Parking Garage Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Parking Garage Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Parking Garage business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
People are always going to have cars, and they are always going to need places to park. In major metropolitan areas, cities, and other places throughout the country – there are only a limited amount of parking spaces available for the general public. As such, parking garages are able to generate very high gross margins and highly predictable streams of income by providing these services to the general public. In fact, parking garages are some of the most lucrative forms of real estate investing on a return on investment basis given the very low cost structure needed to house vehicles, low operating expenses, and very high fees associated with the services. These businesses are always able to remain profitable given their low operating costs and their very lucrative rate of stream of income generated from services.
Given that this is a real estate focus business, almost all financial institutions and most private investors are willing to put up the necessary capital in order to commence revenue-generating operations. The cost that are associated with establishing a new part the range anywhere from $100,000 all the way to $5 million depending on the location. In major metropolitan areas like New York, there have been instances where buildings have been acquired and converted into parking garages for $20 million or more. While this may sound like a substantial amount of money, the return on investment is such that warrants this type of investment. This will continue to be the case in many major principles in areas such as San Francisco, New York, Chicago, Miami, and Los Angeles. In these places, parking is a luxury and spaces are small for these types of businesses.
Given the large tangible asset base of these companies, especially as most of the capital needed is for realist the acquisitions, financial institutions are willing to provide the necessary capital in order to commence operations. Generally, a 10% to 20% down payment will be required by the entrepreneur that is looking to establish this type of operation. A financial institution is going to want to see a parking garage business plan and as with all business planning documents this should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. For industry research, there are approximately 20,000 companies within the United States that own and operate one or more parking garage locations. These businesses aggregate we generate about $10 billion per year from their services. Within the business plan, a demographic analysis that focuses on the number of cars needing parking every day, median household income, number of tourists to the market, and related information should also be included within the business plan.
A parking garage SWOT analysis should be produced as well. As it relates to strengths, the gross margins generated from parking garage services is extremely high. Typically the gross margins range anywhere from 90% to 95% this and most of these expenses are related to receiving payment. The large tangible asset base makes them very good candidates for funding from financial institutions.
As it relates to weaknesses, there are very few issues relating to the operation of a parking garage. The biggest issue that is faced by these businesses are the liabilities associated with having a car on site and having it be potentially damaged. However, most parking garages have a substantial number of disclaimers regarding this aspect of operation. Insurance is usually one of the largest expenses for these types of businesses.
For opportunities, these businesses are readily expandable by establishing new locations. This is really the only way that these companies are able to expand their revenues outside of offering ancillary services such as on-site car washing and detailing.
There are no known threats of it impact the way that these businesses conduct operations moving forward. During times of economic recession, these businesses are generally able to always remain profitable and cash flow positive given their low operating expenses and high gross margins.
The most important part of the parking garage marketing plan is the establishment of an online presence. As many people now use their mobile phones and related devices in order to find local businesses, it is imperative that a proprietary website as well as an application is developed in order to allow people to very quickly find and source the parking garage location. This website should be listed among all major search engines, and also have a associated reviews page in order to ensure customers that this is a good business to use for parking their vehicles. The company’s proprietary application can be developed so that individuals can only find that the business but also pay for their parking needs directly from their mobile phones were related devices. Among parking garage companies who own and operate several locations, the use of this type of application has become very popular given that allows for a very low-cost methodology of sourcing customers and having them pay for services. A presence on social media is modestly important for parking garage given that a handful of people will search for these types of businesses using platforms such as FaceBook, Twitter, and related platforms. However, the social media page does not really need to be maintained to a large extent given the fact that these businesses typically are found through search engines and not through social media platforms.
The return on investment for parking garages substantial and this is led to a number of providers entering the market with these services. There is really nothing about the economy or the way that these companies conduct operations is going to impact the way that they conduct business moving forward. The growth of this industry will remain in lockstep and within normal bounds of inflation. These businesses are typically able to increase their prices modestly on a year-to-year basis which insures bottom-line income growth.