Gas Station Business Opportunity
Gas station business comes in many forms and types from what it used to be years ago. There are brand name stations, convenience stores, private brand stations and those stations that are part of a larger car care operation.
All of these different options make for an interesting mix to consider if you are in the market to own a “gas station”. The first big difference to be considered is the fact that there is a big difference between a brand name station and a convenience store operation. In the first place a brand name station must buy its gas from the oil company it represents. A private convenience store can buy its gas from any supplier willing to sell to them. Or they may be tied to the convenience store chain they are part of.
The path to ownership of a gas station can be done two ways. The owner can buy an existing business or start up a new one. There are many facets to buying an existing situation. This is particularly true if it is a brand name station or a name convenience store operation. These situations can be only a partner like situation and not a complete ownership deal. There are many variations in these deals and a business broker would be a good place to get advice as well as any of the brand name companies. In any case, be sure you understand completely any restrictions that will be placed on your business. After the purchase is not the time to discover that you do not have a free hand to run your business.
Buying one or starting one could be very high in the requirement for capital. In either case the new owner of the business is going to have to come up with some decent amounts of capital in order to get into the business.
Finding the opportunities in the Gas Station Business
The way to find opportunities in this business is to talk to people who know what is available and the details of how it works. The buyer would be wise to speak directly with some of the brand name companies and also visit with business brokers to discuss their listings. The brokers will be aware of many of the deals that are currently open and they should be able to answer most questions that you have in mind. The convenience store operators will also be worth speaking with, as they are very interested in expanding their operations. They offer different deals depending on what they are after, just like the brand name gas companies.
You can find all of this information or contact info on the NET. Using this resource can save time and allow the buyer to get quality facts and figures. This is very helpful in finding the right deal for you and deleting those that do not fit the your expectations. You might also approach some of the facilities near you and see if you can get any information from that owner. If nothing else you may be able to get a contact number.
Convenience Stores are different
Convenience stores are more like a retail operation and they make their money not only selling gas, but also by selling all manner of other products. Gas sales for most of them are really a convenience for the customer and not a big profit item. The other consideration for a prospective buyer is you are going to need employees to run the store. These stores usually are open seven days a week and 24 hours every day. This means it is mandatory to have employees to keep the doors open. This becomes an on going monthly expense that needs to be covered by the sales that are run through the cash register. If you are not good at hiring people and then managing them this could be a problem in owning one of these stores. The chain outfits are very good at teaching these skills to owners that have never done it before. If you learn easily, then this possible problem can be avoided.
If you get into a private convenience store ownership, you do not have the immediate name recognition. You may gain the ability to buy from any company that will sell to you. The pros and cons in this area should be studied and many questions asked of the broker or the old owner. These questions should include the advantages of no brand name connection. A person looking to go into this area of gas sales should know all of the answers about the operation of the convenience store before purchasing this type of business.
Find the Money and Make the Deal
If a buyer has the money the deal is easy to make happen. If the buyer can find the money the deal is still possible. The point is, there are companies that show up on the Internet that specialize in making business purchases and sales happen. These companies will show up just by putting in “financing a business purchase” into the search engine. The results are huge when this is put into the search engine. There are any number of companies that finance business purchases.
The advantage of having the money for the purchase is simple. The buyer can usually get a substantial break in price when offering an all cash deal. The savings can make whatever you pay in interest for the loan seem small compared to the savings. A cash offer is very difficult for a seller to ignore as long as the offer is in the realm of reason. This could give you an edge if there is another buyer in the picture.
If you do not have the money and can not borrow it, this leaves the seller as the possible source of the money you need to complete the deal. Maybe the terms from the seller will be something the buyer can live with and even tolerate.
Conclusions
The gas station business is not as simple as it once was. The sales are made by brand stations or by stores that sell gas as a convenience for the customer and not as a great profit maker. Private companies can be a good buy if they have an isolated customer base. This business does not lend itself into getting started in it slow way. The first step is all in or not.
A person with a reasonable down payment should be able to gain the rest of the money needed if the figures for the business show that it is a profit maker that could cover the loan. The seller may even consider carrying some paper back to facilitate the sale.
Finding a business for sale is a natural for the Internet to do. The buyer can certainly find business brokers that would have listings that included these types of businesses. Speaking with these experts could go a long way toward helping the buyer make a good decision. The more factual information the buyer has at his disposal will improve the decision making process. There is no substitute for doing the homework when looking for a business to buy.
Bill Henthorn formerly was principal broker and owner of a resort / commercial real estate brokerage in Honolulu which specialized in representing sellers in transactions up to $50MM.He currently serves as the marketing director of http://www.acquireo.com
Article Source: ArticlesBase.com - Gas Station Business Opportunity