Are you about starting a valet parking business? If YES, here is a complete sample valet parking business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a valet parking business. We also took it further by analyzing and drafting a sample valet parking business marketing plan template backed up by actionable guerrilla marketing ideas for valet parking businesses. So let’s proceed to the business planning section.
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Why Start a Valet Parking Business?
If you are looking for a business to venture into as an entrepreneur and you know that you have an interest in the automobile industry, then you should consider starting your own valet parking business. As long as people still drive cars and other vehicles on our roads, valet parking services will continue to be in demand. Valet parking business is indeed profitable because there are public facilities in the united states of America where it is difficult to find parking space except with the aid of a valet.
Valet parking is a parking service offered in public and business facilities such as airports, stadiums, shopping malls, theaters, restaurants, stores, and other businesses facilities, particularly in North America. In divergence to “self-parking”, where customers find a parking space on their own, customers’ cars are parked for them by a person called a valet.
Depending on the scale you want to start, the startup capital for this type of business can be considered to be moderate. As a matter of fact, you could start your own valet parking business with a handful of employees and then grow it big within a short period of time by re – investing your profits back to the business. As earlier stated, you wouldn’t be allowed to start your own company without first obtaining the license required.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print on how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.
The truth is that it is one thing to have a fantastic idea cum business plan, but another thing for the business plan to translate to profits, that is why it is important to assemble a team of dedicated workers to work with if you want to be successful with your valet parking business.
Below is a sample valet parking business plan template that will help you successfully write yours without much stress.
A Sample Valet Parking Business Plan Template
1. Industry Overview
Valet parking services fall under the Parking Lots and Garages industry and the industry comprises operators that provide parking and valet service on an hourly, daily or monthly basis. The Parking Lots and Garages industry mainly operates via management contracts, lease agreements or property ownership. Companies that are engaged in the storage of vehicles for an extended period of time are not part of the Parking Lots and Garages industry.
If you are a close watcher of the Parking Lots and Garages industry, you will noticed that the industry has followed a similar narrative to that of the US economy. Because of declining employment, the demand for air travel, shopping outings, sporting events and concerts declined, recovery began in 2011.
Apart from a small blip in 2012, overall increases in parking rates over the five years to 2016 and improvements in employment figures contributed to the industry’s turnaround. Going forward, employment, domestic trips and vehicle registrations will rise, increasing the need for parking services at airports, entertainment venues and central business districts. However, the industry faces saturation, as more operators compete for slower-growing revenue.
Statistics has it that in the United States of America alone, there are about 20,709 registered and licensed large and small – scale Parking Lots and Garages (valet parking services companies inclusive) scattered all across the United States responsible for employing about 159,428 people and the industry rakes in a whooping sum of $10 billion annually.
The industry is projected to grow at 4.1 percent annual growth within 2011 and 2016. It is important to state that ABM Industries, SP Plus and Vinci have the lion shares of the available market share in the industry.
A recent report released by IBISWorld shows that the Parking Lots and Garages industry is in the mature phase of its life cycle. The report reveals that the industry value added (IVA), which measures the industry’s contribution to the economy, is projected to grow at an annualized rate of 2.3 percent from 2011 to 2021.
In comparison, GDP is expected to grow 2.0 percent per year on average over the 10-year period. The report further stated that while IVA growth will outpace GDP growth slightly over the period, the number of companies in the industry is expected to increase at the low annualized rate of 2.2 percent over this period.
During this time, merger and acquisition activity is expected to remain high, which is a key indicator of a mature industry. All three major players have grown their operations considerably through acquisitions over the five years to 2016.
The valet parking services business will continue to blossom because it is becoming a lifestyle in the United States for car owners to make use of valet parking services when they visit some public and business facilities.
People are encouraged to venture into the valet parking business because the business is easy to set up and it is indeed a thriving and profitable venture that an entrepreneur with little business skills and training can comfortably start.
Starting a valet parking services business in the United States requires that you get the necessary permit and license to be able to operate in any city of your choice, and you are expected to go into business agreement with owners of business facilities and managers of public facilities.
2. Executive Summary
Safe Hands® Valet Parking Services, LLC is a licensed valet parking company that will be based in Westchester County – New York. We will provide essential parking services in public and business facilities such as airports, stadiums, shopping malls, theaters, restaurants, stores, and other businesses facilities in and around the cities where we operate.
Safe Hands® Valet Parking Services Company, LLC has been able to secure all the relevant license and permits to operate in the United States. We will ensure that we abide by the rules and regulations guiding the valet parking line of business.
At Safe Hands® Valet Parking Services Company, LLC our clients’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we put standard structures and processes in place that will enable us meet and surpass our business goals and also stay highly competitive in the industry.
