Steps to Own a Gas Station

Gas stations are a popular business investment, as they yield consistent traffic and business. However, there are some things you must consider before buying a gas station.

8 Things You Must Know Before Buying a Gas Station

Buying a gas station may seem like a simple process, but there are some very important factors and flags to lookout for before making the big investment. Here are 8 tips to help you make a smarter investment when you buy a gas station.

More Than One Type of Gas Station

 

Franchise Gas Station

A franchise gas station is the more popular choice among buyers, as they normally assume full liability for environmental issues. However, you must always purchase the franchiser’s gasoline, as well as abide to all promotions, offers, promotional materials, and follow all policies from oil company.

Independently Owned Gas Station

An independent gas station will give you more freedom, such as buying your gasoline from local distributors, sometimes giving you an edge in pricing, but perhaps losing some business to people who would rather use more know gas stations. You also have full liability for any environmental issues.

Location, Location, Location

A great location is very obviously a very crucial piece of the puzzle when you buy a gas station. But physical location is not all. When you are buying, make sure you research for future construction plans and roadwork that may prevent you from getting sales. Also look at the city’s environmental laws and regulations, since some can be stricter than others.

Other important factors are making sure your gas station is near a high-traffic area such as a highway of main street, as well as making sure your area is not surrounded by many competitors.

Low Crime Areas

Similar to convenience stores, high-crime areas can lead to poor business reputation, higher conflict, and even dangerous situations to existing customers that may put off business. Although the price point may be intriguing, it is important to understand that the risk of loss is higher than the benefit of lower investment.

Also make sure the gas station is properly fitted with security cameras, large window panes and lots of lighting inside and outside to help avoid crimes.

Convenience Stores Are a Plus

Although they may be more expensive, gas stations with convenience stores are more attractive to customers, especially in a high-traffic area. Look for gas stations with convenience stores and even seek opportunities to collaborate with other businesses that may be interested in selling their products at your gas station, such as bakeries, donut shops, etc. This not only attracts more customers, but also lowers your overhead if there is another business helping you bring your costs.

Good Looking Means Good Selling

Gas stations that are better kept and presented tend to yield more business as customers may be inclined to shop around for longer or feel safe at your location. When looking for a gas station to buy, make sure it does not need too much work when purchased, and look for signs of recent maintenance such as fresh paint, clean bathrooms, and up-to-date signage.

Investigate Numbers and Traffic

 

As with any business, a key factor in seeing how profitable a business can be is by looking at their history and numbers. Use the help of a business broker to better comprehend the advantages, costs and profits of each location. Additionally, make an effort to see the average daily traffic of the location by scouting it at different times of day, and even different days. Getting a realistic impression of the average daily traffic will give you a realistic expectation of business.

Inspections and Safety Measures

Although you want to establish a trusting relationship with the seller, always request that the premises be inspected for functionality, scheduled maintenance, and proper infrastructure before buying a business. The last thing you want is to take on an unforeseen big expense in repairs, maintenance or re-building after the purchase has been completed.

Be Patient

Buying a business can be a lengthy process, especially without the proper guidance. Patience is your best friend when you are in the market to buy a gas station. With an average of six to ten months, being smart about your investment and maintaining your patience will help you make a successful decision.

Why Jan Wild?

If you are interested in buying a gas station, contact Jan Wild for professional help with over 35 years in the industry. Jan will help you find a smart investment that makes sense for you.

Buy a Gas Station

Start the journey to pursue your passion and become a gas station owner! Let Jan Wild help you with the process along the way.

Buy a Business
Sending