business plan for opening a gas station

Gas Station Business Plan Template

Written by Dave Lavinsky

Gas Station Business Plan

You’ve come to the right place to create your Gas Station business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their gas stations.

Below is a sample business plan for a gas station to help you create each section of your gas station business plan.

Executive Summary

Business overview.

Accelerate Station is a startup gas station located in Dallas, Texas. The company was founded by Bill Johnson, an experienced gas station manager who has gained valuable knowledge on how to run a gas station during the past ten years while working at GAS&GO MART. Now that Bill has experienced managing a gas station, he is ready to start his own company, Accelerate Station. Bill is confident that his business management skills, combined with his understanding of the gas station industry, will enable him to run a profitable gas station of his own. Bill is recruiting a team of gas station personnel to help manage the day-to-day complexities of running a gas station business – sales and marketing, supplier relations, financial management, and customer support.

Accelerate Station will provide gasoline, diesel, electric vehicle charging, automotive parts and accessories, and a small snack assortment. Accelerate Station will be the go-to gas station in a busy intersection located in the heart of the Dallas metropolitan area. The company will be the ultimate choice for convenience and customer service while offering the lowest prices in the area.

Product Offering

The following are the products and services that Accelerate Station will offer:

• Electric Vehicle Charging
• Air (for tires)
• Automotive Parts Assortment (lights, batteries, etc.)
• Automotive Accessories (license plate holders, air fresheners, etc.)
• Snacks & Beverages (vending machine access)

Customer Focus

Accelerate Station will target private and commercial vehicle drivers in Dallas. The company will target individuals that need to refuel as part of their commute to work and commercial drivers fueling up for a long trip. No matter the customer, Accelerate Station will deliver fast and courteous service and the lowest prices in the area.

Management Team

Accelerate Station will be owned and operated by Bill Johnson. Bill is a recent graduate of Texas University with a degree in business administration. He also has over ten years of experience working as a gas station manager for another local company. Bill will be the chief executive officer for the gas station. He will oversee the staff’s activities and day-to-day operations.

Bill has recruited a fellow business school graduate, Stephen Smith, to be the company’s chief operating officer and help oversee the gas station’s business operations. Stephen will handle supplier relationships, logistics, and budgeting for the business.

Bill and Stephen have hired a marketing professional, Mary Miller, to become a member of the Accelerate Station management team. Mary is a graduate of the University of Maine with a bachelor’s degree in marketing. Bill and Stephen rely on Mary’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Accelerate Station will be able to achieve success by offering the following competitive advantages:

• High-traffic location that is visible and accessible to passersby from multiple major streets and highways.
• Accelerate Station uses the latest technology to make it easy and convenient for customers to gas up quickly. Customers can pre-pay using the company’s app, at the pump, or in person at the central kiosk. Providing multiple payment options gives more customers an opportunity to use their preferred method of payment easily.
• The company’s leadership team has built a network of supplier relationships that will allow Accelerate Station to purchase gasoline for lower prices than their competitors. Accelerate will then be able to pass this cost-savings on to customers.

Financial Highlights

Accelerate Station is seeking $880,000 in debt financing to launch its gas station business. The funding will be dedicated towards securing the location and purchasing gas station equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Gas station build-out: $480,000
• Gas station equipment, supplies, and materials: $220,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Accelerate Station.

Company Overview

Who is accelerate station.

Accelerate Station is a newly established gas station company in Dallas, Texas. Accelerate will be the first choice for drivers in Dallas for its convenient location, top-notch customer service, and low prices on gasoline, diesel, and electric vehicle charging. The company will serve drivers of private and commercial vehicles of all types and sizes.

Accelerate Station will be able to guarantee the lowest prices in the area thanks to its leadership team members’ existing supplier network connections. The company offers customers the option to pay using a convenient app, at the pump, or through the central kiosk. Customers can also purchase automotive parts and accessories, and grab a quick snack for the road at the station’s convenient vending machines.

Accelerate Station History

Accelerate Station is owned and operated by Bill Johnson, an experienced gas station manager who has gained valuable knowledge during his ten year tenure working at another local gas station. In addition to his hands-on experience, Bill has recently graduated from Texas University with a degree in business administration. Now that Bill has gained the experience and know-how he needs to manage a gas station, he is ready to start one of his own. Bill has begun recruiting a team of gas station personnel to help manage the day-to-day complexities of running a gas station business – sales and marketing, supplier relations, financial management,  and customer support.

Since incorporation, Accelerate Station has achieved the following milestones:

• Registered Accelerate Station, LLC to transact business in the state of Texas
• Has begun negotiations to purchase the property and reached out to potential builders to construct the station
• Reached out to numerous contacts to include gasoline and diesel suppliers and electric vehicle charging station providers to begin obtaining supplier contracts
• Began recruiting a staff of gas station attendants to work at Accelerate Station

Accelerate Station Services

• Automotive Accessories (license plate holders, air freshener, etc.)

Industry Analysis

The gas station industry in the United States is valued at an estimated $138B with over 13,800 businesses in operation and more than 162,000 employees nationwide. Included in the gas station industry are businesses that sell automotive fuels such as gas and diesel, automotive parts and services (such as car washes), and other non-automotive goods and services. Many gas stations also co-locate with a convenience store to drive more traffic to their business. These gas stations are part of the larger industry of “gas stations with convenience stores”, which is valued at $649B in the U.S. with over 122,000 operating businesses and 1.0M employees across the country. In addition to gasoline and automotive services, these businesses also sell groceries and other convenience goods.

Gas station market demand is dependent on the volume of drivers on the road (both personal and commercial). Profitability typically depends on industry operators’ ability to secure high traffic locations and purchase their gas for the lowest prices possible.

A growing challenge for gas station industry operators is the rise in electric vehicles. To remain competitive, many industry operators have begun offering electric vehicle charging options in addition to traditional gasoline.

Customer Analysis

Demographic profile of target market.

Accelerate Station will target private and commercial vehicle drivers in Dallas. The company will target individuals that need to refuel as part of their commute to work and commercial drivers fueling up for a long trip. Accelerate will be able to accommodate vehicles of all types and sizes including diesel, hybrid, and electric vehicles. No matter the customer, Accelerate Station will deliver fast and courteous service and the lowest prices in the area.

The precise demographics for Dallas, Texas are:

Customer Segmentation

Accelerate will primarily target the following customer profiles:

• Drivers of private vehicles
• Drivers of commercial vehicles
• Drivers of gasoline vehicles
• Drivers of diesel vehicles
• Drivers of electric vehicles

Competitive Analysis

Direct and indirect competitors.

Accelerate Station will face competition from other companies with similar business profiles. A description of each competitor company is below.

GAS&GO MART

GAS&GO MART is one of the largest and oldest commercial gas stations based in Dallas, Texas. Established in 1955, the company currently operates twenty stations throughout the Dallas-Fort Worth metropolitan area. GAS&GO MART sells gasoline and diesel, automotive parts, and snacks. GAS&GO MART aims to deliver quick service for customers on the go. The company uses a stringent inspection process to ensure all of its products are the best quality. GAS&GO MART’s team of experienced gas station attendants are available to assist customers as needed.

Speedy Gas Station

Speedy Gas Station is a small gas station catering to local drivers in Dallas, Texas. Speedy Gas Station operates one location in a busy retail district. The company provides gasoline, diesel, and a self-service car wash. Speedy Gas Station is family owned and operated by former race car drivers who know the importance of fast service. The gas station attendants are able to help customers check their oil, tires, and other small automotive issues. The company prides itself on providing the fastest service and quality products.

Express Gas Station

Express Gas Station is a trusted Dallas, Texas-based gas station that provides superior gasoline to drivers in Dallas. The company offers a spacious layout that can accommodate the largest of commercial vehicles and is equipped with an electric vehicle charging station. Express Gas Station operates a single location near the outskirts of Dallas and is in the process of opening two additional locations within the city.

Competitive Advantage

Accelerate Station will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Accelerate Station will offer the unique value proposition to its clientele:

• Customers can pre-pay using the company’s app, at the pump, or in person at the central kiosk. Providing multiple payment options gives more customers an opportunity to use their preferred method of payment easily.

Promotions Strategy

The promotions strategy for Accelerate Station is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. She will ensure Accelerate maintains an active social media presence with regular updates and promotional content to incentivize customers to use the company’s services.

Professional Associations and Networking

Accelerate Station will become a member of professional associations such as the American Gas Station Association, Dallas Gas Station Managers Society, and the Texas Diesel Association. The leadership team will focus their networking efforts on expanding the company’s supplier network.

Print Advertising

Accelerate Station will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents and businesses that are likely to frequent the gas station.

Website/SEO Marketing

Accelerate Station will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list the products and services Accelerate is able to provide. The website will also list information on discounts and promotional giveaways.

The marketing director will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Dallas gas station ” or “gas station near me”, Accelerate Station will be listed at the top of the search results.

The pricing of Accelerate Station will be moderate and lower than its competitors so customers feel they receive value when purchasing the company’s products and services. Accelerate will also offer discounts to regular customers.

Operations Plan

The following will be the operations plan for Accelerate Station.

Operation Functions:

• Bill Johnson will be the CEO of the company. He will oversee the gas station staff and day-to-day operations. Bill has spent the past year recruiting the following staff:
• Stephen Smith – Chief Operating Officer who will manage the budgeting, supplier relationships, and logistics.
• Jennifer Willams – Bookkeeper who will provide all accounting, tax payments, and monthly financial reporting.
• Mary Miller – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and print advertising campaigns.
• Micheal Jones – Quality Control Manager who will oversee all inspections of products, equipment, and processes.

Milestones:

Accelerate Station will have the following milestones complete in the next six months.

12/1/2022 – Finalize contract to purchase property

12/15/2022 – Finalize employment contracts for the Accelerate Station management team

1/1/2023 – Begin build-out of the gas station and purchase equipment, materials, and supplies

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts with suppliers

3/15/2023 – Accelerate Station officially opens for business

Bill has recruited a fellow business school graduate, Stephen Smith, to be the company’s chief operating officer and help oversee gas station’s business operations. Stephen will handle supplier relationships, logistics, and budgeting for the business.

Financial Plan

Key revenue & costs.

The revenue drivers for Accelerate Station are the fees charged to customers in exchange for the company’s products and services. When it comes to pricing, the station will monitor supply costs, average prices charged by competitors, and product availability in the market to ensure its prices will generate a healthy profit margin.

The cost drivers will be the overhead costs required in order to staff a gas station. The expenses will be the product itself, payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average sales per month: 2,000
• Average fees per month: $15,000
• Overhead costs per year: $640,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Gas Station Business Plan FAQs

What is a gas station business plan.

A gas station business plan is a plan to start and/or grow your gas station business. Among other things, a fuel station business plan outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Gas Station business plan using our Gas Station Business Plan Template here .

What are the Main Types of Gas Stations?

There are a number of different kinds of gas stations, some examples include: Franchise Gas Station, Full Service Gas Station, or Quick Service Gas Station.

How Do You Get Funding for Your Gas Station?

After you complete your filling station business plan, you can start to seek financing.

Gas Stations are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Gas Station Business?

Starting a Gas Station business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Gas Station Business Plan - The first step in starting a business is to create a detailed fuel station business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your Gas Station business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your Gas Station business is in compliance with local laws.

3. Register Your Gas Station Business -Once you have chosen a legal structure, the next step is to register your Gas Station business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your Gas Station business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees -There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Gas Station Equipment & Supplies - In order to start your Gas Station business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your Gas Station business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful Gas Station business: How to Start a Gas Station

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How to Open a Gas Station: A Step-by-Step Guide

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Have you ever wanted to open a gas station but kept delaying it because you didn’t even know where to start? While starting a business can be a complex process, and opening your own gas station does have a few unique challenges you should be aware of, this shouldn’t discourage you from feeding your entrepreneurial spirit.

After all, the oil and gas industry has soared to over $180 billion in 2018. With millions of licensed drivers but just over 100,000 gas stations in the United States, learning how to open a gas station could be a lucrative business move.

How to open a gas station

1. write your business plan.

If you’re looking into how to start a gas station, be aware that the initial costs are quite high⁠ — this financial entry barrier may necessitate a loan. Writing a comprehensive business plan will be key in convincing lenders to approve your loan application or getting investors interested in funding you. When writing a business plan for a gas station, here are some points to research:

List your products and services

Gas stations are rarely limited to motor fuel. You’ll often notice how many gas stations also operate as convenience stores. In addition to recording the number of gas pumps and fuel options will be available at your gas station, you should research additional products and services to boost your profit margins. Common products and services you’ll see at a gas station include:

Car washes.

Air stations.

Lottery tickets.

Market analysis

The gas industry has a competitive market. It’s critical that you research the competition when looking into starting a gas station so that you can adjust your own marketing strategy to maximize traffic and profit. In your market analysis, here are some questions you want to answer:

What are your competitors’ strengths?

What are your competitors’ weaknesses?

How can you eliminate those weaknesses in your own business?

How can you solve the same problems better or differently than your competitors?

Will your competitors be a significant threat if you opened your business?

How can you use location to drive traffic to your business?

Your gas station location will influence how much traffic you attract, so it should be a priority when you’re brainstorming how to open a gas station. Reference back to your market analysis and how your chosen location is advantageous to your business. Will you choose a location where there is a fierce competitor across the street from you? Or will you choose an isolated location along a populated highway and cater to truck drivers and traveling families?

One tip when choosing a business location is to research up-and-coming neighborhoods. These neighborhoods will likely be further out from major cities and they’ll be in need of gas stations to fuel their longer commutes. Another tip is to avoid locations where wholesale retailers like Sam’s Club or Costco offer deeply discounted gas prices.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Register your business

Register a business entity

Every business operates as some kind of business entity or business structure. Business owners may start out as sole proprietorships since there’s no paperwork required to register as one. However, when starting a gas station, we do not recommend operating as a sole proprietor. A gas station can be exposed to many risks, like burglaries and leaks, and you want to ensure that your personal assets will be protected.

The two most common business structures for gas stations to consider are limited liability companies and corporations. You may want to consider consulting a business attorney to determine which legal structure is best for your needs.

Business owners who operate as LLCs get to choose whether they’d like to be taxed as a sole proprietor or corporation. Also, they tend to pay lower annual fees. This business structure tends to be attractive to gas station owners who choose to stay small, especially if they own only one gas station. However, LLCs usually experience more difficulty raising money from investors.

Corporations tend to attract business owners who expect to raise capital from investors. If you expect to own a chain of gas stations or grow your gas station brand to compete with industry leaders, like Shell of Chevron, then a corporation may be the business structure for you.

To register as an LLC or corporation, you’ll need to consult your state’s Secretary of State office, either online or in person. Typically, you’ll have to fill out paperwork called either the articles of organization (if filing as an LLC) or articles of incorporation (if filing as a corporation) and pay a fee. In some states, you may also have to publish a notice in a local paper.

Choose a unique business name

When it comes to how to open a gas station, you want to ensure that your business name is unique so that it is not confused with another company. Conduct a quick search with your state’s Secretary of State business search and the United States Patent and Trademark Office to verify the availability of your desired name. Also, you’ll want to confirm that the domain name is available with sites like Name.com or GoDaddy.com.

Register for taxes

As a small business owner, you’ll also require an employer identification number to operate your business. An EIN is a nine-digit number used when filing your business taxes. You can apply for an employer identification number online with the IRS. You should receive your EIN within minutes after applying.

Depending on tax regulations in your state, you may also need to register for a state tax ID when starting a gas station.

Buy a franchise

If you’re looking into how to open a gas station, you may have considered buying into an existing gas station franchise, like Chevron or Mobil. Many drivers opt to buy gas from a familiar national brand, even if a competitor offers a lower price. There are several advantages to buying a franchise, like using an existing trademark and operating within a proven business model. However, you would need to pay royalties to the parent company.

If you decide to buy a franchise, make sure you have a business attorney review the legalities of any franchise agreement before signing.

3. Secure funding

Starting a gas station requires a significant amount of money when you factor in purchasing property, stocking up on supplies, paying employees, and keeping up with regulations. We’ll go over what specifically you’ll need to finance your gas station in this section. However, with all the costs involved in starting a gas station, we recommend opening a separate bank account to keep your business and personal finances separate.

How much does it cost to start a gas station?

As we mentioned before, starting a gas station has a high financial entry barrier. You should expect to secure at least $300,000 to cover the following startup costs:

Purchasing the location.

Business insurance.

Registering your business.

Licenses and permits.

Marketing materials.

Initial inventory (gas, consumables).

Setting up your gas station.

Setting up your convenience store.

Securing a gas supplier.

Paying employees.

Royalties per your franchise agreement.

Also, there will be ongoing costs following the startup costs. If your gas station will be operating 24 hours, you will need to pay for employee wages, utilities, and replenishing inventory. Also, the cost of replenishing your fuel reserves can rack up quickly. You can expect to pay at least $50 to $70 per 20-gallon barrel of fuel.

