How to Open a Gas Station

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Because people all over the world need fuel for their cars, trucks, and other vehicles, gas stations can be good investments. And because the world is looking for more environmentally-friendly alternatives to conventional fuel like diesel and gasoline, greener fuels such as biodiesel, ethanol, hydrogen fuel and hybrid fuel are becoming increasingly more profitable to sell at gas stations. However, successfully opening and running a filling station requires smart planning and a significant investment. Read the following steps to find out how to open a gas station.

Steps

1. 1
   Draw up a business plan for your gas station. Discuss it with an accountant to get a realistic professional opinion about your estimated expenses and income.

   
   

   • Estimate how much the real estate for your filling station will cost.
   • Research what the costs of fuel supplies will be.
   • Determine how many employees you will need to hire and how much their salaries will cost each year.
   • Research how much to set aside for insurance and taxes, as well as for business software like ordering and accounting programs.
   • Plan a budget for advertisement for your gas station.
   • Estimate your projected income for the short and long term.
2. 2
   Talk to banks or investors about investing in your gas station. Because opening a filling station requires significant capital, you'll most likely need to find some investors who are willing to fund your endeavor based upon your business plan.
3. 3
   Have an independent lawyer review your investor's contract before signing it.
4. 4
   Find out what the state and federal requirements are to open a gas station and make sure you meet all of them. You'll need a business license and a permit, and you'll probably also need some form of proof from your local fire department that you meet all legal safety requirements.
5. 5
   Look at locations to open your new gas station, or take a look at existing gas stations that are for sale. Choose the location or existing filling station that will provide sufficient traffic for your business.
6. 6
   Research different fuel companies to find out which 1 offers the supplies you'll need under business conditions that work for you. At the very least, you'll need both gas and diesel, but with hybrids and other environmentally-friendly vehicles gaining in popularity, it's wise to look into biodiesel, hybrid and hydrogen fuel, and ethanol.
7. 7
   Sign a service contract with the company that offers you the best deal.
8. 8
   Consider additional business opportunities to make your filling station more attractive to customers.
   • A snack corner can bring in a lot of income, as hungry drivers like to be able to buy a quick snack on the road.
   • Think about a convenience store with supplies. If you want to sell alcohol and tobacco, you'll need to research the legal requirements for selling these types of products.
   • Consider installing a car wash.
9. 9
   Get the additional business opportunities you've decided on.
10. 10
    Interview and hire employees.
11. 11
    Advertise your gas station locally with signs, in local and national magazines, and on the Internet.
12. 12
    Open a gas station with a big celebration.

    
    

Tips

• Research the amount of traffic in the area you are considering open your filling station. If there's not much traffic, your earnings won't be as much.
• Remember to check local development plans to see how changes to city planning and infrastructure will affect your gas station's business.

Warnings

• Avoid buying an existing gas station without finding out why it's for sale. If the previous owner wasn't getting enough business, or if there are plans to change the flow of traffic in the area, it could adversely affect your projected income.
• Don't open a gas station without taking adequate security measures to protect yourself and your employees from crime.

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