Market research shows that the parking and garage industry will grow at a 12.6% increase rate this year. With the numbers looking up, it’s the right time to invest in the parking lot business.
Owning a parking lot company in a prime area is a worthy investment. However, most people start wrong and end up shutting down the business early.
It’s wise to get the right business advice before paving a parking lot. Keep reading this article to get smart startup tips on how to start a parking lot business.
Location of the Lot
If you aim at getting premium returns from this business, then find a suitable parking lot. Lots in high traffic areas have the most rewarding rates.
You can choose to buy an undeveloped plot of land, but this has its downsides too. Be keen on the measurements and have an accurate estimate of how many cars the lot can hold.
You will also have to think about the durability of the pavements. Look for a reliable commercial asphalt paving company to enjoy quality pavements.
Insurance Policy
A major factor you need to be keen on when starting a parking lot company is a valid insurance policy. A lot of accidents can occur in a parking lot.
Thus, it’s wise to have an insurance policy that frees them from any liability claim.
Going for premium insurance covers will make sure that you get maximum protection. Setting regulations like speed limits will reduce the number of accidents.
Tax Policy
One of the most sensitive things about owning a parking lot is that you must pay taxes. A percentage of the parking fees you charge goes to taxes.
It’s disheartening to watch your new business shut down because you missed out on a tax deadline. Therefore, acquit yourself with the state’s tax laws before getting into the business.
Know the tax rates and other charges that might apply. The process will help you get a better estimate of the parking fee.
Equipment Ready
Observing operations in various parking lots is a great way to prepare for your company. Be more concerned with the ticketing system and the mode of payment.
Ask other parking lot company owners for legit business advice. They can tell you which equipment works best with an automated or manual system.
Besides, you’ll need signage boards with parking directions, speed limits, among other instructions.
Hire Employees
The personnel you hire will depend on what you intend to do with your parking lot. Some parking lot companies offer car wash and garage services on the side.
Even regular parking lots will need an attendee or two to handle payments. Besides, you’ll need security and ground-keeping personnel.
How to Start a Parking Lot Business
Starting a parking lot company is a worthy investment, but a risky one. The comprehensive guide above on how to start a parking lot business has all the startup tips you need.
Obeying tax laws is critical to the growth of your business. It’s wise to get a premium insurance policy, as accidents are bound to happen in a parking lot. Stay on this website for more business advice.
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