Financing your gas station

To cover these high initial costs, you should consider applying for a business loan through your bank. Unfortunately, slim profit margins tend to characterize gas station businesses. According to the National Association of Convenience Stores, “the average privately held gas station made only 0.02 cent of profit on each dollar of sales.”

You’ll need to rely on a stellar business track record and a comprehensive business plan to convince lenders that your business is a worthwhile investment. Even still, traditional lenders don’t usually lend money to new businesses. Some other financing options include:

SBA loans .

Equipment leasing.

Crowdfunding.

Angel investors.

4. Buy the property

When purchasing the location for your gas station, it's important to discuss ownership rights to any existing tanks and pumps that may already be there.

This is an important step when it comes to how to open a gas station: Before finalizing the purchase agreement, first confirm whether the sale transfers ownership rights of the pumps and tanks to your name. Also, you should research the equipment’s repair history to determine the remaining “shelf life.” This will verify whether you should reuse or replace the existing equipment.

When outlining your purchase agreement, remember to include an environmental contingency clause . This clause allows you to conduct more research on the property’s environmental history after the purchase agreement is signed. If an environmental site assessment yields unfavorable findings, you can withdraw from the sale and get your deposit refunded.

5. Secure a gas supplier contract

It’s important to understand how you will regularly replenish your gas tank reserves. You’ll have to research different local wholesale providers to supply fuel for your station. Gas suppliers often earn a percentage of your sales, so you should do a thorough rate comparison to ensure you are maximizing your own profit margins.

If you are operating a franchise, review your franchise agreement to determine if they already have a preferred vendor for gas supply.

Again, have an attorney review your franchise agreement and gas supplier contract to ensure you are maximizing profit and avoiding any hidden fees.

6. Obtain necessary permits and licenses

When it comes to how to open a gas station, the necessary permits and licenses will vary from state to state. Be sure to research your respective state’s business requirements. Generally, you would be required to obtain permits for the following:

Fire inspections.

Tank inspections.

Water discharge.

Sale of alcohol and tobacco.

Restaurant codes and regulations.

Motor fuel outlet license.

Certificate of occupancy.

7. Get business insurance

We highly recommend that you buy business insurance to protect your business. Operating a gas station can expose you to several risks on a daily basis: burglary, employee injury, equipment breakdown, property damage, and more. Insurance helps to keep you and your assets protected.

8. Market yourself

Use pole signs and highway exit signs

When seeking a gas station, many drivers just want to find the nearest one, fill up, and then leave. As a gas station owner, it’s often worth buying tall pole signs and highway exit signs to market your business. Capturing drivers’ attentions while they’re already driving can boost traffic to your gas station.

Get active on Yelp

Drivers often use Yelp to find the nearest gas station. If they have to choose between your gas station and your competitor across the street, they’ll likely choose the gas station with superior Yelp ratings. Boost your rating by offering stellar customer service, clean facilities, and responding to reviews.

Create a loyalty program

Did you know that it’s often more expensive to acquire new customers than it is to retain existing customers? Smart marketers know this and that’s why big-brand gas stations, like Chevron and Exxon, offer loyalty programs to their driving customers. Create a loyalty program when you’re starting a gas station and you can slowly build a loyal customer base.

Partner with food franchises

You might notice nowadays that 7/11 isn’t the only franchise you’ll find at a gas station. More gas stations are partnering with food franchises, like McDonald’s and Subway. This can be great for business because it transforms your business from a gas stop to a rest stop. This creates more opportunities for customers to also enter your convenience store and buy consumer goods.

Consider lowering your gas price

You might be surprised that many gas stations don’t make a significant profit from selling fuel. Many gas station owners increase their profit margins through their convenience stores. Lowering your prices, even by a cent, can attract more drivers to your location, increasing the likelihood that customers will leave the pump and enter your store to buy a drink or other goods.

Install more gas pumps

The reality is that refilling your gas tank isn’t fun. It’s an errand that people have to do to get them from Point A to Point B. This chore becomes more of an annoyance when people drive into a fully-packed gas station. Adding more gas pumps makes the gas-filling process as convenient as possible. Just the availability of gas pumps can attract drivers to your gas station.

LLC Formation

9. Familiarize yourself with your day-to-day responsibilities

Establish hours of operation

Many gas stations are open 24 hours a day. If you want to keep up with the competition, your own gas station might have to operate 24 hours as well. Should you do this, you’ll need to hire more employees to cover the graveyard shift.

Punctuality

Punctuality is essential when operating a gas station. Often, drivers will stop by for gas in the early morning before work. If they have to wait for you, drivers will bring their business to a competitor and you’ll probably lose those customers for good.

Since your gas station will likely sell a variety of consumer goods, like snacks and drinks, you must keep your inventory organized. Running inventory every day will help you identify when your reserves are low and you need to restock. Make sure you also get estimated delivery dates on vendor delivers to better coordinate when you need to resupply.

Set up security measures

Gas stations, especially 24-hour operations, are particularly vulnerable to crime. It’s important that you and your employees are safe. Consider installing cameras and shatter-proof windows as an additional security measure. Also, daily bank deposits will help keep your cash assets safe from burglaries.

Opening a Gas Station: The Ultimate Guide (2024)

Owning a gas station is a business we think of when we imagine an entrepreneur realizing the American Dream .

According to the National Association of Convenience Stores , there are over 120,000 gas stations that double as a convenience store in the U.S. (out of over 150,000), and 62% of convenience stores are operated by a single-store operator.

That means most gas stations are not owned by multi-store corporations. They’re owned by individual proprietors who invested their own money into their business.

Have you ever thought about realizing your own American Dream and starting a gas station?

To guide you, we interviewed Punardeep Sandhu, who left his job as an IT Consultant 8 years ago to open a Chevron gas station. He helped us break down the process, so we can show you how to do it step-by-step.

Before we break it down, note that the terms gas stations and convenience stores (or “c-stores”) are sometimes used interchangeably. In this article, we’re focusing on opening a gas station that also includes a convenience store. You can read our article on How to Open a Convenience Store for great tips on that subject if you’re not interested in selling fuel.

1. Initial Planning

Like any small business, opening a gas station business begins with careful planning. A business plan is more than just an outline of your ideas and dreams; it’s the blueprint for your business and the key to securing the funds you’ll need to get things going. Your plan must include and account for things like:

• Initial and Ongoing operating costs
• Tanks, Pumps and Fuel
• Products and Inventory
• Location costs
• Accountant and Legal Fees
• Licenses and Permits

You can visit the U.S. Small Business Administration’s site for some great tools that will help you write a business plan. It’s important to get familiar with the SBA now as you’ll see them again in Step 3: Funding.

How much does it cost to open a gas station?

Speaking of funding, getting into the gasoline station business isn’t cheap. The initial costs of opening a gas station ranges on average from $250k to $2 million even for a small gas station.

Also, unless you have access to large stockpiles of motor grade gasoline , you must enter into an agreement with a gasoline supplier. And that’s the X-factor in figuring the initial price of a gas station.

Do you have the funds to open an independent location with your own supplier or do you need to leverage your funds by entering into an agreement with a gas station franchise?

Instead of opening a brand new gas station, you could buy one that’s up and running. Just make sure to research the area first so you know what kind of customer volume to expect in the location.

How to Open a Gas Station Franchise

Most station owners, including Punardeep, get into the business through buying a gas station franchise. Partnering with a franchise can ease some of the financial burden (but not all!), and an established brand can serve as your key marketing tool. Punardreep explains,

Luckily for me the Chevron brand in itself doesn’t need much marketing, people recognize Chevron and are loyal even if that means paying a few extra cents per gallon.

However, each gas station franchise has different financial requirements for opening a location (some in excess of $1 million!) and some mandate a background in management or entrepreneurship before they’ll consider you.

Here’s a list of some of the top gas station franchises (there are many more), so you can check the qualifications based on your business plan:

• ConocoPhillips

Gas Station Products and Services

When planning your gas station, you need to consider the products and services you want to offer beyond gasoline. Gas stations have gasoline as revenue to keep the business in operation, but it’s the sales inside the convenience store that make the business profitable. Punardreep says,

Inside the store sales is where you make your real money, gas margins are very competitive, so it’s a good way to attract the customers at the pump, but the ring inside when they come in for a soda, or candy or chips is where you make that money

Also assess services other than food and drinks that gas stations typically offer such as:

• Air Stations
• Lottery Tickets

Each of these services have their own costs (permits and maintenance), but have become fixtures at gas stations around the country.

Your gas station franchise agreement can also directly affect the list products and services you provide. It’s best to work with a lawyer who specializes in franchise law in this situation.

2. Choose Your Gas Station Location Carefully

Open a Gas Station 101: Your location is the prime determiner of the amount of traffic you will attract.

It’s so important that when we asked Punardreep, “What are the top 3 tips you have for others who are opening a gas station business?” He answered,

Location, location, location.

Choosing the location of a gas station isn’t exactly like choosing the location of a used car dealership, though we covered that in section 3 of our article on How to Start a Used Car Dealership .

You need to invest a lot of time and perhaps even some money into market research about a potential location of your gas station. Here are some factors that help determine whether a location is prime for a gas station business:

• Easy accessibility from a highway or main intersection
• Is it located on a main route for general work commute?
• Is there a lot of competition?
• Are there wholesalers around like Sams Club or Costco?
• Is there existing construction or future construction in the area that would affect your permits or accessibility?
• Assessment of state and federal location and environmental laws for a gas station

You can read more detailed information from ConocoPhillips regarding these factors, but it’s ultimately up to you, the business owner, to carefully assess your location.

A great tip is to find a gas station location in a new and developing neighborhood. Ideally, try to find a spot just outside the city before the area is fully established.

Many people in this type of neighborhood will have to commute to the city and need gas to get to their jobs. Plus, you should be able to find cheaper real estate in these areas.

Who Owns the Tanks and Pumps?

Study this section as it is the most important element can make or break your gas station business aside from the actual location.

Obviously, gas is the life blood of gas stations. It’s the core revenue source and marketing tool you need to stay in operation and generate profits. That means you must assess the ownership of the tanks and pumps at a potential location before you purchase or lease.

Many gas station owners don’t own these assets and instead lease them from a franchise or the owner of the property. If you’re buying a gas station, check whether or not the tanks and pumps are included in the sale. If you’re leasing a station, have a lawyer thoroughly review the terms of the tanks and pumps agreement.

And most importantly, check the history of the gas station tanks and pumps. Many owners have lost their business because of purchasing or leasing tanks and/or pumps that are defective or not in compliance with state regulations.

Environmental Assessment

Business owners looking to open a gas station need to obtain a Phase 1 Environmental Assessment of their location. This assessment must be completed by an Environmental Professional (geologist or engineer) who will determine the environmental history of your location and adjacent properties.

Here is an example of a real assessment .

This document is essential for two key reasons:

• The Phase 1 Assessment is a requirement of the SBA (pg 384) if you want to obtain a loan for a gas station business.
• It will allow you to back out of a purchase agreement if the assessment is unfavorable and your agreement includes an environmental contingency clause .

A qualified real estate attorney with experience in dealing with gas station agreements should know this clause . However, it’s up to you to make sure it’s in the purchase agreement as it is the only way you’ll be able to legally withdraw from a sale and keep any deposits.

3. Registering the Gas Station Business

Forming a business entity is the next step in starting a gas station. However, before forming your business structure, make sure and consult with your attorney to see which type of business is best for you (limited partnership, sole proprietorship, limited liability company, or corporation).

It’s not recommended to operate as a sole proprietor if you’re going to open a gas station. There are many legal risks that would be tied to you personally if something happens at your location (robbery, leaks, accidents, etc…).

Most gas station owners opt to form a Limited Liability Company (LLC) because it gives them the some of the tax and business advantages used by a sole proprietorship and a corporation. Plus, they usually play lower fees. However, it may be more difficult to get a loan.

Last, you need to choose a business name and apply for an employer identification number with the IRS and your state.

4. Funding Your Gas Station

To start a gas station, you need money, and lots of it. Construction of a gas station alone can run over $350k (and that’s in Idaho!), and if you’re going to buy a gas station, the price tag can run the same or more based on the location.

When asked how he funded his gas station Punardreep said,

My life savings and family helped me with the down payment, and I also got an SBA loan to start the gas station business.

The Small Business Administration has loan programs to help small businesses, like gas stations, get started. They won’t lend money directly to you, the business owner. Instead they work with other institutions to reduce their risk on a loan by backing it by as much as 85%.

The benefit of taking a loan for your gas station from the SBA is that it has low down payments and lengthy payment terms with reasonable interest rates. However, you may be required to put down a substantial amount of collateral on the loan, and the loans can be difficult to secure and include a lot of paperwork and a long wait time for approval.

Business Loan from a Bank (Conventional)

With good credit, you could apply for a traditional business loan from a bank. However, because the bank takes on the entire risk of the loan, so they have high standards with their requirements.

This means you’ll need around 15 to 20% of the initial funds to start with a credit score over 700, or be willing to put up other personal assets (property, equipment, etc…) as collateral.

The good news is that small business loan approvals at large financial institutions hit an all-time high last year .

How Profitable are Gas Stations?

Your ability to pay back these loans will be contingent on the profitability of your operation. And a quick search may show horror stories about gas station profitability that can seem off putting.

However, we spoke with Punardreep about his margins and he said,

We make anywhere from 30-40 % margin on average.

So, two things determine gas station profitability: you and your location.

There are many owners out there who didn’t do their due diligence when they went into the gas station business and are now suffering the consequences of margins in the 1-2% range. However, many others, like Punardreep, are making anywhere from 5 to 30% profit each month.

Gas stations can be profitable if they’re set up for success.

5.  Setting up for Success: Gas Supplier Contracts, Technology, and Employees

Knowing the elements that will either increase or decrease your gas station’s profitability are key to starting a gas station. You will need to negotiate supplier contracts, outfit and update your location with the latest technology, and continually assess your ongoing costs to set your station up for success.

Gas Stations Supplier Contracts

We mentioned suppliers earlier, but it’s important to understand how to manage refilling your gas supplies and the factors that determine gas prices .

It’s up to you to research local wholesale fuel suppliers (or petroleum marketers ) in your area to see who has the best prices for your fuel because gas suppliers often make money from the percentage of your sales. You need to compare rates to maximize profits.

For example, if your location is near Dallas you might contact SEI Fuels or Martin Eagle Oil .

However, if you’re in a franchise agreement, you may be required to purchase from select vendors because they have a prior agreement. Punardreep owns a Chevron location and therefore has to supply it with Chevron gas at their set rates.

Gas is more of a revenue stream for gas stations and is not your key profit maker, but if you can bump your margins from $.01 per dollar to $.03 or $.05, it will add up in the long run.

Punardreep explained to us,

Technology: it’s your best friend. Whether it’s the best camera systems, POS systems, use the best in the industry because investing in good technology will not only give you real time data on what’s happening in your stores, you have access to all that data in the palm of your hand.

Before you start a gas station, remind yourself that technology isn’t going away, and it’s best to use it to your advantage rather than skim on cheap devices and software in your location. Eventually, it will start to negatively affect your profit margins.

Here’s a list of the top POS systems for gas stations:

• Harbortouch

This is a list of the top camera system providers, but work with a trusted security camera company to help set everything up.

Employees and Customer Service

Payroll and rent are my biggest ongoing expenses,

says Punardreep. If one of your biggest expenses is on the front line interacting with customers every day, be sure you hire someone who is going to reflect your values and provide amazing customer service.

In fact, it’s one mistake Punardreep said he wished he avoided when he first started.

Employee hiring is a critical piece as they represent your business. Having good customer service is important. I had hired some people that didn’t represent my values, and they were not good for the face of the business; so I had to get rid of them.

If someone isn’t willing to help and take care of your customers, then you have to be ready to make some cuts. Otherwise, you could see a direct affect on your profit margins.

6.  Permits, Licenses and Insurance

Now that you know the aspects of opening a gas station, let’s look at the permits, licenses, and insurance coverage you need when actually starting a gas station.

How Do I Start a Gas Station?

Permits and licenses for a gas station differ from state to state. However, gas station business owners are responsible for making sure everything is in compliance. Some standard permits and licenses include:

• Building and Fire Inspection
• Tank and pump inspections (Also, each state actively inspects them at random, usually conducted by a state’s Department of Agriculture .)
• Water discharge permit if required by your state. You don’t need an NPDES Permit.
• Alcohol , tobacco , and lottery ticket licenses
• Food and Beverage distributor licenses
• Certificate of Occupancy
• Health Inspection

Each state —and sometimes county and/or city— has its own licensing laws and fees. A quick search of your state and/or county with the desired license should direct you to the correct page.

Most importantly, each state requires that you apply for a Motor Fuels Retail Outlet License when starting a gas station. It’s the tax license you need to sell motor fuel in your state. The title may differ a little by state (it’s just called a Motor Fuel License in Massachusetts ), but check on your state’s government website for the proper application.

