Business plan for delivery of goods. How to start a gas station business: writing a business plan, calculating investments, recruiting personnel, registration, forming initial capital, financial and investment plan
Opening your own gas station is economical the right decision for those who want to organize profitable business. Indeed, today this market is still actively being restructured and there is an opportunity to occupy your niche by creating a reliable company. In addition, the number of cars is increasing every day, and vehicles need fuel. This means your business has every chance of becoming profitable. So, how to open a gas station? And how much money will you have to invest in your future business?
A little about business
Let's start with the fact that a gas station is a source of increased danger and to open such a business you will need many permits. In terms of finance, this is most likely the most expensive business, since at the initial stage it will be necessary not only to rent (or buy) a suitable plot of land, but also to build a gas station that will meet the requirements of current legislation (there are certain requirements for placement of gas stations, design of such facilities, as well as sanitary, hygienic and environmental requirements that must be observed). And these are quite serious expenses. In addition, after completion of construction, you will have to obtain permission from the authorized bodies to operate the gas station and organize high-quality security and safety of the station.
How much does it cost to open a gas station for cars? And how long will it take to process the documents? The questions are very timely and very important. Completing the documents required to open a gas station takes approximately 3-6 months, the construction itself takes the same amount, and you will have to invest about 12 million rubles. The exact amount depends on many factors).
But how quickly the initial investment will pay off is the question. On average it takes about five years. So, when investing in a gas station, you need to prepare for the fact that this is a long-term project. True, with proper business management, investments can be returned within three years.
Your own small gas station or franchising?
Today you can open your own small gas station (it will be an autonomous business, just yours), or open a company under the auspices of some well-known brand by purchasing a franchise. At the same time, most experts agree that it is easier to organize a fuel business under the guidance of a reliable and experienced partner, so franchising in the fuel business today is a very common phenomenon. In addition, when you decide to buy a franchise, you will immediately receive all the necessary documentation, business development, a brand, and a ready-made style for the filling station (which, by the way, under the terms of the contract you will have to strictly comply with). Representatives of the parent company will help in the decision organizational issues, and you won’t have to worry about the quality of the fuel. This is understandable, because the owners of the brand protect their good name and will not risk it by supplying low-quality fuel to one of their gas stations.
But if you decide to go on an “autonomous voyage” (open an independent business), then you will have to worry about the quality of your product yourself and develop the style of your refueling. This means that you will have to choose suppliers and bear full responsibility for the quality of the fuel sold, which can be of either good or very low quality.
We should also not forget that most motorists prefer to refuel at gas stations of large oil companies, so-called “branded” gas stations, in order to fill the tank with guaranteed good gasoline. This means that the presence of a well-known brand on the sign can be the key to business profitability.
Registration and organization of business
So, you decided to open a gas station. So, you need to start taking action:
First, you need to draw up a business plan for a gas station, find a suitable site for the station and conclude a lease agreement with the owners.
Then you need to go state registration(you can, but it’s better to register legal entity, for example, which will make it possible to choose a taxation system with VAT - most suppliers prefer to work with those gas stations where).
- Get OKVED codes.
- Prepare a project for the future filling complex and have it approved by Rospotrebnadzor, and then organize construction.
- Develop and agree on the PCP.
- Conclude an agreement for pest control with the relevant company, as well as an agreement for the removal of solid waste.
- Obtain permission from the environmental service and the SES.
- Obtain a license for storing and selling fuel from the Ministry of Energy.
- Conduct workplace certification.
- Conclude an agreement for the supply of fuel.
Site for gas station and station construction
As for a suitable site for a gas station, it should be located on a high-traffic road or where there is active traffic. It is important that there is convenient access for cars.
Once the site has been selected, and the lease and construction documents have been drawn up, you can proceed directly to the construction itself. If you choose franchising, then your partners will help you, and if you are opening an independent business, then it is better to use the services of specialized companies that are engaged in the construction and commissioning of gas stations. They employ specialists who know all the requirements of current legislation. They will carry out the entire complex of construction work, put the facility into operation and receive all the necessary documents.
All this may take from six months to twelve months, but you will be sure that everything was done correctly.
Required equipment
There are many different opinions regarding the equipment needed at a gas station and its quantity. But the minimum set should include:
In addition, it is worth taking care of special software(and, accordingly, a computer), which can help automate the process of dispensing fuel. Using such software, you will not only automatically refuel your vehicle, but also receive fuel from the fuel tanker and generate daily reports. This is important because it will help to almost completely eliminate the notorious “human factor” from the chain.
Well, and, of course, you need to build and equip a premises for the gas station operator, as well as additional buildings where a tire shop, workshop, car wash, store, etc. will be located (this means that you need to equip all the facilities with the necessary furniture, equipment, and tools).
Fuel supplies
Have you bought a franchise? Then you don't have to worry about fuel supply and quality. Your partners will take care of this. But if you run an independent business, then you will have to look for reliable suppliers and organize fuel supplies yourself. Best option– an agreement with an oil depot or processing plant. There you can get fuel at a lower price or negotiate discounts for bulk orders. You can find out the price level on the Internet, and from oil refineries it is better to choose a larger one with a good reputation. So you can count on more or less good quality fuel.
