Gas is a staple that every individual religiously relies upon! Without gas, you can neither make it to your job interview nor a doctor’s appointment. This is precisely what makes gas stations a very viable business idea as well. Let’s help you power through the process:
Do your research
The gas industry is very competitive. You’ll probably lose potential customers to your competitors if you don’t think your way through it. Before setting the foundation of your gas station, think of who your competitors are. What are their strengths and weaknesses? How do you plan to eliminate those weaknesses? What kind of a location would be ideal for driving traffic into the station? Would you want to choose a location with fierce competition right across the street, or would you prefer being a monopolistic option? Would you like to be located in the middle of the city or cater to truck drivers on the highways? You need to be clear about whether you’d want to facilitate extended travelers or short commutes. All of these factors will indirectly influence your bottom line.
Registering the business
Once you’re done brainstorming, you can’t immediately start operating. To operate as a legal business entity, you need to register your business. What would your company type be? It’s not recommended for gas stations to operate as sole proprietors. This is because your station could be exposed to several risks such as burglaries and leaks.
Registering the businesses as a corporation or a limited liability company would protect your assets better. A reasonable attorney can help you choose the best option based on your taxation preferences. An LLC usually has more tax benefits; however, they’re challenging to raise funds for.
On the other hand, corporations attract investors easily. However, you can only choose to operate as a corporation if you wish to compete with a brand like Chevron or Shell.
To register yourself, you’ll also need to choose a business name, obtain the required patent and trademark, and register for taxes.
You need a secure stream of funding to buy gas station hardware and equipment. These include fuel nozzles, dispenser filters, fuel dispensing hoses, service station accessories, cables, cartridges, absorbent pads, engine lubricants, tank gauges, fuel pumps, spill kits, and convenience store supplies.
Other expenses include those of purchasing the location, getting your business insured, and sourcing the initial inventory. The cost of licensing, permits, franchise royalties is also included.
Your standard financing options include leasing the equipment, obtaining loans, floating shares, and crowdfunding.
After you’ve managed to finance the start-up, don’t forget to head to John W. Kennedy Company to stock up on your gas store equipment and hardware.
We are a gas store supplier aimed at keeping your gas business afloat. Please browse through our products here.
You can also get in touch if you have any queries.