Here’s Michigan , Virginia , and New Jersey if you live there!

Last, you want to check with a qualified insurance agent about business insurance before you begin gas station operations. A gas station is a business known for having a lot of financial risks like robbery, injury (employee or customer), equipment malfunction and property damage. In any of those unfortunate situations, you want your gas station to be covered to protect your assets.

7.  Marketing

Getting your gas station noticed by customers is essential to growing your business. Even with a prime location, gas stations need lots of marketing and promotions to keep their profit margins high.

Get Noticed!

A great way to get your gas station noticed is through signage. You’ve seen the giant gas station billboards all over the country, and there’s a reason for it. Many potential customers just drive to the nearest gas station, so you want them to know that your gas station is near and ready for business.

Here’s a list of the top Outdoor Advertising Companies in the U.S.

• Clear Channel Outdoor
• Outfront Media

Offer Promotions

As you know, just because you stop at the gas station, it doesn’t mean you’re going to purchase anything other than gas. But as we learned, your highest profit margin is not on your gas. It’s in the convenience store. To entice potential customers, offer promotions to get them to spend more money. Punardreep suggests,

One of the things we do is offer deals to customers like ‘2 for$4’ on sodas, energy drinks etc… Whatever that is, this always gets people to buy more. It’s an effective strategy, offering multiple promotions all the time.

Online and SEO for Maps

Most people don’t think of having an amazing website when opening a gas station. But the primary goal of having a website isn’t to be visually appealing (though it helps!); the goal is to rank as high as you can on google maps searches.

When someone searches for a gas station on their phone, you want your store to be the one that appears first and most prominently. It may be in your interest to work with a qualified webmaster if you’re not knowledgeable on things like web marketing and SEO.

Finding a webmaster who specializes in Google Maps is easy nowadays through the power of the internet. Use this guide to help with your search. It lays out all of the steps and helps you determine a fair rate.

8.  How Much Does a Gas Station Owner Make?

Once you develop a business plan, secure the funding, and secure all of your permits, your gas station is ready for action! We already spoke about the profitability of the gas station, but you may wonder how much of that profit is going into your pocket.

Most gas station business owners understand that they’re the last person to be paid after expenses and their salary is contingent on how well the business does. Because of that, there isn’t much data tied directly to the title of gas station owner.

However, Salary.com has statistics on the salary of a gas station manager . The good news is that they make over $100k annually on average from their gas station. You can use that information accordingly with your ideal profit margins to make a rough estimate of your potential earnings.

Whether you intend to buy a gas station or open a gas station through a franchise, opening a gas station is one of the classic entrepreneurial endeavors that has provided many Americans with their path to realizing the American Dream.

On that, we’ll leave you with one last piece of advice on gas stations from Punardreep :

Be open to explore your offerings. Offer new products that other people are not carrying. Ask the customers what they are looking for and get it in the store for them to buy.

Do you have any experience with gas station operations to share?

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I want to learn more about gas station business. I want to open one

I've been primarily doing gas station loans for 20+ years. You cite an example of a gas station / convenience store owner named Punardreep and he says "We make anywhere from 30-40 % margin on average."... he can't be referring to outside or fuel sales, only inside sales. Hot food sales has the highest margin, which should be in excess of 40%, if not closer to 50%. Other than that, excellent article.

I am interested in having a gas station one day

Onela, Start saving money, networking, and building a great credit score. You can do it!

I've appreciated, how you breakdown the steps to operate a gas station business. I'm top viewers of your youtube channel. Thanks a lot !

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Gas Station Business Plan

Although fuel prices are shooting up, we all know that it is one of the most essential commodities there is.

And in the absence of a proper alternative, people are forced to use fuel. If you have the right experience and knowledge about running a gas station, you must have thought of having your own gas station business at least once.

Reading sample business plans will give you a good idea of what you’re aiming for. Also, it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample for you to get a good idea about how perfect a gas station business plan should look and what details you will need to include in your stunning business plan.

Industry Overview

In October 2021, the monthly retail fuel sales in the US amounted to a whopping 55 billion dollars, significantly higher than the past month. And although the industry experienced a slowdown due to the pandemic, it is recovering to its pre-pandemic levels at a fast pace.

The major reason for the growth of the fuel industry is increasing scarcity, rising prices, and lack of an alternative mode of conveyance.

And although there might be no impact in the shorter run, gas station owners should keep in mind that alternatives to fuel might come up in the future, and they’ll need to prepare their business for the impact.

It can either be by an exit strategy or by preparing their business to serve those alternative methods of transport.

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Things to Consider Before Writing Your Gas Station Business Plan

Pick a legal structure for your business.

The legal structure of your business decides the amount you’ll pay in taxes, the amount of paperwork you’ll have to go through, and the liability on your assets. Hence, it is essential to go through all of your options and choose the one that fits the best for your business.

Get the necessary licenses and permits

The next step would be to get all the necessary licenses and permits to operate a gas station. This helps you stay on the right side of the law and avoid unnecessary legal hassles. It also helps you avail yourself of any possible benefits that the permit holders get from the government or private institutions.

Get a gas supplier contract

A gas supplier contract is essential to set up your business. It makes having a proper supply in your gas station easier. It also gives you a chance to go through all the possible options of suppliers for your business and choose the one that can offer you the highest profitability margin.

Select a good location

Location matters more than anything for you as a gas station owner. A gas station located on a highway, around a residential or commercial area has a higher chance to be successful as these are the most convenient places for people who’d want access to a gas station. And depending on your location, you can also decide the additional services your gas station would offer to make it more profitable and a preferred location for your customers.

Chalking out Your Business Plan

If you are planning to start a new gas station, the first thing you will need is a business plan. Use our sample Maxwell – Gas Station Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new gas station business, spend as much time as you can reading through some examples of services-related business plans .

After all, having your business gives you a sense of independence and can turn extremely profitable too.

All you need is a gas station business plan to help you get started the right way.

Gas Station Business Plan Outline

This is the standard gas station business plan outline, which will cover all important sections that you should include in your business plan.

• Keys to Success
• 3 Year profit forecast
• Startup cost
• Industry Analysis
• Market Trends
• Market Segmentation
• Advertising Strategy
• Pricing Strategy
• Sales Strategy
• Sales Forecast
• Service Functions
• Administrative Functions
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample business plan into your business plan and modify the required information and download your gas station business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

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Download a sample gas station business plan

Need help writing your business plan from scratch? Here you go;  download our free gas station business plan pdf  to start.

It’s a modern business plan template specifically designed for your gas station business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Convenience Store Gas Station Business Plan

Start your own convenience store gas station business plan

Allensburg's Food and Gas

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Allensburg is a small town with a population 3,400. Located on rural Highway 310, the town is 30 miles south of the city of Kent and 34 miles north of the city of Willard. Highway 310 connects Kent and Willard that both have universities and a cumulative population of 200,000 residents. The highway is the main road through town and is used daily by thousands of commuters between the two cities. These commuters sustain a number of road side businesses on Highway 310 that sell flowers, produce and bakery products.

In order to get gas in the Allensburg area, commuters currently have to leave the highway and drive three miles into the edge of town. Robert Cole, the owner of Allensburg’s Food and Gas has the opportunity to rent a plot of land just off the Allensburg exit of Highway 310.

Allensburg’s Food and Gas will offer these commuters gas, organic produce, and a deli. On the way to work, a commuter could stop for gas and pick up a sandwich. On the way home, the same commuter could stop again to pick up something for dinner.

The aim of this plan is to be a guide for this start-up business. Researching and defining our markets, strategies, mission and financials will provide insight and prepare the owner to successfully run Allensburg’s Food and Gas.

1.1 Objectives

• To capture an increasing share of the commuter traffic passing through Allensburg.
• To offer our customers superior products, at an affordable price.
• To provide customer service that is second to none.

1.2 Mission

The mission of Allensburg’s Food and Gas is to offer commuters on Highway 310 competitive gas prices and great food. The company will make a healthy profit for its owners and provide a rewarding work environment for its employees.

1.3 Keys to Success

• Good quality products at competitive prices.
• Excellent customer service that will promote customer loyalty.
• A location that will assure that commuters will stop.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Allensburg’s Food and Gas is a new convenience store and gas station in Allensburg. Robert Cole, owner of Allensburg’s Food and Gas, has seven years of experience in managing gas stations. Robert will focus on the commuters that pass through the town daily. Allensburg’s Food and Gas will offer its customers the best gas prices and quality food products.

2.1 Company Ownership

Allensburg’s Food and Gas is wholly owned by Robert Cole.

2.2 Start-up Summary

Robert Cole will invest $60,000 in Allensburg’s Food and Gas. Robert aims to secure an SBA of $150,000 to finance the remainder of the start up costs.

The following chart and table show projected initial start-up costs for Allensburg’s Food and Gas.

Allensburg’s Food and Gas sells the following products:

• Gasoline and diesel fuel;
• Oil, de-icer, car accessories, etc.;
• Deli items;
• Bakery goods;
• Organic produce.

Market Analysis Summary how to do a market analysis for your business plan.">

Located on rural Highway 310, Allensburg is 30 miles south of the city of Kent and 34 miles north of the city of Willard. Highway 310 connects Kent and Willard that both have universities and a cumulative population of 200,000 residents. The highway is the main road through town and is used daily by thousands of commuters between the two cities. The closest gas station in either direction is over 20 miles away.

These commuters currently have no convenient shop in which to buy food to or from work once they are on Highway 310; more importantly, eighty percent of Highway 310 commuters fits the demographic profile of customers of upscale organic/natural food stores:

• Age: 25 – 45 years of age;
• Gender: 60% women;
• Average income: $40,000+;
• Education: college graduate;
• Employment: professionals in business and education.

4.1 Market Segmentation

The target customers of Allensburg’s Food and Gas are the commuters that use Highway 310.

Strategy and Implementation Summary

Allensburg’s Food and Gas will focus on becoming a routine stop for the commuter traffic on Highway 310, not just for those people who need gas, but for those who are looking for a healthy, tasty snack on their drive, or need to pick up some small grocery item on their way home. Allensburg’s Food and Gas will aim to be more than a gas station to its customers, it will be a friendly place to stop for tired commuters.

5.1 Competitive Edge

The competitive edge for Allensburg’s Food and Gas is the following:

• Location: Allensburg’s Food and Gas is located on Highway 310. The closest competitor is three miles into the town of Allensburg.
• Quality Deli and Organic Produce : While buying gas, commuters will now be able to pick up lunch, or buy something to take home. The commuter will soon regard Allensburg’s Food and Gas as an invaluable time saver in their day.

5.2 Sales Strategy

Allensburg’s Food and Gas will keep its gas prices competitive with other stations in a fifty mile radius of the station in order to attract commuters. Customers that purchase more than $10 worth of gas will be given 15% coupon on purchases in the store during the first month of operation, to encourage purchases and to introduce them to the concept of buying quality organic foods at the gas station.

5.2.1 Sales Forecast

In order to maintain competitive gas prices, the cost of gas to the consumer will never exceed 15% of wholesale cost. Allensburg’s Food and Gas will focus on increasing food sales in order to meet total sales forecast goals.

The following is the sales forecast for three years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Robert Cole, owner of Allensburg’s Food and Gas, has seven years of experience in managing gas stations/convenience stores. Robert has a reputation as an excellent staff supervisor. From 1993 to 1996, Robert was the manager of Higgins Texaco, one of the largest gas station/convenience stores in Willard. At Higgins, Robert supervised a staff of seven. In 1997, Robert became manager of the Barger Chevron, located at the southern tip of Kent, near Highway 310.

6.1 Personnel Plan

The Allensburg Food and Gas will have a staff of five:

• Store/deli staff (2)
• Gas attendants (2)

Financial Plan investor-ready personnel plan .">

7.1 Break-even Analysis

The monthly break-even point is approximately $49,500.

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

7.4 Projected Balance Sheet

The following table and chart highlight the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5541, Gasoline Service Station, are shown for comparison.

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Gas Station Business Plan Template [Updated 2024]

Gas Station Business Plan

If you want to start a new gas station business or expand your current gas station, you need a business plan.

The following gas station business plan template gives you the key elements to include in a winning business plan for all types of gas stations including a petrol station, automotive services, filling stations and other gas stations.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Gas Station Business Plan Example

Below are links to each of the key sections of a sample business plan. Once you create your plan, download it to PDF to show banks and investors.

I. Executive Summary II. Company Summary III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Gas Station Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Fuel Your Businesss Success: A 10-Step Checklist for Opening a Profitable Gas Station

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• Fuel Your Success: Key KPI Metrics for Thriving Gas Stations
• The Surprising Truth About Gas Stations: How Lucrative Are They Really?
• Fueling Success: What You Need to Know Before Opening a Gas Station Business

Are you considering opening your own gas station business? You're not alone! According to recent statistics, the U.S. has over 122,000 gas stations, with a projected industry growth rate of 0.2% over the next five years. This means that opportunities abound for entrepreneurs like you who are looking to tap into this thriving market. However, starting a gas station business can be a complex endeavor that involves meticulous planning, resourcefulness, and a solid understanding of the industry. To help you navigate this process, we've developed a 10-step checklist that covers everything you need to know to launch your gas station business.

To begin, you'll need to conduct market research and develop a comprehensive business plan. This step is crucial in identifying your target market, assessing industry trends, and identifying potential competitors. A well-researched business plan will help you secure funding, which is the next step on the checklist.

Come up with a realistic estimate of how much financing you'll need to get your business off the ground, and identify potential funding sources, such as banks, investors, or a Small Business Administration (SBA) loan. Once you have the funding secured, your next step is to secure the necessary permits and licenses required to operate a gas station business in your state or municipality. This includes obtaining zoning permits, environmental clearances, and retail licenses.

With the necessary permits and licensing in hand, you can now focus on securing a suitable facility for your gas station. This involves identifying the perfect location that maximizes customer convenience and easy access to your business. You'll also need to consider the size of your facility, which will depend on your business plan and projected sales figures.

Once you have secured your facility, your next step is to equip it with everything you'll need to operate successfully. This includes fuel pumps, point-of-sale systems, security systems, and the necessary inventory. You'll also need to hire staff to help you manage your business operations, develop policies and protocols for your employees, and manage inventory and supply chains to ensure smooth day-to-day running of your business.

To stay competitive in the market, you'll need to set prices that are fair and attractive to your customers and ensure that you are managing your finances effectively. This includes keeping track of all your expenses and employing the necessary financial management tools to stay profitable. Finally, you'll need to market and promote your gas station business to attract customers and increase sales. This involves developing a marketing plan that identifies your target audience, advertising your business through various channels, and staying connected with your customers through social media and other digital platforms.

By following this step-by-step checklist, you'll have everything you need to launch a successful gas station business. With determination, resourcefulness, and a solid understanding of the industry, you could be on your way to success with your very own gas station business!

1. Conduct Market Research & Develop Business Plan

Before starting a gas station business, it is important to conduct market research to determine the feasibility of the business in your area. This includes researching the competition, market demand, and consumer behavior. In addition, you need to develop a comprehensive business plan that outlines the details of your business.

Your business plan should include the following:

• Your mission statement
• Company description
• Market analysis
• Competitive analysis
• Marketing and sales strategies
• Financial projections
• Management team and staffing

Developing a detailed and well-thought-out business plan will help you secure funding, attract partners or investors, and guide your decision-making process as your business grows.

Tips & Tricks:

• Use reputable sources for your market research, such as trade associations or government reports.
• Consider hiring a professional to write your business plan to ensure it is well-written and comprehensive.
• Update your business plan regularly as your business grows and changes.

2. Source Funding

Starting a gas station business requires a significant investment, and it's essential to secure funding before embarking on the venture. Here are ten steps to source funding:

• Create a Business Plan: A comprehensive business plan is crucial when seeking funding. It should outline your objectives, target market, marketing strategies, financials, and criteria for evaluating success.
• Get Pre-qualified: Get pre-qualified by a lender to establish the maximum amount of money you can borrow to start your business.
• Explore Loans: Consider different types of loans, such as SBA loans, conventional loans, and lines of credit. Determine the best loan options for your business's financial needs.
• Consider Vendors: Some vendors offer financing options for their products, such as gas pumps and other equipment needed in a gas station. Consider leveraging this opportunity to finance your business.
• Reach Out to Investors: Consider seeking angel investors or venture capitalists who may be interested in investing in your business in exchange for equity.
• Microloans: Consider exploring options for securing microloans from online lenders, non-profit organizations, and government agencies.
• Find a Partner: Consider finding a partner who is willing to invest their resources into the business in exchange for equity.
• Crowdfunding: Leverage online crowdfunding platforms to raise funds for the business.
• Friends and Family: Consider asking friends and family for loans or investments into the business.
• Personal Funds: Consider using personal funds for starting your business, such as savings and personal loans.

Tips & Tricks

• Research: Research the different funding options available to determine the best fit for your business.
• Prepare: Prepare a comprehensive business plan that can attract potential investors.
• Be Realistic: Be realistic about the amount of funding needed for the business and the expected return on investment.

