There are battery operated cars. However, many still prefer the crisp and smooth sound of an fue-based engine. Consumers will always need fuel, and gas stations are one of those businesses that will always thrive together with oil and gas contractors.
A gas station can make money in different ways aside from selling fuel to everyday consumers. For one, there are some that work with moving companies and supply the fuel for the box trucks or cargo vans. You can also find gas stations that operate convenience stores for better sales.
This is a perfect example of a business that’s easy to operate and is very resilient. Read this guide you’re thinking about how to start your own gas station but are completely in the dark.
So how to start a gas station business? There are many things to think about. That said, we’ll explain the steps that should be part of your checklist.
Do you want to start a gas station from the ground up or do you want to purchase an existing one?
Starting a gas station from the ground up means that you do all of the legwork. Nonetheless, this is a good option if you want to learn the ins and outs. Moreover, you don’t expose yourself to the setbacks of buying an existing business.
Buying an existing gas station is the second option if you want to start making money ASAP. You can buy gas stations for sale online. These already have the equipment, permits, and licenses.
However, you must be very careful to see any setbacks. For example, the previous owner might have liabilities and this will be passed to you upon purchasing his gas station. The gas station might also be sold due to problems that even you can’t solve. That being said, carefully evaluate financial records and other important documents before doing the purchase.
The next thing you’ll need to do (provided that you start from scratch) is to look for a location. Ideally, your gas station should be in a place where vehicles frequent. Areas nearby malls, parks, tourist spots, schools, and retail centers are a gem. However, be prepared because the cost of renting or leasing such a location is never cheap.
When you have the location, it’s time to build the gas station and install it with equipment. You will need to approach a construction contractor who specialize in the construction of buildings involved with fuel activities. As for equipment, you can either buy 2-4 units of second hand or brand new fuel dispensers from local or international dealers.
Your gas station makes money by selling fuel. The thing is, you can’t just purchase fuel anywhere. That said, finding a trustworthy supplier is the second step in how to start up a gas station. Many fuel suppliers right now have a website where you can take a look at requirements and pricing. Some even allow you to contract a representative immediately.
Gas stations are heavily regularized. Permits, licenses, and other requirements must be furnished and submitted to concerned authorities before operating.
As with any other business, your gas station will need to have an EIN, a business plan, a bank account, and a unique name. Documents proving that you have this must be sent to the city or municipality where your gas station is located.
Permits and licenses are very important. You can get this after the gas station has been inspected by authorities. Common permits or licenses you need for operating a gas station business are:
Fire safety permit
Building safety permit
Water discharge permit
Liquor license if your gas station operates a convenience store where alcoholic products are sold
Air quality permit
Make sure you have a plan in place to market your new gas station. You need a marketing plan that starts before you're set to open your new fuel station so that you can let people know what you have in mind and when they can come in to see what you have to offer.
Once you purchase your new gas station, you need insurance to go with it. You may need:
Commercial property insurance
Workers' comp insurance
Make sure you have those policies in place to protect your business as soon as possible. The longer you wait to get that coverage, the greater the likelihood that your business will suffer a disaster that you cannot afford.
Investing in technology is a crucial step in learning how to start a gas station. There is software nowadays that helps you automate payroll and other administrative functions of your business.
One software we recommend for payroll automation is OnPay. OnPay helps you process payroll and tax filings easily. You only pay $40 per month for this handy tool. By clicking here, you can try it out for free for one month!
Your gas station will have to process legal papers. The business might even require the efficient management of employee workloads. For this, you need CRM software. One we recommend is Bloom. Bloom allows you to track projects, sign legal papers, and do other important matters for business growth. This doesn’t cost much. The best part is that Bloom offers a 1-month free trial,and by clicking here and signing up, you're also able to start a free trial and then have 15% off your first 12 months!
Get all the best quotes from leading providers in a click of a button!
If you go for an existing gas station business, then prepare a starting capital of $300,000-$400,000. This will cover the cost of paperwork in transferring the business to your name and buying new equipment.
