Owning a gas station franchise is a very challenging yet rewarding experience. It’s virtually a self sustaining business when the numbers are right and the techniques in franchises are executed properly. However, there are franchisees that don’t even last for one year because the challenge was so hard; the reward part wasn’t even reached. If you’re thinking of jumping into this type of business, here are some things you have to remember so that the challenges could be addressed smoothly and the rewards will come faster.
Location – Having a bad location for your gas station business is almost a suicide. Count the number of vehicles that pass by. Check also for competition around your area. If there is no gas station in the 10 mile zone you’re planning to put in, you’re in great hands. Five miles is still ok but if you have a competitor in less than a kilometer, prepare to offer more than just a location and gasoline.
More Than a Gas Station – This is almost a must in any gas station that has a direct competitor. But if you don’t have one, NEVER think you’ll be earning money because of today’s rising cost of the gasoline. That is why most of the gasoline stations also have convenient stores. The money is basically in additional services since the mark up is higher. Car wash could even command a higher mark up price. But if you want to earn big time, add another fast food franchise or get someone to use the remaining lot as a fast food franchise. The earnings can be so great that your gasoline earnings will just be a bonus.
Network – Even if no one is within the 10 mile radius, it doesn’t mean you don’t have to network with other gas franchisees. The Petroleum Marketers Association of America is a good way to meet other gasoline franchisees. If you’re a beginner, there are so many things you have to learn from the pros in the business. If they could hold on to the industry for more than 10 years, they should have done something that you should follow.
Security – Unfortunately, gasoline stations and convenient stores are among the most targeted places by robbers and petty thieves. If you have a gasoline station with a convenient store, you have twice the chance of being robbed. Never think twice of installing the latest security facility such as 24 hour cameras in key areas of the gasoline station and your convenient store. Also train your employees for a little self defense if possible.
Licenses and Contracts – Paper pushing for a franchise is quite difficult especially if you’re a beginner in the business. In this part you might want to get some help from an attorney. Franchise owners will only assist you with opening your business, but the paper permits, especially state licenses should be taken care of by an experienced businessman or an attorney.
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Comment by tony — June 8, 2009 @ 8:10 am