By following these ten steps and leveraging the tips and tricks, you can secure the necessary funds to start your gas station business successfully. Remember always to evaluate your options carefully to ensure that you are making informed decisions.

3. Secure Necessary Permits & Licenses

One of the critical steps in opening a gas station business is securing the necessary permits and licenses from the local, state, and federal government agencies. The process could be time-consuming, and it's crucial to ensure compliance with all relevant laws and regulations. Below are the permits and licenses required to operate a gas station business:

• Business License: A business license is a necessity for every business operation. It grants permission to operate a business within the jurisdiction of the issuing authority. This license should be displayed in a conspicuous location at the gas station.
• Operating Permit: An operating permit is required to run a gas station. It's issued by the local or state government authorities, and it ensures compliance with the local environmental quality and safety standards.
• Storage Tank Permit: Storage tanks are used to store gasoline and other petroleum products. A permit is required to install new underground storage tanks or replace old tanks.
• Environmental Permit: An environmental permit is required for the installation and operation of gas station equipment, including storage tanks, dispensing pumps, and other equipment.
• Fire Safety Permit: A permit is required to ensure that the gas station is appropriately equipped with fire safety systems such as fire alarms, extinguishers, sprinklers, and emergency exit signs.
• Sign Permit: A permit is required for installing signs that advertise fuel prices, the gas station brand, and other relevant information.

It's essential to note that the requirements for permits and licenses vary by location. You should consult your state or local authorities to determine the specific permits and licenses you need to operate a gas station business.

Use a Checklist to Keep Track of Permits and Licenses

• Create a master list of all the permits and licenses required to open your gas station business.
• Assign specific tasks to different team members to ensure timely completion.
• Keep track of deadlines and renewal dates to avoid penalties for late renewals.

4. Secure Facility (Location And Size)

The location and size of the gas station are important factors that can affect the success of your business. The following are some important factors to consider when choosing a location and size for your gas station:

Location is one of the most important factors to consider when opening a gas station business. You want to find a location that has high traffic, is easily accessible, and has good visibility.

The size of the gas station should also be considered when selecting a location. You want to make sure there is enough space for your customers to park and to have multiple pumps. A mini-mart or convenience store could also be beneficial and an additional revenue source.

The safety and security of your customers, staff, and business assets are essential. Consider installing security cameras and hiring security personnel to ensure the protection of your business and customers.

Be sure to research zoning laws and regulations in your area to ensure that a gas station is allowed in the location you are considering.

• Conduct extensive market research before selecting a location to ensure that there is enough demand for a gas station in the area.
• Consider partnering with a local convenience store or food outlet to provide customers with additional amenities and increase revenue.
• Invest in advanced technology to better monitor and track pumps, sales, and inventory.

5. Construct & Equip Facility

After obtaining the necessary permits, licenses, and funding, it's now time to construct and equip your gas station facility. Building a gas station is a significant undertaking that requires careful planning and precise execution. Here's what you need to know:

• Find the Right Location: The location of your gas station is crucial because it can make or break your business. Look for a spot that is easily accessible to the public and has high traffic flow. You also need to make sure that the location is safe and meets all zoning laws.
• Design the Layout: Work with a professional designer or architect to create a layout that promotes efficiency and convenience. Your layout should include spaces for pumps, fuel islands, a convenience store, restrooms, and parking.
• Choose the Right Equipment: Invest in high-quality equipment that is durable and efficient. Make sure your pumps, dispensers, and other equipment are easy to use and maintain. You also need to ensure that all your equipment is up to code and meets all safety standards.

It's also essential to keep in mind that building a gas station facility is not a one-size-fits-all process. You need to consider your specific needs and budget when selecting the design and equipment for your facility. Here are three tips that could help make the process smoother:

• Work with a contractor who has experience building gas station facilities and understands all local building codes and regulations.
• Consider investing in advanced technology such as automated fuel management systems, which can help reduce your operating costs and improve customer satisfaction.
• Factor in ongoing maintenance costs and develop a routine maintenance plan to ensure that all your equipment stays in optimal condition.

By following these steps, you can construct a high-quality gas station facility that will meet all your business's needs and provide excellent customer service. Remember, customer satisfaction and safety should be your top priorities throughout the building and equipping process.

6. Hire Staff

When starting a gas station business, one of the essential tasks is to hire staff to help you in running the business. Employing the right people will guarantee smooth operations and customer satisfaction. Here are some steps to follow when hiring staff:

• Identify your personnel needs: Determine the number of employees you need to operate the gas station effectively. You may need attendants, cashiers, managers, and a maintenance crew, depending on the size of the business.
• Create job descriptions: Develop job descriptions that outline the roles, responsibilities, and qualifications required of each employee. Be sure to include the hours and shifts when each employee will work.
• Advertisements: Advertise the vacant positions in local newspapers, online job boards, or through recruitment agencies.
• Interview candidates: Screen applicants and invite those who meet the qualifications for an interview. Ask them about their experience, availability, and their aspirations for the role.
• Background checks: After the interviews, conduct background checks on candidates to ensure they have no criminal records, especially for employees who will handle cash.
• Train employees: Provide training to equip employees with the necessary skills to perform their tasks. Train them in safety procedures, customer service, and general gas station operations.
• Consider hiring part-time employees instead of full-time ones to reduce labor costs.
• Offer competitive compensation packages to attract high-quality staff.
• Consider hiring family members or friends with experience in the industry to cut down on training costs.

Hiring the right staff is crucial to the success of your gas station business. By following these steps, you can ensure that your employees are well-trained, competent, and able to provide excellent customer service. With the right team in place, you can focus on growing your business and driving profitability.

7. Develop Operations Policies & Protocols

Developing operations policies and protocols is an important aspect of running a successful gas station business. These policies and protocols ensure that the day-to-day operations of the business run efficiently, safely and in compliance with local regulations. Here are some key steps to developing these policies and protocols:

• Identify potential risks: Start by identifying all the potential risks associated with running a gas station. These may include fire hazards, fuel spills, theft, and accidents. Once you have identified these risks, you can start putting policies and protocols in place to mitigate them.
• Create policies and protocols: Once you have identified the risks, create policies and protocols that outline how your gas station will operate to reduce or eliminate those risks. These policies should be comprehensive and include procedures for equipment maintenance, staff training, safety protocols, and emergency procedures.
• Train your staff: All employees should be trained on the policies and protocols that you have put in place. This training should cover safety procedures, emergency procedures, and various other protocols and policies that will affect their day-to-day work. Additionally, regular refresher training should be scheduled to ensure that your staff stays up-to-date with these policies and protocols.
• Update policies and protocols: Your policies and protocols should be updated regularly to reflect changes in regulations, technology, and best practices in the industry. Be sure to regularly evaluate the effectiveness of your policies and protocols and adjust them as needed.
• Regularly review your policies and protocols to ensure that they are still effective and relevant.
• Train your employees regularly to ensure that they stay up-to-date with the latest policies and protocols.
• Consider working with a professional consultant to help develop your policies and protocols.

8. Manage Supply Chain And Inventory

Managing the supply chain and inventory is one of the most critical aspects of running a gas station business. Poor inventory management can negatively impact profits and result in missed sales opportunities. Therefore, it is essential to have a streamlined and efficient system in place to manage the supply chain and inventory.

• Establish Relationships with Suppliers: Building strong relationships with suppliers is crucial to ensure a consistent supply of fuel and other products. This enables gas station owners to negotiate better prices, receive timely deliveries, and manage inventory levels efficiently.
• Implement Inventory Management Software: Investing in inventory management software is an excellent way to streamline and automate the process. It can help track inventory levels, generate reports, and forecast future demand, allowing station owners to make informed decisions regarding inventory management.
• Conduct Regular Audits: Regularly reviewing inventory levels and conducting audits can help detect any discrepancies and prevent theft or loss. This also allows station owners to identify any slow-moving products and adjust inventory levels accordingly.
• Optimize Supply Chain Logistics: Optimizing the supply chain logistics can help reduce costs and improve efficiency. This involves optimizing the delivery schedule, selecting the most cost-effective transportation mode, and minimizing inventory holding costs.
• Manage Risk: Gas station owners should be aware of the risks associated with managing the supply chain and inventory and take steps to manage these risks effectively. This includes having a backup supplier, investing in contingency planning, and monitoring market conditions to make informed decisions.
• Invest in a barcode scanner to streamline inventory tracking
• Set par levels for each product to prevent stockouts or overstocking
• Monitor fuel prices and adjust inventory levels accordingly

By implementing these tips and tricks and adopting a proactive approach to managing the supply chain and inventory, gas station owners can stay ahead of the competition and ensure a profitable business.

9. Set Prices And Manage Finances

Setting prices and managing finances are two crucial aspects of running a gas station business. Setting the right prices ensures that you earn a profit while keeping your customers satisfied. Managing finances properly ensures that your business runs smoothly without any financial hiccups. Here's what you need to know about setting prices and managing finances:

Setting Prices

• Research the prices of other gas stations in your area to determine a competitive price point.
• Take into consideration the cost of production, transportation, and delivery when setting your prices.
• Consider adding a premium for premium gasoline or services such as a car wash or convenience store.
• Monitor your prices regularly and adjust them if necessary to remain competitive in the market.

Managing Finances

• Create a detailed business plan that outlines your financial goals, projected expenses, and revenue.
• Set up a bookkeeping system to track your income and expenses.
• Monitor your finances regularly and make adjustments as necessary.
• File your taxes on time and accurately to avoid any legal complications.
• Offer discounts or loyalty programs to incentivize repeat customers.
• Use technology, such as point-of-sale systems, to streamline financial management.
• Create a budget and stick to it to avoid overspending.

Setting prices and managing finances may seem daunting, but with research, planning, and attention to detail, you can successfully run a profitable gas station business.

10. Market & Promote Business

Marketing and promotion are crucial aspects of any business, and gas stations are no exception. While a gas station may seem like a straightforward business, there is cutthroat competition in the market. Therefore, it is imperative to have a robust marketing and promotion strategy to attract and retain customers. Here are some essential steps to consider when marketing and promoting your gas station:

• 1 Identify your target market: Before starting any marketing campaign, it is crucial to identify your target market. This will enable you to tailor your marketing messages and strategies to appeal to your target audience.
• 2 Branding: In the highly competitive gas station market, branding is critical to your success. Ensure that your gas station has a strong, consistent brand that resonates with your target market.
• 3 Digital marketing: In today's digital age, online and social media marketing are essential. Create a website, social media accounts, and other digital marketing platforms to reach your audience.
• 4 Loyalty programs: Implement a loyalty program to encourage repeat customers. Offer discounts and rewards for frequent customers to keep them coming back.
• 5 Community engagement: Participate in community activities and sponsor local events. This will help to build a positive image for your gas station and attract local customers.
• 6 Advertising: Advertise your gas station in local newspapers, radio, or TV stations. You can also use billboards and signage to attract motorists passing by your gas station.

Tips & Trics

• 1 Use attractive signage and lighting to catch the attention of passing motorists.
• 2 Leverage user-generated content, such as customer reviews and ratings, to build credibility for your gas station.
• 3 Create partnerships with neighboring businesses to attract joint customers and increase foot traffic.

In conclusion, marketing and promotion are vital to the success of your gas station business. By implementing the steps outlined above and incorporating tip and tricks, you can create a robust marketing strategy and attract and retain customers.

Opening a gas station business may seem daunting at first, but with the right approach, you can turn it into a profitable venture. Following the 10-step checklist we've provided in this blog post will help you develop a clear roadmap for your business. Remember to conduct market research, secure funding, obtain necessary permits and licenses, secure a suitable facility, equip it with the necessary equipment and inventory, and develop operations policies and protocols, manage inventory, set prices, and market your business.

By taking these steps, you'll be ready to join the over 122,000 gas stations in the U.S. and tap into a growing industry with a 0.2% projected growth rate over the next five years. Don't forget to keep an eye on industry trends and competitors, and embrace technology to stay ahead of the curve. With hard work, determination, and attention to detail, your gas station business could be a thriving success!

• Conduct market research and develop a business plan
• Source funding
• Secure necessary permits and licenses
• Secure facility (location and size)
• Construct and equip facility
• Develop operations policies and protocols
• Manage supply chain and inventory
• Set prices and manage finances
• Market and promote business

• 5-Year Financial Projection
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Gas Station

Back to All Business Ideas

How to Start a Gas Station: Location, Cost and Profit Potential

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 3, 2022 Updated on July 7, 2024

Investment range

$253,550 - $357,100

Revenue potential

$1.095 million - $2.19 million p.a.

Time to build

6 – 12 months

Profit potential

$109,000 - $219,000 p.a.

Industry trend

When opening your gas station, keep these essential aspects in mind:

• Location — Choose a high-traffic location with good visibility and accessibility. Proximity to highways, residential areas, and commercial zones can increase customer traffic.
• Franchise — Choose one of the following franchises: Shell , Chevron , or BP (British Petroleum) .
• Licenses and permits — You will need fuel storage permits , health department permits , fire department permits , and environmental permits.
• Fuel supply — Establish agreements with reliable fuel suppliers. Consider partnering with major oil companies or independent suppliers based on pricing, terms, and brand recognition.
• Equipment — Invest in high-quality fuel pumps and dispensers with modern payment options, including credit card readers and contactless payments.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Loyalty programs — Implement loyalty programs and promotions to attract and retain customers. Offer discounts, reward points, and membership benefits.
• Convenience store — Stock a variety of products, including snacks, beverages, automotive supplies, and convenience items. Consider offering hot food and coffee to attract more customers.

Interactive Checklist at your fingertips—begin your gas station today!

You May Also Wonder:

How profitable is a gas station?

The key to having a profitable gas station is volume. You’ll need a location that has a large amount of traffic. A convenience store connected to your gas station also significantly improves profitability.

How can you ensure that your gas station is accessible and meets the needs of different types of customers?

To ensure that your gas station is accessible and meets the needs of different types of customers, you can provide a range of fuel options, such as regular, mid-grade, and premium gasoline, as well as diesel and alternative fuels like ethanol and biodiesel. It’s also important to ensure that the gas station is accessible to customers with disabilities, including wheelchair ramps, handicapped parking spaces, and accessible  restroom facilities .

What makes a successful gas station?

A successful gas station should provide quality fuel and a range of convenient services to customers. It should also have a clean and well-maintained facility, a professional and friendly staff, and competitive pricing. Location is also important.

How much gas does a gas station hold?

The amount of gas a gas station can hold varies depending on the size of the station and the number and size of the underground storage tanks. A small gas station may hold up to 10,000 gallons of fuel, while a larger station may hold up to 50,000 gallons or more.

How much energy does it take to run a gas station?

The amount of energy it takes to run a gas station can also vary depending on the size and services offered. Some of the energy needs include lighting, heating and cooling, and running equipment such as pumps, compressors, and refrigeration units.

How can you ensure that your gas station business complies with safety and environmental regulations?

To ensure that your gas station business complies with safety and environmental regulations, you should stay up-to-date with any local, state, and federal laws and regulations related to the operation of a gas station. This may include regulations related to the installation and maintenance of underground storage tanks, handling, and disposal of hazardous materials, fire safety, and employee training. 

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a gas station has pros and cons to consider before deciding if it’s right for you.

• High Demand – Most cars need gas
• Good Money – Hundreds of people will shop your gas station daily
• Multiple Revenue Sources – Sell gas, food, beer, other items
• Investment Required – Starting a gas station is not cheap
• Long Hours – Most gas stations are open 24 hours

Gas station industry trends

Industry size and growth.

• Industry size and past growth – The US gas station and convenience store industry is worth $469.8 billion in 2022 after expanding 34% in the last two years.(( https://www.ibisworld.com/industry-statistics/market-size/gas-stations-with-convenience-stores-united-states/ ))
• Growth forecast – The US gas station and convenience store industry is projected to grow by 2.7% in 2022. 
• Number of businesses – In 2022, 66,598 gas station and convenience store businesses are operating in the US.
• Number of people employed – In 2022, the US gas station and convenience store industry employs 843,890 people.(( https://www.ibisworld.com/industry-statistics/employment/gas-stations-with-convenience-stores-united-states/ )) 

Trends and challenges

Trends in the gas station industry include:

• Contactless payments and services like curbside pickup are becoming more and more common in gas stations and convenience stores. 
• Electric car plugs are an opportunity for gas stations to increase their customer base and revenue.

Challenges in the gas station industry include:

• The number of people working from home is increasing, decreasing gas demand. 
• Gas stations must be up to date with requirements for chip credit cards or they will not be protected by credit card companies from fraud. This is an added expense for gas stations. 

Consumer spending

• Average consumer spend – The average US household spends nearly $5,000 per year on gas. (( https://www.cnbc.com/2022/05/18/households-are-spending-the-equivalent-of-5000-a-year-on-gasoline.html )) 

Price differences across the country

• More expensive – Gas prices are the most expensive in California, Nevada, and Hawaii.(( https://www.cnbc.com/2022/03/14/most-and-least-expensive-states-to-buy-gas.html ))
• Less expensive – Gas prices are the least expensive in Kansas, Missouri, and Oklahoma.

