Running a gas station is still considered as one of the most lucrative business opportunities these days. Just like the majority of other business ventures, starting and running a gas station business can be a bit tricky due to all the changes that constantly occur in the gas and oil industry. However, regardless of all the changes and the complexities, ambitious businesspeople can be certain that customers will always need gas stations to dispense various fuels.
Nowadays, the gas industry continues to experience steady growth, and that is why you should consider becoming a part of it. Your initial costs and subsequent success will largely depend on a number of factors, such as the location, convenience options, quality of equipment, volumes of sold gas, and so on. Now, if you are not quite sure how these factors can influence your new business endeavor, keep reading this article, as we will cover them in greater detail.
Types Of Gas Stations
When it comes to the main types, there are two of them: convenience stores and gas stations with stores. On one hand, convenience stores that also sell gas operate somewhat similarly to small grocery stores. In addition to selling various food items, they also sell gas as well. On the other hand, gas stations with additional stores are primarily focused on selling gas. However, they also sell various travel items, snacks, and even offer oil changes, car wash services, and a variety of other mechanical services. Keep in mind that gas stations with stores are typically more valuable, as their store items usually have a pretty high-profit margin. However, as a result, they are costlier to run and have a higher starting price than convenience stores.
In order to fully adhere to the various state regulations and environmental protection rules, you will have to equip your gas station with quality equipment. When purchasing an older station, make sure to check the underground tanks and inquire about recent inspections. Also, do not forget to ask the current owner if there are any problems, such as hazardous waste or leaks found on the premises of the station in the last few years.
When looking to start your business, look for the gas stations that have high volume gas station pumps. This is rather straightforward; the larger the volume of sold gas per month, the more lucrative and attractive a gas station business is. In this case, you should also take into consideration some factors such as the amount of traffic the station receives and its location. A station that is located near an airport, a highway, an interstate, or a shopping mall, will do much better than a station located somewhere off the beaten path.
When starting your business, you should also take into consideration the competition and the economy of the region. Even though running a gas station is one of the most stable business models at the moment, there are still some risks involved. These risks are mostly related to the economic situation. Keep in mind that higher gas prices usually negatively affect the economy. As a result, people usually try to drive less or seek the lowest gas prices. Therefore, you will have to examine the current economic situation in depth, so as to keep your business afloat.