Parking business plan
When it comes to big cities, the problem of lack of parking lots will probably always be relevant. Even if it seems that there are more than enough parking lots in the city, still many drivers sometimes face the problem of finding a safe place to park their car. Not everyone is at risk of leaving the car just near the house at night - after all, doing it is quite dangerous (unless, of course, your car is dear to you).
In this regard, the conclusion suggests itself: parking as a business is a very good investment. Such a business has great prospects for development, because the number of cars in cities is likely to only increase, not decrease. To acquaint you a little more with this type of business, consider further: how to open a parking lot from scratch; what is required for this; and what business plan can you take as an example to draw up your own.
We have found for you a good example of a business plan for a parking lot, which was once created in the city of Kaluga. This business plan contains all the basic information that is necessary to conduct these activities, as well as an investment and operational plan with detailed calculations. Download the car park business plan.
How to open the car park
Experts in this area give advice on how to solve the main organizational issues of starting a business in a parking lot and the requirements for it.
The issue of renting a plot of land that will be used as a parking lot can be resolved with the municipal authorities of your city. The initial stage will require an area of approximately 300-550 square meters. Later, if desired and possible, it will make sense to expand it. Choose an urban area where you want to provide parking spaces, and then find a suitable parking area. It is good if it is located close to residential buildings, because car owners are unlikely to be happy about the prospect of walking for a long time after leaving the car in the parking lot.
Research the selected area and for the presence of competitors, that is, other already operating car parks. The ideal situation is if there will be no competition at all (as a last resort, if it is a small parking lot that cannot fully cover the needs of the residents of the area in parking spaces).
It is necessary to clarify right away that the collection and execution of the necessary papers in such a case is a rather dreary process, but without it there is nothing. So we advise you to be patient and start working on the preparation and approval of all papers. First, it is necessary to conclude a lease agreement confirming your right to use the area for your own purposes.
Today, there is a tendency towards an increase in the number of personal vehicles. In this regard, the organization of a paid parking lot would be a great idea for business. Before you start investing in a startup, you should draw up a detailed and carefully calculated business plan. We would like to draw your attention to a project of a medium-price parking lot for 100 cars.
There are more and more cars in the capital every year. On average, their growth is 300,000 per year. Since the beginning of this year, the total number of Moscow vehicles has exceeded 5 million vehicles. There are various car parks, including indoor and underground multi-level car parks. There are more than 6 thousand of them in the city, but they still cannot cope with the flow of customers. The usual picture is that there is simply nowhere to park the car in the yard, because all the free space is already filled with cars. And not every car owner wants to leave the vehicle under the windows. Therefore, a parking lot as a business can become not only a profitable occupation, but also work aimed at improving the city, unloading traffic and providing comfort to car owners.
Paid parking services are usually used by motorists who cannot leave their car in the garage and do not want to leave their vehicles in the courtyard of a residential building. Usually these are people of average income.
For such a target audience, such moments are important when choosing a place for temporary storage of vehicles:
- the parking lot should be located near the place of residence;
- landscaped area;
- round-the-clock reliable security and supervision over the safety of property.
The main function of the parking is the location of cars, their security and additional services. In the parking lot, you can leave not only cars, but also trucks and motor vehicles. Providing additional services will be a great help to fight competition, as well as help expand your customer base and increase income.
In order to start such a project, you need to fulfill some conditions:
- draw up a detailed business plan for the parking lot with calculations;
- decide on the choice of the parking location;
- issue long-term lease obligations;
- get the necessary papers for opening;
- obtaining the status of an individual entrepreneur;
- site improvement;
- advertising support.
Selecting a parking space
A well-chosen paid parking location can significantly increase the level of customer flow and the return on investment. The best option would be to open a business in large housing estates and in the business part of the city. Before you open a paid parking lot, you should analyze the level of competition for this area, the pricing policy for existing parking lots and their range of services. At the same time, it is not recommended to place a parking lot away from the place of residence of potential customers, since most car owners prefer to leave vehicles closer to home.
Maria Antonova Last modified: January, 2021 1,066
How to open a car park from scratch?
Starting a parking business requires a sequence of steps:
- analysis of the market, target audience, selection of the type and location of parking;
- registration of a business, execution of a lease agreement or purchase of a land plot;
- arrangement territory, obtaining permits and conclusions of regulatory authorities;
- hiring personnel;
- conducting an advertising campaign.
Before starting the construction or arrangement of the site from scratch, it is necessary to prepare a business plan. The plan contains the calculation of monthly profit, a list of costs and a forecast of profitability. Consider the nuances of creating this business.
Selecting the type of parking space
Opening a car park is a good investment that doesn't require any special knowledge. But before organizing his business, an entrepreneur will have to choose the type of future construction:
- for storing cars, a parking lot is used, which is an open separate area or part of a building (PP No. 795 dated 17 January 2021);
- for temporary parking is intended for parking - it is a part of the road or street network (Art. City Planning Code).