How much does it cost to start a gas station business?

Startup costs for a gas station range from $250,000 to $350,000 and could be much higher. Costs include a 30% down payment on land and gas station construction, as well as the inventory of gas and convenience store items.

How much can you earn from a gas station business?

Gas prices obviously fluctuate, and convenience store item prices vary. The average person who visits your gas station might spend $30. Your profit margin after all costs will be about 10%. 

In your first year or two, you might have 100 customers a day, bringing in $1,095,000 in annual revenue. This would mean $109,000 in profit, assuming that 10% margin. As you begin to get regular customers, those numbers could double. With annual revenue of $2,190,000, you’d make an outstanding profit of $219,000.

What barriers to entry are there?

There are a few barriers to entry for a gas station. You biggest challenges will be:

• The significant startup costs
• Beating rivals in a very crowded market

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How to Build and Grow a Profitable Car Wash

How to Start a Parking Lot Business: Location, Cost and Profit Potential

Step 2: hone your idea.

Now that you know what’s involved in starting a gas station, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research gas stations in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a gas station with electric car plugins, or a gas station with a convenience store that offers fresh sandwiches. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as diesel fuel or premium fuel.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products and on-site services

Your products will be your gas and convenience store items. You could add additional revenue by having an air machine for tires or an ATM machine. 

How much should you charge for gas and convenience items?

Gas prices will be determined by the market, as will your convenience store items. You should aim for a profit margin of about 10%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be anyone with a car, so you should spread out your marketing to include sites like TikTok, Instagram, and Facebook. 

Where? Choose a gas station location

When choosing a gas station location, it’s essential to consider several factors.

First, analyze the area’s traffic flow and identify high-visibility locations with easy access for vehicles.

Second, research local competition to ensure your station will not be overshadowed by a more dominant player.

Third, examine the demographics of the surrounding community to gauge demand for fuel and convenience store items.

Finally, review local zoning laws and environmental regulations to ensure the site can be developed for a gas station.

Step 3: Brainstorm a Gas Station Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “gas station” or “convenience store”, boosts SEO
• Name should allow for expansion, for ex: “QuickFuel Stop” over “Commercial Vehicle Fueling”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 250 unique gas station name ideas here. If you want your business name to include specific keywords, you can also use our gas station business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Gas Station Business Plan

Here are the key components of a business plan:

• Executive Summary: A concise summary outlining the gas station business plan, highlighting key aspects such as mission, objectives, and potential for profitability.
• Business Overview: A brief introduction to the gas station business, including its location, facilities, and the value it offers to customers.
• Product and Services: Explanation of the fuel and convenience products offered, emphasizing any unique features or services provided by the gas station.
• Market Analysis: Examination of the target market, customer demographics, and trends in the area to justify the demand for a gas station in that location.
• Competitive Analysis: Assessment of existing and potential competitors, identifying strengths, weaknesses, and strategies to gain a competitive edge in the market.
• Sales and Marketing: Strategies for promoting the gas station, attracting customers, and increasing sales, encompassing advertising, promotions, and customer loyalty programs.
• Management Team: Overview of the individuals responsible for the gas station’s day-to-day operations, highlighting their relevant skills and experience.
• Operations Plan: Detailed plan outlining the daily operations, from fuel procurement to staff management, ensuring efficiency and customer satisfaction.
• Financial Plan: Projections of the gas station’s financial performance, including startup costs, revenue forecasts, and profit margins, providing a comprehensive outlook for potential investors.
• Appendix: Supplementary materials, such as permits, licenses, market research data, or any additional information supporting the gas station business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to gas stations. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your gas station will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a gas station business. 

Step 8: Apply for Gas Station Business Licenses and Permits

Starting a gas station business requires obtaining a number of licenses and permits from local, state, and federal governments.

Check with your state for specific gas station license and permit requirements. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your gas station business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  LS Retail , SSCS , or PDI , to manage your inventory, fuel supplies, purchasing, and reporting.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Professional Branding — Ensure your branding reflects reliability and efficiency. Maintain consistent branding across signage, staff uniforms, and the appearance of your gas station.
• Website Optimization — Develop a straightforward website detailing your location, services, and promotions.
• Local SEO — Optimize your site for local searches related to gas stations and convenience services. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Social Media Engagement — Use platforms like Facebook and Instagram to promote special offers, share new product updates, and engage with customers.
• Content Marketing — Establish a community blog to share car care tips and local event information, helping to build local connections. Distribute regular newsletters to update customers on new services and special offers.
• Direct Outreach and Partnerships — Network with local businesses and community groups to offer special deals and loyalty programs. Collaborate for cross-promotions to enhance customer value.
• Experiential Marketing — Run promotions on fuel, car washes, or in-store products. Participate in local community events to boost visibility and brand goodwill.
• Customer Loyalty Programs — Implement a rewards program to offer benefits to frequent patrons, encouraging repeat visits.
• Customer Feedback and Engagement — Foster customer relationships through regular feedback opportunities, demonstrating your dedication to service improvement.
• Targeted Local Advertising — Advertise in community newspapers, on local radio, and online to reach a broader local audience.
• Signage and Visual Marketing — Maintain prominent, well-lit signage to attract passing motorists and enhance station visibility.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your gas station meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your gas station business could be: 

• Your one-stop shop when you’re on the go
• Gas up and grab a hot coffee for the road
• Gas, pastries, coffee and much more! 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a gas station business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in gas stations for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in gas stations. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a gas station business include:

• Gas Station Clerks – make sales, customer service
• General Manager – scheduling, ordering, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Gas Station – Start Making Money!

Gas stations provide an essential product, along with snacks and drinks. Even with the emergence of electric cars, gas stations are not going away anytime soon. If you want to serve your community and make good money at the same time, starting up your own gas station could be just the ticket!

You know what’s involved now, so it’s time to find the perfect location and launch your successful gas station. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Gas Station Name
• Create a Gas Station Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Gas Station Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Gas Station - Start Making Money!

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How to Open a Gas Station: Your Ultimate Step-by-Step Guide

David is Connecteam's Senior Editor. With over a decade of experience as a journalist and content professional, David leads the production of industry-leading content to help professionals take their businesses to the next level. He is passionate about creating engaging, informative, and thought-provoking content that resonates with readers.

Updated on March 6, 2024

Guides Starting a Business

Knowing how to start a gas station successfully is only part of the process of starting a gas station business. Here’s your in-depth 10-step guide to get your gas station running smoothly!

Write Your Business Plan

Set up your business, get funding for startup costs, buy property and equipment, find a supplier, get all necessary permits and insurance, set up your day-to-day responsibilities, market your new gas station, prepare for the future, moving forward on starting a gas station: prepare and implement.

Opening a business can be a complex process full of unforeseen surprises, and opening a gas station is no different. With an estimated market size of $138 billion in 2022, there is plenty of opportunity waiting if you play your cards right.

If you’ve always dreamt of owning your own business but have no idea how to open a gas station, this guide will walk you through all the necessary steps. Follow it closely to ensure that your new business will be well planned out, legally compliant, and, above all, successful.

Like any successful business, opening a gas station starts with meticulous planning. Your business plan is much more than just an outline of your goals—it will help you identify, describe and analyze the specifics of your business and is key in securing funding for your future gas station.

To help you get a clear picture of your path forward, your business plan should include the following points:

Market analysis

Gas stations operate in a competitive market characterized by razor-thin profit margins of less than 2% . That’s why you must research and understand your competition, so you learn from their success and avoid their mistakes. Some of the questions you want to ask in your market analysis are:

• What are your competitors’ strengths, and how can you adapt those strengths to your own business?
• What are your competitors’ weaknesses, and how can you eliminate those weaknesses in your own business?
• How can you solve the same problems better or different than your competitors?
• Who are your direct competitors, and could they be a significant threat to your gas station?
• Who is your ideal customer? 
• How can you use location to drive traffic to your business?

The location of your gas station can make or break your business and should be an absolute priority during the planning stage. If you’ve done your market analysis correctly, you should already have a good idea about whether the location you picked can propel your business forward. Are you planning to open your gas station along a populated highway and focus on truck drivers and commuters or have you chosen a location across from an established competitor that isn’t maximizing its potential? 

When choosing a location for your gas station, a good tactic is to look into budding neighborhoods or industrial parks. These locations are often just outside the city and require a gas station. That can translate into more commuters and cheaper real estate, but the location might lack the existing infrastructure needed to operate your gas station.

How much does it cost to open a gas station?

Starting a gas station is not cheap; you can expect to spend anywhere between $250,000 to $2,000,000 to get your business off the ground. The exact costs vary depending on the state you’re in, your chosen location, and whether you buy a franchise or open an independent location. Your business plan should include detailed estimates of the cost involved. 

Use this list as a guide for the costs you need to research:

• Purchasing or leasing the location
• Securing a franchise agreement
• Registering your business
• Trademarking a business name
• Insurance, licenses, permits, and other legal fees
• Securing a supplier
• Inventory (gas, consumables)
• Setting up your gas station
• Setting up your convenience store
• Hiring and training employees
• Royalties per your franchise agreement
• Marketing materials

In addition to the cost of opening a gas station, your business plan should also work out an educated estimate of the running cost of your business. This should include all expenses from licensing and insurance to inventory and payroll. 

List your products and services

Modern gas stations are much more than just a row of fuel pumps, and you’d be hard-pressed to find a successful gas station that doesn’t offer additional services. Your business plan should include the number of gas pumps you intend on operating (based on your market research) as well as additional products and services to maximize your profit margins . The most common products and services at gas stations include: 

• Convenience stores selling snacks, drinks, car accessories, tobacco, alcohol, and lottery tickets
• Car washes (Full service or self-service)
• Mechanic for oil changes and repairs (increasingly rare nowadays)

Keep in mind that each of these services carries its own costs, in addition to permits and maintenance requirements. If you decide to operate your gas station through a franchise agreement, you will likely also be limited in the services and products you can offer.

Form a legal entity

Forming a legal business entity is the next step in starting a business. Make sure you consult with your attorney to discuss which type of legal entity is best for you. 

While a sole proprietorship is the quickest entity to set up and enjoys certain tax benefits, running a gas station this way is not recommended. Gas stations are a risky business, and should there ever be an accident or even a robbery, you alone will be liable for damages. 

That’s why most gas station owners opt for a Limited Liability Company (LLC). This still gives you some of the tax benefits used by sole proprietors but protects you from being personally liable for any legal issues.

An LLC is especially attractive for small business owners that own only one gas station, as you will pay lower fees than a corporation and get to choose if you want to be taxed as a sole proprietor or a corporation. Still, it can make it more difficult to secure a loan for your business.

Registering a corporation offers you the same legal protection as an LLC but comes with additional costs and double taxation (corporate tax + income tax). It’s generally recommended for owners that plan to open a chain and grow their business to compete with the big brands out there.

Forming an LLC or a corporation is relatively simple and, in most states, can be done online. If you don’t want to deal with the paperwork at all, plenty of companies will do all the work for you. Their services will usually include filing as an LLC or corporation and registering with the IRS. (Don’t skip this step!) 

Register for taxes

As a small business owner, you must get an employer identification number to open your gas station. An EIN is a nine-digit number used when filing your business taxes with the IRS. You can easily apply for an EIN online with the IRS and should receive your number in just a few minutes.

Depending on tax regulations in your state, you might also need to register for a state tax ID when starting a gas station. Be sure to consult with an accountant or tax lawyer to avoid missing anything important.

Buy a franchise

Most gas station owners choose to get into business by buying a gas station franchise. This can reduce some of the financial burdens of opening a gas station and has the added benefit of immediately giving your gas station a recognizable brand.

When choosing a franchise, make sure you intimately understand the franchise agreement and agree with its terms. Each franchise has different requirements for you to become a franchisee, and many won’t even consider you if you don’t have a background in management or entrepreneurship. 

Check the qualifications of some of the bigger gas station franchises to find one that matches your business plan:

• ConocoPhillips

Before signing any franchise agreement, make sure you have reviewed the contract with a specialized lawyer. They can also help you negotiate the terms of your agreement and secure lower royalties and other benefits.

Open a business bank account and credit card

Many first-time business owners make the mistake of using their personal bank account for their business. This can not only complicate your accounting but also put your personal assets at risk if your business ever gets sued.  Don’t make the same mistake and open a business bank account early on. Additionally, learning how to build business credit can help you get financing and business credit cards with better interest rates and higher lines of credit in your business’s name.

With your business plan fleshed out and your business registered as a legal entity, it’s time to get funding for your gas station. As we’ve already established, opening a gas station can cost anywhere between $250,000 to $2,000,000, so outside funding will be inevitable for most people. 

If you’ve done your homework in your business plan, you are well set up to request a loan. There are several avenues available for small businesses to get a loan. 

Business loan from a bank

If this isn’t your first rodeo and you can show a stellar track record with previous businesses, a conventional bank loan can be an option. But even then, most banks will decline your request for a loan due to traditionally slim profit margins and the perceived risk of a gas station business. This doesn’t mean you shouldn’t try, but you should come well-prepared with a water-tight business plan and anything documenting your previous business experience.

Small Business Administration (SBA) loans

The Small Business Administration has loan programs designed to help small businesses, such as gas stations, get started. While the SBA doesn’t lend money directly to you, they work with other lenders to reduce their risk on a loan by backing it by as much as 85%. 

SBA loans usually require low down payments and offer reasonable interest rates but you may have to put down a lot of collateral. SBA loans also require a lot of paperwork, can be difficult to secure, and usually take a long time to get approved. 

Other options

Besides loans, prospective gas station owners often fund their initial costs through low APR business credit cards or friends and family. Business credit cards can be a good option for smaller purchases like equipment and inventory, but you need to be careful to pay off what you owe in time.  Family and friends can also be a good option if you can agree on mutually beneficial terms with everyone. These can range from zero-interest loans to them receiving equity in your business. Be warned, though, that mixing business and family has ruined more than one relationship.

Once you’ve taken care of the funding that you’ll need to start a gas station business, you’ll be able to officially buy or lease the property where you’ll have your station. Before signing the purchase (or lease) agreement, there are a few important pitfalls to look out for:

Who owns the equipment?

If the site has this equipment, make sure that the sale also includes ownership of the pumps, tanks, and other necessary equipment. Many gas station owners don’t own the equipment itself but lease it from the property owner or a franchise.

Depending on the term of your franchise agreement, you may be required to use specific equipment, branded pumps, etc. In these cases, you will want to exclude existing equipment that does not conform to these requirements from the purchase. Make sure to use a qualified lawyer to finalize the sale.

Check the maintenance history of all tanks and pumps to ensure they work and comply with state regulations. More than one gas station owner has lost their business because they purchase a station with defective equipment.

Environmental Assessment

If you want to open a gas station, you have to get a so-called Phase 1 Environmental Assessment of the location done. This document, which has to be prepared by an environmental professional, determines the environmental history of the location and the properties surrounding it. 

Without this document, you won’t get a loan from the SBA. More importantly, the Phase 1 Assessment will allow you to cancel a purchase agreement if the assessment shows issues and your purchase agreement includes an environmental contingency clause.

All Essential Gas Station Documentation in One Place

Use a Digital Solution to Store Your Phase 1 Environmental Assessment and All Other Documents for Your Gas Station

If you are operating your gas station as a franchise, check your franchise agreement to see if you are bound to a specific supplier for your gas (chances are you are). If not, it’s time to research different gas suppliers and do a thorough rate comparison. 

Gas suppliers often receive a percentage of your sales, so be sure to compare and negotiate. 

Your business plan should offer you a good estimate of how much gas you will need and how often your reserves should be replenished. 

Once again, have an attorney look over your franchise agreement and your supplier contract to ensure you don’t agree to anything you shouldn’t.

Time-saving Product Walkthrough

with live Q&A

One step that can’t be skipped when opening a gas station is acquiring the proper permits and insurance. The specific licenses will vary from state to state, and it is your responsibility to make sure that everything complies.

Some standard licenses and permits include:

• Building and fire inspection
• Tank and pump inspections
• Water discharge permit
• Alcohol, tobacco, and lottery ticket licenses
• Food and beverage distributor licenses
• Certificate of occupancy
• Health inspection

This is also a good time to ensure that your new business is properly insured. General liability insurance is a given, but gas stations require a little more than basic business insurance. 

Additional insurances can include:

• Workers’ compensation insurance
• Fuel tank contamination insurance
• Liquor liability insurance
• Franchise insurance

Establish hours of operation

While writing your business plan, you will likely have already decided your business hours. Many gas stations, especially in high-traffic areas, are open 24/7, and if you want to keep up with the competition, you might have to do the same.

