Even when the economy is at its worst, buying a Shell gas station can still be a wise investment. Gasoline is almost recession proof and people will always need to buy it. If the gas station that you are considering buying offers other products and services in addition to gas, that is a definite plus for you, the buyer. Look into the best options for you, which could be either a straight sale or buying a franchise, in this lucrative business venture.
Finding the right gas station
Find a Shell gas station that is available in an area in which you wish to operate a business. Do this by looking in the newspaper and online for gas stations that are for sale. You can also contact a business broker or a Realtor.
Set up an appointment with prospects in which you are interested. You will want to look over the gas station and the property that it sits on, view the location, determine if it is easily accessible to customers, and find out the reason it is for sale. Also, ask to see the financial statements for the business. Check out if this gas station offers other amenities such as a convenience store or any other service that can generate a revenue stream in addition to just gas.
Ask about franchising this gas station. Find out what the terms of a franchising agreement are and what the franchising fees are. Pay special attention to the brand names of gas that you are allowed to sell under these agreements.
Look over all of the existing permits and licenses that the business has. Then, check with the state in which you are buying to see if you will be able to get licensing and how much everything costs.
Closing the deal
Prepare to make an offer. Once you have made your offer you will wait for it to be accepted, rejected, or for a counter offer to be made. Be ready to handle any of these outcomes. Always plan to negotiate. Barter back and forth, if necessary, until you find a price with which you are comfortable.
Prepare a business plan and make sure you have covered everything. Hire someone who knows about the industry to assist in writing this or have them write it for you.
Approach your lender with your business plan and ask for financing. Once approved, prepare to close the deal.
Consider hiring an attorney to oversee the purchase and the contracts.
Prepare different financing options in the event that your lender will not approve financing.
- Consider hiring an attorney to oversee the purchase and the contracts.
- Prepare different financing options in the event that your lender will not approve financing.
Cheryl Hinneburg has been a freelance writer for five years. In addition to the regular clients that she works for, Hinneburg also writes regularly for Demand Studios and Associated Content, and is a provider for eLance. She is an award-winning poet and is currently working on a Master of Science with a certificate in substance abuse counseling at Capella University.