider the following when hiring staff for your parking lot business:

• Look for individuals who are responsible, attentive to detail, and possess good communication skills.
• Provide thorough training on customer service, conflict resolution, and operational procedures.
• Consider background checks and reference checks to ensure the reliability of potential employees.
• Create a positive work environment that fosters teamwork and encourages employee satisfaction.

Installing surveillance cameras or security measures to ensure customer safety:

Customer safety is of utmost importance. Installing surveillance cameras or implementing other security measures can help deter criminal activity and provide peace of mind to your customers.

Here are some security measures you can consider for your parking lot:

• Install surveillance cameras strategically throughout the premises to monitor activity.
• Ensure proper lighting in all areas of the parking lot to enhance visibility and discourage illicit activities.
• Implement secure entry/exit gates with access control systems to prevent unauthorized entry.
• Train staff members on emergency protocols and establish clear lines of communication with local authorities.

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Quick Note: What do you think about boosting your parking lot business’s website SEO using social media ? It’s not just about the posts; it’s about engagement. From sharing user-generated content to utilizing trending hashtags, social platforms like Instagram and Twitter can amplify your online presence. Leveraging these channels effectively can drive traffic to your site, enhancing SEO rankings and attracting potential customers looking for parking solutions. Ready to give your business a digital parking spot at the top?

Effective marketing and sales strategies for attracting customers to your parking lot business

To ensure the success of your parking lot business, it’s crucial to implement effective marketing and sales strategies that will attract customers and generate revenue.

Here are some key strategies you can employ:

Creating a Professional Website with Online Booking or Reservation Options

In today’s digital age, having a professional website is essential for any business. For your parking lot business, consider creating a user-friendly website that showcases your services and allows customers to book or reserve parking spaces online. This convenience will not only attract tech-savvy customers but also streamline the booking process for everyone.

• Provides a convenient way for customers to book parking spaces.
• Enhances professionalism and credibility of your business.
• Allows you to showcase additional services or promotions.
• Requires initial investment in website development.
• May need ongoing maintenance and updates.

Utilizing Social Media Platforms to Promote Your Parking Lot Business

Social media platforms such as Facebook, Instagram, and Twitter offer excellent opportunities for promoting your parking lot business. Create engaging content that highlights the benefits of choosing your parking lot over others in the area. Use eye-catching visuals, share testimonials from satisfied customers, and run targeted ads to reach potential clients.

• Wide reach potential with billions of active users on social media platforms.
• Cost-effective advertising options compared to traditional methods.
• Allows direct interaction with customers through comments and messages.
• Requires consistent effort in content creation and engagement.
• Can be time-consuming if not managed effectively.

Collaborating with Local Businesses or Event Organizers for Cross-Promotion

Teaming up with local businesses or event organizers can be mutually beneficial. Explore partnerships where you can cross-promote each other’s offerings. For example, offer discounted rates to customers who visit nearby establishments, or provide parking services for events in your area.

• Expand your reach by tapping into the existing customer base of partnering businesses.
• Increases brand visibility through cross-promotion efforts.
• Creates a sense of community and collaboration.
• Requires establishing and maintaining relationships with other businesses.
• May involve negotiating terms and agreements.

Offering Loyalty Programs or Discounts to Attract Regular Customers

One effective way to attract customers and encourage repeat business is by offering loyalty programs or discounts. Consider implementing a point-based system where customers earn rewards for frequent visits.

Provide exclusive discounts to regular clients as a way to show appreciation for their continued support.

• Encourages customer loyalty and repeat business.
• Incentivizes new customers to choose your parking lot over competitors.
• Helps build a strong customer base.
• May impact revenue initially due to discounted rates.
• Requires careful tracking and management of loyalty program benefits.

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Key Takeaways

Well done on finishing the portions that offer insightful advice on launching and operating a profitable parking lot business!

By now, you should be aware of the fundamental abilities required in this field, have pinpointed your target audience, thought through the financial implications, registered your company, established operational and security protocols, and created successful marketing plans. You have a great chance of succeeding as a parking lot business owner!

To ensure continued success, remember to stay proactive in adapting to changing trends and customer demands. Keep an eye on emerging technologies that can enhance your operations and improve customer experience.

Focus on building strong relationships with local businesses and organizations to attract regular customers. By providing exceptional service and maintaining a safe environment for vehicles, you will create a loyal customer base that will help your parking lot business thrive.

Frequently Asked Questions (FAQs)

How much space do i need to start a parking lot business.

The amount of space required for a parking lot business depends on various factors such as location, target market, and anticipated demand. Generally, it is recommended to have enough space to accommodate at least 20-30 vehicles initially. Conducting thorough market research will help you determine the appropriate size for your specific area.

What permits or licenses do I need for my parking lot business?

The permits and licenses required for a parking lot business may vary depending on your location. Contact your local municipality or city government office to inquire about the necessary permits such as zoning permits or special use permits. It is crucial to comply with all legal requirements to operate your parking lot legally.

How should I price my parking services?

Pricing strategies can vary based on factors like location, competition, amenities provided, and demand in the area. Consider conducting market research to understand what other parking lots charge in your area. Offering discounts or loyalty programs could attract more customers while ensuring competitive pricing.

What security measures should I implement in my parking lot?

To ensure the safety of vehicles and customers, it is essential to implement security measures such as installing surveillance cameras, adequate lighting, and visible signage. Employing trained staff members who can monitor the premises and respond promptly to any security concerns is also crucial.