Related services
How to open a gas station? And how to make a business profitable? These questions can be answered by those who have already opened a gas station. The main advice for beginners: do not stop only at selling gasoline, but also offer additional services that will help increase profits and attract customers. About what we're talking about? For example, that at a gas station you can open a tire service or repair shop (especially if the station is located on the highway, away from regular workshops), a store where goods for the road, motor oils and auto chemicals, or a small cafe will be sold. Sometimes it even makes sense to open a small hotel that will be in demand on federal highways, where there is a lot of transit traffic, or a car wash.
Of course, it’s worth thinking about additional services at the planning stage of your future business. Then it will be much easier to realize all your plans. And what’s interesting is that in the process of work it often turns out that the gas station itself serves to attract customers (people still stop by to refuel), and the main income is provided by additional services. So you shouldn’t neglect such important components of your business.
Safety
Safety at a fire-hazardous facility is a very important issue. First, you need to develop all fire safety documentation, equip the premises with a fire alarm and panic button, and the gas station with primary fire extinguishing equipment.
On the territory of the gas station there should be a fire pond or hydrant, boxes with sand and, of course, fire extinguishers.
It is also necessary to take care of the safety of personnel (especially for gas stations that are located far from populated areas): provide the operator with high-quality means of communication, install an alarm button and enter into a service agreement with a security company, whose employees will go to the site if the alarm button is activated . It would also be a good idea to install armored glass and reinforced doors at the facility. These measures will help avoid trouble in the event of an attack on the gas station by criminal elements.
Staff
For normal operation of the gas station you will need:
- technical specialists who will provide refueling of vehicles, inflation of wheels, and provide other repair services;
- manager-cashier (gas station operator, there should be several of them), who will accept money, dispense fuel and lubricants and control order at the station;
- seller (if there is a store at the station)
- control
Of course, depending on what other services you plan to provide at your station, you will need appropriate employees. For example, repairmen or electricians, a store clerk, a barmaid, a car wash operator.
How to open a gas station
The process of opening a gas station is no different from opening a regular gas station. But special attention should be given to the equipment for the station, which must not only be modern and certified, but also tested by specialists of the Ministry of Emergency Situations, which will confirm its safety. In addition, even before the start of construction, it is necessary to discuss with the fire inspectorate all issues related to the layout of the station and agree on the choice land plot with the local administration.
Important points
Having built a modern gas station and become its owner, it is important not to forget that it is an object of increased danger, which will be regularly checked by authorized bodies for compliance with the requirements of existing legislation and regulatory documents. And these authorities will regularly monitor your activities, and if violations are detected, they can not only issue a fine, but also suspend your license. And you will not be able to work until you eliminate the identified deficiencies. So, compliance with the requirements of equipment and operation of fire and explosive objects should be treated very carefully.
Initial Investment
How much does it cost to open a gas station? This question is asked by almost everyone who wants to open their own station. So, as for the initial investment, its size depends on many factors: region, level of gas station, the need for additional buildings, technical equipment of the business, additional services provided by the gas station. But on average the costs at the initial stage will be:
From the calculations it is clear that significant investments will be required to open a gas station. But if the gas station brings in at least 1,000,000 rubles in income every month, the business can be considered profitable.
The article below is a ready-made version of an economically calculated gas station project. All information and calculations are provided by specialists. Therefore, a gas station business plan can be used to draw up individual business planning. This article will also find out how much it costs to open a gas station in Russia and what is needed for this.
Resume
When , the summary is the most important part of the entire main document. Since it contains all the necessary information about the project being developed, its concepts, as well as prospects. All leading experts assure that the further receipt of investments depends on the compiled resume.
- Project goal: “Open a gas station in the city of Chelyabinsk”
- Project objective: “Supplying vehicle owners with various fuels and lubricants”
Project initiator
The decision to launch a gas station was made by having three gas stations at its disposal, in the city of Chelyabinsk and Chelyabinsk region. The initiator also has sufficient experience in this area, since the work of his objects directly brings constant profit, and their work is clearly planned and streamlined. There is also proven and streamlined work with suppliers.
Initial capital
The gas station business plan assumes an initial capital of $61,000, which in turn is distributed among themselves for the purchase of a plot of land, design, construction of the facility, as well as the purchase of everything necessary equipment for the operation of a gas station.
Method of distribution of initial capital across all components:
A business plan for opening a gas station (gas station) from scratch involves financing using the entrepreneur’s personal material investments, as well as by receiving. The process of obtaining a loan for refueling cars from a bank in the amount of $29,486.84 is planned to be completed at nineteen percent per annum for a period of five years. It is also worth concluding an agreement with the bank on differentiated loan repayment.
As the main collateral in the bank, it is worth putting up the purchased land plot and all the technical equipment for the gas station.
Payback
Based on the above information, a business plan for this year’s gas station has been developed in numbers, which also includes a payback plan for the project.