That means hiring enough employees to cover all shifts. Brush up on your knowledge of different types of work schedules , as well as the benefits of full-time vs. part-time work schedules. We highly recommend researching the best tools for employee time tracking , job, and shift scheduling , communication , reporting, and more to ensure you manage your employees as efficiently as possible.

Learn about inventory management

Since your gas station will likely sell not just gas but also a range of goods, such as snacks, drinks, and accessories, you must keep your inventory organized. Learning how to keep a running inventory every day will let you identify when you need to restock before you run out of products. Make sure to nurture good contacts with your vendors and understand estimated delivery dates to better coordinate when you need to resupply.

Set up security measures

One of the major risks to gas stations, especially those operating around the clock, is crime. If you’ve been following this guide, you’ll already be insured against theft, but it’s important that you and your employees are safe . Invest in installing security cameras and shatter-proof windows as an additional security measure and establish protocols so your staff knows what to do in an emergency.

Now that all the hard parts of starting your gas station are out of the way, it’s time to start marketing your new business. If you picked the right location for your gas station, you’ll likely receive some customers that simply saw your business and decided to stop. But to make your gas station a success, you’ll need to invest in a proper marketing strategy.

Become active online

Google Maps, Apple Maps, and Waze are fantastic tools to help drivers discover your business on their commute. Make sure to list your gas station on these services so you’ll pop up when they search for a gas station near them.

In addition, open a business account on Yelp and any local business directories. You can even create a comprehensive social media strategy for all major platforms like Facebook, Twitter, Instagram, and TikTok. 

Use pole signs and highway exit signs

Good, old-fashioned highway signs can help a new gas station business get off the ground, especially if you’re located near major exits or commuter hubs. Many drivers don’t have loyalties to specific brands and just want to find the closest gas station. If you’re running special offers or discounts, make sure to let drivers know to give them an extra incentive to visit your gas station.

Create a loyalty program

To keep people coming back, consider offering a loyalty program when you’re starting your gas station and slowly build up a loyal customer base. Smart marketers know that many times it’s cheaper to retain existing customers than to find new ones. Crunch the numbers for your business to figure out how much you can spend to keep your customers coming back.

Lower your prices

We’ve mentioned previously that gas stations operate on very thin profit margins when looking at gas sales only. In fact, most gas stations make the majority of their profits with all the other services and goods they offer. Consider lowering your gas prices by just a few cents to attract customers that will purchase additional items from your convenience store. 

Partner with food franchises

Nowadays, many gas stations partner with food franchises to attract hungry travelers to their business. If you’ve picked your location well, a partnership with a food franchise can be mutually beneficial and transform your gas station into a rest stop. This creates even more opportunities for customers to also enter your convenience store and buy goods.

It’s no secret that the gas station industry is in decline. As of early 2020, there were roughly 115,000 gas stations in the US, and that number is falling quickly. That doesn’t mean that people are driving less, but they are switching from petrol-based cars to electric cars. 

Get ahead of the competition and already install a number of charging stations for electric vehicles. Not only will this prepare your gas station for the (not-so-distant) future, but it will put your business on the map for the electric vehicle community and ensure a steady flow of customers.

Now that you have a solid roadmap for how to start a gas station, all that’s left is for you to implement it. Start with a comprehensive business plan, and don’t let yourself get discouraged by the inevitable setbacks you will experience.

Gas stations see tight margins, but they can turn a decent profit if carefully planned and well run. Even with the growth of electric and hybrid vehicles, conventional gas stations will be around for at least a few more decades.

Do your research, set up your contingency plan for when incidents occur, and most importantly, don’t be afraid to go with the times.

If you take all of this advice to heart, your gas station is off to a roaring success.

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How to Open a Gas Station: Everything You Need to Know

The gas station is sector is primarily defined by the station's location. When a motorist is running low on fuel on a long road trip, he or she doesn't have the option to choose between an independent station or a larger chain store. 3 min read updated on January 01, 2024

What Is a Gas Station?

Wondering how to open a gas station? Owning a gas station can be a smart business decision. But it's important to know how to open a gas station before you start. A gas station, also called a service station, offers all types of fuel products for motorists, including:

• Liquid petroleum gas (LPG)

Some gas stations also offer electricity hookups for electric cars.

The typical fuel station has at least two and up to six pumps with 20 to 30 hoses for pumping fuel. A moderate fuel station typically pumps 325,000 to 350,000 liters of fuel every month, although the amounts vary based on usage. A gas station should offer more than just fuel. Most have an attached convenience store with products such as:

• Automotive accessories
• Other items for sale 

Add-on businesses offering niche services are more common at fuel stations, such as lodging or landscaping tools. A fuel station owner should double up with additional services to increase the chances of success.

The gas station is sector is primarily defined by the station's location. When a motorist is running low on fuel on a long road trip, he or she doesn't have the option to choose between an independent station or a larger chain store. The motorist will simply go wherever is closest to fuel up. 

Profit margins have been steadily increasing for gas stations, making for a good investment. While more secure fuel station owners own their own tanks and pumps, many owners lease their equipment as a conventional option.

Although a gas station can be unique in what it offers in addition to gas, it must also provide reliable service and make sure the tanks are filled so customers can get gas. Legal regulations also apply to service stations. Therefore, the owner should invest in liability insurance.  Fuel station owners can run their businesses in unique, individual ways. But they must always adhere to health and safety policies .

People rely on fuel across the globe for vehicles, including:

• Lawn equipment
• Recreational vehicles 

To achieve success when opening and operating a fuel station, the owner must plan carefully and have money available to invest. For most fuel stations, the owner must invest hundreds of thousands of dollars to enter into a  franchise agreement for a specific brand of fuel.

Opening a gas station in California requires more money upfront, as the state requires permits for:

• Fire inspections
• Underground operation of the tanks
• Water discharge
• Other health and safety concerns

In California, another regulation is double-walled tanks, even if the fuel will be stored far from a water supply. It is one of the only states to require these types of tanks. Regulations can make it challenging to open a business. But each state government offers a list of requirements so owners know what is needed. 

Although the cost of fuel is on the rise, this hasn't impacted the profit index for fuel stations.

Making A Business Plan for Your Gas Station

Before opening a gas station, the first step is to get a professional opinion from an accountant who can help you understand your income and estimated expenses. When you develop a business plan for your gas station, it should include detailed information instead of just including a basic outline. With a detailed, fleshed-out business plan, investors and lenders will be more interested in being part of the business.

The business plan should also include a full description of:

• Additional amenities (e.g., car wash, vacuum, or air stations)

For example, the description should include the number of planned gas pumps, how many restrooms will be available for customers, and any types of food that will be sold in the convenience store. The business plan must also include a detailed analysis of the competition and local market.

Make sure to detail the locations of any similar businesses and how your station will succeed among the competition. Include detailed information in the plan about the management and organization of the service station. This information should include detail about the management, including who will:

• Be responsible to manage the inventory and convenience store
• Manage the financial aspects
• Take care of legal issues

If you need help with how to start a gas station, you can  post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Frozen Food Business Plan

How to write a simple dry cleaner drop-off business plan, how to write a wedding planning business plan.

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A business plan gives you a daily guide on how to run your gas station. It also comes in handy when you’re seeking financing to lease or buy a station and stock it with fuel and products. Once you complete the business plan you’re ready to write an executive summary that outlines how your gas station will provide a much-needed fueling resource while standing out from competitors and making a profit.

Describe the products and services your gas station will provide, including different grades of gas and types of oil. If you want customers to come inside, explain what products you plan to sell, such as snacks, chips, beverages, souvenirs, groceries or automotive products. To increase profits, you might also want to offer mechanical repairs or a car wash.

Discuss the market for opening a gas station in the area, and provide details about your competitors, including their pricing strategy, target market, strengths and weaknesses. Explain how there is a need for another gas station and how you will differentiate your station from the others, such as by offering convenience goods, automotive repairs or the lowest prices. Your competitive advantage might focus on selling gas on a busy street where no other gas stations exist. Or you might want to explain the benefits of adding another station to the mix since so many cars travel through the area because of a busy highway, an airport or a business complex.

Develop a sales and marketing strategy that draws customers and keeps them coming back each time they need to fill their tank. Your strategy might include offering a rewards program and erecting signs to let drivers know your gas prices. Mention advertising food and beverages at the pump if you plan to sell products inside the station. If your station is part of a franchise, provide details on the marketing and advertising the parent company provides.

Explain your background as an owner so investors know you’ve got the skills and experience to build a profitable station. If you lack experience, explain how the other businesses you’ve worked for or owned will help you make this venture successful. If you lack personal experience managing a gas station, find and detail the background of a manager to bring on board who knows the industry.

Prepare financial projections to determine the startup costs of leasing or buying a gas station and making the pumps operational. Your financial documents also need to show the cost of required licenses, payroll, utilities and environmental services. Calculate the revenues you anticipate from the sale of fuel, automotive products and concessions in your revenue projections.

• Brooklyn College: How to Create an Effective Business Plan
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• Write the one- to three-page executive summary after you finish the rest of the business plan.
• Don’t leave out any weaknesses in your plan, such as the fact that there’s too much competition or not enough traffic in the area to sustain business, as investors usually discover these things. Then, they’ll wonder why you didn’t figure this out for yourself.

Nancy Wagner is a marketing strategist and speaker who started writing in 1998. She writes business plans for startups and established companies and teaches marketing and promotional tactics at local workshops. Wagner's business and marketing articles have appeared in "Home Business Journal," "Nation’s Business," "Emerging Business" and "The Mortgage Press," among others. She holds a B.S. from Eastern Illinois University.

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How to Start a Gas Station

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Steps to Open a Gas Station

How big is the gas stations industry, what are the key segments of the gas stations industry, what external factors affect the gas stations industry, who are the key competitors in the gas stations industry, what are the key customer segments in the gas station market, how much does it cost to open a gas station, is a gas station business profitable, what are the keys to launching a new gas station business, how to start a gas station faqs, helpful videos, additional resources, other helpful business plan articles & templates.

Starting a gas station is a lot like opening any other business: you’ll need a comprehensive business plan and the right resources.

In this article, we will discuss the things you’ll need to start a successful gas station.

Importantly, a critical step in starting a gas station is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

1. Research gas station business opportunities.

Start by doing research to see how many gas stations already exist in your area and what kind of competition you’ll be facing. This will help you determine whether starting a station is commercially viable and where it can be located. To be successful, the nearest gas station to your property should be at least one mile away or on the opposite side of a high-traffic street or highway.

2. Decide if you are going to start a new gas station or buy an existing gas station.

Next, you need to decide whether you’re going to start a gas station from scratch or buy an existing gas station. If you want to invest less money and time, buying an already established gas station may be for you.

3. Write a gas station business plan .

Writing a gas station business plan will help you know how much money you’ll need to start the gas station and how much gas you should buy to meet gas demand. You should include your gas supplier in the plan.

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4. Open a business bank account.

Open a business bank account in which you deposit all of your gas station’s earnings. You can then use the money deposited into that account to buy what you need for the gas station’s operation. Always keep your gas station business separate from your personal assets.

5. Get financing.

When you start a gas station, you’ll need to get financing. Sources of funding for a gas station include personal savings, a business loan, and gas station franchising.

6. Find a place to open your gas station.

When choosing a gas station location, you’ll need at least 2,100 square feet for fuel pumps and about 1,350 square feet of office space attached to the gas station. Consider gas station laws and zoning requirements before choosing a location. These estimates are for a minimum service gas station, but if you plan to add on any other services or food options, you will need more space.

7. Register your business with the state and federal government.

Registering a gas station is mandatory before selling gas to the public. You must register as a corporation or an LLC with the Secretary of State to do business as a gas station.

8. Get the proper permits.

Before you can open your gas station, you’ll need to get gas station permits from the Department of Transportation (DOT). The DOT regulates gas stations that are registered with them to ensure safety measures are being followed. You will also need to meet equipment and design requirements.

9. Buy necessary equipment.

You’ll need to buy gas station equipment before opening for business. Gas stations require gas pumps, convenience store cash registers, gas station scales, garbage cans, debris containers, restroom supplies, and hot beverage machines. You must also buy gas-related safety items including gas-dispensing nozzles, gas pump hoses, gas can regulators, and fire extinguishers.

10. Order initial inventory.

Before you open your gas station, make a list of supplies and equipment you’ll need to complete your regular inventory. Order these items well in advance of opening a gas station since gas-related equipment like gas pumps can take several weeks to arrive. This may also include food, beverage, and travel inventory for a small gas station and convenience store.

11. Hire employees.

Gas stations require gas station attendants to work the gas pumps and cashiers to run the convenience store. You should also hire a gas station manager to handle daily operations like buying gas station supplies, hiring/firing employees, and maintenance.

12. Open for business.

Once you get all your gas station permits, order equipment, and hire employees, you can open for business. Keep your gas station well-stocked with gas at all times, and always remember to check gas pumps for leaks.

Finish Your Business Plan Today!

The gas station industry is worth $109.8 billion in revenue and is expected to grow by 1.8% in the next five years.

Most stations operate in metropolitan areas where people drive cars to work or school. Gas stations provide essential products and services to their customers while collecting a large amount of revenue during peak driving times.

The industry can be segmented into three key categories:

• Franchise Gas Station : this type of gas station is operated by a company that owns the site. The franchise sales include all profits and expenses, but they also must pay royalties to the owner of their location’s brand name.
• Full Service Gas Station : this type of gas station is owned and operated by the same company that owns the property. It may also includes additional amenities such as a convenience store, auto repair shop, and/or coffee shop.
• Quick Service Gas Station : this type of gas station offers fast service, which can include a single-pump island that only serves a few customers at a time. Customers usually pay for fuel at a pump and then leave the area without going inside.

The price of gas, the economy, and the availability of gas are just a few of the factors that can affect a gas station’s business. To be successful, it’s important to understand how these factors can impact your business.

• Gas Price – The price of gas has a direct impact on the amount people are willing to pay for it. If gas prices increase, more people will try to conserve their usage and look for ways to cut back.
• Economy – When the economy is thriving, people are more likely to spend money on gas-related activities. However, when the economy is struggling people are less willing to purchase unnecessary items, like gas.
• Availability of Gas – If gas stations are not located near populated areas, it will be difficult to sell gas and make a profit. The key to success in the industry is being located in a densely populated area that has a high demand for fuel.

The gas station and convenience store industry is highly competitive. Some of the most notable competitors in the market include:

While these three companies are some of the largest competitors, there are hundreds of smaller competitors in the space.

The gas station industry is a highly competitive market with several key customer segments. The most important customer segments are individual consumers, commercial businesses, and government organizations.

Individual consumers are the most important customer segment for gas stations. This is because gas stations are in the business of selling gasoline, and it is individuals who buy gas regularly. They account for the majority of gas station sales, and they are the most price-sensitive customers.

Commercial businesses are the second most important customer segment for gas stations. This is because commercial companies operate fleets of trucks and other vehicles that require fuel to run. Commercial businesses account for a majority of gas station sales during peak business hours.

Government Agencies

Government agencies are the third most important customer segment for gas stations. Even though they are not the largest customer segment, government agencies are important because they represent stable revenue for many gas station owners. This is especially true during natural disasters when gas prices can triple.

On average, initial costs to open a gas station range from $300,000 to $500,000. The price ranges are determined by location and the type of gas station you plan to operate. However, you should expect to pay the following startup costs when opening a gas station:

Cost of Property – The price of land is typically the highest expense associated with the startup of a gas station. For example, if you choose to lease property you will be required to sign a long-term agreement that could span more than 10 years. At that point, you can expect your monthly payment to range from $2,000 to $5,000 depending on the location of the property.

Cost of Construction – Building out a gas station can be costly, especially if there are permits and other construction requirements that need to be met.

Cost of Equipment – Gas station equipment is used to store and dispense gas and other fuels. This equipment must meet certain safety and environmental regulations. To ensure you’re fully compliant with all regulations, it’s advised that you work with a design consultant who knows the industry inside and out. The cost of this equipment can range from $25,000 to $100,000.

Cost of Inventory – To sell gas and other fuels you will need to purchase enough inventory for your total projected sales during the next year. The cost of this inventory can range from $3 million to $4 million depending on demand and local competition in an area.

Cost of Marketing : Advertising and marketing a gas station can be expensive, but is essential for attracting customers to the gas station. This may include billboards along the local section of the highway and other signage.

Legal Fees – Before you can begin selling gas at a new location, you need to establish that your business is up-to-date on all necessary licenses and permits. Your attorney will usually charge around $1,000 to help you acquire these documents.

Business Insurance : Insurance for a gas station can be expensive but is necessary to provide personal asset protection and general liability insurance to cover any onsite injuries that may arise.

Utilities : Gas stations typically require a lot of power, water, and gas supplies which can cost a significant amount depending on how much gas will be sold at the gas station.

Other Startup Costs – Other startup costs associated with opening a gas station include bank fees, building improvements or renovations, and utility connections. Bank fees and building improvements typically range from $100,000 to $200,000. Utility connection costs range from $2,500 to $10,000 depending on which ones you plan to use.