How can I effectively market my parking lot business?

Marketing your parking lot business requires a multi-faceted approach. Utilize online platforms like social media, search engine optimization (SEO), and local directories to increase visibility. Collaborate with nearby businesses for cross-promotion opportunities, offer incentives for referrals, and consider advertising in local publications or radio stations to reach a broader audience.

Remember that success in the parking lot industry comes from providing exceptional service, ensuring customer satisfaction, and staying ahead of the competition. Good luck on your journey as a parking lot entrepreneur!

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Parking lot business – The planning guide

With a significant increase in the number of malls and shopping complexes in urban as well as semi-urban areas, there is a grave need for a fine arrangement in parking. According to Statista , in Europe alone, the smart parking market is likely to report more than USD 19 billion.

For this lucrative business, tech entrepreneurs have a tickling fancy to learn the parking app development procedure. If that is the case with you, you need a foolproof parking lot business plan, and then you find and opt for the best mobile app development company that suits your requirement.

Table of Contents

Why is parking lot business profitable?

Is parking lot business profitable? This is an unavoidable question for any business person. Well, digital solutions can leverage optimum business benefits for entrepreneurs. A parking lot application can assure a steady income source because of low maintenance and high demand in the market. An average of USD 60 can be charged per space per day in the downtown area, according to industry experts.

Demand in market : parking space business is on the rage these days. Hence, there is a fair chance that your parking services shall gain you a steady revenue and assured profit.

Social cause : if you believe more in contributing to a noble cause, a parking lot startup is a great initiative. You can save fuel by allotting parking spaces in a jiffy and offering visitors the pleasure of hassle-free organization at the event.

Less physical engagement : Since the parking lot business plan includes operating the venture through a parking space mobile app, you don’t need to be physically present at the spot. There is no groundwork required once you have settled everything in the first stage.

According to Business Wire , the US parking lots and garage industries have reported their worth of nearly USD 10 billion despite the historic hit of the pandemic. The growth forecast is even stunning with a whopping annual growth of 4.8% through 2023. That said, there will be a grave need for parking lot applications for iOS and Android platforms.

A step-by-step guide to start a parking lot business

Finding parking space has become one of the biggest hassles for urban dwellers, and the problem is not just restricted to one particular event or concert, it is a regular issue in metro cities. To start a parking lot business comes with two major options: you already have a parking space or you don’t own one. In both cases, the strategies for building a parking space business diff.

You own a convertible space

This is the best part. If you own space or ground it is convenient to convert it into a parking lot. Here are a few steps you need to mind while doing it –

Parking lot size

You need to decide on the parking lot size because if you are doing it for a university, the space required is much larger than compared to a restaurant. Some industries define code requirements for parking based on the square feet of the space. Even further, you should also mind the space per vehicle which is generally 9X19 feet to accommodate any domestic vehicle of guests.

Pavement thickness

The asphalt holds the entire weight all day and, therefore, durability is a key concern for any parking lot business. The quality of soil and other pavement materials matters depending on the thickness you want.

Parking space angles

Angles with 45-60 degrees are considered an ideal measure for parking slots; thus, maintaining it while building newer spaces shouldn’t be missed. It is evident that a parking space angle of 90 degrees creates a big hassle.

Layout design

Following layout design guidelines shall help you manage your parking space business smoothly. A number of factors are kept in mind while creating a perfect flow that helps drivers direct traffic clearly.

For safety, it is important that you don’t miss the ramps, drainage lines, and lights in your space. Marking the cables and pipes beneath the ground will help your contractors locate the danger and work on repairs (if needed) accordingly.

License – a special requirement

Apart from the above-mentioned preparations, arranging for a needed license is a special requirement for any parking lot business. The rules and regulations vary from region to region; hence, you need to check with the local government authority to prepare for the required license. For instance, In New York, PLL (Parking Lot Licence) is mandatory for parking space businesses. The New York City Department of Consumer and Worker Protection (DCWP) issues this license. It has specific renewal fees and renewal cycles that shouldn’t be missed by business owners.

You don’t own a parking space

This is a common case – you don’t own any space but still want to be interested to create a parking lot app and flourish your business. The good news is that it is possible; nevertheless, as mentioned earlier, the strategies and steps to build a parking space business will change.

Study competitors

One of the prerequisites to getting into any business venture is the thorough study of peers and competitors. Market research and feasibility studies based on demographics and psychographics will help you build a foolproof parking slot business strategy.

Stay clear, legally

You may select a general partnership, limited liability, or be a sole proprietor for your parking space business. In the US and most countries around the world, operating a parking business application without licenses, insurance, and permissions is not possible. It is imperative that you contact an agent or attorney for all such legal issues.

Trademarks, copyrights for intellectual properties

Especially when you own the space, intellectual property trademarks and copyrights are important. In the other case, where you only own and operate a parking lot business application the trademark and copyright issues must be handled carefully. Such legally approved logos and trademarks are important across the online presence and print media for your business.

Parking lot business documents

Other than permissions and licenses, there are many documents you need to operate a parking lot business application. Again, an agent or attorney can help you overcome this hassle. The legal advisor can also help you stay clear in terms of paperwork and receipts you may need while operating the parking slot business. Even with a mobile app for car parking, you may have to generate a receipt for the payment. In the US, other documents required include …

• DBA & EIN
• Certificate of Incorporation
• Company Bylaws
• Online Terms of Use
• Operating Agreement for LLCs
• Business license and plan
• Memorandum of Understanding (MoU)
• Online Private Policy Document
• Federal Tax Payer’s ID

What should you have ready for parking lot business?