The main effective indicators for the construction of a gas station have the following characteristics:
- Discount rate of eleven percent. At this indicator, the flow of all cash be brought to current value;
- Targeted inflation of ten percent;
- The planned payback period for the gas station is six years. At this point, all funds spent on this project are covered;
- The payback period of the discounted type assumes more than nine years. It is based on the calculation of all inflation processes;
- The net present value is approximately $104.07;
- The internal rate of return is about thirty-seven percent.
Judging by these indications, we can conclude that this project is very... Which also implies a fairly quick payback.
Suppliers
To conclude a more reliable and, most importantly, proven contract, it is necessary to involve an oil plant located in comparative proximity as the main suppliers. This method will not only allow you to obtain high-quality raw materials, but also save significantly.
The price category of the domestic manufacturer is significantly lower than that of other similar enterprises, and there is also enough large selection. We also have our own line of motor oils and gearbox oils. You can engage one of the manufacturers to supply coolants and brake substances.
Construction company and equipment suppliers
It is most profitable to use the services of one of the local contractors with whom you have previously collaborated. Since in this case there is a certain guarantee of quality and reliability. It is best to conclude a contract with a company whose experience exceeds about ten years, and also has completed projects. In this case, one can judge the work of the construction company itself.
To select an equipment supplier, you can involve a Moscow company. Which has extensive experience in supplying equipment to gas stations in all regions of the country.
Products
The products that will be offered to potential customers contain the following main group of products:
- Three brands of gasoline, categories 92, 95, 98;
- Diesel fuel;
- Range of additives and motor oils;
- Coolants;
- Inhibitory substances.
It is worth noting that this assortment is no different from the products offered at other gas stations of the entrepreneur.
Investment plan
The main amount of investments aimed at opening a gas station will be redistributed to the purchase of technical equipment, as well as to construction and installation work. Most of the investment funds will be used to purchase land to locate the station.
A detailed description of expenses is given in this table, the amounts are indicated in dollars, including VAT.
| № | Name of expenses | Cost, dollars | Quantity | Total amount, dollars |
| 1 | Buying land | 9539,86 | 9539,86 | |
| 2 | Carrying out construction work | 28619,58 | 28619,58 | |
| Technical equipment | ||||
| 3 | Fuel dispenser | 2601,78 | 5 | 13008,9 |
| 4 | Gas station control system | 953,99 | 1 | 953,99 |
| 5 | Microprocessor-based pressure equipment | 1127,44 | 1 | 1127,44 |
| 6 | Fuel station | 1647,79 | 1 | 1647,79 |
| 7 | Containers for sweating | 1821,25 | 4 | 7284,98 |
| Trade equipment | ||||
| 8 | Rack | 43,36 | 8 | 346,88 |
| 9 | Cash register equipment | 260,18 | 1 | 260,18 |
| 10 | Sale counter | 607,08 | 1 | 607,08 |
| Interior furniture | ||||
| 11 | Chair | 43,36 | 2 | 86,73 |
The final amount when calculated was: $51,428.52.
Planning investment contributions and tasks
A ready-made gas station business plan also includes the general period of all ongoing activities and launch work. Thus, it is planned that the gas station will begin operations approximately one and a half years from the start of business planning.
Production plan
Structure production plan necessary for detailed description all production processes. The essence is to familiarize the potential investor with all necessary work, equipment that is required for the normal functioning of the business. Thus, it shows that he is able to cope with the organization of the entire production process.
Room
Includes activities for the construction of a building in which personnel will be located. And also on the territory of the gas station there will be a specialized store, which will contain goods necessary for cars, for example, such as various oils, antifreeze liquids and other components.
The building itself will be divided into the following segments:
- The hall is equipped as a trading area; on the territory of this premises there will be a place for the cashier and the products sold will be directly placed;
- A room equipped for a toilet;
- A room adapted for storing additional goods;
- A place where gas station staff can change clothes and leave their personal belongings.
- A room intended to accommodate management personnel is not required in this case. Since the manager occupies an office space in the city and, therefore, from there the solution to various problems related to the business is carried out.
Staff
It should also be emphasized that there is no need to recruit additional management personnel, which means in this case you can significantly save on this expense item.
There will be two gas pumps on the territory of the gas station. And thanks to this, you can service two cars at once. This solution is completely acceptable for this type of gas station business plan and fully justifies the investment made in the business. Since in the future there will be a commensurate ratio between the volume of investment and the revenue received.
IN ready business The decision takes into account the 24-hour operating hours of the gas station, which will also operate on all days, including holidays. This decision is due to the fact that there is an immediate need for a potential client to refuel his vehicle at any time and on any day.
Workflow
The main production activities of the gas station will be carried out according to the standard business scheme below:
- Gasoline will be delivered to the station using a special fuel truck, directly from the oil refinery itself. Next, the delivered gasoline will be poured into special tanks for further storage directly at the gas station itself;
- A potential client stops at a gas pump in his vehicle. Next, the car owner independently maintains his vehicle;
- After which the car owner goes to the station’s cash desk in order to indicate the selected brand of gasoline, as well as how much he will need during refueling. The client also indicates the number of the gas pump, and then the payment itself is made directly;
- Next, the gas station employee knocks out a paid check. Afterwards, the cashier starts the process of pouring gasoline into the car’s tank;
- Upon completion of the process of refueling the vehicle, the client pulls out the pistol, places it back on the pump and frees up the refueling space for the next car owner.
