How to Start a Parking Lot Business in India

Introduction to how to start a parking lot business in India: Motor parks and parking lots are places where vehicles are parked; they can be garages, streets, or parking lots. Ample parking space must be provided for cars. Parking fees are determined by several factors, including the size of the lot, the amount of time it is occupied by cars, and the industry code of practice.

There are plenty of automobiles on the road and limited street parking in the parking lots. Open lots around the city or secure garages are available for parking. Generally, parking lots are located in commercial areas, near airports, hospitals, schools, and public gathering places.

There will still be a need for parking spaces until driverless taxis are able to replace personal cars. Land, paving money, and a means of collecting payments from customers are required to open a for-profit parking lot. If you want the location staffed, you will also have to decide whether it should be automated. Among the four types of parking lots, parallel parking, perpendicular parking, angle echelon parking, and double parking, you need to know them all.

Guide on how to start a parking lot business in India, parking lot types, how to get started, business plan, mararketing strategies and choosing a location

Types of parking lots

Parallel parking

Parking parallel to the curb occurs when your vehicle is parallel to the curb and in line with other vehicles. As a result, all cars are oriented to face one direction and this type of parking is commonly seen on the street. Because parallel parking creates more room for traffic, it is preferred due to a lack of space. When entering a curb properly, professional driving skills are required.

Perpendicular parking

Garage parking requires no special skill to park properly and is usually found in garages. Ideally, you should park your car parallel to the curb.

Angled parking

A parallel parking space is similar to a perpendicular parking space except that the car is parked parallel to the one coming toward the parking space.

Double parking

If you double park, it can be illegal as well as a source of confusion since it is bound to block one car after another since the space is limited. The valets can, however, remove the cars from garages when there’s a dispute and give more room to other park users if it’s a garage dispute.

Business plan to start a parking lot

Irrespective of the size of your business, it is important that you plan ahead. Often, people fail to plan their businesses, which results in grave consequences as the businesses fail after a while.

Therefore, you should create a parking lot plan that considers topics like your target market, start-up costs, legal complications, licensing and permits, when to break even, and exit strategies if things don’t work out. The following questions need to be answered for yourself;

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Deciding the market segment to serve

Depending on the market segment, demographics may include age, gender, race, and religion, or it may refer to psychographic or behavioral characteristics. The parking lot business does not have a known segmentation, so there is only one market segment: people who are over 18 and who own cars. If you wish to woo this set of customers within your business locality, you need to package your services in a way that is cost-effective, your valets are up to the task, your customer service is on point, and your market and advertise your services to the appropriate audience.

Investment required for starting a parking lot

It depends on the type of parking lot business one chooses when it comes to investment. In the United States, an investment of $10,000 is required to start a small parking lot business. If you are opening a large parking lot, you will likely need a minimum of $20,000. The investment can even rise to astronomical levels depending on the amenities used and the services offered. It must be noted, however, that the investment will also depend on the location of the parking lot business.

Determining the parking rates

The cost of parking a vehicle varies from one location to another. Prices are determined by the number of parking spaces available, as well as the demand. Other parking lots in the neighborhood will be a tough competitor if yours is already available. Additionally, the amount to be charged is determined by the type of vehicle parked, as it dictates how much space needs to be set aside for parking.

How to get started with a parking lot business

Car park business plan

Make a business plan before you start a parking lot business if you want to know how to do it. It is imperative for every budding entrepreneur to write a business plan that clearly states his or her future plans.

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Underground parking lot — Image Source: Pixabay

A parking lot business plan should include an explanation of the investments required. Aside from that, account for additional expenses such as those related to maintenance, future repairs, and basic amenities like electricity. Be sure to include the salary of the security guards involved as well.

License for parking lot business

Starting a parking lot business is required to obtain a license. The first step to starting a parking lot business is to register yourself and apply for the necessary licenses. There are different license requirements in different states and countries. Therefore, you may wish to take the advice of someone who has been in business for a while for advice regarding the necessary registration in that area.

Avail a business insurance

It is primarily recommended to have parking lot business insurance. During emergencies, property damage, and other types of accidents, this is a very useful tool. If you want to purchase a long-term policy, make sure you understand the clauses very well.

Tax registration

The operation of a parking lot business requires you to register for several federal taxes, without which you cannot operate. It is necessary to register for taxes when you are eligible to pay service tax, GST, or both.

Proper security

To keep the parking lot disciplined and orderly, entrance and exit times must be noted down and recorded. In order to properly manage parking lot businesses, security should be taken care of. You should, however, make sure you take a detailed history of their past experiences prior to choosing them.

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Car parking lot security — Image Source: Pixabay

Marketing strategies to promote your parking lot business

To help people learn about your services, you need to preach about them, and marketing your parking lot business is extremely important. You can start by distributing pamphlets and brochures to the adjacent offices and asking them to pass them on to employees.

Put up small banners and posters to let people know there is a parking lot nearby since it involves traffic from nearby areas. Additionally, you need to have a website for your car parking business, on which you should describe all the services you offer. Understand your strengths and weaknesses and the possible threats you might face

If you want to successfully address your weaknesses, you must identify them. There are no easy ways to reduce or eliminate external threats. One of those threats comes from competitors who are well-established in your own neighborhood. You cannot avoid creating your niche in this case, which should possibly be an untapped market. Unexplored markets can only be identified by those who have not yet begun using the parking lot. Identifying them and wooing them will not be easy.

There is a possibility of facing other challenges, such as the COVID 19 pandemic, which will have economic repercussions, as well as unfavorable economic policies from the government. All these factors will likely result in fewer people using parking lots.

Choosing an appropriate location plays a crucial role in this business

The location of your car park business is critical to your success, which is why you should seek to collaborate with facility owners that are located in densely populated areas where those who own cars and require parking lots reside. You should also ensure that your parking lot service is located in an easily accessible, easily seen, and secure commercial center in your area.

You can start by conducting informal research and getting in touch with shop owners and others in your neighborhood to learn about their parking experiences, either good or bad. If you’re ready, you can play the role of a customer in search of a parking lot; you can drive around the area looking for a parking lot and trying to find a place to park.

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Outer car parking lot — Image Source: Pixabay

It is important to keep in mind that other facilities, such as shopping malls, hotels, hospitals, government buildings, conference centers, etc., may or may not be used for commercial purposes. There might not be much need for more car parks in your area if these facilities are so plentiful, otherwise, you are creating a business opportunity for yourself if there are so few.

Final thoughts on starting a parking lot business

A parking lot business can be started fairly easily if you already own a plot. Renting one is also an option if you do not already own one. In addition to offices and event banquets, parking lot businesses are very popular near courts, hospitals, and clinics.