When you want to hire developers for parking lot business, you need to have several things ready as a business plan so that there is no last-minute hassle.

Market analysis : conduct market trend research such as consumer demands and parking lot business prospect growth as well as SWOT analysis.

Competitive analysis : check for peers and competitors in the market, especially the locals. Study their strength and weakness in their parking lot business mobile apps. What they lack, you may include in your parking space app development.

Sales and marketing : develop your sales and marketing plans as per your competitors’ USP and business approach.

Management team : you may create a management team with relevant professional background. If needed, you may design the corporate hierarchy when the parking lot business grows.

Operations and financial plans : operation plans such as procurement, assets and equipment, and logistic details should be carried out along with three-year financial planning and funds arrangement to be on the safer side.

Appendix : additional finance or business documents come under the appendix and it should be kept handy for any quick reference or show.

Hire developers for the parking lot app

It is crucial to understand the core of business before you take up your project. A guide on turning an app idea into a pro solution will help you understand how thoughts are put on paper and then executed as a final product. Once you are thorough with the process, it is time to find the best talent in the industry.

Here, as an entrepreneur, you ought to know the knack of how to hire developers for your app development project. Once the mobile app developers are finalized for hiring here are the steps to follow

Approach and discuss

After selecting your tech partner to develop the parking lot app, you need to contact them with your business approach and plan. It is also highly recommended that you ask important questions to learn their credibility. Discussing with their business and technology consultant shall help you understand the blueprint of your idea better. This is important because not all ideas are feasible to make into a product.

Once the tuning with the mobile app development company is set for understanding the project, you may discuss the cost to develop a parking space business app.

A lot is spent on mobile app design, and the parking space business app is no exception. In fact, street parking requires neat and clean graphics to make vehicle owners understand the available space in the parking lot. Hire the best UI/UX designers experienced at designing apps similar to your parking app from the chosen company and they help you by providing an engaging app with high-resolution graphics.

Development

All UI/UX designing components on the parking app shall be turned into a fully-functioning entity and, therefore, parking service app development is the core of the entire software development lifecycle. Assuring the proper tech stack selection for the parking apps with the developing teams, you may ask them to proceed.

Execute and deployment

The parking lot business app development goes through a rigorous process of the software development lifecycle (SDLC) that assures a fully-functional application is built as per your business objectives and a predefined scope.

In the final stage, the software product is tested through stringent measures for quality assurance. The beta version probably with MVC shall help you save money and have a clear plan for the future about adding extra features and facilities as per the market requirements and customers’ demands.

Are you ready to launch your parking lot business?

This guide on how to start a parking lot business has included all the necessary steps and procedures you need to follow to turn your thoughts into a tangible business. You may now work on executing this plan to become a part of the multibillion-dollar industry of the parking business.

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Frequently Asked Questions about parking lot business

What is a parking lot business.

As the term suggests, the parking lot business is the business that allows drivers or vehicle owners to search for an empty space available to park their vehicles at different destinations or places such as restaurants, concerts, schools & universities, government or private offices, and so on.

How to set up a parking lot?

By large, it setting up a parking lot requires two major processes – making the ground/land a parking lot with necessary markings and signages and making these spaces available on the parking space mobile application for quick and convenient use. Both procedures involve several steps.

What’s the need for an app for your parking business?

Mobile applications are handy and most users today use software for their daily needs. Parking slot mobile application helps visitors locate empty or available places on the go and pay securely. In short, it is secure, faster, easy to manage, and reliable.

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An enthusiastic Operations Manager at TopDevelopers.co , coordinating and managing the technical and functional areas. She is an adventure lover, passionate traveler, an admirer of nature, who believes that a cup of coffee is the prime source to feel rejuvenated. Researching and writing about technology keeps her boosted and enhances her professional journeying.

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How to Draft a Truck Parking Lot Business Plan

Running a truck parking lot – it’s a bigger opportunity than you may realize. Truck drivers constantly need places to rest up along their routes across the country. Yet suitable parking spaces remain limited. By transforming available land into a trucker oasis, you tap into this high-demand market. Platforms like Truck Parking Club even provide the technology to simply connect drivers to Property Members .

But where do you start to turn this idea into reality? A solid business plan that’s where. Too often, eager entrepreneurs jump into a new venture without thorough planning. By outlining every aspect of your future lot in a business plan, you set yourself up for success.

In this beginner’s guide, we’ll walk through drafting a comprehensive business plan to launch and run a truck parking business. You’ll discover how to bring your vision to life the right way.

The scale or size of your plot doesn’t matter – if you have five acres or fifty available, by the end, you’ll have a proven blueprint for an achievable, profitable truck parking lot business.

Why a Business Plan Matters

Validating your concept.

A business plan forces you to analyze and research your assumptions about target customers and demand trends. Rather than risk moving forward on speculation, the data will reveal whether your truck parking idea has legs or needs rethinking.

Attracting Investors and Lenders

External funding often proves essential for getting a new truck parking venture off the ground. A well-researched plan demonstrates your commitment and ability to potential backers, increasing your odds of securing startup financing. The document makes or breaks accessing the capital essential to get off the ground.

