Starting a petrol station business is a very profitable venture, though it requires significant amount of capital to start. A petrol station also known as a gas station, filling station, or a service station is a facility that sell fuel and engine lubricants to motor vehicles. Fuel dispensers are used to pump fuel directly into the tanks of the motor vehicles. Petrol stations usually have convenience stores which are more of a mini-grocery store that sells basic grocery items, beverages and snacks. Convenience stores are essential in driving up the revenue of petrol station business as well as increase the profitability of the business. This article will outline how start start a petrol station business and the petrol station business plan – PDF, Word & Excel.
Location for Petrol Station Business
The choice of location is most important when setting up your petrol station business. You must choose a location close or next to strategic and busy road networks. This can refer to major highways or major streets. Still on this, it might seem best to choose a location in urban settings. There are some possible issues with that e.g. high land or leasing costs and proximity to competitors. Try also looking into peri-urban and even rural areas. You can still get good business there and chances are high that competition will be limited.
You want a spot that generally has a smooth and level terrain. If you are starting from scratch and the terrain is rough and uneven, it might cost you more to work on it. Ensure that your petrol station allows easy access and exit for all types of vehicles. Your petrol station must be clearly visible from all angles and from a considerable distance away. Then of course be it you settle for urban, peri-urban, or rural, try to set up your petrol station not too close to other competitors. Do not forget that there are environmental implications in setting up or operating a petrol station. That is why it is wise to engage the local authorities for guidance and ratification. The cost of acquiring or leasing the land & premises should be included in the filling station business plan.
Premises & Equipment
Are you building the petrol station from scratch or you are leasing? In some cases you might be renovating or resuscitating an old petrol station. Buying into a franchise is also another option but is often pricey. Where you are starting from will determine the equipment needed. A petrol station canopy is a must have. This is the structural canopy which will house the fuel dispensers – its generally in an open-air environment with a tall ceiling. The petrol station canopy must accommodate the easy entry and exit of the cars. The most basic equipment, aside from the initial construction (or renovations) is fuel storage tanks, fuel dispensers/pumps, fill pipes, fire extinguishers, back-up generator, air compressor, surveillance cameras, branded uniforms, protective clothing, safe, office equipment and supplies, and signage. Other equipment needs will be informed by additional services you choose to offer. The costs of purchasing the equipment should be included in the gas station business plan.
Products & Services
The core business of a petrol station is fuel retail. The commonly sold fuels are petrol/gasoline and diesel. There are 3 types of petrol station services that you can offer as follows:
Let us suppose you get to a petrol station and an attendant comes to serve you. They ask how much fuel you want and they pump it in for you. They also proceed to clean your windscreen (also known as the windshield). They go on to offer to do oil and water checks in your engine. They then wrap it up by checking the pressure of your tyres. As a customer, you do not get to do anything at all; the attendant does it for you. This is what a full service is all about.
This one is quite common in some countries. It entails the attendant only pumping in the fuel for you. That is their sole responsibility. Cleaning the windshield you would do yourself, that is if the equipment is even there. Oil, water, and pressure checks are all your responsibility.
Self-Service Petrol Station
Here the customers does everything themselves, including the pumping. This is also common in some countries and almost non-existent in some countries. There is an interesting variation to this self-service approach. This is whereby there are no attendants at the petrol station at all. That functions using sophisticated software and specialized pumps – the petrol station can be totally unmanned.
Additional Products & Services
It is strategic to not just sell fuel or gas alone. One of the keys to success in the petrol station business is having several revenue streams. Look into offering additional but related services to lure more customers. You can have a convenience store at your petrol station – this is like a mini-grocery shop which sells basic goods and snacks. Other possibilities are setting up a car wash, selling vehicles accessories, selling lubricants, selling LP gas, selling kerosene (i.e. paraffin), or offering tyre repairs (plus sales) services. You can even do actual vehicle repairs, diagnostics, wheel alignments, and the like. This will significantly endow your petrol station business with a superior value proposition. All the products and services that you offer should be included in your fuel station business plan.
Staff & Management
A filling station business does not need that many people. It is commonplace to get to a petrol station and find a few personnel. The number of pumps you will have and how busy the petrol station generally is can call for more hands on deck. Otherwise the most basic line-up of staff that suffices for a petrol station is fuel attendants, an administrator, and operations manager (also known as site manager). The additional services you choose to offer will also determine your staffing needs. The gas station business plan should include the salaries of all your staff.
Vehicles are heavily used for personal, commercial, and industrial purposes daily. Anyone who uses a road transport vehicle needs fuel daily. Anyone of them who resides in the vicinity of your petrol station or passes by is a potential customer. What is important is to evaluate the average fuel sales volumes by fuel type. This will help you to order your fuel stocks proportionately. It would be unwise to order more diesel and less petrol when demand is normally high for petrol. Find out ways to lure the most customers and command a bigger market share. Your petrol pump business plan should include a proper marketing strategy for your business.
With this information you can start a successful petrol station business. The beauty of the petrol station business is that there is vast room for differentiations. Always keep an eye and ear out to spot opportunities for differentiation.
Pre-Written Petrol Station Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the petrol station business, we encourage you to purchase our well-researched and comprehensive filling station business plan. We introduced the business plans after discovering that many were venturing into the gas station business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global gas station business plan will make it easier for you to launch and run your petrol pump station business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a fuel station business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the petrol station business.
Uses of the Petrol Station Business Plan (PDF, Word And Excel)
The fuel station business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your filling station business
- As a petrol station business proposal
- Assessing profitability of the fuel station business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Filling Station Business Plan (PDF, Word And Excel)
The business plan for fuel service station includes, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Industry Analysis
- Market Analysis
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some people in the gas station business fail, so that you can avoid their mistakes
- Ways to raise capital to start your fuel station business
The fuel station business plan package consists of 4 files
- Petrol Station Business Plan – PDF file (Comprehensive Version – 78 Pages)
- Petrol Station Business Plan – Editable Word File (Comprehensive Version – 78 Pages)
- Petrol Station Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 43 pages)
- Petrol Station Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, amount of fuel sold etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Petrol Station Business Plan (PDF)
Get the Petrol Station Business Plan (PDF, Word And Excel)
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