The parking industry is constantly growing and evolving, as cities and businesses require more vehicle storage support than ever before. Therefore, now is an excellent time to plan a parking business. However, just like with building any other company, you have to consider many factors first. Start with the basics, and avoid rushing into a big investment like this. If you’re interested in pursuing a business in the parking industry, keep reading to learn how to begin your own parking lot business.
Start by Exploring the Parking Industry
Before you can dive into the details and concrete decisions of building a parking lot business, you have to explore the industry. Start by understanding the parking industry’s state and trends. As you may have guessed, the industry saw a decline due to the pandemic, but consumer and tourism levels have bounced back. Now, suitable parking is more necessary than ever. Parking lots and garages will likely continue growing throughout 2023 and beyond. Also, innovative technology and parking trends are reshaping the industry and promoting more growth. For example, smart parking systems and robotic lifts can make parking more efficient for businesses and consumers alike.
Create a Parking Business Plan
You can’t start a parking company without a business plan. Constructing your business plan provides the time to consider factors such as your company name and budget. Once you’ve decided on the company name, you’ll need to register it and secure it as a web domain if you plan to build a website.
When planning your company budget, consider the startup costs that come with parking management. For example, some common costs associated with parking businesses include renting or purchasing your lot or facility, purchasing or renting equipment, installing security systems, and powering everything. If you wish to keep your parking business simple, a single lot can be a cost-effective way to start. However, if you want to be able to support more customers and invest in a long-term business, a parking garage or facility may be more suitable for you.
Identify Your Target Market
Another factor to consider before you move into more concrete decisions is which market you want to target with your parking business. Customers everywhere use parking lots and facilities during their daily tasks and activities. You could target commuters, shoppers, tourists and visitors, students, or locals. Understanding your target market will help you when selecting the prime location for your parking lot or facility.
Choose a Location for Your Parking Business
Choosing a suitable location is one of the most important decisions you’ll make when starting a parking business. You want to choose a lot or facility located in an area with lots of daily activity. For example, a prime location might be near a popular shopping facility or a public commuting spot. Investing in a facility near public transportation is also useful.
When selecting a location, scope out the competition in the surrounding area. If several other lots or facilities are nearby, you’ll need to be competitive with your pricing and benefits to help your new business stand out and succeed.
Apply for the Proper Licenses and Permits
Once you’ve invested in your lot or facility, you should apply for the proper licenses and permits before proceeding with any other work. You’ll often need specific permits before you can start helping customers or employing staff. Several federal regulations, licenses, and permits are involved with the parking industry, including Occupational Safety and Health Administration (OSHA) health licenses and permits, copyrights, patents, and more. You may also need specific licenses or permits on the state and municipal level, depending on your city or county. To find which permits apply to your business, check your local government and state websites, or contact your local government office.
Select a Parking Lot or Facility Model
You can choose from several types of parking models when planning your business. Whether you choose a lot or garage, you’ll need to consider whether you want to plan straight or angled parking spaces. One of the benefits of choosing angled spaces is that you can maximize the available parking space. And if your budget accounted for a smaller lot or facility, other parking models can help you maximize vehicle storage space. For example, using parking lifts to create a fully automated parking garage can greatly expand your available spaces. Parking lifts can also create more efficient and safer parking conditions in general.
Choosing your parking model is also an area where you should consider technological innovations and parking trends. If your budget allows for it, you may want to implement smart parking technology into your garage. Smart parking facilities use sensors and recording technology to monitor open spots and measure time. These systems can help notify you and your customers when your facility is full or when patrons exceed their parking limits.
Start Marketing Your Business
Understanding your target audience is important not only for choosing your location but also for marketing purposes. Pay attention to the population of your new location, including factors such as age range and what brings them to the area. You can use this information to market to your intended audience and increase interest in your parking amenities.
Compare with your competitor’s marketing materials to highlight what makes your business unique and effective. For example, if you build a fully automated parking garage, you can market your facility’s efficiency and increased parking space to appeal to new customers. Social media is an excellent place to start marketing your business. You can also partner with nearby businesses and events to encourage shoppers and attendees to utilize your facilities.
These are some of the main steps to follow to begin your own parking business. Start with a solid foundation and understanding of the industry before you get into the big decisions, such as choosing a location or parking model. And if you want to pursue a fully automated parking garage for your business, learn more about parking lift technology at Harding Steel. We provide innovative parking mechanics for businesses across the industry, and we can help you build your new business with the same technology.
