Have you ever dreamed of opening a gas station or convenience store? Some of the best businesses to own are the ones that offer consumers a reliable product or experience, and nothing says “convenience” like a gas station. From helping travelers fill up with a tank of gas to get where they’re going to offering a bathroom or snacks on a long road trip, gas stations are a fixture of America. Best of all, each day you have a steady stream of potential customers on the highway or major roads. According to the U.S. Energy Information Administration, over 350 million gallons of gasoline are consumed daily. This amount of consumption means that the industry is ripe for profit if you know how to set yourself up for success. Here are a few tips for starting your gas station.
Get Financing
From purchasing a building to having enough money to buying your gasoline there are plenty of expenses that come with starting a gas station. Even purchasing the plot of land that you plan to build upon can be costly, not to mention paying employees and other necessary licenses and fees associated with starting any business. Having the right amount of money and an accurate budget ahead of time is thus crucial for your success as a gas station owner. Talking to your bank, finding outside investors, opening a credit card, or even finding payday loans online are always that you might choose to fund your new business venture. Payday loans may also be useful once you’ve started your business but are facing a smaller shortfall in an early month. Keep in mind that your profits will be lower at the onset of work to pay these loans but you will ultimately increase your income as you pay down debt and build your brand.
Obtain Insurance and Other Licenses
Starting any business entity comes with its fees and licenses, and a gas station is no different. You’ll need to get the appropriate state permits as well as register your business and open up a bank account in your business’s name before you can begin operations. You’ll also want to look into getting the proper insurance to protect your company. You’ll want to get a business insurance policy, as well as a policy that covers workers’ compensation in the event of an accident. You may even want to get limited liability insurance if you’re worried about a customer getting injured on your premises.
Find Distributors
Besides selling gas, you’ll also be looking to make money by selling a variety of snacks and other products. You’d be surprised how much these sorts of products add up over a month in business, so making sure that you’re fully stocked and have a distributor with reasonable prices is integral to making sales in the convenience store aspect of your gas station. Even if you decide not to sell pre-made items like hot dogs, beverages, common groceries, and snacks like chips, candy, and ice cream all go a long way in helping you meet your bottom line. You may also choose to sell tobacco and lottery tickets, as well as alcohol if it’s legal to sell these items in your state. If you sell liquor onsite, you’ll also want to look into purchasing beer coolers to keep your products cold and refreshing. You may also choose to sell other consumer goods that have an appeal to motorists, such as maps, car phone chargers, GPS units, or windshield wiper fluid. By thinking about what motorists might need and how your gas station can help them meet those needs, you’ll be one step ahead and one step closer to making a profit in your first year as a gas station owner.