GSB-39: Why Gas Station Business is a Good and Solid Long-Term Investment

There are many great business and investment opportunities out there if you ever read the Entrepreneur magazine or the franchise magazine you will see they have a list of 10-20 great names of franchise businesses that you can invest and make money with.

Back around 2005-2006 one of the leading magazines named  Quiznos as the number one franchise to buy in the US,  look at it today, from around 5500 stores in 2008 now they are barely surviving with just a few.

The same analogy can go for other similar fast food businesses; there are new ones popping up every day, but the number of customers in any given city is not growing at the same rate, so the pie is getting thinner and smaller every day.

Then some say why not invest in a retail mini strip mall and build a few retail spaces and rent them out. Well, good idea but what if you can’t rent all the spaces? Did you notice how mini strip malls are being built everywhere? It’s the old analogy of supply and demand. If the supply is abundant, then the demand will go down thus driving the price down. In this case, the required rent per square feet will be less. But to build and make a profit from it,  you would need certain $ per square feet of space that you lease out.

On the other hand, how many gas stations do you see that are being built every day? Not many I know, not to mention you don’t see too many vacant gas stations around you either right? Why? There is a good reason for it; it’s not as easy as opening up a Quiznos or any other franchise nor it is easy to open build one. So the demand for this type of business has never gone down.

Let’s look at

7 Undeniable Reasons why Gas Station Business is the Best Long Term Investment.

  1. Recession proof business model
  2. Comparatively low competition
  3. Selling basic Necessities
  4. High Profitability
  5. Low Interest rate
  6. Longer life cycle than most other retail businesses
  7. High ROI

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Cheers!

 

 

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