10 Things to Avoid when buying a Gas Station Business

Owning a cheap gas station business can be a lucrative business or one that goes under quickly. Understanding how to buy a gas station business starts with understanding what you need to discover and plan for when finding gas stations for sale. Being fully prepared to run gas stations means more than just having the capitol to fund the day to day operations, but also in knowing the pitfalls and potential of your investment.

Here are 10 things to avoid when buying a gas station business. This will help you avoid many common mistakes made when considering buying gas stations for sale.

Not Checking the Tanks: The underground tanks which hold the gas should be in good shape. If they are leaking, this can cause you an enormous amount in clean up and environmental costs. So be sure the tanks are sound at the gas stations you check.

Old tanks: While older tanks may be sound, they may not be for long if they haven’t been upgraded. You want leak detection sensors inside your double-walled tanks. If not, then you should look somewhere else.

Check licenses: Be sure the gas station you are buying has all the licenses to cover what it does, including selling gas, food, liquor, lottery tickets and the like. Plus, you need to transfer them to your name, so take into account those costs as well.

Overpaying: Base your offer on what the cheap gas station actually nets, not just the gross profit. It may be that your gas station pays the bills based on a mechanical repair shop, convenience store or the like that is not included in the deal.

Location: Your gas station business  must be alongside high traffic volume highways and roads to be successful. You need business which means being located where the people are at. Avoid out of the way gas station locations unless a major highway or expansion is going to be in the area soon.

Know the Owner: You don’t want to make the purchase only to find out that the land your gas station is on is owned by someone else. This means you purchased a lease that will run out shortly, leaving you in the cold. Find out who owns the property and if it is leased, the length of the lease and if the mortgage payments are being made.

Check with City Hall: Another lesson in how to buy a gas station is checking with city hall to see if there are any future plans for the area that might affect your business. You do not want to discover that your land will be torn up for a new road, so always check with the planning and roads development group in city hall first.

Security: Understand that cheap gas stations are magnets for criminals, both that rob your store and drive off without paying for the gas. Take into account proper security, cameras and the like to minimize your losses.

Employees: Remember that you can’t do it alone; be sure to factor in salaries and employee expenses.

Brand: Be sure the brand of your gas station matches what you want to do. Check the licensing agreements and explore your options.

I would love your feedback and thoughts, I am new to this, please post your advice and comments, it will help me improve this blog.

You Can also Subscribe to my Newsletter so I can keep you posted on any upcoming blog post that is newsworthy. Just Click the Link Below.

Subscribe to our newsletter