Starting a Parking Lot Business
A parking lot business services vehicles by charging fees for using parking spots. You can either own and operate parking lots or manage them for other owners.
Growth Potential in the Parking Industry
The parking industry expects strong growth. Before starting your business, understand how to run it. This guide will help build your parking lot business’s foundation for success.
Developing Parking Apps
Parking apps go through development to assure functionality. The apps get tested for quality assurance.
Key Points
- Surface parking is the most convenient type for food truck customers serving various cuisines.
- Over 90% of US households own a vehicle, increasing parking demand.
- Major cities can generate significant revenue from parking.
Understanding Operating Expenses
The top 7 operating expenses that most parking lot businesses incur are: Rent or Mortgage, Labor, Utilities, Equipment/Maintenance, Insurance, Property Taxes, Income Taxes.
Revenue Generation Strategies
Most parking lots generate revenue by filling up empty spaces with cars that pay an hourly rate or flat rate for parking. Parking lots are believed to be more profitable during peak traffic in larger cities.
Pros and Cons
- Pros: Steady income potential. Low overhead costs help keep operating costs low.
- Cons: Regulatory compliance can be expensive and time-consuming. Difficult to scale as there is a learning curve.
Diversifying Income Sources
In addition to charging for parking spaces, other income can also be added like: Rental of advertising space, valet parking, vehicle washing service, parking per night, or per month.