Mapping Your Path to Profitability

Detailing out your operational plan, marketing strategy, and financial projections acts like a roadmap for managing cash flow and reaching profit milestones. With so many variables at play, a plan helps identify potential pitfalls early.

Securing County Approvals

Zoning laws and land regulations vary from area to area. Local municipalities will want to review your business plan as part of the permitting process for getting approval.

Why a Truck Parking Lot Business?

You’ve probably done some initial research and grasped why a truck parking lot carries potential, but let’s recap on its promise. As we mentioned right at the beginning, the trucking industry itself shows no signs of shrinking, so you rely on a constantly available customer base that shows no let-up in demand. This constant flow is what makes investing in truck parking lots a smart business move.

Think about it: every truck on the road is a potential customer. The more trucks there are, the greater the need for parking spaces. And with the trucking industry expanding due to the growth in sectors like e-commerce and cross-country shipping, the demand for truck parking is only going to increase.

There are also minimal overhead expenses involved compared to many other businesses, with the potential for a strong cash flow. Of course, parking is just part of the business equation; amenities and add-on services can open additional revenue streams. Let’s not forget truckers talk; a good parking spot gets known quickly in their community.

Components of a Strong Truck Parking Business Plan

A rock-solid business plan forms the blueprint for executing your truck parking vision and transforming it into a revenue-generating reality. Here’s what it should include:

Executive Summary

The Executive Summary sums up the fundamentals of your business for potential investors. It should succinctly convey your parking lot’s unique value proposition, target customer base, competitive advantages, operations overview, and projection of financial returns. Don’t get lost in the details here – simply spotlight the core concept and financial viability of your trucking parking lot business to capture interest.

Company Description

This section is an opportunity to showcase your business’s strengths. Maybe you have extensive experience in the trucking industry, or you live in a location that offers easy access to major highways or trucking routes.

This section of the plan should specify the target audience, typically independent truck drivers and trucking companies looking for reliable parking solutions. The competitive advantages of the business should be clearly outlined, boasted even.

Market Analysis

The Market Analysis section of your truck parking lot business plan should provide a comprehensive overview of the current state of the trucking industry, particularly focusing on the parking needs of long-haul truckers. This analysis should include data confirming the major shortage of parking capacity nationwide. Call out the rate this crisis expands year-over-year with more freight traversing roadways, yet infrastructure failing to keep pace.

Your data-backed market analysis findings should convincingly argue that there is a clear and growing need for the services your business plans to provide. Use specific figures around parking shortages, trucking industry growth projections, and other metrics to reinforce that your venture fills a defined market gap.

Management and Organization

Detail your business structure – sole proprietorship, partnership, LLC, or corporation. An organizational chart should be included to illustrate the hierarchy and management structure. It should clearly show the roles and responsibilities of each team member, from top management to operational staff. Underscore transportation-specific backgrounds for added credibility.

Operational Plan

This outlines the day-to-day management of your truck parking lot. Explain the roles and responsibilities of staff members and how they’ll contribute to its smooth running operation.

Include plans for routine checks and upkeep of the parking area, including any amenities. Outline your security measures – surveillance systems, on-site security personnel, and any tech used, like automated gates or security apps. Describe how you’ll handle customer inquiries and bookings and any policies in place for dealing with issues or complaints.

In short, demonstrate that you have a well-thought-out plan for managing and maintaining a high-quality parking lot.

Products and Services

At its most basic, a truck parking lot business is a place for truckers to safely rest overnight between destinations. But you have the potential to offer features and services far beyond simply a place to park.

Security infrastructure features – gated perimeter access or surveillance camera networks to protect precious cargo and ensure a safe and secure environment.

Amenities that provide a little comfort after a hard day’s driving – hot showers to freshen up or vending machines for quick eats. Don’t forget the ability to pre-book spaces through websites like Truck Parking Club that prioritize planning ahead versus first-come-first-serve.

There’s a breadth of value-adding services that you could potentially add to your parking lot business.

Marketing and Sales Strategy

Promoting your parking lot requires messaging resonating with your core audience – truckers crisscrossing state lines daily. This part of the business plan will demonstrate how you plan to reach and engage this specific demographic effectively.

Identify publications, apps, social media groups, and other media specifically catering to long-haul transport workers.

The marketing plan should show a distinct understanding of where truckers consume information and plan routes so that you can convince investors you can reach and fill capacity cost-effectively.

Funding Request and Financial Projections

This is where you will discuss the amount of funding you are seeking and specify how it will be used to establish and grow your truck parking business.

Total Capital Required – Specify the total dollar amount you are requesting from investors and lenders. Break this total number down into clear categories such as land acquisition, construction/development, technology systems, operating reserves, marketing, and contingencies.

Usage of Funds – Describe what the funding will specifically finance, including major startup costs like property purchase, parking lot development, initial marketing campaign, etc. Provide a detailed breakdown that ties directly to established growth milestones and operating plans.

Financial Projections – Include pro forma statements projecting revenue, expenses, ROI, and cash flows over a 5+ year period. Convey potential for steady, growing profitability that gives investors confidence in realizing returns.

The Appendix serves as a supplementary repository for additional documents and data that support the main content of your plan. This isn’t a core part of the narrative but can provide more background information and details that potential investors may find useful.

