In this article, we set out the top 10 items to watch out for when purchasing a service station. For the purchase of a station, you must consider and evaluate the utilization of an "environmental contingency clause" in your purchase agreement and you must obtain a Phase I environmental site assessment. USLegal has been awarded the TopTenREVIEWS Gold Award 9 years in a row as the most comprehensive and helpful online legal forms services on the market today. Writing a comprehensive business plan will be key in convincing lenders to approve your loan application or getting investors interested in funding you. According to the Economic Research Institute, in the U.S., a gas station manager makes approximately $80,625 a year or $39 an hour on average. Run cash register reports at the end of each shift. In sum, consumers look at the price, security, fuel quality, easy ways to pay, and ingress/egress when choosing where to purchase fuel. When it comes to how to open a gas station, the necessary permits and licenses will vary from state to state. For contractor inquiries, Forms, Real Estate I'd like to receive the free email course. ]!td[tYt\m In this Discussion, we define financing options available to potential restaurant buyers when purchasing a small to mid-sized restaurant business (with or without real estate). I would like to start this discussion and see what other BizBen Users feel about (and possible contribute to this list via a comment and replies below) what items/questions/information buyers should be thinking about during the due diligence and buying process of manufacturing related businesses. Buyers interested in buying a janitorial cleaning business will find companies in this industry for sale that are quite profitable. Success! Check the entire document to be sure that you have not skipped anything. Checklist You Must Check Off Before Buying A Gas Station Business By Shabbir Hossain / November 8, 2015 / Uncategorized In this episode I discuss a 8 point How much money should you expect to make when buying an automatic car wash? Create a loyalty program when youre starting a gas station and you can slowly build a loyal customer base. But there are a few misconceptions about the business and a buyer should have the facts. If your gas station will be operating 24 hours, you will need to pay for employee wages, utilities, and replenishing inventory. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. The laundry business offers all of those rewards of business ownership, with much fewer headaches than with most other businesses. Youll get 5 cents off at BP and Amoco gas stations nationwide for the month. When investing in a laundry business, there are two methods. There was an error submitting your subscription. Environmental concerns are critical, as any environmental contamination (especially if discovered after you buy the gas station) will require expensive remediation that may shut down or significantly limit the future operations and profitability of your station. "Small Business 911" Sign up for the newsletter to know when it's here! If you are open to exploring the franchise opportunities available the commercial cleaning industry is an area you should consider. If your gas station will be operating 24 hours, you will need to pay for employee wages, utilities, and replenishing inventory. Instigate a certified property survey or request to receive a copy of a recent certified property survey. This means fuel sales will take a back seat in your business strategy, giving you time and space to focus all your attention on your convenience store sales. switch or button) is clearly labelled EMERGENCY STOP, Main emergency stop is routinely tested to ensure it functions properly, Note: Every emergency stop point at LP Gas installations must be tested at least monthly, Areas around the dispensers and payment unit are sufficiently lit to provide a safe working environment whenever the unit is available for service, Note: A user should be able to read the signs without strain. More importantly, depending on what your interests are, you will identify what type of car wash you want. Corporations tend to attract business owners who expect to raise capital from investors. Answer a few questions and we'll match you with an insurance partner who can help you secure quotes. If you want to keep up with the competition, your own gas station might have to operate 24 hours as well. Planning, Wills Are you going to have a convenience store? Peter Siegel, MBA with BizBen.com discusses tips for selling your vending route. Yes, but Chuck Post, Laundry Advisor & Consultant initiates this BizBen Discussion post. However, this does not influence our evaluations. What to consider when building a gas station? If you are buying a gas station, I strongly recommend that you review this article. Are you thinking of selling your California vending route? One of the strategies for selling your business to a very cautious buyer is to relate the price to performance of the company in the months after the buyer takes over. The book I mention in this episode is The School of Greatness:A Real-World Guide to Living Bigger, Loving Deeper, and Leaving a Legacy by Lewis Howes. Here is a list of our partners and here's how we make money. How can you solve the same problems better or differently than your competitors? We have procured thousands of licenses for our clients. Be sure to research your respective states business requirements. Consider installing cameras and shatter-proof windows as an additional security measure. How can I increase sales at my gas station? Gas suppliers often earn a percentage of your sales, so you should do a thorough rate comparison to ensure you