BUSINESS IDEA FOR CONSTRUCTING A NIGHT PARKING

Introduction 

A night parking is a place where vehicles can be parked throughout the night. Its market is determined by the availability of vehicles and absence of parking grounds in the place where you choose to construct them.  Parking grounds may be tarmacked, made of concrete, pavers, gravel or marram. The business idea aims at packing space for 1,200 vehicles per month which translates into 14,400 vehicles annually.

The revenue potential is estimated at $1,250 per month, translating into $15,000 per year with a sales margin of 10%; the total capital investment for the project is $890.

Plant Capacity:

The parking ground is expected to accommodate 50cars daily throughout the month both day and night.

Technology and Production process:

All you need is land with a fence or perimeter wall. You also need a guard to ensure safety of the vehicles. You may put monitoring Cameras and automatic alarm bells as additional security. The size of the parking determines the number of units to accommodate.

Market analysis:

The demand for Night parking facilities is very high especially in Urban Areas. There are widely established Night parking centers across the Country.

Scale of Investment:

  1. Capital Investment Requirements
Capital Investment Item Units Qty Unit Cost Amount
Barbed Wire             Poles 10 20 200
Poles             No 200 3 600
Gates              No 2 250 500
Alarm system              No 1 1350 1350
Total       2,650
  1. Operating Expenses
Cost Item Production Cost/ month Production Cost/Year1
General costs (Overheads)
Repairs 50 600
Labor 300 3,600
Utilities 200 2,400
Adverts and Publicity 200 2,400
Land Rented 700 8,400
Miscellaneous expenses 200 2,400
Depreciation (Asset write off) Expenses 55 663
Total Operating Costs 1,705  20,463

 Production is assumed for 365 days per year.

Depreciation assumes 4-year life of assets written off at 25% per year for all assets.

  1. Project Production Costs and Price Structure in US$
Service Sv/ day Sv/ Year Service cost Service charge Total revenue
Small Vehicles 200 73,000 0.2 1 73,000
Big vehicles 30 10,950 0.2 1.5 16,425
TOTAL 230 83,950      89,425
  1. Profitability Analysis Table
Profitability Item Per day Per Month Per Year
Revenue 287 7,452 89,425
Less. Operating Costs 66 1,705 20,463
Profit 221 5,747 68,962

Government Incentives:

The Government has tried to keep security in Uganda.

Research was done by Business Synergies for Uganda Investment Authority SME Department.