Examples could be:

• Detailed maps and layouts
• Building permits
• Local business licenses
• Legal documents
• Full reports of market research conducted
• Samples of marketing materials/ advertising mockups

Truck Parking Lot Business Plan Example

Now that we’ve covered the key components that go into a strong truck parking lot business plan let’s put it into practice with an example plan for a hypothetical new parking venture. This one is produced off the cuff. The company background, market statistics, financial forecasts, and other metrics are fabricated. But it will give you a broad idea of what one should look like.

Of course, you’ll want to make yours as polished and comprehensive as possible. And there are great templates out there – both free and paid – to reference that provide detailed frameworks, sample text, forms, and guidance to produce an investor-grade document.

Executive Summary Example

Rest N’ Go Trucker’s Retreat® plans to capitalize on the severe shortage of parking for long-haul truckers by transforming 10 acres off I-75 just outside Cincinnati, OHIO , into a gated, monitored 70-space truck parking spot.

The location provides convenient access to major shipping routes and industrial hubs. Over 15,000 semis drive along the target stretch of I-75 near Cincinnati daily with few accommodation alternatives for required rest periods.

This convenient truck parking lot will fill a major infrastructure void in the southwest region.

Company Description Example

Rest N’ Go Trucker’s Retreat® will be organized as a Limited Liability Company and co-owned by Jane Thomas and Mark Wilson, who boast over 20 years of collective experience across transportation operations and logistics planning.

Located 12 miles southwest of Cincinnati off I-75, the gated parking facility will encompass 70 spaces for standard rigs with room for future expansion.

Our mission is to be the best-in-class truck parking lot in Ohio, offering a facility that combines state-of-the-art security with exceptional amenities.

Market Analysis Example

Our market analysis underscores a pressing shortfall in truck parking availability, a challenge particularly acute along heavily trafficked routes such as Interstate 75. This shortage is occurring in the context of a burgeoning freight transportation sector, which is set to intensify the demand for additional parking solutions. 

The trucking industry’s growth only serves to heighten this urgency. Rest N’ Go Trucker’s Retreat® is strategically positioned to address this need by providing essential parking services in a market that is not only in need but also expanding.

The gravity of the truck parking space shortage in the USA is significant, and various studies highlight the extent of this problem. One notable statistic from the Federal Highway Administration (FHWA) indicates a nationwide deficit exceeding 40,000 truck parking spaces.

Management and Organization Example

The organizational structure will consist of Jane Thomas as the CEO, overseeing day-to-day operations, business development, and strategy for the parking facility. Mark Wilson will serve as COO, managing key logistics like security, maintenance, and transportation partnerships.

Additional staff in the first year includes parking security attendants on rotating shifts to cover the 24/7 facility and an assistant manager supporting administrative tasks. We will outsource cleaning and repairs to specialized local vendors. As capacity expands beyond 70 spaces in future years, further operations personnel will be brought on board to match growth.

Operational Plan Example

Daily operations will involve managing parking reservations, overseeing the security of the premises, and maintaining the facilities. Parking attendees will check in arrivals and monitor the gated, camera-equipped parking area.

Facility maintenance, like cleaning and grounds management, will be outsourced to specialized local vendors and supervised by the COO. Preventative protocols will be in place for lighting, amenities, and restrooms to guarantee continuous upkeep.

Products and Services Example

In addition to parking, Rest N’ Go Trucker’s Retreat® will offer amenities like 24/7 security surveillance, clean restrooms, hot showers, and vending machines. We will also integrate with a digital booking platform like Truck Parking Club so drivers can reserve spots in advance, reducing uncertainty and wait times.

Marketing and Sales Strategy Example

Rest N’ Go Trucker’s Retreat® will employ a multifaceted marketing approach to attract truck drivers and trucking companies. Our digital marketing efforts will be geared towards increasing our online visibility, particularly in the Cincinnati area, using local SEO strategies to rank higher in search results related to truck parking. Additionally, we plan to advertise in trucking magazines and on billboards along major highways leading to Cincinnati, ensuring high visibility among our target market.

While the amenities will speak for themselves, we will maintain consistent social media engagement, focusing attention on truck driver testimonials and facility images to attract newcomers.

Funding Request and Financial Projections Example

Rest N’ Go Trucker’s Retreat® is seeking $1.5 million in funding to establish and grow the truck parking business. The breakdown of the funding request is as follows:

• Land acquisition and development: $800,000
• Construction and facility setup: $400,000
• Marketing and operational reserves: $300,000.

Sales Forecast

Based on average regional occupancy rates at existing parking facilities and the high volume of underserved traffic along 1-75, Rest N’ Go Trucker’s Retreat® projects the following annual sales:

• Year 1 – $850,000
• Year 2 – $1.1 million
• Year 3 – $1.5 million

These forecasts assume progressively ramping occupancy beginning at 75% in Year 1 and exceeding 90% by Year 3. Multiple revenue streams from parking fees, as well as ancillary purchases, factor into aggregate sales expectations. The projections are based on a careful analysis of market trends and the strategic location of our facility.

Appendix Example

The Appendix for the Rest N’ Go Trucker’s Retreat® business plan contains supplementary documents supporting the details and claims made in the main sections of the plan.