Total cost
The gas station constantly purchases various oils, liquids and fuels for the normal functioning of its business. The gas station purchases the entire range of goods directly from the manufacturer itself. Amount of cost total production, divided into product groups with a direct markup, have the following form.
Marketing plan
It also represents one of the important sections of the gas station business plan. In order to competently draw up a marketing plan, you must first conduct market research and incorporate all the results obtained into your current business project.
Any type of marketing plan includes the following components:
- The process of researching the market and its needs;
- Choosing an appropriate business strategy;
- Investigation of the presence of competition;
- Determination of pricing policy;
- Identification of factors that may influence the pricing strategy;
- Choosing an appropriate marketing strategy.
Based on the above points, we will carry out marketing planning for a gas station, which will be located in the Chelyabinsk region.
Presence of competition
It is necessary to keep in mind that this area of business has quite a lot of competition. Therefore, we can safely assure that it is practically impossible for a young and inexperienced businessman to enter this business.
Since this market is also quite crowded with such large producers as Lukoil, Rosneft, Gazprom, as well as small, but with stable operation, various established networks of gas stations.
At this stage, it is possible to judge the full occupancy of all profitable places calculated by gas stations. However, the need to increase these gas stations is constantly increasing, since the immediate fleet of cars itself is constantly replenished. And this, in turn, leads to the fact that the existing networks of gas stations increase their numbers. Therefore, there is no need to classify this project as economically unprofitable.
Selecting a location
You need to give your preference to land plots located at the exit from the city, on highways with a large flow of cars. It is especially important that the place is located directly in an industrial zone. And upon completion of construction work, this object will be very clearly visible, both at night and during the day. And this in turn will attract additional customers.
Range of products sold
The list of all goods sold will be quite standard, as for other gas stations. In the very first rows of products there will be brands of gasoline, and then car owners, if necessary, can purchase essential oils, machine fluids and other parts.
The price category for the products offered will be comparable to the cost at all other gas stations located in the city. But the price of the offered goods should be reduced by about fifty kopecks.
The need to reduce the price category is that the consumer is more likely to give preference to large gas stations directly from the oil refineries themselves. And even if the difference is minimal, the buyer will give preference to lower prices. But it is also necessary to provide the products being sold in compliance with all standards of quality and reliability, otherwise even reduced prices will not attract the client.
The table below will provide a list of the full range of necessary goods for a gas station, with a price category, as well as costs and markups.
| № | Name of product group | Product cost calculated in dollars per liter | Markup applied as a percentage | Total cost of goods in dollars per liter | Earned sales shares |
| 1 | Gasoline brands | 0,62 | 16% | 0,75 | 73% |
| 2 | Diesel fuel brands | 0,61 | 15% | 0,69 | 25% |
| 3 | Type of oils | 2,69 | 42% | 3,82 | 5% |
| 4 | Various liquids | 0,62 | 16% | 0,75 | 7% |
| Total: | 4,54 | 89 | 6 | 110% |
Sales volume
If we compare the list of other goods, then the need for gasoline is constantly available, regardless of the time of year and location. Therefore, when making calculations in this business project, seasonal factors in the sale of goods will not be considered, since this makes no sense. But it is worth considering that a new place does not immediately attract a sufficiently large number of potential customers, so it is worth calculating the schedule for the planned time when the business reaches the necessary sales of goods.
| № | Calendar month | Percentage of maximum product sales |
| 1 | First month | 25 % |
| 2 | Second month | 35 % |
| 3 | Third month | 45 % |
| 4 | Fourth month | 55 % |
| 5 | Fifth month | 65 % |
| 6 | Sixth month | 75 % |
| 7 | Seventh month | 80 % |
| 8 | Eighth month | 85 % |
| 9 | Ninth month | 90 % |
| 10 | Tenth month | 95 % |
| 11 | Eleventh month | 95 % |
| 12 | Twelfth month | 100 % |
Based on the table presented above, we can conclude that the gas station will begin to reach its maximum volume of product sales only after one calendar year.
And after the gas station reaches the maximum volume of sales of its own goods, according to the developed business project, the average bill size is planned to be one thousand rubles. Also in the plan is a daily refueling cost of more than six hundred vehicles, this is about twenty cars per working hour.
Advertising
The campaign itself will be held in the following categories:
- Order a high stand on which all prices and products of the gas station will be highlighted.
- Design of a gas station in the colors that are also available at other gas stations of this network.
- Order an attention-grabbing sign.
- Festive decoration in the first working month of the gas station.
- Ordering advertising leaflets that will be distributed to customers at other gas stations in the network in order to inform about the newly opened facility.
- Ordering eye-catching signs and stands, which will also be located at other stations of the network. And also their goal will be to directly inform the client about the new object.
