How to open a gas station
Before starting, it should be made clear that it is very important to have some knowledge of the sector, as this is always a safe way to deal with problems that may occur at the beginning of the activity. Opening a gas station is a solid investment, because the demand for fuel is always constant, so if you are interested in this field, we invite you to stay until the end of the article, where you will find some recommendations and advice for starting a successful gas station.
A great list of businesses with local stores you can see here
Steps to open a gas station
Here are a few steps to help you through the process. It is important to take into account that some aspects such as legal requirements, prices, among others, depend exactly on the area where you are.
Define the operation group: First of all, before opening a gas station, it is necessary to distinguish between the types of distributors, you have to know that there are two groups: “public” or “private”. For the “public”, the distribution of gasoline is intended for all types of vehicles in general, while the “private” group, the distribution of gasoline should be used only in vehicles owned by companies, businesses, and so on.
If you have decided to open a “private” gas station, the distributor’s position may be in factories, warehouses, depots and yards, etc., but if your decision is to open a “public” gas station, you need to find an ideal place where there is so much traffic congestion.
Choose the type of distributor: Another important distinction is between “premium” distributors or resale distributors of large oil companies, easily recognizable by the company’s logo and placed in a visible location (e.g. Shell) or unbranded distributors or small local brands that obtain fuel directly from the large distributors and then carry it in their warehouses, usually located on highway exits or state and provincial roads.
Bureaucracy: It is advisable to benefit from the advice of a good lawyer to deal with oil company representatives and subsequently to enter into a supply contract and especially to carefully assess the terms of the contract and its legal aspects.
Fuels to be sold The types of fuels that are sold most, at any service station, are gasoline and diesel. However, with increasing environmental awareness, alternative fuels such as biodiesel, hybrid, hydrogen and ethanol also began to be developed. Other products sold are LPG (liquefied petroleum gas) and CNG (compressed natural gas).
Establishing the business: Now we will know the necessary aspects that we must develop to begin to physically establish our business after having known the previous information, let’s see:
Find the ideal location: The best place is where there is a high traffic (in case outside for public use). We can set up in areas such as main roads and streets with high traffic flow, although we will also take into account areas with a high presence of cars as urban areas in major streets. You will have to see the urban compatibility and distances required by national, regional and municipal authorities.
Business conditioning: If, on the other hand, the plants and systems are for private use, the installation of the service station can take place inside factories, construction sites, warehouses.
Operating permits: You must count and obtain the building permit for the conditioning of the area, so that you can install your gas station there. Do not forget to have the respective licenses to acquire the fuel you will provide to your customers.
The application to open a service station must be made by a person who has not been declared bankrupt, or has not been convicted or imprisoned.
Know the business: Have contact with oil companies, compare prices and find the best offers. It is always better to get help from a lawyer before signing the contract, you should pay attention to the legal aspects of the transaction.
NOTE: We have the possibility of starting the business independently or with a franchise. The choice depends especially on how you want to make your way through the process. For example, for those who do not have experience, a franchise could be a better option, this way they would gain knowledge in the market, while if you have experience, then why not start with your own gas station?
Disadvantages that can arise: If you decide to start the gas station business independently, you will have to have a lot of patience to make your business known, because the most likely thing is that
your potential customers take some time before they come to your gas station. On the other hand, if you decide to open a franchise, it will be necessary to adjust to the entrance fee and the requirements established by these companies for the process.
Final recommendation: One of the greatest keys to obtaining a successful gas station is in the area where we are located. Basically, the arrival of the customers depends on it and with this, the profitability of the business. For this reason it is recommended that before taking this step, you take your time to analyze the sites with the greatest potential, looking to be considerably farther away from the competition and to be able to start our business.
Requirements to start a gas station
First of all, you have to manage the trade register, the creation of a name for your business and the incorporation of a company, you have to hire a lawyer specialized in the matter to carry out the respective procedures in a good way.
In addition, you must acquire the appropriate permits to sell fuel to the public, comply with health and safety requirements when building the service station and install the system of pumping and gasoline tank.
A physical platform must be acquired that complies with environmental and legal requirements to establish the business, so that setbacks or possible legal consequences are avoided in the process.
Advantages of having a gas station
Fuel is vital to modern society, it is imported from oil-producing countries, refineries all over the world, so we are working with an imported product that is dispensable so that the infrastructure works by feeding one of the most vital elements of society, transport, so you can have very good profit margins in the process.
It is one of the best paid products in the market, due to its high and constant demand, in addition to the diesel that serves to supply public transport and wholesale inputs throughout the country.
One successful company in this market is Ballenoil, which has more than 100 service stations, and hopes to open more in the coming years. They are automatic service stations, which are identified by the blue whale, being their recipe, from the beginning, diesel and gasoline at low cost, which they prefer to call low good (low price – good quality).
Another company is Morafuel, which is a service station where you can find a supply of fuel and it is possible to refuel within the hours it has. Therefore, going to this service station and refueling there means that the price to pay for gasoline 95 is lower than other similar ones.