What Does It Take to Own and Run a Gas Station?

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What Does It Take to Own and Run a Gas Station

Have you ever wondered to yourself, “what does it take to own and run a gas station?” The gas industry is a very lucrative and enticing business venture. To understand how a gas station runs and the responsibilities of those who own them, check out these helpful financial facts.

Just Like Any Business

The truth is, business is business, regardless of the industry. With owning a gas station, you must create a competent and comprehensive business plan. Since gas stations don’t just provide gas, you must incorporate the cost of food and drink (among other convenience products) into your plan.

Creating a gas station involves the usual registering of the business, taxes, or in some instances, buying into a franchise like Shell. Lastly, you must secure proper funding to support your new venture—you can accomplish this through crowdfunding, family support, or bank/credit union loans.

You’ll need to acquire certain permits and licenses; however, those vary in each state. These documents typically include motor fuel outlet licenses, certificates of occupancy, alcohol and tobacco permits, and potentially restaurant codes. You’ll also need to get inspected for fire, tank, and water issues.

Gas Suppliers

While there are many items sold at a gas station, the most important of products is fuel—gasoline and diesel, specifically. To find these gas vendors, you can research the area for local suppliers. These companies make a certain percentage of your sales but are the ones responsible for restocking and refueling the pumps.

An attorney will assist you in finding a supplier and negotiating the best possible price for your business. Remember, there are many gas vendors out there, so determine which one will benefit your gas station the most.

Daily Responsibilities

What does the daily life of a gas station owner entail? Surprisingly enough, quite a heavy load of responsibilities. First and foremost, they are the CEOs of their stations, so they create and manage employees’ hours—for non-franchise locations, they are expected to manage payroll as well.

The owner typically coordinates with gas and food vendors over restocking and delivery dates. Luckily, vendors and gas stations work together as a partnership of sorts, so the work is done through both sides.

Lastly, an owner takes responsibility for managing the maintenance of utilities, equipment, and machinery. Maintaining a clean and efficient fueling station is essential for any successful gas station. They record the current condition of all fuel pumps and determine if repairs are needed. As an owner who sells diesel, you may need to replace your diesel fuel pump if there are signs of deterioration or malfunctions.

Simply put, the processes of managing or owning a gas station are similar in many ways to any business. The key difference is the sheer diversity of products and industries, like the sales of gas, alcohol, tobacco, food, and lottery tickets. When pondering “what does it take to own and run a gas station,” know that the most important factor is hard work and a solid plan.