- To attract customers, as well as for their entertainment, you will need to order a special height figure.
Organizational plan
Due to the fact that this entrepreneur already has a whole network of similar facilities, therefore, this station will also be registered in his name. The limited liability company created by this entrepreneur will also include this object. The existing legal entity will also handle the registration of the acquired land and the loan taken.
Staffing for gas stations
For detailed information about the full staff of employees, as well as their salaries and bonuses, are presented in the table below:
| № | Job title | Number of employees | Full salary | Premium accruals |
| 1 | Station owner | 1 | 0,0 | 25% of the profit received |
| 2 | Salesman-cashier | 4 | 16 000 | 4% of the proceeds received |
| 3 | Utility room worker | 4 | 12 000 | About one hundred percent of the basic salary |
| 4 | Accountant | 1 | 6 000 | |
| Total: | 10 | 32 000 |
In this case, the accountant will be an existing employee in the gas station network. Payment for the gas station accountant will be made through an additional charge for the new facility.
It is also worth noting that it is advisable to add the position of a station security guard to the staff. This in turn guarantees the safety of personnel and the facility itself. When hiring a security guard, you can also use specialized security companies.
Financial plan
In order to more accurately draw up the existing payback model for a given gas station, it is necessary to be guided by the following assumptions when making calculations:
- The existing degree of inflation in the general economic situation, which can be up to ten percent;
- Availability of a discounted rate, which is also about eleven percent;
- Existing tax system OSNO;
- Invoiced tax on profit received, which is about twenty percent;
- Available income tax individuals, which is also about thirteen percent;
- The invoiced value added tax is about eighteen percent;
- Various contributions to social spheres, which can amount to about forty percent.
Payback
Based on the above calculations and information, a more detailed description of the payback period for a gas station business plan is compiled.
- The approximate time required for model construction, which can be about ten years;
- Indicator cash flows, which are adjusted at the current cost in an eleven percent ratio, according to the current business plan;
- The time period during which the initial capital spent is fully covered can be about seven years;
- The discounted payback period of a business project, which includes inflation and investment returns, can be about ten years;
- The net present value of a gas station could be about $104,071.2;
- And the internal rate of return can be about forty percent.
Break-even indicator
Or as I also call it the break-even point. This indicator is the value of the total volume of sales made; this can be expressed both in quantitative terms and in material terms. With this indicator, the gas station operates in a zero ratio. That is, if a gas station increases the volume of products sold, it will make a profit, but if, on the contrary, it decreases, it will make a loss.
In this model construction, the breakeven point would be approximately $8672.6.
If we take into account that in this developed business plan it is planned to receive a monthly revenue of about six hundred thousand rubles, taking into account the value added tax and the constructed schedule of maximum sales, then the gas station will receive its first profit only in the seventh month of operation.
Sustainability Research
In order to obtain more detailed information about what points and how much can affect the overall profit and activity of a gas station, the table below has been constructed, which includes all changes in the net present value indicator, which directly depends on changes in the cost of gasoline prices, diesel fuel and all other components of the product with mandatory accounting wages employees.
| № | Name of indicators | Minus 20% | Minus 10% | Zero threshold | Plus 10% | Plus 20% |
| 1 | Selling price | -2 700 | - 2 200 | 8 400 | 14 600 | 18 200 |
| 2 | Price when purchasing goods | 4300 | 6 900 | 8 400 | 11 000 | 12 500 |
| 3 | Available expenses | 7 200 | 8 000 | 8 400 | 9 300 | 10 200 |
Possible risks
You need to include in the gas station business plan and possible risks, which may have an economic, political, social or production side.
Technological
This type includes a significant decrease in the overall demand for fuel and lubricants. This may occur if innovative technologies will introduce engines for vehicles that do not require consumption of either diesel fuel or gasoline. Also, technological risk may be facilitated by the wide spread of gas car cylinders, which will replace the consumption of the same gasoline.
But, apparently, no radically improved engine models are expected to be released in the near future. Therefore, you should not spend a lot of time predicting risks on this point. Also, one should not pay much attention to the transition of vehicles to gas, since in this case there will be a sharp rise in its price, and this moment will greatly slow down the gasification of cars.
Political
The gasoline sales industry is regulated exclusively by the state apparatus. Therefore, based on this, under various political circumstances that may lead to restrictions on gasoline, it is possible that a certain amount of profit will be lost. Since the owner of a gas station will be forced to lower prices for his own goods.
Economic
If there is a sharp decline in full-fledged economic growth, this in turn will greatly impede the receipt of the planned profit from the gas station. And this will directly affect the payment of credit accounts and the emergence of various controversial issues, which will be decided directly in court. And all these circumstances will negatively affect the development of this species. entrepreneurial activity.
Currently, diesel fuel is used in many areas and especially in the economy. Its popularity is due to its low price compared to other types of fuel. The reason for its relatively low cost is the direct distillation from oil directly into the finished product, without any additional and expensive manipulations. Apply this type fuel can be used in almost any of the various types of engines.