We will go the extra mile to ensure the safety of cars under our care. At Safe Hands® Valet Parking Services our goal is to provide excellent valet parking service to our customers and we pride ourselves on the integrity and competence of our company and our employees.
Our overall business goal is to position Safe Hands® Valet Parking Services to become one of the leading valet parking brands in the United States of America within the first 5 years of operation. This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are confident that Westchester County – New York is the right place to launch our valet parking business.
Safe Hands® Valet Parking Services Company, LLC is owned by Moses Gibbs. Moses Gibbs has a Diploma in Transport and Logistics with over 9 years of hands on experience working for some of the leading brands in the transport and logistics industry in the United States of America prior to launching Safe Hands® Valet Parking Services.
3. Our Products and Services
Safe Hands® Valet Parking Services looks forward to deliver excellent services in terms of helping our customers safely park their cars when they are in public space or facility.
Our intention of starting our valet parking service is to favorable compete in the Parking Lots and Garages industry and of course to make profits from the industry and we will do all that is permitted by the law in the United States of America to achieve our aim and business goal.
Our business offerings are listed below;
- Valet parking services
- Car hauling services
4. Our Mission and Vision Statement
- Our vision is to become one of the preferred choices when it comes to valet parking services in and around Westchester County – New York.
- Our mission is to ensure that we build a valet parking service that will operate in the whole of the United States of America; a company that will boast of having some of the best and reliable drivers in the country.
Our Business Structure
We intend starting our valet parking service with a handful of full time employees, and some of the available driving roles fill be handled by qualified contract drivers. Adequate provision and competitive packages has been prepared for all our employees. Below are the roles that will be available at Safe Hands® Valet Parking Service, LLC;
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Sales and Marketing Manager
- Professional Drivers (Valets)
- Client Service Executive/Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
Professional Drivers (Valets)
- Park cars on behalf of our clients in public and business facilities such as airports, stadiums, shopping malls, theaters, restaurants, stores, and other businesses facilities
- Maintains a logbook of their parking activities to ensure compliance with the facility rules and regulation
- Keeps a record of vehicles parked and makes sure the vehicles and keys are safe.
- Reports accidents or violations to the management
Client Service Executive
- Welcomes/receive clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Consistently stays abreast of any new information on the organization’s services, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives parcels/documents for the organization
- Distributes mails in the organization
- Handles any other duties as assigned by HR and Admin Manager.
6. SWOT Analysis
We are quite aware that there are several valet parking businesses all over the United States and even in the same locations where we intend starting ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Safe Hands® Valet Parking Services Company, LLC employed the services of an expert HR and Business Analyst with a bias in startups to help us conduct thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Safe Hands® Valet Parking Services Company, LLC;
Our strengths are in our highly experienced management team, robust business network with key stakeholders in the industry, reliable drivers, customer loyalty and strong reputation amongst domestic industry players.
Our weakness could be keeping the best hands during our teething period, price structure, lack of scale compared to our peers who have already gained ground in the Parking Lots and Garages industry.
The opportunities that are available to us as a valet parking service operating in the United States of America is massive considering the fact that valet parking services is an accepted service in the United States of America.
Just like any other business, one of the major threats that we are likely going to face is a breakdown of business relation with our hosts (operators of public facilities). Another threat that may likely confront us is the arrival of a valet parking company in same location where ours is located.
Another challenge is economic downturn; if the economy is in bad shape, history has it that businesses such as valet parking services usually struggle to get their customers to pay valets because they would prefer to source for parking lots themselves.
7. MARKET ANALYSIS
- Market Trends
The market trends as it involves the parking lots and garages industry especially in the United States of America is indeed dynamic and at the same time highly competitive and challenging. But one thing is certain, once a valet parking company can gain credibility; it will be easier for the company to secure permanent deals/contracts with large conglomerates.
The advancement in technology in areas such as computers, satellite communication, and the internet, has contributed immensely to the growth of the parking lots and garages industry. The advancement in technology is responsible for increase of productivity of valet parking service operations, it helps them effectively monitor cars and their drivers and it helps driver save time and effort.
Lastly, another common trend in this industry is that once a valet parking service has gained credibility, it is easier for them to secure permanent deals with operators of airports, seaports, stadium and other facilities.
8. Our Target Market
Our target market is basically public facilities and of course every individual who own cars throughout the United States of America. In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;
- Car owners
- Shopping malls
- Other highly visited public facilities
We are aware of the competitive nature of the parking lots and garages industry and we are ready to get into the mix and favorably compete with players in the industry.
Safe Hands® Valet Parking Services Company, LLC no doubt is a new valet parking company, which is why we took our time to do a thorough market research and feasibility studies before launching the business. We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good network, excellent relationship management, experienced management team, highly qualified drivers etc.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Safe Hands® Valet Parking Services Company, LLC will ensure that we leverage on our strength and the opportunities available to us in the U.S. to market our services and to generate enough income that will help us drive the business to stability.