are maximizing your own profit margins. In my article, "The Importance of an Environmental Site Assessment," I discuss and address these environmental issues in detail. Know what you can do and what you can't before anything else. Putting together a business plan will give you focus and direction. The only time to get an exact and accurate inventory count, and valuation, is at the time the business is being transferred. You can start your free trial of CstorePro here. Here are a few reasons why you should consider investing in a gas station today. Call me today for a business evaluation & SWOT analysis for your business anywhere in the USA. Are you going to offer mechanic services? What kind of car wash it is (auto, self-serve, or full service)?, How many bays does the car wash have? If youre looking into how to start a gas station, be aware that the initial costs are quite high this financial entry barrier may necessitate a loan. I welcome other Advisors to weigh in on this topic. Joe Ranieri (Business Broker) adds this topic to a BizBen Discussion Post. How to drive more traffic and boost sales in your gas station Differentiate your product offering. Here is a list of our partners. So how do we make money? DealRooms diligence template for oil and gas industry is designed to help teams have an efficient due diligence process from the beginning. Establish a time table and checklist to ensure that you and your team have gone through all the appropriate steps to ensure that the deal you enter into is going to be valid and to ensure that you are not going to be hit by any surprises down the road. Theres a reason that gas stations are and have been one of the most popular categories for investment. Complete the necessary fields which are marked in yellow. Also, the cost of replenishing your fuel reserves can rack up quickly. With the help of your lawyer and real estate broker or any other contact you deem appropriate verify that the title for the property in question is valid. Our forms are regularly updated in accordance with the latest legislative changes. Consequently, you save hours (if not days or weeks) and get rid of extra costs. in the United States, learning how to open a gas station could be a lucrative business move. Get access to thousands of forms. Buying a liquor store can present some major challenges to business buyers - a recent client on the BizBen ProBuy Program relates to Peter Siegel, MBA what the major challenges may be when searching for and buying a Californa liquor store business. If the Phase I study indicates the potential existence of prior contamination, additional studies may be warranted. Go to the e-autograph tool to e-sign the template. Offer a loyalty program. There are several advantages to buying a franchise, like using an existing trademark and operating within a proven business model. What would be the best thing to do? Here, you'll learn how to successfully negotiate the purchase of a day care for sale to make that dream a reality. So what is the answer? Not only are they lucrative, but they provide owners with a stable and relatively easy to business to operate. WebA 72-point checklist of exactly what you need to investigate during the due diligence of a gas station purchase. topics from stocks and net worth to productivity hacks. To keep the 5-cent discount going after that, youll need to spend at least $100 on fuel from BP each calendar month. Us, Delete Set Up Who Is in Charge Every business needs an organizational chart. Enjoy smart fillable fields and interactivity. Common products and services youll see at a gas station include: The gas industry has a competitive market. Service, Contact There are over 120,000 gas stations in the country. Utility rates are on the rise. Identity The two most common business structures for gas stations to consider are limited liability companies and corporations. Unless you open a repair shop, gas stations dont require the use of skilled workers. This clause allows you to conduct more research on the propertys environmental history after the purchase agreement is signed. Its important to understand how you will regularly replenish your gas tank reserves. While starting a business can be a complex process, and opening your own gas station does have a few unique challenges you should be aware of, this shouldnt discourage you from feeding your entrepreneurial spirit. The Internicola Law Firm, PC Here are some important questions and factors to consider before buying a gas station. 22 additional key points that you must know in advance. If you are operating a franchise, review your franchise agreement to determine if they already have a preferred vendor for gas supply. from vehicles) is minimised, Hoses are free of cracks, fractures, leakage, or movement between hose and fittings, Prominent STOP ENGINE NO SMOKING sign is displayed on or near the dispenser, Note: The standard no smoking warning symbol may be used in lieu of the words no smoking, Lettering on the STOP ENGINE NO SMOKING sign is at least 50 mm high, There is no latching device on the nozzle of self-service dispensers or where there is a preset facility (i.e. Is it still the American Dream Business that it has been known to be? I'd like to receive the free email course. Think of the steps below as things to check off when you're starting out. This information may be different than what you see when you visit a financial institution, service provider or specific products site. To register as an LLC or corporation, youll need to consult your states Secretary of State office, either online or in person. Another tip is to avoid locations where wholesale retailers like Sams Club or Costco offer deeply discounted gas prices.