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How Much Does It Cost to Start a Valet Parking Business?

Valet Parking Business

It will cost around $9,000 to $18,000 to start a viable valet parking business in the United States. According to industry reports, the average cost will be somewhere around $13,000.

This figure encompasses the cost that comes with obtaining the parking lot lease, paying wages and remuneration for attendants, website setup, as well as all other related maintenance costs. Truth be told, finding a parking space is one of the most challenging issues when it comes to driving in the United States.

The number of cars on the roads today is out of proportion, and this entails that the demand for parking has never been higher.

You will be expected to obtain a valid driver’s license and third-party liability insurance to start this business. You will also have to purchase uniforms and add your company logo and name on them for branding purposes and to look more professional.

Ensure to utilize two-part tickets with one part appended to the keys to a customer’s car and the other part given to the customer.

Make sure to only recruit drivers who can handle both automatic and manual vehicles. You can also seek out drivers who are conversant with high-performance cars. If necessary, train your employees to understand that customer service is a huge factor in this line of business.

Don’t forget to carry out background checks and ask applicants to submit a copy of their seven-year driving record from the DMV.

Factors That Influence the Cost of Opening a Valet Parking Business

There are a whole lot of factors to consider when calculating how much is necessary to start this business in the United States. These include:

1. Location

Same as with most other businesses, this is a vital factor that will play a valid part in your startup expenses. Please note that the amount you pay for things like rent, lease, or even employee salaries will depend on this factor.

For instance, a business situated in an urban city center will have higher rent costs especially when put in comparison with one in a suburban area.

2. Equipment

There is necessary equipment needed to start and effectively run this business. Companies in this line of business need parking cones, signs, ticket machines, and radios. Ensure you go for quality ones because they will ensure you have low maintenance costs.

3. Insurance

The possibility of mishaps in this line of business is exponential. It could be your employees damaging a client’s car, theft, or even your workers getting injured.

Owing to that, it is necessary for you to obtain the appropriate liability insurance to safeguard your business. Note that the cost of insurance will depend on the size of the business and the level of coverage required.

4. Permits and Licenses

Just about every business in the United States is expected to obtain the right licenses and authorizations before they commence operations.

Keep in mind that the exact licenses or authorizations you need will depend on your location in the United States. The expenses that come with obtaining these permits and licenses can add to the startup costs.

5. Staffing

Valet parking businesses need well-trained staff to park and retrieve cars, in addition to managing the business operations. It can be very difficult to manage this business alone. You need to get capable hands to ensure that cars are collected, parked, and retrieved safely.

Nevertheless, note that the expense that comes with hiring, training, as well as other employee benefits, can add to the startup costs.

6. Marketing

To draw in customers, valet parking businesses need to invest a good percentage of their startup capital in marketing efforts such as advertising, website development, and social media management. The exact amount you invest in these marketing efforts will vary and will indeed impact your startup costs.