We will go all the way to explore every available source of income in the parking lots and garages industry. Below are the sources we intend exploring to generate income for Safe Hands® Valet Parking Services Company, LLC;
- Valet parking services
- Car hauling services
10. Sales Forecast
One thing is certain, as long as people still drive cars and other vehicles on our roads, the need for valet parking services will continue to be in demand. Valet parking business is indeed a profitable business because there are public facilities in the United States of America where it is difficult to find parking space except with the aid of a valet.
We have been able to examine the parking lots and garages industry market in the United States of America, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in the United States.
Below is the sales projection for Safe Hands® Valet Parking Services Company, LLC, it is based on the location of our valet parking services company and of course other related services that we will be offering;
- First Fiscal Year: $180,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $500,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. So also, there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
No doubt, networking is an effective way to begin building your client base as a business man or woman and we have plans in place to leverage on all our networks. In view of that, we will look out for gatherings where we can network with managers of public facilities. As a matter of fact, our first port of call will be to connect with the nearest Chamber of Commerce; we are likely going to get our first major deal from them.
At Safe Hands® Valet Parking Service, all our employees will be directly or indirectly involved in the marketing of our services. We will create provision for our employees to earn commission when they bring in business for the organization. We will also encourage freelancers to work with us; whenever they refer clients to us they will earn a percentage of the deal as agreed by both parties.
Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms. We will work hard to ensure that get repeat business from any business deal we execute and also, we will encourage our customers to help us refer their friends to us.
Part of our strategy is to reward loyal customers and to leverage on word of mouth marketing from satisfied customers. In summary, Safe Hands® Valet Parking Services Company, LLC will adopt the following sales and marketing strategies in sourcing for clients for our business;
- Introduce our business by sending introductory letters alongside our brochure to car owners, operators of public facilities and other key stakeholders in Westchester County – New York
- Print handbills about our valet parking service and its locations and drop them in public facilities.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across
- Create a basic website for our business so as to give our business an online presence
- Directly market our valet parking services business.
- Advertise our business in community based newspapers, local TV and radio stations
- List our business on yellow pages’ ads (local directories)
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
In spite of the fact that our valet parking service will be well located, we will still go ahead to intensify publicity for the business.
Safe Hands® Valet Parking Services has a long – term plan of covering various locations in major cities in the United States which is why we will deliberately build our brand to be well accepted on highways in an around Westchester County – New York before venturing out to other cities in the United States of America.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Safe Hands® Valet Parking Services Company, LLC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms to promote our brand
- Install our billboards on strategic locations all around Westchester County – New York
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts
12. Our Pricing Strategy
At Safe Hands® Valet Parking Services Company, LLC, we have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.
We will ensure that we leverage on price to win over customers as our prices will be affordable and negotiable. The fact that our business door is open to both individuals and organizations means that we will have different price range for different category of clients. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.
- Payment Options
At Safe Hands® Valet Parking Services, our payment policy will be inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.
Here are the payment options that Safe Hands® Valet Parking Services Company, LLC will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials
13. Startup Expenditure (Budget)
When it comes to starting a valet parking service, the major areas that you should look towards spending the bulk of your cash is in the leasing of an administrative office and equipping the office. Aside from that, you are not expected to spend much except for paying of your employees. These are the key areas where we will spend our startup capital;
- The total fee for incorporating the Business in the United States of America – $750.
- The budget for Liability insurance, permits and license – $2,500
- The amount needed to acquire a suitable office facility in Westchester County – New York for 6 months (Re – Construction of the facility inclusive) – $40,000.
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The cost of accounting software, CRM software and Payroll Software – $3,000
- Other start-up expenses including stationery – $1000
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost of launching our official Website – $600
- The amount needed to pay staff for the first 2 months – $20,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Going by the report from our market research and feasibility studies, we will need an estimate of $100,000 to set up a standard valet parking service in Westchester County – New York.
Generating Funds/Startup Capital for Safe Hands® Valet Parking Services Company, LLC
Safe Hands® Valet Parking Service is owned and managed by Moses Gibbs. He decided to restrict the sourcing of the startup capital for the business to just three major sources. These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $40,000 (Personal savings $30,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $60,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Safe Hands® Valet Parking Service is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to engage in affordable, timely, safe and efficient valet parking services at all times.
Safe Hands® Valet Parking Service will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of office facility in Westchester County – New York: Completed
- Conducting Feasibility Studies: Completed
- Startup Capital Generation: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees and drivers: In Progress
- Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (networking with public facility managers and chambers of commerce): Completed