• Surveyed drawings of the 10-acre lot showing exact site boundaries
• Proposed parking layout diagram highlighting spaces, traffic flow, and amenities
• Local business license certificate
• Building permits for planned structures
• Water connection approval
• Articles of Organization establishing Rest N’ Go Trucker’s Retreat® LLC
• Resumes and bios of owners
• Regional trucking traffic growth statistics 2020-2023

Wrapping Up

We hope this beginner’s guide to drafting a business plan has helped map your path to opening and operating a truck parking lot.

Ready to turn prospects into reality? Truck Parking Club provides the technology infrastructure to connect truckers to vacant spaces, making it simple to manage bookings and maintain steady occupancy rates. Reach out to us today with any questions. We’re looking forward to partnering with you!

The information published herein is for general informational purposes only. Truck Parking Club does not make any representations or warranties about the completeness, reliability, legality, and accuracy of this information. Any reliance placed on such material is strictly at the user’s own risk. Truck Parking Club shall not be responsible for any losses or damages incurred in connection with the information published herein.

Truck Parking Lot Layout & Dimensions: How to Design a Truck Parking Lot

Truck Parking Trends: Predicting the Future of the Trucking Industry

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Buying‌ ‌a‌ ‌Parking‌ ‌Lot‌ ‌for‌ ‌Business:‌ ‌What‌ ‌You‌ ‌Need‌ ‌to‌ ‌Know‌

As personal vehicles increase in cities, buying a parking lot for a business investment seems like a profitable venture . Parking lot businesses can have a  low entry point with a superior yield . But to ensure the parking lot becomes a successful business opportunity and not a massive headache, you’ll want to read our guide to buying a parking lot for business. 

We’ll prepare you for what a parking lot business entails and its common pitfalls and obstacles. By following our tips, you’ll know what decisions you’ll need to make to start a successful parking lot business.

Before You Buy a Parking Lot

There’s a few things you need to consider before you buy a lot.

Location, Location, Location

An old adage, but for a reason. Not all parking lots will be profitable. It’s important to factor in:

• What is the daily volume of traffic around the parking lot?
• Is there a lot of street parking near the lot?
• Is it near a downtown shopping center?
• Is it in a convenient location for downtown businesses and venues?
• Is the lot zoned for being a parking lot?
• How much does the lot cost?
• How much will you need to charge to recoup the costs of creating the parking lot?

If the lot you found is in a good location with excellent traffic , then you’ll need to decide what type of parking lot you want to construct.

Related Link: The Dos and Don’ts of Buying a Vacant Land

Type of Parking Lot

The lot you buy will affect the type of parking lot you want to run. And depending on zoning laws for the lot, this choice might already be made for you. Make sure you understand the lot’s construction limitations before you buy it. 

Parking Garage

Parking garages can offer more space and higher profit margins , but it will require a more significant investment. Parking garages require more management and will be a substantial construction project. 

Traditional Parking Lot

Traditional parking lots are easier to maintain and construct , although they won’t hold as many cars. If the lot is in a high traffic area with little street parking, you could miss out on higher revenue that a garage can accommodate.

Not sure which type of lot you want to build? Talk to My Site Plan to get quotes on either parking lot construction plan.

Related Link: How to Create A Parking Lot Plan

Typical Costs of a Parking Lot Business

There are several costs associated with starting a parking lot business. You’ll need to make decisions about pavement, staffing, security, and monetization.

Construction and Pavement

Depending on the lot’s condition, you may have to do several construction projects to get the lot ready for paying customers and their cars. And where construction costs for  parking structures have increased by 3.3%,  you’ll want to crunch the numbers before you buy the lot.

If you decide to build a parking garage, you will need a construction plan . If you are demolishing an old building to build your lot, you’ll need to get permits and hire a demolition team. 

Once the lot is ready, you’ll want to pave the lot with an asphalt surface. Before you pave, you’ll need to:

• Get any necessary construction permits.
• Create a construction plan with proper drainage and convenient entrances and exits.

My Site Plan can help you create a site plan for your parking lot construction project. My Sit Plan can quickly and efficiently layout an ideal schematic for your next building project.

Make sure to start the permit process as early as possible because it may take time to be approved. Paving a lot generally costs between $1.25 to $1.50 per square foot. 

Security and Staffing

Parking lots need to have adequate security and staff to attract and retain customers.

Parking lots have several staffing requirements:

• Cashier : Person who collects payment for the cars to park.
• Custodian : Keeps the lot clean and free of hazards.
• Security guard : Whether you have them walking the lot or monitoring cameras, you’ll need someone to ensure your customers’ safety and their cars.
• Valet : Depending on the size of your lot, you may want to offer a valet service.

Aside from having a security guard, you’ll need to install:

• Security cameras
• Adequate lighting

These measures will discourage thieves and attackers—keeping your customers and their cars safe.

Determine How Will You Monetize The Parking Lot

There are three ways to collect money when running a parking lot:

• No gate : This system relies on customers to deposit money on their honor. This is the cheapest method but also the most unreliable. And customers worry about the safety of their car when no one is there.  
• A gate with a cashier : This system requires a paid staff to collect money and resolve issues. While not as convenient as an electronic system, staff can problem solve and offer customer service.
• An electronic gate: This system is very efficient when it has an automated payment system. While installation can have a steeper cost upfront, it can be the most profitable.

Whatever system you choose, you’ll want it to be the most cost-effective . And you’ll want to make sure you charge enough to cover the costs of your staffing, maintenance, mortgage, and taxes. 