The profitability of gas station businesses depends on which type you purchase. For example, if you buy a small neighborhood gas station with only one pump and few employees, chances are it’s not going to be profitable. On the other hand, if you have a large gas station that sells high quantities of gasoline per day, then your business is likely to generate a large profit.

If you buy a gas station that’s already established, then there’s a good chance that it will generate money. You can also increase your chances of success by purchasing an area with high traffic and sales volume.  

A gas station is a great investment opportunity, but it’s important to know what you need to do to make your gas station successful. Here are the keys to launching a new gas station:

1. Have a Well-Written Business Plan

Your gas station business plan should be well-written and well-researched. It should include information about your business model, your target market, your marketing strategy, your financial projections, and more.

2. Choose the Right Location

Location is key when starting gas station businesses. You need to find a business location that is in high traffic areas and that has ample parking.

3. Offer Competitive Prices

You need to offer competitive prices if you want to attract customers away from the gas stations already in business.

4. Hire High-Quality Employees

You can’t be successful if you don’t have high-quality employees working for you. Make sure that your gas station has well-trained, professional employees on staff.

5. Include Variety in Your Product Offerings

People visit most gas stations for more than just gas; they also buy snacks, cigarettes, lottery tickets, and other products at stations while they fill up their tanks or cars with gas. Make sure to include a variety of products when starting so that your customers will keep coming back for more.

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

What services should a gas station offer if it wants to attract customers?

If a business owner wants to attract more customers, they can add any of the following services:

• Car wash - Car washes help attract more customers and increase the chances of having a high volume of people visit your station.
• Convenience store - Convenience stores are another way to bring in more business. Offering snacks, cigarettes, lottery tickets, and other products can help drive traffic to your gas station.
• Coffee shop - If the gas station is open for a long time such as 24 hours, having a coffee shop will help attract more customers during the day and night.
• Service station - Some auto repair services such as oil changes may need some training so it’s practical to offer them in-house.
• Fast food restaurant - If the gas station has a restaurant within it, customers will likely stay longer in line waiting for their gas. This can help increase gas station profits.

How do gas station owners price their products?

Most gas station owners opt to price their products to remain competitive and to maximize profitability. When it comes to determining prices, there are many options available including the following:

• Cost-Plus Pricing - Gas stations that use this pricing model base their product price on cost plus an additional amount for profit. This method is based on the assumption that all competitors are using it, and it takes into account the industry's average markup.
• Target Costing - Gas stations that use this pricing model base their product price on the cost of producing or acquiring the product plus a target gross profit margin that takes into account both fixed and variable expenses.
• Promotional Pricing - Small business owners often use promotional pricing to attract customers at different times of the day, week, or year. Promotional pricing can be effective because it tends to lower the customer's per-unit cost and incentivizes them to purchase more than one unit at a time.
• Psychological Pricing - Gas stations use psychological pricing to convey status and quality via prices that end in $0.99, $9.99, and $199.99. This strategy works by leveraging the power of relative comparison to influence customer purchase decisions.

The Association for Convenience & Fuel Retailing

Preventing Leaks and Spills at Service Stations

Gas Station Business Plan Template & Guidebook

How to write a gas station business plan in 7 steps:, 1. describe the purpose of your gas station business..

It also helps to include a vision statement so that readers can understand what type of company you want to build.

2. Products & Services Offered by Your Gas Station Business.

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your gas station business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

Target market

Customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a gas station business, 5. management & organization of your gas station business..

The second part of your gas station business plan is to develop a management and organization section.

6. Gas Station Business Startup Expenses & Captial Needed.

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a gas station business varies based on many different variables, but below are a few different types of startup costs for a gas station business.

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your gas station business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

Here are some steps you can follow to devise a financial plan for your gas station business plan:

Frequently Asked Questions About Gas Station Business Plans:

Why do you need a business plan for a gas station business, who should you ask for help with your gas station business plan.

You should start by consulting a business adviser, accountant or small business specialist to get expert advice on how to create an effective business plan. You may also want to seek the advice of people in the industry who are familiar with the gas station business. They can provide insights into successful strategies and best practices.

Can you write a gas station business plan yourself?

Related business plans, home inventory business plan template & guidebook, home inspection business plan template & guidebook, home decor business plan template & guidebook, health and wellness business plan template & guidebook, hauling business plan template & guidebook, hardware business plan template & guidebook, handyman business plan template & guidebook, hair extension business plan template & guidebook, handbag business plan template & guidebook.

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

How to Start a Gas Station Business from Scratch

By: Author Tony Martins Ajaero

Home » Business ideas » Oil & Gas Industry » Gas Station

Do you want to start a gas station business? If YES, here is a complete guide to starting a gas station business with NO money and no experience plus a   sample gas station business plan template.

Starting a gas station or filling station or petroleum station as it is typically called in some parts of the world is indeed one of the means of owning a business portfolio in the oil and gas industry. This is for sure one business that has made a lot of people millionaires or even billionaires.

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It is true that playing in the gas industry might require loads of funds, but in the long run it sure does pay. Choosing to start a gas station business also means that you have plans in place already.

Plans like how you intend to raise the startup capital, get the required license and permits, how you can compete in the market, how you intend to make your business known to the people, as well as other important factors that must not be overlooked.

Before launching this type of business, it will pay you to carry out your market research, economic and cost analysis and of course feasibility studies.

If you get things right before launching your gas station business, it will not take you long before you break even and start smiling to the bank. So, if you have made up your mind to start your own gas station business, all you need to do is read this article and you will be well equipped.

Steps to Starting a Gas Station Business

1. understand the industry.

A gas station which is also called a petrol station, filling station, fueling station or service station is a business facility which retails gasoline (petrol), diesel and lubricants for motor vehicles. Gas stations offer one of three types of service to their customers: full service, minimum service or self-service.

A full-service gas station has attendants that operate the pumps, often wipes the windshield and sometimes checks the vehicle’s oil level and tire pressure, then collects payment and perhaps a small tip, while a minimum service gas station has attendants that operate only the pumps.

This is often required due to laws in some cities that prohibits customers from operating the pumps themselves. In self-service gas stations, the customer performs all the required service. Instructions informing the customer of filling procedures and cautions are clearly displayed on each pump.

Customers are expected to go to the store or go to a booth to give payment to an employee of the station, and lastly, we have the unmanned gas station that makes use of card-lock (or pay-at-the-pump) system, these gas station are completely unmanned.

The Gas Station industry over the years has experienced a modest amount of volatility. As a matter of fact, as more Americans acquire automobiles, the total vehicle miles increase and this gives room to increase in the demand of gasoline.

So also, as per capita disposable income continues to increase, some automobile owners would choose to go for premium fuel, which is priced higher than lower-octane fuel.

Just like other industries, the Gas Stations industry has also experienced its fair share of ups and downs over the last five years. As a result of strengthening domestic economy and improvement in employment over the early part of the last five years, the Gas Station Industry also experienced improvement in performance.

The Gas Station industry is indeed a very large industry and pretty much thriving in all the parts of the world. Statistics has it that in the united states of America alone, there are about 10,719 licensed Gas Station businesses responsible for employing about 120,226 employees and the industry rakes in a whopping sum of $106bn annually.

The major breakthrough in the gas station industry came as a result of the increase in automobile ownership which can be traced to Henry Ford when he started to sell automobiles that the middle class could afford.

In a bid to stay afloat in the highly competitive gas station industry, owners of gas stations now go the extra mile to ensure that they make their facility welcoming and conducive for customers. Gas stations now have vulcanizing services, car wash, convenience stores, coffee bars, snack bars and cigar lounge within their facility so as to leverage on the opportunities around them to generate more income.

The gas station business will continue to blossom because people will always go to gas stations to fuel their vehicles, purchase kerosene and cooking gas or any other related services offered by gas stations. Despite the fact that the industry seems over-saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own gas stations in the United States of America.

The gas station industry can be said to be a competitive industry, but it does not in any way stop entrepreneurs who are financially capable to still make headway in the industry. It is indeed a profitable industry especially when the business is well located.

No doubt, busy highways and busy cities with growing population are highly suitable for a gas station. The catch is that if there are automobile users in any city, then that city would have need for a gas station.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

The demographic and psychographic composition of those who need the products and services offered by gas stations cut across all genders; male and female, people from different religion and ethnicity, people with different financial means and businesses; hence the demographic composition for a gas station business is all encompassing.

The truth is that, when it comes to retailing gasoline, diesel, cooking gas, kerosene and the likes, there is indeed a wide range of available customers. In essence, your target market can’t be restricted to just a group of people or organization, but all those who own vehicles, power generating sets, gas cookers, ovens, steam boilers and so forth.

So, if you are thinking of opening your own gas station business then you should make your target demographics all encompassing.

It should include everyone that owns automobiles; celebrities, public figures, politicians, business executives, students, sports men and women, young adults, teenagers, corporate organizations, haulage companies, transport companies, taxi drivers, schools and a host of others that commute along the road where your gas station will be located.

3. Decide Which Niche to Concentrate On

It is important to state that there is no known niche area when it comes to gas station business. Every player in this line of business is usually involved in dispensing non-automotive fuel and retailing automotive fuels (e.g. diesel fuel and gasoline).

On the other hand, it is important to state that most gas stations also engage in automotive services (e.g. repairs, car washes and general parts), selling automotive-related goods, providing automotive-repair services, providing wheel alignment, wheel balancing, vulcanizing services and retailing of groceries and soft drinks.

The Level of Competition in the Industry

The competition that exists in the gas station industry is subject to the location that you choose to open your gas station. The truth is that if your gas station is the only gas station within reasonable miles (parameters), then you won’t have any direct competition.

On the other hand, if you are just starting out, then you must be ready to compete with multinational oil and gas companies that also operate gas stations all across the globe. So, it will be right to say the competition in the gas station line of business is tough.

The truth is that no matter the level of competition in an industry, if you brand and promote your products or business properly, you will always make headway in the industry. Just ensure you dispense the correct quantity and good quality products per time and your customer services is top notch.

But over and above, there are several gas stations scattered all around the United States. So, if you choose to start your own gas station business in the United States, you will definitely meet stiff competition.

Besides, there are larger gas station brands such as Shell Gas Station, Chevron Gas Station , Exxon Gas Station, Mobil Gas Station, Elf and Total Gas Station that determine the trends in the industry and you should be ready to compete with them for customers.

4. Know Your Major Competitors in the Industry

In every industry, there are always brands that perform better or are better regarded by customers and the general public than others. Some of these brands are those that have been in the industry for a long time and have become known to people.

These are some of the leading gas stations/brands in the United States of America and in the globe;

• Shell Gas Station
• Chevron Gas Station
• Exxon Gas Station
• Mobil Gas Station
• Elf Gas Station
• Total Gas Station
• BP Petrol Station
• Esso Petrol Station
• Husky Gas Station
• Puma Energy service station
• Caltex Service Station
• Eni Gas Station
• Agip Gas Station
• Sunoco Gas Station
• Marathon Gas Station
• Speedway Gas Station
• Clean Energy – Fremont Pilot Gas Station
• Gas Stations USA Realty
• Murphy USA Gas Station

Economic Analysis

Gas station business is not a Green business, as a matter of fact; you will come across several gas stations when you drive along any road in the United States.

So, if you are mapping out your economic analysis, you should carry out thorough market survey and costing of the required amount needed for leasing/renting a landed property along a major road with government approval for a gas station and the amount needed to purchase the needed gas station equipment and tools, and the amount needed for the purchase of gasoline, diesels, kerosene and cooking gas supplies and also the running cost of the business.

Over and above, when it comes to starting a medium scale gas station company, you should be prepared to either rent or lease a standard and centralized facility along a major road or expressway with good human and vehicular traffic. This is going to be one of the areas where you are expected to spend the bulk of startup capital.

Other areas are the amount required in setting up a full-service state of the art gas station facility with the capacity to carry out automotive services (e.g. repairs, car washes and general parts),

Nonautomotive fuel, retailing automotive fuels (e.g. diesel fuel and gasoline), retailing cooking gas, selling automotive-related goods, providing automotive-repair services, providing wheel alignment, wheel balancing and vulcanizing services, retailing of groceries and soft drinks et al, the scale/size of the business and also in paying your employees at least for the first three months of starting the business.

5. Decide Whether to Buy a Franchise or Start from Scratch

If you are looking towards starting a gas station business, it will pay you to purchase the franchise of a successful gas station.

This is because people usually look for brand names when buying gasoline products. But it is important to state that the franchise of gas station does not come cheap, this is why aspiring entrepreneurs choose to start their own gas stations from the scratch.

Starting a gas station business from the scratch can be stressful, but it will give you the opportunity to build your own brand and perhaps compete at the national level via franchising. Please note that most of the big and successful gas stations around started from the scratch and they were able to build a solid business brand.

6. Know the Possible Threats and Challenges You Will Face

If you decide to start your own gas station business today, one of the major challenges you are likely going to face is the presence of well-established gas stations within the location where you have your gas station. The only way to avoid this challenge is to create your own market.

Some other challenges and threats that you are likely going to face is economic downturn; if the economy is in bad shape. 

Unfavorable international oil prices and government policies can also hamper the growth of your gas station especially when they increase the pump price of gasoline. There is nothing you can do as regard these threats and challenges other than to stay positive that things will work well for you.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

When considering starting a gas station business, the legal entity you choose will go a long way to determine how big the business can grow; some gas station business design their business for the neighborhood market, some for city wide market, while others for national and international market via franchising.

You have the option of either choosing a general partnership, limited liability Company which is commonly called an LLC, or a sole proprietorship for a business such as gas station.

If your intention is to grow the business and have chains of gas stations all across the United States of America and other countries of the world via franchising, then choosing sole proprietor is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your gas station business; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.

You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.

Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your gas station business so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures.

8. Discuss with an Agent to Know the Best Insurance Policies for You

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your gas station business.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your own gas station business in the United States of America;

• General insurance
• Health insurance
• Liability insurance
• Fire Insurance
• Risk Insurance
• Workers Compensation
• Overhead expense disability insurance
• Business owner’s policy group insurance
• Payment protection insurance

9. Protect your Intellectual Property With Trademark, Copyrights, Patents

If you are considering starting your own gas station business, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successful run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

10. Get the Necessary Professional Certification

If you intend starting a gas station business in the United States of America, you are strongly encouraged to pursue professional certifications. These are some of the certifications you can work towards achieving if you want to run your own gas station business;

• UST Training and Certification / Class A/B and C Operator Certification
• HSE Certifications
• API WorkSafe Certification

Please note that all gas stations in the United States of America are mandated to obtain the appropriate certification, license and permits before they can legally operate in the United States of America and of course in most countries of the world.

11. Get the Necessary Legal Documents You Need to Operate

The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own gas station business in the United States of America;

• Certificate of Incorporation
• Business License
• Tax Payer’s ID/Tax Identification Number
• Business Plan
• Non – disclosure Agreement
• Motor Fuels Retail Outlet License
• Fire Certificate
• Commercial Vehicle Operator’s Registration for gasoline tankers
• Appropriate driver’s licenses for drivers
• Assistant’s licenses for assistants
• Health inspection Certificate
• Proof of ownership, proper identification and vehicle license
• Copy of license for the service support facility and/or a recent inspection report
• Employee Handbook
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use (if you also operate online)
• Online Privacy Policy Document (basically for online payment portal)
• Company Bylaws
• Memorandum of Understanding (MoU)
• Building License
• Franchise or Trademark License (optional)

12. Raise the Needed Startup Capital

When it comes to financing a business, one of the major factors that you should consider is to write a good business plan.

If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business. Here are some of the options you can explore when sourcing for start-up capital for your gas station business;

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
• Source for soft loans from your family members and your friends.

13. Choose a Suitable Location for your Business

Gas stations and most related businesses are part of the human lifestyle hence it must be situated in a good location; a location that is prone to both human and vehicular traffic if indeed you want to maximize profit from the business. This is why you can only find gas station along major roads and highways.

These are some of the key factors that you should consider before choosing a location for your gas station;

• The demography of the location
• The demand for the products and complimentary services offered by gas stations in the location
• The number of vehicles and vehicle owners in the location
• The purchasing power of the residence of the location
• Accessibility of the location
• The number of gas stations in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

14. Hire Employees for your Technical and Manpower Needs

On the average, the special technology or equipment needed to run this type of business are gasoline dispensing pumps, gasoline tankers, gasoline storage tankers, fire alarm, CCTV cameras, computers and receipt issuing machines, sound system (for playing music), Point of Sale Machines (POS Machines), internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

When it comes to hiring employees for a standard gasoline station that also offer other complimentary services, you should make plans to hire a competent Chief Executive Officer/President (you can occupy this role), Gas Station Manager, Accountant/Cashier, Human Resource and Admin Manager, Pump Attendant, Convenience Store, Coffee Café, Snacks Bar, Cigar Lounge Manager, Vulcanizing Services

Wheel Balancing, Wheel Alignment and Automobile Repairs and Maintenance Manager, Carwash Manager, Tanker Drivers and Security Guard. These are some of the key employees that you can work with. On the average, you will need a minimum of 10 to 15 key staff members to run a small scale but standard gas station business.

