Gas Station Business
1. Types of gas stations
Gas Station Franchise
Features-
- The franchise has to follow the rules and regulations set by franchisor like buying gasoline or diesel from them, follow the promotions and all other policies.
- Environmental issues are dealt by the franchiser
- In monitorial terms, the franchise gets the commission from the profit margin
- These type of gas stations fetch more business as customer’s get privileges such as gas points
Independent Gas Station
Features-
- An independent gas station owner can buy gas from any refinery
- Environmental issues are dealt by the owner itself
- This business model is more profitable.
- This business model calls for huge investment.
2. Location
- Gas stations accessible from a high-traffic roadway or 400 series highway get more business hence are more profitable.
- Gas stations that have little to no competition from nearby gas stations also promise huge potential of generating profits.
- In every area, environmental laws vary, and its compliance is quite costly.
- Road construction near the gas station can disrupt the business. It is advisable to check with the city about the length of construction period before making any decision on investing in the gas station in such areas.
3. Convenience store
A big nicely kept convenience store has more potential of more customers.
4. Area with less crime rate
1. Look for an area with less crime rate as gas stations are easy target for robbery, theft and other similar type of crimes.
2. While buying a gas station, make sure there are good security cameras, proper lighting and large windows. These factors will reduce the chances of theft and robbery.
5. Cleanliness and other factors
1. Make sure the gas station is kept in clean and hygienic condition. Customers are always attracted to an environment that is clean and hygienic.
2. Make sure that the signage is up-to-date and that there are canopies over the pumps
3. Greenery maintained all around
6. Eatery
An eatery or brand name restaurant will definitely bring more business to the location.
7. Financial performance in the past
1. Check the volume of gas being sold in that particular gas station in the past years. Is it consistent, increasing or decreasing?
2. What is the profit margin on fuel?
3. What were the expenses in the past such as employee’s salaries, maintenance cost, debit/credit charges etc etc.
These factors are good indicators to help you make an informed choice.
8. Select a station and negotiate a deal
1. Talk to your attorney if you need answers for your questions.
2. Considering all the above mentioned factors, select the best gas station that best suits you and make a deal!!!
9. Purchase the gas station.
After finalizing the deal, purchase the station. Congrats
Karambir (KB) Singh having professional and hands on experience in running the gas station business will help you find out the most lucrative and best deals in your desired area matching your requirements.