Post a new topic
    3 Replies Latest reply on May 26, 2008 9:44 PM by archie1975

    re: Start up business- Gas Franchise

    archie1975 Newbie
      Hi. Is there anyone who can share thoughts and ideas to start with gas station business that i can do?
      I think this could be a good business especially when you are on a very feasible business location (though the gas price are soaring this time) but i know gas is a necessity.

      If you could answer some of my questions i would greatly appreciate.

      1. Is it a good business to start with? How much money should I spare to begin with?
      2. Can I apply for a loan to start with this business? Where and HOw?
      3. There are several gas companies, which one should I get?
      4. I will do both convenient store and gas station and even car wash, any idea if these could work?

      Thank you and i really really appreciate your ideas on these?

       

      Archie
        • Re: re: Start up business- Gas Franchise
          Lighthouse24 Ranger

          Owning a gas station can be a good business, but it is a very tough one to start up or take over if you have no experience at it -- lots of potential risks (regulatory and environmental issues, customer safety, employee security, financial management, etc.). and quite a bit of "politics" to play relative to supply, delivery, and pricing.

          Despite the high consumer price of gasoline, it doesn't have a particularly high margin for the station owner -- around 20 cents a gallon (on average) right now. Convenience store sales will average about a 30 percent gross margin. So both parts of the business you described depend on traffic volume, and location is the key to that.

          A prime location will cost a lot more up front, but with major retail and grocery chains adding gas pumps to their operations (and consumers trying to conserve when possible), competition is stiff and individually owned franchise stations that are in anything other than a prime locations probably won't survive.

          There's a book that you may want to check out if you're serious about this endeavor:
          http://www.mygasstationguide.net/
          (I do not have any affiliation with the author or publisher.)

          Hope this helps. Best wishes.
          • Re: re: Start up business- Gas Franchise
            LUCKIEST Guide
            Start up business- Gas Franchise- Archie, welcome to this web site

            Lighthouse always has great answers.
            Tell us more about yourself - Your background, what you have done, why a gas station??
            and where you are located?? How soon do you plan on starting??

            Have you developed a Business and Marketing Plan??
            A GOOD Bus Plan should answer most of your questions.

            Do you know about SCORE?? SCORE is FREE and can help.

            Good luck, LUCKIEST