There are many serious factors that you should consider before buying a gas station or any other business.
Here are a few:
o Supply & Demand
o Start Up Capital
o Franchise or Existing Business
o Time Commitment
Supply & Demand:
Before starting any business find out how much of a supply & demand issue there is for your primary product or business. With the gas station business there is a huge demand for fuel since everyone needs to get around with a vehicle of some sort & gas or diesel to power it.
This is very important because if you don’t have a good location then you may not get enough business. The thing about high traffic locations is that they generally cost more to get. You may make more money in a high traffic area but you will end up having a higher overhead than a low traffic area.
It is not impossible to still make a lot of money in a low traffic area as long as you advertise to let people know that you are there. Since you can save by being in a low traffic area you can spend a little more on perks for your customer like free coffee or newspapers or just better service. If you treat people well they will always come back to you for business. It’s all about customer service.
Start Up Capital:
You will definitely need some start up capital to start any business. Be prepared to borrow some money if you don’t already have a stash of thousands put away. Most successful businessmen rarely user their own money even if they have it sitting in their bank accounts. They prefer to use other people’s money (banks, credit unions etc).
Franchise or Existing Business:
Franchises are usually safer to go with than the traditional mom & pop existing business. They are safer because they usually have a good system in place that has been proven for years. Systems never fail. They will train you to be a business owner, employee & even a book keeper. They will teach you everything that you will need to get your business up & running quickly & efficiently. They even go as far as to survey areas that would be the best choice for high traffic business & even reserve spots for future business. They basically cover all the areas that need to be covered in order to remain successful. The only thing about the franchises is that they are very expensive to start.
Franchises can cost you anywhere from $250,000 & up. They may even require you having a liquid cash fund of $100,000 before even looking at you. The $100,000 is for you to survive on in your first 6 months in business (usually the hardest time). This is the main reason why they don’t fail.
You will definitely have to put in the hours if you own your own business. Most business owners generally work 60 + hours per week. If you are passionate about owning your own business then the time factor will not be an issue for you. However if you are hesitant of working more than 40 hours per week then you may need to think about this a little more before going any further.
About the Author:
Rory Singh is a Home Business Development Coach and Professional Marketing Consultant. To learn how to Make More in One Month than Most Make in One Year visit:
Our industry has created more Millionaires than any other Career throughout the US & Canada.
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