Opening a personal gas station is not necessary in order to sell this type of fuel. You can simply arrange for it to be delivered to the client. This type of business is especially attractive to beginners. A start-up, young organization, thanks to well-structured logistics and a prepared client base, has every chance of stable development, offering its goods on personal terms plus at a more favorable price than its competitors and, moreover, with organized delivery. You can purchase diesel fuel in bulk from GC Trassa at affordable price. On the website trassagk.ru you will find more detailed information about the company’s services.
The organization will be able to sell all types and brands of diesel fuel. Moreover, this fact is simplified by the fact that there are only two types of it. Fuel of this type is divided only into summer and winter. Moreover, the latter of them is much more expensive, due to the high costs of its production.
The key to the success of this type of business is its last point - delivery, and of course the correct organization of sales. For a good payback and, as a result, profitability of this type of business, sales volumes of at least two thousand liters per day are required, preferably produced around the clock. Prices should be equal to the market average in order to be accessible to the average client. To ensure a good start, a great step would be to hold a “diesel fuel in bulk” promotion at an attractive price. The price for this promotion should really be tempting, but not be detrimental to your business.
The equipment that ensures the delivery of the product to the client must be adapted for Russian roads and, in particular, for their absence at all. After all, the client may come from some out-of-the-way place. Fuel trucks must be equipped with meters, pumps and hoses. Operating personnel must be familiar with safety precautions for working with petroleum products.
You can start looking for clients among transport companies in the form of taxi fleets, bus fleets, and also offering your services to the gas stations themselves.
Vladimir Khomutko
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What are the stages to start a business selling petroleum products?
It seems to many of us that any business based on oil and petroleum products is the lot of oligarchs and multimillionaires. However, this is not entirely true. The extraction of petroleum products does indeed involve large capital investments, but trade in final petroleum products is quite accessible to “mere mortals”. Next, we will try to figure out how you can organize your own business selling petroleum products.
To organize your own business in this area, you do not need to have a lot of money or connections in the management of large oil companies. Correct preliminary calculations and knowledge of the realities of the local petroleum products market can make you a quite successful small and then, possibly, a large trader.
Let’s immediately make a reservation that initial capital will still be required, but its volume will not be prohibitive.
Typically, most entrepreneurs start with wholesale trade. The initial goal of such a business is local consumers, and then, as the regional market is developed, it is possible to enter the national and even international market (at least within the CIS countries).
The essence of wholesale trade in petroleum products is the purchase of large quantities of goods and their subsequent sale in small wholesale with an appropriate markup. Many novice entrepreneurs are frightened by the issues of creating the appropriate infrastructure: where to store the purchased goods, how to transport them, and so on. So, at the first stage, these issues can be resolved quite simply without significant capital investments. It is not at all necessary to have your own oil storage facility. Temporary storage services for petroleum products are provided by almost all oil refineries and large oil depots that sell them.
True, there are limitations on storage periods, since petroleum products are constantly produced, and storage facilities are required for new batches of products. Therefore, the trader must plan sales in advance in order to meet the deadlines provided for storage.
Delivery to the end consumer at the first stage of business development is carried out using fuel trucks. Buying them outright is not advisable, since there is always the opportunity to rent them.
Of course, these expenses fall on the cost of products sold, but it makes it possible to minimize the initial investment.
The most important thing in this type of business activity is to first find buyers. Purchasing petroleum products in bulk without a specific outlet is an extremely risky undertaking. Only by taking care of sales in advance can you count on good profitability.
Any new business begins with drawing up a business plan. Moreover, the more time you devote to working it out, the greater the chances of success of your future enterprise. The business plan should take into account such expense items as the cost of purchasing a wholesale batch of goods, the cost of renting fuel tankers, the initial costs of officially registering the business with tax and other authorities, staff salaries, and so on. The revenue part consists of the estimated amount of funds received from the sale of petroleum products. The second section of the business plan is extremely important and should be based on data about actual, not potential buyers.
If you do not have sufficient initial capital, or according to your business plan there is not enough capital, you can always contact the bank. A well-drafted business plan plays perhaps the most important role in obtaining a loan. However, remember - credit organizations They very strictly monitor your fulfillment of your debt obligations, and they are not interested in the problems of your business. Be prepared for this.
Many will say: “In this market everything has long been divided between the major players!” This is partly true, but your trump card is mobility. Large trading organizations tend to respond more slowly to changes in the market than smaller ones. This allows the latter to maneuver the price and win over their customers by reducing the percentage of profitability. In addition, the larger the trader, the less interested he is in the small buyer. And for your enterprise this is exactly what you need.
Another way to reduce costs with an eye to future business development is to purchase equipment on lease.
Leasing differs from renting in that over time the equipment becomes your property, which is very important for a growing enterprise. Having developed a permanent base of reliable clients in your region, you can move on to the next stage of enterprise development.
If your enterprise selling petroleum products has become successful and is cramped within the region, it’s time to enter other markets.
