Are you planning to invest in gas stations? Then you’re at the right place because this article will tell you everything you need to know before you open a certified gas station business. Enjoy the read!
Planning to open and run a business can be a tedious process. You have to think about the various paths you can take, the unexpected outcomes, and the uncertain future. Well, that’s the simplest way to describe the process. In reality, it’s quite complicated and involves many stressful and dreary steps to get to a point where you can start making a profit. And the riskier the business, the more patience you need to get to that point. So when we talk about opening a gas station business, you would understand how difficult the task can be.
But have no fear because that’s what we’re here to guide you with. This blog will include various tips on opening a gas station and running it. We will discuss your business strategy, the various products, and services you can offer, obtaining various permits and licenses, and securing funding.
Here’s your complete guide to opening a gas station:
Your business strategy relies on the kind of market you will be surrounded by. Of course, unlike any other business, you won’t have to worry about high competition. But you still need to understand what you want your USP to be that gives you an edge over your competitors.
The most appealing aspect for any customer when it comes to gas stations is the location. If the gas station is situated in an area that is easily accessible, then customers prefer visiting it. So having it closer to a city is an ideal option. But make sure it’s not in a populated area because you may get business there, but customers would still actively want to avoid your gas station as it’s always crowded and time-consuming. Hence, in that case, opening a gas station at a checkpoint between the business and commercial zones and the residential zone is the right choice.
Another factor that every business owner should study is the level of competition they face. Opening a gas station in a location that is surrounded by competitors can lower your chances of making a good profit. Even if you provide more products and better services, customers would still prefer visiting gas station locations closer to their homes instead of visiting your business place. So your gas station will mostly get customers from your local area.
So just visit a few spots with available plots and ask yourself these two questions ‘Are there many gas stations in this area?’ and ‘Is this the perfect checkpoint to enter the residential zone?’. That should help you guide you through the process.
Business Strategy, Products & Services
Offering a wider variety of services within your gas station will attract more customers towards it. Installing air pressure machines, digital payment modes, a variety of fuel options, car wash, and even having a small garage for repairs can be some of the few you can add to your business. Apart from them, you can always visit the closest gas stations to your chosen location and see what kind of services they have or don’t have. Based on that, you can add more options for your customers and have a wider scope of earning.
The same goes for the products. Firstly, having a convenience store at your gas station is a must. The variety of products that you sell in the gas station can also be an appealing prospect. Some of the most famous products are motor oil, other vehicle fuels, tools, and accessories, doughnuts, hotdogs, soda machines, cigarettes, alcohol, lottery tickets, and other varieties of snacks, drinks, and products. The best way to decide what products you should have at your gas station is to visit one of your competitors after a long day of work. What will you look for in their convenience store? Anything that you can think of is the right answer.
Also, remember that gas stations and convenience stores within them run 24/7. So having certain medical or safety products like bandages, ointments, OTC medicines, condoms, pregnancy tests, and other products that people require during an emergency should be available at your store.
Obtaining Various Permits And Licences
There are some rules and regulations that you need to follow when you are opening a gas station. One of them is that you need to take all the measures to ensure that your business is safe and secure.
Since we’re talking about a highly inflammable product like gas that your business relies on, you will require a securely built location to store fuel and conduct business. It’s always advisable to consult an expert to ensure that you meet all the requirements.
You will require permits for the following:
- Fire inspection.
- Water discharge.
- Tank inspection.
- License to sell alcohol and tobacco products.
- License to sell food.
- Motor fuel outlet license.
These are just some of the permits you will require. You can inquire with an authority figure if you need more permits or fulfill any other formalities before opening a gas station.
One thing we can assure you is that opening a gas station is not going to be cheap. From hiring a professional to build on the location, buying all the machinery and equipment, getting all the permits, securing a supplier contract, to many other financial obligations, it might cost you a dime. Not to forget hiring employees and paying them because running a gas station is no one man’s job.
So if you have ever wondered ‘How much does it cost to open a gas station?’ then here’s your answer. We estimate that you will require at least $300,000-$500,000 just to start your business and another $200,00-$300,000 to maintain it for a few months before you start making a profit. The costs and range may vary from region to region. So you should definitely be looking for funding when you are opening a gas station.
Securing such a big investment and liability can be a tedious process. So it’s always wise to give yourself some time and plan out this process before you make any other commitments elsewhere. We can assure you that until you find the right investment plan that suits your needs and vision, you will find it very difficult to execute your strategy according to your schedule.
Approach various banks with your business strategy and inquire about what they can offer. Compare the interest rates and find the best possible financial plan that fits your needs. Once you are funded, you won’t have to worry about the day-to-day duties and can focus on the larger aspect of growing and marketing your business.
Making such a huge investment to start and run a business is always a huge financial risk. The future of the business and the speed at which you may achieve success can’t be anticipated. So we highly recommend you to protect yourself and your business from any liabilities or financial burdens.
The best way you can achieve that is by investing in Gas Station Insurance. It provides you a variety of coverage that help you secure your finances and protect your business. That way, you won’t be worried to take any step that helps your business grow even if it involves a certain level of risk.
We recommend you to compare various Gas Station Insurance options and determine which of them fits your needs more appropriately. Once you have your insurance, you will be ready to enjoy an exciting and safe business journey.
Fuel your dream of opening a gas station and running it successfully by following these steps. There are a few more aspects that you will need to worry about, like registering your business, buying a property, securing a supplier, and getting insurance.
We will help you fulfill another requirement by giving you our contact information. Just call us at 855-5EXCEED or write to us at [email protected] to contact any of our insurance experts. They will guide you through the process of finding the best insurance for gas stations and getting your gas station financially secured. We will make your life in getting the right commercial Gas Station Insurance coverage a lot easier!