Buying a Petrol Station? 5 Questions to Ask Yourself
A gasoline station can be an excellent and lucrative business like any high-value business. It can generate a healthy income when it is well run and managed, and this can be traced to the fact that the demand for fuel and gas is always constant. People would need to drive to work, and trucks would need to carry goods across the country, among others.
However, acquiring a gas station is not a walk in the park. You need to ask several questions as a potential buyer; you don't want to incur debts or losses from the business.
This article has put together five questions to ask before buying a gas station, and these questions are critical! Indeed, you wouldn't want to ignore any of them.
Are there any environmental issues?
This is a preliminary investigation and evaluation of a property's environmental history.
Environmental issues can go as far as bankrupting the gas station, affecting the investor. An environmental assessment is to be carried out before buying a gas station.
To achieve this, you could hire the service of a reputable environmental analyst; they will help reveal any past or current issues.
Are there any tank and pump issues?
The station tanks and pumps are the most critical assets in a gas station, and just like any other equipment, they could become worn out, develop a fault, or even become outdated. You should ask the seller about the condition of the tanks and pumps and do personal research yourself before buying.
How long have they been in use? Are they outdated and need to be changed to meet the modern look, or do they need to be repaired? If all these are not checked, it could adversely affect the attractiveness of your station, which ultimately affects your sales.
Has the station experienced any criminal activity?
It's so bad that sometimes, a gas station could be the target of criminal activities. This could vary from a simple credit card fraud to armed robbery. Before buying that gas station, you need to be aware of these issues. It would be best to ask the gas station owner about the criminal activities within and around the gas station.
You can also step a little further to the local police station to ask for the activity report of the station. This report should give you an idea of the amount of crime around the station.
How much competition is there?
You should ask the current owner and do due diligence about the local competition and market. You could take a walk or drive through the station, putting yourself in a customer's place. You should check other gas stations around there too. Do they have more modern facilities or are they more convenient? Do they appeal to the eyes? Checking from these perspectives, is the gas station you are about to buy a good option?
Does the gas station also have a convenience store?
Though Selling gas is the main business of your gas station, what most people don't know is that gas stations make most of their money from selling other items. These other items could include a car wash service, a section for mechanics to fix a damaged truck or car, a cafeteria, or a mini supermarket.
These mini businesses could generate maximum profit daily, and as a potential gas station owner, you wouldn't want to miss out on this one. Be sure to check or ask the current owner about the convenience store. If you’ve purchased a petrol station, get in touch with a petrol station maintenance company to ensure that your new investment runs efficiently.
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