Suppose you start from scratch, then the first thing to consider is the cost for leasing or buying the piece of land where your gas station will stand. A 1 acre piece of land will require a lease of $300-$400 and if you decide to own the location, then expect to invest $3,000-$6,000
Building the gas station will cost at least $50,000-$100,000. Of course, you’ll need to install a fuel dispenser. So you also have to ponder about this cost when wondering how much is it to start a gas station. One fuel dispenser costs $18,500. If you need four, then you’ll spend $74,000
Construction and equipment costs aren’t the only factors you need to consider when asking how much investment needed to start a gas station. After all, you also have to think of the cost for fuel delivery. Suppliers charge $60 per 20 gallons on average. Your gas station can hold 40,000 gallons. Going with this data, your fuel station business will spend $120,000.
How much investment is needed to start a gas station, again? If you find yourself struggling to open a gas station without the necessary funds for that initial investment, you may have some options.
How much investment is needed to start a gas station? If you find yourself struggling to open a gas station without the necessary funds for that initial investment, you may have some options.
Do you have friends, family members, or business partners who might be interested in helping you open a new gas station? If so, they may provide vital financial backing that can help you get your new gas station off the ground. Keep in mind that if you ask for investments from friends, family, or business partners, you may need to have a clear investor contract in place that lines out what percentage of the profits from the gas station your investors can expect.
You may also try approaching investors on crowdfunding platforms. There are many. But one we recommend you try isEquityNet, which helps entrepreneurs raise anywhere from $10,000 to $10,000,000 to start their new businesses!
Approaching the SBA and getting a loan is often one of the most effective ways to get the funding you need to cover the cost of starting up a new gas station. The Small Business Association will not provide the money itself. Instead, it will take you to partner private lending institutions that offer loans at the most reasonable interest. Choose between these kinds of loans:
SBA 7 (a) loans provide up to $350,000-$5 million
504 loans provide up to $5 million with long term fixed interest
Microloans from SBA offer up to $50,000
Considering you’re ready to face the risks, opt for a business loan from banks and other lending institutions. A business loan immediately provides the capital needed to start your gas station. This is ideal if you have assets and your credit score is good. Try Uplyft that can help you get up to $5 million dollars of funding extremely fast (as little as 4 hours!!!): Apply for loan now.
Get all the best quotes from leading providers in a click of a button!
You can try franchising if you want to stand on the shoulders of giants. A gas station franchise can easily make more sales because it carries the reputation and image of the franchisor. However, a downside is that there might be restrictions with regards to how you want to operate things as the owner. Here are some of the most common gas station franchises and how to start with them:
|How to Start?
|-Must own an existing gas station or a lot that passes Petron’s standards
-Fill the application form and submit
-Undergo training (if picked during the selection process)
|-Business management experience of 3 years or more
-Experience in the management of 10+ hourly wage employees
-Must be a US citizen or a green card holder
-Fill the online application form found at Shell’s website
|BP Gas Station Franchise
|-Application form attached with a business plan
-Submit financial records
-Undergo license to operate training, which the costs will not be shouldered by the company
A business will not become successful on its own. You have to guide and nurture it. So how to run petrol station business? Here are some things you need to do.
Always keep tabs on the delivery of fuel. This is very important when running a gas station because you don’t want customers to spend their time driving only to find out that your tank is out of fuel.
Also, keep an eye on employees, especially those that work in the convenience store. They might steal stocks or even cash. It’s best to put a CCTV camera around so that it’s easier to keep an eye on everything.
Keep alarms near your employee’s reach. This is very important if your gas station is open 24/7.
Don’t forget business insurance. Insurance can help if your gas station causes pollution, has an employee experience a work-related injury, or needs to close temporarily.
Finally, always grace the business with your presence. Ideally, you must always be around. In case you own a lot of business, consider visiting your gas station at least one or twice a week at irregular intervals.
Finally, keep an eye on how your gas station is functioning. What do your profit margins look like? What might you need to change in the future? Evaluate and make changes to your business as needed, especially as you focus on loan repayment and other key elements.
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!