The demand for cars and other vehicles has increased rapidly due to globalization and privatization over the past few years. Globalization has increased the income of an ordinary man, which makes him capable of owning a car or any other vehicle. It is a positive growth for a middle-class person, but colossal demand and usage of cars have caused parking problems. This problem is so big that some people avoid buying a car because they do not want to face parking problems.
To reduce this problem, the governments of major countries made it compulsory to have a parking space at home. Although this step has made a positive impact, the problem still exists in outdoor parking; and we all know every issue gives opportunity to a business.
To solve this problem, a person can start a parking lot business. I know that you do not know much about this, so in this article, we will discuss the parking lot business plan in detail, which will help you to start this business. So a lot to know, a lot to discuss, and without wasting any time let us now begin.
Disclaimer- There may be some affiliate links in this article. We earn some commission when you buy any product by clicking on that link. Read our Disclaimer for all details.
Parking lot Business opportunities
There are a lot of ways of earning from a parking lot business. I have done proper research and excision some of the best for you which are as under:
#1 Start a parking lot cleaning business
It might sound awkward, but a person can earn a lot by starting a parking lot litter removal business. Regular use of a parking lot makes it dirty, so it becomes necessary to clean it regularly. Also, people do not park their vehicles in dirty places. That is why most parking lot owners pay companies to clean their parking daily.
So if you start a parking lot cleaning company on a small scale, you can easily take a cleaning contract from at least 4-5 large parking lot owners. If you do so, you can easily earn more than $70,000 in a year, which is pretty good for a small-scale business.
You might think that earning $70,000 per year from it is not possible. Still, it is very much possible because parking lot cleaning has various types like pressure washing, deep cleaning, trash pickup, etc. If your company ideally provides these services, you can easily earn more than $70,000 per year from the parking lot trash cleanup and pickup business.
#2 Traditional parking lot business
You can also start the traditional parking lot business in which you can charge people for parking their vehicles on it. You can assign an amount for parking a fixed size of the car per hour.
You can hire or appoint some staff if you do not want to manage independently. This business is also if you rent a parking lot at less rate in a highly crowded area.
Parking lot cleaning business Plan
Main Things to focus on:
#1 Resources required
#2 Business registration
#3 Funds requirements
Other things to focus
#1 Advertising method
#2 Pricing
#3 Way to beat competitors
#4 Tips to retain workers
Resources required to start a parking lot cleaning business
#1 Trash bins for storing litter
First of all, you need to buy trash bins to store all the trash gathered after cleaning the parking lot.
Good quality trash bins cost about $150-$200 in the USA, and as per my estimate, you need to buy about 7-8 trash bins if you need to cover 2-3 big parking lot owners. So you need to invest about $600 for purchasing trash bins.
Some people also use cheap plastic trash bins, which cost them just $20, but since we are planning for a long-term cleaning business, it is better to invest in good quality trash bins to reduce the cost in the long run. Apart from that, good quality trash bins also help create goodwill in the customers’ eyes. So I prefer buying metal or steel containers instead of cheap plastic ones.
#2 Broom and mop ( Manual or machine)
Everyone knows that brooms and mops are essential for starting a cleaning business. Since both are relatively cheap items, you do not need to take any pressure on them.
The number of brooms and mops you need is simply the number of workers you hire for It.
You can eliminate the usage of broom and mop by using new and modern cleaning machines, but they are costly, and generally, a new business person cannot afford it.
#3 Other equipment
Look, there are many ways of cleaning a parking lot, and you need different equipment for different courses like you need a jet spray if you need to do pressure washing, you need some good quality cleaning agents for removing hard dust and stuff like that.
There is a high probability that I will miss out on the names of some equipment, so it is highly recommendable to ask some parking lot owners or figure out the services provided by the other parking lot cleaners before preparing a list of equipment required.
Business registration and legal obligations
You can form different types of business entities, and the legal obligations are directly proportional to the kind of entity you create. So let us now discuss some of the most common business organisations:
#1 Sole proprietorship
It is the most basic form of organization that involves most minor legal obligations. It is a type of organization that a single person controls; that person will take all the decisions, and he will have to bear unlimited liability.
You do not even have to register this form of organisation, but certain states require specific permits for starting a business which you can check out from the SBA official website.
#2 Partnership
A partnership is a business carried on by two or more individuals (maximum 50-100. It varies over time). All things in the league are the same as a sole proprietorship; all partners have unlimited liability, all can participate in decision-making, etc., but it needs to be registered. You can write it from the SBA official website.
#3 Limited liability partnership
It is a partnership firm of business in which members have limited liability, and the rest is almost the same as a partnership.
#4 Company
A company is the most complex form of organization in which you need to fulfill the utmost legal obligations. A company can be started with a minimum of 2 members. However, a one-person company is almost the same as a sole proprietorship but with limited liability and more legal obligations.
A company must fulfill the most legal obligations you can read from the SBA website. I recommend you to consult with a Certified Public Accountants before forming a company.
Funds requirement
You need to register your business, buy some parking lot litter removal machines, patent your business name and hire some workers to start this business initially.
As per my estimate, you can adjust everything for a minimum of $12,000 plus workers salaries every month. Apart from that, you need to bear advertisement expenses which vary from area to area so adjust it accordingly.
Advertising method
Since there are very few parking lot owners in proportion to the overall population, personal selling is the best way to advertise parking lot business. This method is simple: visit a parking lot and give your pamphlet to him explaining your services.
Apart from that, you can also serve ads on particular keywords like “ parking lot cleaning services” in some of the most famous search engines and social media platforms.
#2 Pricing of cleaning services
In the beginning, your pricing should be 15-20% less than your competitors, so parking lot owners approach you to save money. You can increase your prices after gaining a good market share.
#3 Way to beat competitors
The way to beat competitors is straightforward. To beat them, you need to provide better services than your competitors in less pricing. If you do so for an extended period, then it will make your customers loyal, and they will never approach your competitors.
#4 Tips to retain workers
You do not need to pay more to workers for retaining workers, Instead, you should treat them well and understand their feelings. You can make them friends and give them some monetary and nonmonetary incentives on a regular basis so that they start feeling your business as their home and never leave their job.
We have already discussed a lot about the parking lot cleaning business. If you have any questions, then feel free to ask them in the comment section, till then goodbye and as always God Bless You All