The Service Delivery Process of the Business

Generally, when people cum vehicles stop by a gas station, they go straight ahead to make payment and dispense gasoline in their tank especially if it is a self – service gas station. If the gas pumps are manned by dispensers/attendants, then they will inform the attendants of the amount of gasoline or any product they want to purchase and they will have it dispensed in their gasoline tank.

Since all gas stations require supply of products the retail, there are no hard and fast rule about getting supplies. Basically, it is the duty of the merchandise manager to help the organization purchase gasoline, diesels, kerosene and cooking gas et al.

They go out there to source for good purchasing deals and they also ensure that they do not only purchase at the right prices that will guarantee them good profits, but also ensure that they purchase products that are of high quality. Once the products are bought, they are properly filled into the underground tank and ready for dispensing.

15. Write a Marketing Plan Packed with ideas & Strategies

Running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a gas station business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well-known brands determining the market direction for the gas station industry.

These are some of the marketing ideas and strategies that you can adopt for your gas station business;

• Introduce your gas station by sending introductory letters alongside your brochure to everyone that owns automobiles; celebrities, public figures, politicians, business executives, students, sports men and women, young adults, teenagers, corporate organizations, haulage companies, transport companies, taxi drivers, schools and a host of others that commutes along the road where your gas station will be located.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across, so that those on the social media or those who read blogs can know where to go when they need to refill their tanks
• Create a basic website for your business so as to give your business an online presence
• Directly market your products.
• Engage in road show in targeted communities from time to time to promote your business/services
• Join local gas station owners association for industry trends and tips
• Provide discount days for your customers
• Advertise our business in community based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of Word of mouth marketing (referrals)

16. Work Out a Reasonable Pricing for your Services & Products

When it comes to a business such as gas station, it will be right to say that the business cum prices is highly regulated. There is always a benchmark that is set by the Federal government when it comes to the pump price of products such as gasoline, diesel and kerosene.

So there is little you can do to sell your products far below the industry’s average. All you need to do is to ensure that your merchandise manager gets supply of gasoline, diesel and kerosene directly from main marketers not third party suppliers and also ensure that you own your own petroleum tankers. With that, you can be able to get pricing for your products right.

Another key factor that will help you sell your products and offer your services at the right price is to ensure that you cut operational cost to the barest minimum, channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products.

You can also try as much as possible to work with independent contractors and marketers; with that, it will help you save cost for paying sales and marketing executives.

17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

If your intention of starting a gas station business is to grow the business beyond the city where you are going to be operating from to become a national and international brand by opening chains of gas stations and franchising, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your gas station business;

• Place adverts on both print and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products and services
• Install your billboards in strategic locations all around your city or state
• Engage in roadshow from time to time in targeted neighborhoods to create awareness of your gas station
• Distribute your fliers and handbills in target areas
• Contact everyone that owns automobiles; celebrities, public figures, politicians, business executives, students, sports men and women, young adults, teenagers, corporate organizations, haulage companies, transport companies, taxi drivers, schools and a host of others that commute along the road where your gas station will be located informing them about your gas station and the products and services you offer
• List your gas station in local directories/yellow pages
• Advertise your gas station in your official website and employ strategies that will help you pull traffic to the site.
• Position our Flexi Banners at strategic positions in the location where your gas station is located.
• Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo et al.

18. Create a Suppliers/Distribution Network

In order to successfully run a gas station business, you must establish good business relationship with gasoline depot and petroleum product marketers. Of course, you would need steady supply of gasoline, diesel and kerosene et al from gasoline depots and petroleum main marketers in order to remain in business.

Just ensure that you enter into an agreement with suppliers that will enable your gas station not to run out of products per time.

The truth is that if proper arrangements are not put in place in – terms of supply of petroleum products, there will be occasions when you will run out of products and that will be bad for your business especially as you are trying to build a robust and loyal clientele base.

Frequently Asked Questions

How much does it cost to start a shell gas station.

If you want to start a shell gas station business, then you should be looking towards buying their franchise. So, if you want to by the franchise of Shell Gas Station, you will spend;

• Liquid capital required: $700,000
• Investment: $2,500,000 – $6,600,000
• Franchise fee: $30,000

What can you sell at a gas station?

A gas station is a business facility that retails gasoline (petrol), diesel, cooking gas and lubricants for motor vehicles. Gas stations offer one of three types of service to their customers: full service, minimum service or self-service. Gas stations can also sell automotive-related goods, groceries, water and soft drinks et al.

How much does it cost to build a gas station property in the United States of America?

There is no fixed price on how much an investor is expected to spend if they want to build a gas station property in the United States. This is because there are factors that can influence the overall cost of building a gas station property. However, if you are looking towards building a gas station property in the United States, you should look towards spending a minimum of $120,000. Please note that the amount includes the cost of purchasing a land.

What skills do you need to work at a gas station?

The key skills you need to successfully work in a gas station are, customer services skills, listing skills, communication skills, accounting skills, ability to pay attention to details, ability to work in a team and the ability to stand for a long period of time.

How much money would it take to open a gas station?

Opening a gas station is a capital-intensive project and on the average in the United States, it will cost you a minimum of $250,000 to open a small gas station.

How can you get a loan to buy a gas station?

There are several banks and loan granting institutions that give out loans to entrepreneurs to start their businesses and this include those who are interested in starting a gas station. All you need to access this loan is to draw up a workable business plan, alongside the required documents and then approach the bank or loan granting institution.

What are some insider tips for jump starting a gas station?

In order to jump start a gas station, you would have to first revamp the facility, create a buzz, sustain the buzz and then offer freebies to attract customers. The freebies could be free tire gage, free windscreen cleaning or car wash amongst others.

How much does a gas station cost in the United States?

In the United States, the cost of gas stations can be about $300,000 or even higher depending on the location of the gas station and the size of the facility.

Why do retail gas stations need to be EMV compliant?

EMV compliance simply means that you have upgraded your POS to include an EMV chip reader. Although EMV chips are not required by law, but rather by industry standards. The U.S. government stepped in and forced the credit card industry to adopt EMV technology, which is aimed at preventing fraudulent use of credit cards in transactions where the card is present at a merchant’s terminal.

How much does a gas station make per day?

On the average, a gas station in the United States can make between $4,500 to $14,500 in a day all things being equal.

What are some skills and experiences that will help you build a successful gas station?

If you are looking towards building a successful gas station, then you must have skill sets such as; bargaining skills, good managerial skills, good leadership skills, networking skills, interpersonal skills, financial management skills and ability to attract talents.

What is the best way to raise money to open a gas station?

These are the best ways to raise money to open a gas station;

• From personal savings and sell of stocks
• From soft loans from family members and friends
• Loans from your bank or loan granting institutions.

What happens during a typical day at a gas station?

During a typical day at a gas station, the workers resume in the morning, the supervisor ensures that the environment is cleaned and ready to welcome customers, the gasoline, diesel and every other stuff they sell in the gas station is measured.

The readings at various pumps are taken before the workers are allowed to mount the pumps. After every shift, the readings at the pumps are taken again, the book is balanced and then the workers for the next shift take over, and on and on it goes.

Is it profitable to own a gas station?

Interestingly, owning a gas station is one of the most profitable business ventures especially if the gas station is well positioned in a high traffic road or a community with a high density of automobiles.

How can you make your gas station more profitable?

You can make your gas station more profitable by going beyond just selling gasoline and diesel to offering automotive services (e.g., repairs, car washes and general parts), selling nonautomotive fuel, selling automotive-related goods, providing automotive-repair services, providing wheel alignment, wheel balancing and vulcanizing services and of course retailing of groceries, water and soft drinks et al.

What is the typical profit margin for a gas station?

Stores sell an average of 4,000 gallons per day, so retailers typically make about $100 per day selling gas (net profit available to pay other costs not previously referenced such as maintenance and insurance). Margins can vary wildly throughout the year.

Do gas stations make money selling gas?

Sure, gas stations make money selling gas.

What do gas stations make the most money on?

Gas stations make the most money on automotive fuel (gasoline and diesel).

What is the EMV compliance deadline for fuel retailers and convenience stores?

The deadline for gas stations in the United States to upgrade their pumps to accept EMV was recently extended to April 2022, allowing more time to comply with the new EMV standard to pay at the pump.

How much profit does a gas station make from a gallon of gas?

For gas stations in the United States, the average profit margin for a gallon of gas is roughly 2.5 percent.

How much do gas station workers get paid?

The average salary for a gas station attendant is $11.47 per hour and between $19,000 to $30,500 annually in the United States.

What is the best gas station franchise?

Here are the best gas station franchise businesses in the USA;

• 7-Eleven. Founded in 1927. Franchising since 1964. Franchise units: 61,086. Initial investment, from $37,550.
• Circle K. Founded in 1951. Franchising since 1995. Franchise units: 1,886.

Can owning a chevron gas station franchise be profitable?

Sure, owning a Chevron gas station franchise is a profitable business venture due to the fact that Chevron is a household name not just in the United States but across the world.

How much does a gas station owner make a year?

The money a gas station owner makes a year varies depending on a number of factors but a successful gas station owner can make anywhere from $40,000 to $100,000 and above annually. But it’s going to take a lot of work. Gas stations that do more than sell gasoline and diesel tend to make more money.

One of the most important things you need to do in order to have a profitable gas station?

Leveraging on economies of scale is one of the most important things you need to do in order to have a profitable gas station.

How much profit does a gas station make in a normal city?

A gas station makes an average of $5,300 in a normal city.

Is it dangerous to work at a gas station?

It is not dangerous to work in a gas station, but uttermost caution should be taken when working in a gas station because gasoline is highly inflammable.

How much do gas station cashiers make per hour?

Gas station cashiers make between $9 to $11 per hour in the United States.

More From Forbes

How To Start A Business Plan: A Step-By-Step Guide

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Creating a business plan is a critical first step for any entrepreneur. Knowing how to start a business plan will help you create a roadmap, guiding your business from startup to growth and beyond. Whether you're looking for investment, trying to set clear goals, or simply organizing your thoughts, a solid business plan can make all the difference.

Here is a guide to help you get started on your business plan:

1. executive summary.

What It Is: This section summarizes your business plan as a whole and outlines your company profile and goals.

What to Include:

• Business name and location
• Products or services offered
• Mission statement
• The purpose of the plan (e.g., seeking funding, guiding the startup process)

Tip: Keep it concise. Although it's the first section, it's often best to write it last, after you’ve detailed everything else.

2. Company Description

What It Is: This section provides detailed information about your company, including who you are, what you do, and what markets you serve.

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• Your business structure (e.g., sole proprietorship, LLC, corporation)
• The industry and marketplace needs your business meets
• Your business’s objectives and how you stand out from competitors

Tip: Use this section to highlight your company’s strengths and what makes you unique.

3. Market Research

What It Is: Market research demonstrates your understanding of the industry and target market.

• Market size and growth potential
• Target customer demographics
• Market trends and outlook
• Competitive analysis, including strengths and weaknesses of competitors

Tip: Include data and statistics to back up your findings and show that you’ve done your homework.

4. Organization and Management

What It Is: This section outlines your business’s organizational structure and management team.

• Organizational chart
• Information about the ownership of the company
• Backgrounds and qualifications of the management team
• Roles and responsibilities within the company

Tip: Highlight the skills and experiences of your team that will help the business succeed.

5. Products or Services Line

What It Is: Here, you detail the products or services you offer or plan to offer.

• A description of each product or service
• The lifecycle of products or services
• Research and development activities, if applicable
• Intellectual property, such as patents or trademarks

Tip: Focus on the benefits your products or services bring to your customers.

6. Marketing and Sales Strategy

What It Is: This section explains how you will attract and retain customers.

• Marketing strategies, including advertising, promotions, and public relations
• Sales strategies, including sales processes, channels, and tactics
• Pricing strategy and how it compares to competitors

Tip: Ensure your marketing and sales strategies are aligned with your market research findings.

7. Funding Request

What It Is: If you’re seeking funding , this section outlines your requirements.

• Your current funding needs
• Future funding requirements over the next five years
• How you intend to use the funds
• Potential future financial plans (e.g., selling the business, repaying debt)

Tip: Be specific and realistic about how much funding you need and how it will be used.

8. Financial Projections

What It Is: Financial projections provide a forecast of your business’s financial future.

• Income statements
• Cash flow statements
• Balance sheets
• Break-even analysis

Tip: Use realistic and conservative estimates. Consider hiring a financial professional to help with this section if needed.

9. Appendix

What It Is: The appendix includes any additional information that supports your business plan.

• Resumes of key management team members
• Permits and leases
• Legal documents
• Detailed market research data
• Product photos

Tip: Only include essential information that adds value to your business plan.

Final Tips for Creating a Business Plan

Creating a business plan requires clarity and precision. First and foremost, keep your business plan clear and concise. Avoid using jargon or complex language that could make the plan difficult to read or understand. Your aim should be to communicate your ideas effectively and efficiently.

Next, be realistic in your approach. Ensure that your goals and financial projections are attainable based on your research and understanding of the market. Overly ambitious projections can undermine your credibility and potentially lead to unrealistic expectations.

It's also essential to remember that a business plan is a dynamic document. As your business grows and market conditions change, you should revisit and revise your plan regularly. This helps you stay aligned with your goals and adapt to new challenges and opportunities.

Finally, seek feedback from experienced business professionals. Having someone with business experience review your plan can provide valuable insights and help identify any potential issues or areas for improvement. Their feedback can enhance the overall quality and effectiveness of your business plan.

By following these tips, you'll be better equipped to create a robust and effective business plan that can guide your business towards success.

The bottom line is that starting a business plan may seem challenging, but with careful planning and attention to detail, you can create a comprehensive guide to steer your business toward success. Use this step-by-step guide to ensure that all essential components are covered, giving your business the best possible start.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and I also guide established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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Coming soon: Here's when Buc-ee's plans to open its fourth Florida location in Fort Pierce

Buc-ee's is closer to expanding its mega-travel center chain into the Treasure Coast.

The iconic gas station could be days away from owning a 36-acre parcel on the southeast corner of Indrio Road and Interstate 95 in Fort Pierce, where Buc-ee's wants to build a 73,000-square-foot retail facility.

The mega-gas station and convenience store could have about 800 parking spots, over 100 gas pumps, its famously clean bathrooms and a  signature smoked barbeque , according to a site plan submitted in February.

It would be the first Treasure Coast location and the southernmost Florida location.

What is Buc-ee's?: 6 things to know about mega gas station

When will Buc-ee's open in Fort Pierce?

Buc-ee's plans to move quickly as soon as it buys the land and obtains site plan approval from St. Lucie County, according to property owner and developer Gustavo Lumer.

Buc-ee's could be on pace to open within 18 months, with a grand opening in late 2025 or early 2026, Lumer said

What is Buc-ee's?

The Texas-based chain operates  46 locations  across Texas, Florida, Georgia, Alabama, Kentucky, Tennessee and South Carolina.

There are two travel centers in Florida — Daytona Beach and St. Augustine — with a third in the works for Ocala.

The first opened in St. Augustine on Feb. 22, 2021. The second in Daytona Beach opened on March 22, 2021.

The  Daytona Beach Buc-ee's  has a 53,000-square-foot convenience store, slightly bigger than the 52,600-square-foot location in  St. Augustine , and about the average size of a Publix store.

Gianna Montesano  is TCPalm’s trending reporter. You can contact her at  [email protected] , 772-409-1429, or follow her on X (formerly Twitter)  @gonthescene .

Seneca One Stop

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“ Also a Dunkin Donuts will be opening soon so it will be a nice place to stop. ” in 4 reviews

“ Nice to have a gas station on an Indian reservation across from the casino in downtown Buffalo . ” in 2 reviews

Location & Hours

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180 Perry St

Buffalo, NY 14204

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Council overrides Mishawaka Mayor’s veto on gas station near Wellfield

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MISHAWAKA, Ind. -- Monday’s Common Council meeting in Mishawaka took an unexpected twist when all nine Common Council members voted to override Mayor Dave Wood’s veto that he issued against a Casey’s Gas Station from being built along Juday Creek.

This was only the mayor’s third time vetoing a development in his past 14 years serving Mishawaka.

He said he was disappointed in the council’s decision Monday.

“I’m very disappointed in tonight’s action. We felt like we presented a very clear case from our experts at City Hall from our engineers, our planners and our volunteers who are there to look after the public health and safety of our city,” said Mayor Wood.

The council originally voted 6-3 to pass a rezoning to build the store on Douglas and Fir.

 “Certainly, I don’t take any offense at Mayor Wood exercising his prerogative to veto this ordinance, but I am proud of the action that the council took this evening to reiterate our role as a co-equal branch of government in Mishawaka,” said council member, Gregg Hixenbaugh.