The main problems that can prevent this are the following:
- the share of transportation costs increases due to an increase in transportation distance;
- for the same reason, delivery times to the end consumer increase;
- In each region there is an established “supplier-consumer” system, which implies fierce competition for its market share.
The same applies to the markets of the CIS countries. However, when entering them, there is also its own specific risk. Often such contracts involve payment upon receipt of petroleum products at the buyer’s warehouse. Since the distance is quite significant, and so is the delivery time, the trader runs the risk that the price will change during delivery. It is worth saying here that such fluctuations can be both downward and upward, therefore, in one case, the supplier loses, in the other, he wins, and with constant supplies, profitability, as a rule, remains at the planned average level.
As mentioned above, transportation costs increase significantly, which leads to a decrease in profits, since it is not always possible to increase the final price of products and compensate for excess costs. However, the expansion of the customer base leads to an increase in the volume of petroleum products sold, which more than compensates for losses incurred and, more importantly, makes the business more sustainable by reducing dependence on each specific consumer.
Well, the pinnacle of growth for an oil products trader is the construction of his own oil refinery.
Of course, this is already a huge investment that only very successful entrepreneurs can afford. The construction of the refinery is planned in advance. It is desirable that its location be in close proximity to the largest end consumers. Thus, the share of the transport component in costs is significantly reduced.
By accepting all the calculations given in this business plan, the founder assumes full responsibility for their compliance.
Project Summary
A gas station business plan with calculations is aimed at the practical implementation of the idea of opening a gas station with a two-year turnover. At the same time, the project provides for solving the following social and economic problems:
- Creation of new jobs at the opening enterprise.
- Meeting the demand of motorists for fuel and other consumer goods.
- Making profit.
The construction of the gas station complex is financed using a commercial bank loan in the amount of 45 million rubles. Interest payments and loan repayment begin from the 1st month from the start of the project. This condition greatly simplifies the understanding of flow control techniques financial resources and discounting calculation methods.
Borrowed investments come from the bank under interest rate at 17.5%. It is possible to revise the rate downward in accordance with current trends in the banking market for financial services.
During the investment period, the total amount of accrued interest to the lender is 3 million 066 thousand rubles.
Payback period:
- From the start of work on the project - no more than 4 months.
- Taking into account discounting – 2 years.
Project life cycle under existing business conditions and economic situation in the country is 2 years. During this time the total economic effect from its implementation will amount to 208 million 339 thousand 791.2 rubles.
Main stages
The project implementation deadlines given in the business plan, as well as other information on its implementation, are also relevant for force majeure circumstances.
Brief market analysis
The domestic automobile fuel market is at the stage of gradual saturation. In such conditions, the main thing becomes not so much its quantitative characteristics as its qualitative ones.
According to experts, the discovery successful business in this industry is possible only if a vertically integrated structure is built: refinery - oil depot - gas station. Delivery of fuel directly from oil refineries is not always profitable due to the remoteness of the refineries. The most acceptable option is to sign an agreement with a nearby oil depot for periodic deliveries of fuel in volumes that ensure the continuous operation of the gas station in accordance with the stated schedule.
Currently, after the crisis of 2008-2010, the country is actively working to modernize oil refineries, which will saturate the market with high-octane gasoline. All the largest oil producing companies in Russia are involved in this process, which has made it possible to increase revenue from fuel sales by 30% or more over the past 5 years, depending on the region.
Thus, the supply of gas stations with gasoline and diesel fuel is no longer a factor constraining the development of the gas station network.
Object Summary
The number of gas stations being built by the most important players in the fuel market is constantly increasing. Thus, Gazpromneft alone increased the number of its gas stations built in Russia and the CIS countries to almost one and a half thousand.
A gas station is a complex of facilities integrated within a single business structure created to provide services for refueling cars. The list of categories of consumers is very wide, they include all car enthusiasts, employees of official and public transport, in a word - all car owners.
The most important activities for the creation of a gas station are the search for the location of the gas station, the construction of its infrastructure, and the selection of personnel.
In addition to the gas station itself, the project involves the construction of:
- Auto parts and automotive fluids store.
- Vehicle washing station.
- Tire service point.
- A retail facility for the sale of related goods and food products (its premises include premises for the work of gas station cashiers and operators).
The buildings being constructed must be provided with modern engineering systems, supply and exhaust ventilation, automated equipment control systems, power supply, fire protection and alarm systems, air conditioning and heating.
For the smooth operation of gas stations, it is necessary to ensure the ability to receive and store directly on site at least 8 tons of petroleum products for daily sales.
Administration Features
Opening a gas station in Russia is a rather troublesome undertaking from a business administration point of view. The state has established strict standards for the construction of facilities and complex procedures for approval and obtaining permits. For this reason, there is practically no opportunity in the country to create a container gas station, which can also bring significant profits, especially in cramped urban areas. Current SNiPs allow the construction of gas station facilities no closer than 30 meters from houses.
Administration of the creation of a gas station also includes the need to obtain various types of permits and carry out many approvals for the allocation of land, construction of infrastructure, and laying communications.
