Presently, fuel stations and their associated convenience stores are among the most profitable enterprises in the US. There are over 150,000 gas station/convenience outlets in the nation bringing in more than $500 billion in revenue every year.
Since the country practically runs on gas, with people commuting to various locations and goods transported to different regions, the gas station industry has a bright future. The following are among the reasons why a gas station business for sale is famous as an investment opportunity:
1. Gas Stations Provide a Product that Everyone Needs
Every day, people must commute to and from work. They must also drive their children to school, go to the grocery store, and a variety of other locations.
We live in a civilization where mobility is a necessity. There’s always a need for gasoline even when recession abounds, and people are saving gaws by driving less or taking public transportation.
The reality is that many households rely primarily on personal vehicles for their everyday needs. There will, therefore, always be a demand for gas stations as people continue to commute to perform their errands.
2. You Can Sell Other Products Besides Gas
When you purchase a gas station business for sale, you have the chance to sell more merchandise to your customers. Many stations set up a convenience outlet to sell food, beverages, and souvenirs to generate numerous revenue streams.
Additionally, you can add a service center to your site to offer drivers mechanical assistance while they’re on the road. If you acquire the property without the add-ons, you can add them later with the proper building permissions.
3. Operating a Gas Station Doesn’t Require Special Skills
Unless you opt to build a service center beside your gas station, the jobs that this business offers don’t require expert labor.
Since you can hire an entry-level employee for any position, including management, this perk allows you to maintain low labor costs.
If you can locate a reliable general manager prepared to run your daily operations, you can operate a gas station business as a remote owner.
4. You Get to Make all the Decisions
When you purchase a gas station for sale, you have complete control over how the company functions. You get to choose which services will be available in your area. It’s entirely up to you whether or not to provide the community with defined operating hours.
You can select a gas station franchise for sale or try to operate it independently. This structure allows you, as the landlord, to execute activities you believe are best for your market. It’s possible to buy things at a discount through local wholesalers and suppliers.
5. You May Receive Financial Assistance
If you opt to acquire a fuel station from an autonomous owner, the seller may be willing to fund a percentage of your initial investment.
This perk is also a possible advantage when working with franchises rather than government agencies, especially Small Business Administration.
While this might not lower your investment’s overall capital cost, it may enable you to retain additional liquid funds on hand during the initial ownership period.
6. You Can Exit the Business Anytime
There are no limitations on when or how you can sell a gas station when you own it independently. You can put the asset up for sale if you’re ready for retirement or explore a different opportunity.
This benefit is also available with franchises, albeit additional requirements can make finding a suitable owner challenging. You’d have to make sure the new proprietors have enough money and net worth to match the brand’s needs.
7. You Can Purchase a Well-known Brand
Because of the franchising contracts available in this market, fuel stations operate under well-known brand names in many towns.
Citgo and Shell collaborate with local suppliers to develop business opportunities that can create jobs and income due to customer recognition of the brand.
Although you must uphold the parent firm’s standards, being a franchise owner is a quick method to become a localized entrepreneur in this industry.
You can consider conducting an online search of gas station stores near me to locate properties in your area.
8. You Can Get Coverage for Environmental Issues
If you choose to run a gas station business under a franchise agreement, insurance will cover you. You’ll be protected from any potential environmental issues that may arise on the property.
If inspectors find problems with your gasoline station, the franchisor is usually responsible for fixing the problem and cleaning up the mess.
Equipment leaks and tank upgrades, which are occasionally necessary for the continuous functioning of your firm, are usually the responsibility of the parent firm.
This article wouldn’t be complete without enlightening you on the possible challenges of acquiring a gas station business for sale. Some include:
1. You Have to Run the Business 24/7
If you intend to maximize the possible revenues of a fuel station, you must run it on a 24-hour basis. Even if you pay someone to come in regularly, you may need to be present to check that everything is running smoothly. That implies you’re either sacrificing your time or your income to keep the petrol station open.
2. You May be Required to Adhere to Fuel Contracts
Most sellers will want to engage you in a long-term agreement if you run a gasoline station as an autonomous provider so that they can remain in business while you sell your products.
If the rates under your existing contract are getting unmanageable, this drawback can make switching to a different seller challenging. If you choose to franchise your company, you may be obligated to buy fuel from the franchisor for the contract duration.
3. You May Have a Yearly Purchase Expectation to Meet
If your choice to acquire a gas station business involves a franchise, it’s critical to study the contract’s whole terms of service before signing it. To preserve your standing within the contract, many of the leading brands in this business impose a minimal yearly purchase requirement.
If you fail to sell enough gasoline throughout the year, the balance of your initial deposit may be due immediately.
Purchasing and operating a gas station business can be a profitable venture, but it also has drawbacks. So, before making a decision, it’s essential to learn as much as you can about running the business.
If you need help buying a gas station property for sale, we are available to help you find the best deals.