Tips On Buying A Gas Station
Many vital factors come into play while considering a a gas station purchase or some other business. Some of those factors are:
- The Supply and the corresponding Demand
- The place where it is located
- The capital which you plan to start with
- Whether it is a franchise or if it is a running business
- What commitment on time has been made
Demand and Corresponding Supply:
Before you venture into any kind of business, you need to look into what are the demand and the supply position for your principal merchandise or business. If you are in a gas station business the demand is pretty huge because just about everybody needs to move around with their vehicles and need gasoline or diesel to get them moving.
This is vital because if your location is not very strategic you may lose out on business. A location where there is high traffic movement is surely going to cost you more. The area with high traffic movement may bring in more money, but it definitely comes with higher overheads than in an area with lesser traffic movement.
It is practically impossible to make a buck in a less traffic location unless you increase visibility by advertising, etc so that people know about your place. Since your overheads will be lower in a less traffic movement area, you could offer your customers some incentives like a free cup of coffee or some newspapers for them to leaf through or simply some excellent service. You look after people well and they will be back soon.
You will surely need some initial capital to get any business going. You should be prepared even to borrow money if you lack have some of your own. Most booming businessmen would never use money of their own even though they have some stashed up in the bank They would depend more on money from banks, some credit unions, etc.
Franchising or an Existing Business:
The Franchises are somewhat safe to be with rather than traditional family businesses. Franchises have a time-tested methodic system already in place. They would also train you how to be a good business owner, just an employee or a book keeper even. They teach everything there is to know in starting a business efficiently and quickly. They ensure they cover all areas that are vital to keeping the business successful. The only drawback is that franchises are costlier to start with.
Franchises will be available from $250,000 and higher. They may demand a liquid cash flow of $100,000 even before giving you a chance. This $100,000 will keep you in good stead for the most difficult first six months of business. This is the key to keeping the business successful.
Commitment on time:
As the owner of the business, you will have to fill in with the hours demanded by your business. Owners usually chip in with over 60 hours of work per week. Your fervent mission in owning a business of your own, will help you achieve this. But if you are unwilling to put in over 40 hours in a week, you need to relook at this whole project once again.