Recruitment
Personnel is one of the main problems that will have to be solved in the process of creating an enterprise. This is especially important for gas stations located far from populated areas. In accordance with established rules, gas station employees must have special certificates indicating vocational training. Therefore, the selection of personnel for the station is carried out with the condition that employees are trained at special courses organized by the oil inspectorate.
Cashiers, fuel attendants and drivers must complete the training course. On average, the cost of such courses is about 2,000 rubles per employee. After completing the training, specialists are certified.
The selection of candidates for employment is carried out on a competitive basis. It will also apply to employees representing other areas of activity. The duration of the competition is 1 month.
The salary fund for specialists is reflected in the table of project expenses.
In some cases, it will be necessary to hire security guards or enter into an agreement for the security of the facility with a private security company. The average cost of this service is:
- 1500 rub. per month (if the object is located outside the populated area).
- 7500 rub. per month (if the gas station is located in the city).
The number of operators is calculated based on the planned volumes of sales of services and the operating mode of the enterprise.
Marketing and advertising
As the number of gas stations increases, the number of potential fuel consumers grows slowly. This gives rise to increasing competition in the market and, in turn, requires increasingly significant investments in effective marketing and advertising activities.
To do this, the business plan under consideration provides for the need to create a belief among consumers that at this station they can purchase fuel directly from the manufacturer. Advertising costs are used to carry out the following activities:
- Publication of articles in specialized and local publications.
- Development of your own website.
- Advertising in local media.
- Advertising on television and radio.
- Carrying out promotions and developing special offers for certain categories of consumers.
According to experts, a service acquires significant status when the number of its users exceeds 1% of the economically active population. Thus, within even a medium-sized city, a gas station may well become a profitable facility and perform the functions assigned to it.
It should also be taken into account that among some segments of the population there continues to be an opinion about the criminal nature of this business. Therefore, all marketing efforts should be directed toward creating a positive image of the enterprise and improving the quality of customer service.
List of required equipment
To effectively perform your tasks and ensure uninterrupted functioning of the gas station, you must purchase the following equipment:
- Fuel and gas dispensers.
- A set of equipment for managing gas station systems.
- Pressure measurement system.
- Modular fuel filling station.
- Gas filling stations (NGS).
- A fuel tanker based on a KamAZ vehicle with a tank volume of 10.7 cubic meters. m.
The exact number of pieces of equipment is indicated in the table of planned project costs.
The general equipment of a gas station should contribute to increased productivity in the provision of services, fully comply with the requirements in the field of safety, help improve the reputation of the enterprise and compensate for the investments provided for in this business plan.
Financial plan
The financial plan of the enterprise is calculated based on the fact that during 2017 retail prices for various types motor fuel prices in the country will increase by 8-12% compared to last year and reach a level of 41.5-43 rubles per liter.
The financial year for the provision of accounting and tax reporting begins in January. Main types of taxation:
| Tax name | Tax base used | Payment period | Bid |
| By the amount of profit | Profit amount | m-c | 20% |
| VAT | Value added | m-c | 18% |
| For property | The amount of the cost of the acquired property | according to schedule | 22% |
| Approachable | Payroll | m-c | 13% |
| Social payments | Payroll | m-c | 34% |
Given the current trends in the domestic automotive fuel market, the projected income structure is as follows:
| Period | Services (sales of motor fuel by type) | Quantity | Revenue |
| AI-95 | 55 | 1 million 385 thousand 918 rubles. | |
| 1-12 mc (investment period) | AI-92 | 291 | 6 million 800 thousand 320 rub. |
| 1-12 mc (investment period) | AI-80 | 290 | 5 million 914 thousand 318 rubles. |
| 1-12 mc (investment period) |
DT | 750 | 13 million 634 thousand 475 rub. |
| 13 mc (period of operation) |
AI-95 | 60 | 1 million 582 thousand 560 rub. |
| AI-92 | 380 | 9 million 295 thousand 104 rubles. | |
| 13-24 mc (period of operation) | AI-80 | 380 | 8 million 111 thousand 936 rubles. |
| 14-24 mc (period of operation) | DT | 1100 | 20 million 931 thousand 680 rubles. |
The fuel price per 1 liter is based on the average forecast for 2017, which is based on:
- Analysis of demand for specific types of fuel.
- Averaged data on the number of services provided at gas stations.
- Provision of services by gas station enterprises.
- Generalized data on the state of the domestic market for gas station services.
The calculations take into account the minimum profitability of the enterprise's services.
Potential Risks
The most significant risks in this business are:
- The complexity of project administration, especially at the stage of opening an enterprise.
- High level of competition.
- The need to obtain large amounts of borrowed funds.
- Initially, low qualifications of personnel, the need for training.
Conclusions
The given example of a gas station business plan shows that opening a gas station is a highly profitable activity. The profitability of an enterprise is largely determined by a high degree of potential risks of an objective and subjective nature. Business development prospects are determined by the location of the gas station, the level of vehicle traffic, effective enterprise management and competent marketing policy.
At the initial stage of project implementation, the founder will be required to significantly concentrate his intellectual and psychological potential on solving complex problems in organizing the enterprise.