Night Parking Facility Business Plan

1. Executive Summary

This business plan outlines the establishment of a secure night parking facility with capacity for 50 vehicles daily (1,200 monthly). With only $890 startup capital, the project generates $15,000 annual revenue at 10% profit margin, serving urban areas with high parking demand.

Key Business Highlights

• Market Need: 78% of urban drivers report nighttime parking shortages
• Revenue Model: $1.04/vehicle night (average)
• Security Features: Guarded + optional CCTV surveillance
• ROI Period: 2 months

2. Facility Specifications

Site Requirements

Parameter	Specification
Land Area	1,000-1,500 sqm (50 vehicles)
Surface Type	Paved (asphalt/concrete) or compacted gravel
Lighting	LED floodlights (minimum 200 lux)
Security	Perimeter fence (2.4m height) + guard post
Access Control	Entry/exit gates with ticket system

Capacity Analysis

Daily Operations

• Parking Spaces: 50 vehicles
• Turnover Rate: 1.2x (60 vehicles)
• Hours: 6PM-7AM (13 hours)

Monthly Capacity

• Vehicle Nights: 1,200
• Utilization Rate: 80% (industry average)
• Effective Capacity: 960 vehicle nights

3. Capital Investment Requirements

Startup Costs Breakdown

Item	Quantity	Unit Cost ($)	Total ($)
Land Preparation (Grading)	1,000sqm	0.30	300
Perimeter Fencing	200lm	1.50	300
Security Guard Hut	1	150	150
Lighting System	4 points	25	100
Signage	2	20	40
Total Capital Investment	890

Optional Upgrades

• CCTV System: $400 (4 cameras + DVR)
• Automated Gate: $1,200 (card/ticket operated)
• Paved Surface: $3,000 (asphalt for 1,000sqm)

4. Operating Expenses

Monthly Cost Structure

Expense Category	Cost ($)	Notes
Security Personnel	400	2 guards @ $200/month
Electricity	50	Lighting + small appliances
Maintenance	30	Grounds keeping + repairs
Administration	20	Stationery, tickets, etc.
Miscellaneous	50	Contingency fund
Total Monthly Costs	550

Annual Operating Costs

Fixed Costs

• Security: $4,800
• Utilities: $600
• Maintenance: $360
• Subtotal: $5,760

Variable Costs

• Administrative: $240
• Contingency: $600
• Equipment Depreciation: $300
• Subtotal: $1,140

Total Annual Operating Costs: $6,900

5. Revenue Model & Profitability

Pricing Structure

Vehicle Type	Night Rate ($)	Monthly Pass ($)	Market Share
Sedans	1.00	25	60%
SUVs/Vans	1.50	35	30%
Trucks	2.00	50	10%

5-Year Financial Projections

Year	Vehicles/Month	Revenue ($)	Expenses ($)	Profit ($)	Margin
1	1,200	15,000	6,900	8,100	54%
2	1,440	18,000	7,500	10,500	58%
3	1,680	21,000	8,100	12,900	61%
4	1,920	24,000	8,700	15,300	64%
5	2,160	27,000	9,300	17,700	66%

Key Profitability Metrics

• Break-even Point: 529 vehicle nights/month
• ROI Period: 2 months
• Annual ROI: 910% (Year 1)
• Payback Period: 1.3 months

6. Risk Analysis & Mitigation

Potential Challenges

Risk	Probability	Impact	Mitigation Strategy
Theft/Vandalism	Medium	High	24/7 guards + CCTV + insurance
Low Utilization	Low	Medium	Strategic location + marketing
Price Competition	Medium	Medium	Differentiate with security features
Regulatory Changes	Low	High	Proper licensing + compliance

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