There are several types of parking lots.
Outdoor parkingClosed parkingParking in the building Ground-type area with an entry point and fencing from open openings. The site with a security point is equipped with alarms, timers and fire extinguishing equipment. Parking under a canopy of pre-fabricated structures. It is more expensive and has higher safety requirements. The parking lot in the building is being built according to a special project of the architect. There are such types of parking as: underground, built-in, multi-level, mechanized
Aspiring businessmen, as a rule, open parking lots of the first type, which do not require large investments.
The need for parking spaces for cars is becoming more and more urgent. This is due to the increased punishment for parking in the wrong places. Parking fees are much cheaper than buying a car from a parking lot. In addition, leaving your four-wheeled friend in the parking lot, you don't have to worry that someone will hook him at night, remove the wheels or even steal him. This article reviewed a car park business plan. This example will help you create your own plan and start a business.
Select the type of stack
Depending on the equipment and type of parking, the starting cost of the project will vary. Below we give a brief description of each variety:
- Open. The cheapest and easiest option to start. No room required. This is just a piece of land in the open air, which is surrounded by a fence and has 1-2 entrances. The start-up capital is relatively small, almost no construction is required. But the revenue will not be so high either.
- Indoor. This implies the construction of a structure or other closed-type structures that will protect the car from bad weather. A place in such a parking lot will serve as an alternative to a garage. The cost of storage per day is higher than in an open parking lot, but the construction of such a complex will cost several times more.
- Parking with several levels. This type is common in large cities. It is worth considering that it is extremely difficult for an inexperienced person to start with this. Large starting funds are needed to erect a building of the desired configuration. The cost of building such a parking is estimated at no less than 10-15 million rubles. The advantage will be the ability to place twice or three times more cars in the same area.
We choose a business plan for a parking lot with calculations according to the first option, since it is optimal for a beginner entrepreneur. In addition, there will be fewer problems with approval and registration.
The first step will be to contact the regional urban planning authority. Here you need to either find out what areas in the city are available for the construction of a parking lot; or, if you have in mind a specific territory, a request is made to use it in this way. Be prepared to be denied a building permit. To prevent this from happening, you need to prepare a development plan, describe in detail the key points of the project, submit a detailed financial plan.
It is undesirable to resolve these issues on your own, it is best to contact a specialized legal or consulting organization that provides services for the registration of commercial use of municipal lands, and resolve the issue with its help. For these purposes, it is necessary to allocate from 100 to 200 thousand rubles (in the calculations, we will take the average figure of 130 thousand rubles).
Further, an individual entrepreneur (preferably) or LLC (if required by city planners in your region) opens. Based on the fact that the cost of parking maintenance will be relatively small, then we choose the simplified tax system with 6% taxation.
OKVED 52 is selected. 1. 4 "Activities of parking lots for vehicles."
One of the options for your own business, which does not require constant development, except for the expansion of the territory, is car parking. Every year the number of vehicles owned by citizens is increasing, therefore, the demand for parking services will only increase. Therefore, opening a parking lot is a good option for investing money.
Infographic: Car Parking Business Plan
Business at the opening of parking lots - general overview
All car owners want to keep their vehicles guarded in a fenced or closed parking lot. Those who have the means to do this always use the parking services. The number of cars is growing every year, and the number of available parking lots does not always match the demand. Therefore, the idea of opening your own business in the form of a parking lot is always profitable.
Description of business, services and product
A beginner should choose the option with the organization of open parking. Indoor parking is difficult to implement and will cost more. The option under consideration will imply a parking lot that always works (around the clock, seven days a week).
Parking does not have to provide citizens with only standard car placement services. It is possible to provide additional services that will ensure the convenience and ergonomics of the use of parking, thereby increasing its popularity. These may include the following services:
- storage of tires;
- protection from rain and sun with tarpaulin;
- inflation of tires;
- washing of windows;
- warming up the locks;
- providing snacks (fast food, vending machines, etc.).
In the future, as the new parking lot will recoup the investment and start making a profit, you can expand the list of services by building a small self-service car wash and opening a tire fitting workshop.
Sales organization and marketing strategy
To start using the services of the recently opened parking, you need to do advertising. Parking is one of the few types of business that is better advertised in the usual physical ways, rather than using the Internet. These can be:
- leaflets that will be handed out near the parking lot, as well as placed under the windshield wipers of cars standing near roadsides and in yards in the nearest neighborhoods;
- installation of advertising signs nearby from entering the parking lot;
- sticking advertisements on bulletin boards of houses in the nearest neighborhoods.
IMPORTANT: Nobody says that you cannot use the Internet when it comes to advertising a parking lot. However, the first place to start is physical advertising, as it will be more beneficial early on. Then, you can already start online advertising.