Find out what other parking lots in the area are charging. This will largely determine what the market can bear in your area and decide whether it is a smart investment.

Parking Lots Can Be Profitable Businesses

If you do your homework and determine your costs before you buy a lot, you’ll be able to determine if the parking lot is a gold mine or a wasted investment. 

But even if the parking lot will barely cover costs, it may be a wise investment if the property will become valuable long term. If so, a parking lot is a smart way to break even until the property becomes a cash cow.

My Site Plan  has a team of  experienced CAD designers  who can create site plans for your parking lot construction project. Known for an excellent turnaround, My Site Plan can make a schematic that will work best for your parking lot project.

Do you need a site plan to obtain a construction permit? My Site Plan can create a plan for your project within 24 hours.

Related Link:  My Site Plan Frequently Asked Questions

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• Oct 29, 2020
• Ryan Crownholm

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Detroit parking costs at NFL draft reach $100: How to plan ahead, pay less

D on't want to pay $100 to park in downtown Detroit for the NFL draft ? You don't have to. Make a plan. Get there early. Or if you can, do a bit of walking.

Downtown garages and lots increased their prices as hundreds of thousands of visitors descended on Detroit's downtown for the massive sporting event taking place in Michigan's largest city through Saturday. Parking costs reached as high as $100, sparking outrage.

"That's absolutely crazy," said Abigail Blumberg Thursday as she was on her way to work at Parc restaurant at Campus Martius, complaining about the surge in parking costs. She said she usually parks downtown and it typically costs her $12. Fortunately for her, her workplace covered the cost of the parking Thursday.

Start the day smarter. Get all the news you need in your inbox each morning.

For other downtown workers and visitors on their own to cover the cost of parking, here are some tips to secure a reasonably priced spot.

Make a plan for NFL draft Detroit parking

Street closures complicate the parking situation downtown, so before hitting the road, make a plan. Parking violators will face some serious headaches.

Parking tickets are $45 (Detroit residents might be able to qualify for a discounted fine if they pre-register ). And expect to be towed if you park where you shouldn't. Sam Krassenstein, Detroit's chief of infrastructure told the Free Press that drivers should keep an eye on signage indicating a "tow-away zone."

To find available off-street parking, try the Park Detroit or Park Whiz smartphone apps, where you can find and book parking ahead of time. On Friday morning, there were still spots for less than $50.

Park and ride options for NFL draft

Numerous park-and-ride options are available for QLINE and SMART buses.

Detroit's streetcar, which is currently free to ride, has several park-and-ride lots available on a first-come, first-serve basis. Cost is $5 to park.

• WSU Lot 12 — Harper and Woodward, near the Amsterdam station
• New Center Garage — 116 Lothrop, near the Grand Boulevard station
• Cass Garage — 6540 Cass Ave., near the Baltimore station
• John R and Piquette — 6230 John R., near the Amsterdam station

The Qline southbound toward downtown stops at Little Caesars Arena during the draft, requiring about a mile walk the rest of the way to the draft action.

Suburban Mobility Authority for Regional Transportation buses are scheduled to leave park-and-ride lots once per hour between 9 a.m. and 3 p.m. each day of the draft, according to a release. Buses are to return from downtown (Bricktown People Mover Station for east-side routes and Fort/Cass station for west-side routes) once per hour 1-11:30 p.m. Friday and 1-7:30 p.m. Saturday. One-way fares are $2 per adult, $1 per child (5-18) and 50 cents for those older than 65 or who have a disability.

Here are the SMART park-and-ride lot locations:

• Great Lakes Crossing, 4000 Baldwin, Auburn Hills
• Lakeside Mall, 14000 Lakeside Circle, Sterling Heights
• Mount Clemens Farmers Market, 141 North River Road
• Sterling Heights Meijer, 36000 Van Dyke Ave.
• Troy Civic Center Park and Ride lot, 520 W. Big Beaver Road
• Oakland Community College Orchard Ridge Campus, 27055 Orchard Lake Road, Farmington Hills
• Southfield Civic Center bus terminal, 24350 Civic Center Drive
• Westland Police Department, 36701 Ford Road
• Fairlane Town Center, 18900 Michigan Ave., Dearborn
• Lincoln Park Community Center, 3525 Dix Highway
• Southgate Meijer, 16300 Fort St.

NFL draft shuttles

Krassenstein suggested fan shuttles from three locations as a good bet that would be convenient and priced reasonably, with shuttles scheduled to run regularly between the parking areas and the draft entrance location drop-offs, 11 a.m.-12:30 a.m. Friday and 8 a.m.-9 p.m. Saturday.

Here are those shuttle parking locations and costs:

• WSU Structure 1, 450 W. Palmer Ave. — $10 per car (first come, first serve)
• Bagley Mobility Hub, 1501 Wabash St. — $15 (prepay recommended). Link to prepay here (add $1.50 service fee).
• River East Garage, 214 Rivard St. — $15 per car (prepay recommended). Link to prepay here (add 99-cent service fee).

Contact Clara Hendrickson at [email protected] or 313-296-5743. Follow her on X, previously called Twitter, @clarajanehen . Contact Eric D. Lawrence: [email protected] . Become a subscriber . Submit a letter to the editor .

This article originally appeared on Detroit Free Press: Detroit parking costs at NFL draft reach $100: How to plan ahead, pay less

2024 NFL draft parking: You better have a plan if you're coming to downtown Detroit

If you're used to slipping downtown for a game and finding street parking near the venue, you'll need a different approach if you're coming to NFL draft events this week.

