General News | by guestauthor
Useful Considerations On Purchasing A Gas Station In Our Economy
Back in the good old days, people used to flock to the corner store as it was the centerpiece of a community. Today things are very different, especially as we rely on our vehicle to get us almost everywhere and we’re far more likely to gravitate to the gas station and convenience store, than anywhere else. As it seems that we are fueling our vehicles more often than ever before, it is easy to see why an entrepreneur would consider a gas station for sale as being a favorable investment.
If you’re in the mood to buy a business, a gas station could be seen as a great investment. We all need gasoline and can be tempted into buying all kinds of other goodies in the attached store as we are on the property and can “kill two birds with one stone.” The would-be buyer could be forgiven for salivating at the opportunity, but there is a lot to check into first.
Expect the unexpected. This holds true when you purchase any kind of business, but especially when it comes to a gas station. There are some particularly heavy levels of regulation associated with this business, as gasoline is in controlled status. Of course, environmentalists are always on the case, here and you will need to make sure that you have all your answers ready before you start.
For example, do not buy gas station business rights until you have checked into the condition of the storage tanks and surrounding soil. Older, steel-based tanks are particularly prone to wear and leakage and if this is found after you take over, get ready for a lot of excavation both in the soil and within your bank balance. There are also specific regulations for double-walled tanks that must be installed by certain dates and here again, it is a key point to investigate. Be particularly wary about an older location. The new establishments will almost certainly have the most current specification, double skinned tanks already installed.
If you are certain that all those safety and environmental stumbling blocks have been overcome, take a trip to the local planning department and see what’s in your future. It may be advantageous to have a business in an area that is in the middle of a population boom, but expect to see plans for road construction and therefore potential disruption, as well. Plans may be one thing and might never come to fruition, but you certainly need to be aware of what might happen, so that you can plan and make your decisions accordingly. Remember, if people who had been used to coming into your gas station are forced to go elsewhere, even for a short period of time due to road construction, they may form a habit which now excludes your business and favors another.
While you may be interested in the business habits of the seller and the local conditions which are applicable, make sure that you take a good look at the franchisor as well. Get to know the industry position of the oil company whose name is on the billboard and don’t assume that their interests in the property will continue, come what may. If we have learned anything from the recent economy, we know that we cannot rely on the future status of any organization.
Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream to buy a business.
