Vehicle usage has risen steadily over the past 50 years. Investing in gas station ownership has great income potential. Careful research and planning are of the utmost importance. Before making the leap, here are three things to take into account.
Where to Build
Success will depend heavily on where you operate your business. Visibility, daily traffic volume and population density are significant factors in assessing potential profits. Nearby competition is also an important consideration. Will yours be the only gas station around for miles, or will you compete with several others nearby? Are you located near other types of businesses that are conducive to strong fuel sales? You also need to make sure that local zoning regulations or deed restrictions permit gas station construction and operation in your desired area.
Another important consideration is getting permission to build a fuel center. Not only will you need to secure construction permits, but you will also need operation permits that cover your business. For example, suppose you’re planning to have a convenience store attached to the gas station, but you’re authorized to sell gasoline only. You would be in violation of local regulations and codes which could kill the project. Moreover, operating underground storage tanks may require special training, certification and documentation.
You’ll also need to work with a contractor that is qualified to build gas stations. Although selecting the least expensive bid sounds appealing, make sure that the bidder has correctly accounted for all construction provisions. Oversights in this part of the process can lead to delays and added costs that may negatively affect profitability. Coordinating with the right gas and retail companies also demands research. Some corporations may have certain conditions for partnership, which may affect your schedule and bottom line.
Owning a fuel business can be quite lucrative. The potential for risk and reward are both significant. Comprehensive planning and evaluation of location, securing proper paperwork and ideal partnering improve your chances of a successful outcome.