In general, there are three main ways to become a gas station owner: purchasing an existing station franchise, purchasing a for-sale business, or building and operating your own station from the ground up. Certain options may be more viable in certain situations than others, and a lot depends on your situation and preferences, of course. All options have advantages and disadvantages. You’ll almost certainly need some form of investment capital, regardless of how you get started. Operating a gas station can be extremely profitable, but it can take a long time to start making money, and the initial costs can be substantial.
Invest in a Franchise
Joining a gas station franchise is one of the quickest ways to become a gas station owner. This means you pay a fee to an existing company or corporation in exchange for the right to use their name and business model. Working under a well-known entity and having access to a proven business model that has been successful in the past are just a few of the advantages of a franchise business. Because the owners will want your business to succeed, especially if you are required to pay them a cut of your profits, you will almost certainly receive assistance from higher up in the parent company.
These advantages, however, are not without drawbacks. Your costs may be very high, depending on the franchise agreement, especially when it comes to what you must pay back to the parent company. It can be difficult to make a lot of money with this scheme, and the rules and regulations governing things like expansion and offering different services can be restrictive.
The parent company usually sets the rules for how many of their stores can operate in a given location, but in general, they choose the location of your station — which may or may not be favorable. Another issue could arise if something bad happens to another franchise, particularly if it receives a lot of attention. Even if you had no involvement in the matter, your store’s sales may suffer as a result of sharing the offending company’s name and logo.
Purchase a pre-existing company
Another option for becoming a gas station owner is to purchase an existing business. This usually entails submitting a bid or offer on the company. The money will be paid to the current owner, after which you will take over the company’s operations. There are a number of advantages to doing so, including having an established and possibly successful business. Just make sure you do your homework to learn about the company’s profitability, expenses, taxes, and other relevant information before making a purchase.
Buying someone else’s business has drawbacks, such as keeping customers who may have had a positive relationship with the previous owner and are unhappy with the change. If the previous owner did not keep accurate records, had debts with suppliers or creditors, or failed to mention other significant expenses, you may run into problems. If you do your homework before buying and get a few different perspectives on why the sale is taking place, you’ll be less likely to be surprised financially or otherwise once your investment is made.
Begin from the beginning.
You can also open your own gas station starting your own business from the ground up. The main advantage of running your own business is that you don’t have to answer to anyone else and can make all of your own operational decisions. This is usually the most difficult method to learn at first, but it gives you the most flexibility and control. It will almost certainly necessitate a significant initial investment as well as the acquisition of licenses to own a business and sell gasoline. You’ll almost certainly need to find suppliers for both goods and services.
The main disadvantage of starting a new business is that marketing and advertising will take more time and effort than if you owned a franchise or an existing station. Aside from the actual running of operations, this can take a lot of time and effort. You’ll be up against big-name companies and franchises, so getting a foothold in the market may be difficult, at least at first.
Starting Capital and Investment
All three options will necessitate a financial commitment. To make the purchase, you’ll almost certainly need to take out a business loan. Obtaining the proper licensing, hiring employees if necessary, developing rapport with suppliers, marketing yourself, and hiring an accountant or learning to balance your books and handle any tax obligations are all things to consider.