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Monday, October 31, 2011

How to start a Profitable Car Park Business in Nigeria

A car park is a suitable venture for someone who has idle open space in a densely populated area especially where there are many cars with difficulty in locating suitable parking space for car owners.

Benefits of a car park to car owners

  •  Convenient and safe location for parking cars. The cars are parked far away from prying eyes and can be easily monitored by people who are employed to ensure that it remains where it is parked and intact.
  •  Helping to reduce traffic congestion
  • Offers vehicle owners peace of mind no need to be afraid of someone coming to tow your car away or someone scratching or bashing your car or even stealing your car.
The Opportunity
In most Nigerian cities the population of car owners is rapidly increasing with many of them finding adequate car parking space difficult especially during rush hours on weekdays. People would go out to banks, eateries or government offices and be battling with where to find adequate car parking space or one that is at least relatively safe. In large cities like Lagos where there are at least 2 million registered cars it becomes worse when the car owners want to move out and discover someone has blocked them and the car owner is no where to be found. So the car owners need safety, convenience and courteous service for their car parking needs not one that says for instance; "Vehicles are parked at owners risks". Besides this some car parks can also combine other services such as car wash, sale of car accessories such as; wipers, seat covers, car floor mats, even side mirrors and wind screens can also happen as well.

Ideal locations
Suitable locations for citing a business like this could be available idle space in a crowded place in major cities. Sometimes a floor in a high rise building can also serve as a car park. Closeness to popular hangouts is also a good place to locate a car park.

Target Market/Opportunities
Ideal market could include Workers who commute to work but will be busy all day at their offices especially if their offices do not have parking spaces for their cars. Sometimes even at events such as weddings, parties and so on people may need to park their cars outside the venue of such events.

Threats and challenges
The car park management will naturally have to take responsibility for the safety of the cars in their custody and so must device a sophisticated method of safe guarding the cars. Also what measures are in place in case a car is stolen or damaged to either compensate the car owners or to apprehend culprits. What about weather, bird and animal strikes or trouble situations such as riots and so on. These cases may not occur often but they are possible and could hamper the survival of the business.

Start up Summary
 Rent (Open space in busy commercial area) – N3,000,000 a year depending on size
Perimeter fencing around the car park area – N800,000
 A small post to serve as admin area – N300,000
 Working capital for staff and other costs 3 months – N600,000
Total = N4,700,000

This is just a rough estimate of course the start up amount varies it could be much less or more than this.

Want to have a professionally written business plan to show banks or investors? Give me a call to work you through the process: 0803 206 4106