Parking spots will be at a premium anywhere near the draft footprint, which is why Detroit city officials and others involved in planning for the event have been advising folks to consider public transit and park-and-ride options instead.

The draft, which runs this Thursday through Saturday, is expected to attract about 300,000 people to Detroit, and getting around in a private vehicle will be significantly more challenging than normal because of street closures. Street parking won't be allowed in many areas.

But don’t let parking paralysis dissuade you. Just make a plan.

The Free Press spoke with Sam Krassenstein, Detroit's chief of infrastructure, about parking options and gathered answers to some common questions readers might have.

Here's a guide to avoiding the worst of parking downtown during the NFL draft:

Make a plan

We already said to have a plan, but it bears repeating. Lots of streets will be closed, and parking rules will be strictly enforced, according to Krassenstein.

What happens if you park improperly?

More: Detroit streets you can't drive on, cross or use for parking — you will be towed

Tickets and towing are what's in store for parking violations. Krassenstein said to watch for the signage, which should be very clear in announcing a "tow-away zone."

But you're not going to get away with just a $45 ticket (Detroit residents might be able to qualify for a discounted fine if they pre-register ), "we're going to tow your car," Krassenstein said.

So tack on a couple of hundred dollars and the extra hassle.

Krassenstein said he expects some folks who regularly try to push their luck with parking during games and events to try it again as the draft gets underway, but this is likely to be the week that luck runs out.

To find available off-street parking, try the Park Detroit or Park Whiz smartphone apps, where you can find and book parking ahead of time. Be prepared to pay more than you normally would. A quick search of the Park Detroit app for a couple of hours in downtown Detroit on Thursday showed some lower-price offerings in the area, $30 and $40, but others that were higher, at $75, even $125.

Beware of scams

The Office of Michigan Attorney General Dana Nessel issued an advisory on Tuesday warning those looking for private parking at the draft to beware, noting that "scammers take advantage of these events to sell parking spaces for lots they don’t have authority over, which could lead to cars being ticketed, towed or, even worse, stolen." The news release encouraged residents to ask for a receipt or parking ticket upon payment and to never give their keys to an attendant unless valet signs are posted and they've confirmed valet service details ahead of time.

More: The OnePass app is your ticket to the 2024 NFL draft in Detroit: What to know

The release also warned of a scam involving bad actors issuing fake but authentic-looking parking tickets. "Nessel reminds residents to visit that municipality’s website directly or to call the court and verify the existence of the ticket before following the web or QR code directions."

The Better Business Bureau has a web page with more tips on avoiding the scam.

Fan shuttles are one option

Krassenstein suggested fan shuttles from three locations as a good bet that would be convenient and priced reasonably, with shuttles scheduled to run regularly between the parking areas and the draft entrance location drop-offs, 11 a.m.-12:30 a.m. Thursday and Friday and 8 a.m.-9 p.m. Saturday.

Here are those shuttle parking locations and costs:

• WSU Structure 1, 450 W. Palmer Ave. — $10 per car (first come, first serve)
• Bagley Mobility Hub, 1501 Wabash St. — $15 (prepay recommended). Link to prepay here (add $1.50 service fee).
• River East Garage, 214 Rivard St. — $15 per car (prepay recommended). Link to prepay here (add 99-cent service fee).

Park and ride is also available

In addition, numerous park-and-ride options are available for QLINE and SMART.

Detroit's streetcar, which is currently free to ride, has several park-and-ride lots available on a first-come, first-serve basis. Cost is $5.

• WSU Lot 12 — Harper & Woodward, near the Amsterdam station
• New Center Garage — 116 Lothrop, near the Grand Blvd station
• Cass Garage — 6540 Cass Ave., near the Baltimore station
• John R and Piquette — 6230 John R., near the Amsterdam station

More: A guide to breakfast, lunch and dinner near downtown Detroit during the NFL draft

Suburban Mobility Authority for Regional Transportation buses are scheduled to leave park-and-ride lots once per hour between 9 a.m. and 3 p.m. each day of the draft, according to the release. Buses are to return from downtown (Bricktown People Mover Station for east-side routes and Fort/Cass station for west-side routes) once per hour 1-11:30 p.m. Thursday and Friday and 1-7:30 p.m. Saturday. One-way fares are $2 per adult, $1 per child (5-18) and 50 cents for those older than 65 or who have a disability.

Here are the SMART park-and-ride lot locations:

• Great Lakes Crossing, 4000 Baldwin, Auburn Hills
• Lakeside Mall, 14000 Lakeside Circle, Sterling Heights
• Mount Clemens Farmers Market, 141 North River Road
• Sterling Heights Meijer, 36000 Van Dyke Ave.
• Troy Civic Center Park and Ride lot, 520 W. Big Beaver Road
• Oakland Community College Orchard Ridge Campus, 27055 Orchard Lake Road, Farmington Hills
• Southfield Civic Center bus terminal, 24350 Civic Center Drive
• Westland Police Department, 36701 Ford Road
• Fairlane Town Center, 18900 Michigan Ave., Dearborn
• Lincoln Park Community Center, 3525 Dix Highway
• Southgate Meijer, 16300 Fort St.

Contact Eric D. Lawrence: [email protected] . Become a subscriber . Submit a letter to the editor .