Gas Station Business Plan
If you want to start a new gas station business or expand your current gas station, you need a business plan.
The following gas station business plan template gives you the key elements to include in a winning business plan for all types of gas stations including a petrol station, automotive services, filling stations and other gas stations.
Gas Station Business Plan Example
I. Executive Summary
Business Overview
[Company name] is a gas station located in [Location]. We offer refined petroleum products and lubricants for retail and commercial channels, and bitumen used in asphalt. Also engaged in selling and marketing liquefied petroleum gas (LPG) and other petroleum products, we are committed to better, safer, cleaner, more efficient, more innovative and more accessible energy. by positive economic, social and environmental benefits. Our top priority is to support the operation of oil depots, storage, and transport services within the [Location] area.
Products Served
[Company Name]’s products and services are classified under the following categories:
- Biodiesel
- Gasoline
- Diesel
- Lubricants
- Engine and Transmission Oils
- Coolant
- Brake & Engine Fluids
- Liquified Petroleum Gas
- Snacks and Beverages
Customer Focus
[Company Name] will serve the residents of [company location] and the immediate surrounding areas as well as those who work in [company location]. The area we serve is populated mostly by the middle class; as a result, they tend to have vehicles and thus are key to our business.
Management Team
[Company Name] is led by [Founder’s Name] who has been in the gas station business for 20 years. He has worked extensively at major gas stations for the past 20 years. He began his career in [19xx] when he received a certification from [School] and began work at [major chain], where he worked for X years.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The Company will fill a need for additional gas station options in the growing community we are entering.
- Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
- The management team has a track record of success in the gas station business.
Financial Highlights
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $260,000 of debt capital to launch its gas station. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $140,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive
Topline projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
| Number of locations | 1 | 1 | 1 | 1 | 1 |
| Average customers/day | 50 | 80 | 120 | 200 | 275 |
II. Company Overview
Who is [Company Name]?
[Company name] is engaged in selling and marketing gasoline and diesel products. We are committed to better, safer, cleaner, more efficient, more innovative and more accessible energy. We offer refined petroleum products and lubricants for retail and commercial channels.
We will also have a minimart that offers a selection of snacks, beverages and automotive products.
[Company Name]’s History
For [x] years, [Company Name] has been [City]’s leading companies for crude oil and gas production. It was in [year] when [Founder’s name] first established his first gas station in [Location]. He decided to open up a small gas station after seeing that there is no existing gas station within 5 miles from his location. It quickly gathered patrons until it expanded its operations. Today, [Company name] has [x] stations in [Location].
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo and website
- Determined equipment and supply requirements
- Began recruiting key employees with experience
- Surveyed other possible locations for expansion
The business is currently being run by [Founder’s Name]’s son, [Name]. [Name]’s focus for the company is to bring value to every stakeholder; from our employees, business partners, franchisees to the community and the environment.
[Company Name]’s Products/Services
[Company Name]’s products and services are classified under the following categories:
- Biodiesel
- Gasoline
- Diesel
- Lubricants
- Engine and Transmission Oils
- Coolant
- Brake & Engine Fluids
- Liquified Petroleum Gas
- Snacks and Beverages
III. Industry Analysis
The Gas Stations industry has experienced growth over the past five years. Since the majority of the industry’s business is generated from consumers rather than commercial businesses, consumer spending plays a major role in determining industry performance. Consumer spending has increased over the five years, boosting spending.
Driving rates are expected to increase and as people drive more, they will require more fuel for their cars. Coupled with low oil prices, this trend has also encouraged consumers to trade up to premium grades of vehicle fuel, facilitating industry profit growth.
Moreover, the decline in the world price of crude oil has enabled operators to lower purchase costs without passing on all of the savings to consumers, boosting profit. With business owners relying more on convenience store sales, as in-store products are more profitable than gasoline, the average industry profit margin has reached historically high levels over the past five years.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will primarily serve people residing in [Location] and the immediately surrounding areas in a 10 mile radius. We will also serve tourists traveling through by vehicle. The area we serve is populated mostly by families that lead busy lifestyles; as a result, they have their own cars and the need to fuel and maintain it.
The precise demographics of the town in which our location resides is as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Residents: The area in which the Company will operate has a significant population of car owners.
- Local businesses: There are many local businesses with a number of employees that drive to work.
- Tourists: Road trippers need fill up their gas tanks while driving through town.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 5 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Gas Plaza
Gas Plaza is a family-owned gas station and convenience store with a food court, play area, shower station, and gift shop. The plaza houses a fudge shop, a coffee shop, and a convenience store which offers fresh grab-and-go foods such as doughnuts, produce, and rotisserie chicken, as well as frozen meats.
Local Pump
Local Pump owns and operates about a half a dozen gas stations throughout the state.
In addition to gas, each location offers deli-prepared foods, jerky, nuts, and tobacco products. It also sells tobacco products, automotive goods, and other nonfood items, such as ammunition and photo supplies. In recent years, the company has developed mobile-based applications and location finders to cater to its mobile customer base.
Gas Ranger
Established in 1984, Gas Ranger is a privately held chain of gas stations, convenience stores, and truck stops. The company’s truck stops are co-branded with XYZ diesel in order to attract freight customers. Gas Ranger operates approximately 70 locations throughout the U.S.
Each location offers beer, cigarettes, fountain drinks, coffee, snacks, and other items craved by late night shoppers and daytime commuters alike. Corporate customers can take advantage of their fleet fueling service.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time manager, on site to help customers with their needs.
- Management: [Founder’s Name] has been extremely successful working in the gas station business and will be able to use his previous experience to assure clients of the care that [Company Name] will take to do the job right.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influencers.
VI. Marketing Plan
The [Company Name] Brand
The [Company name] brand will focus on the Company’s unique value proposition:
- Client-focused gas and auto services, where the Company’s interests are aligned with the customer
- Service built on long-term relationships and personal attention
- Premium products and services at affordable prices
Promotions Strategy
Billboards
[Company name] will secure a billboard in the area that captures the attention of residents and local businesses. The billboard will draw attention to the new business and its service offering.
Referrals
[Company name] understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
Commute Advertising
We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the gas station.
Pre-Opening Events
Before opening the store, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]will keep its gas prices competitive with other stations in a thirty mile radius of the station in order to attract commuters. Discount and coupons will be given to loyal customers and customers who will buy more to encourage purchases.
VII. Operations Plan
Functional Roles
[Company name] will be open 24/7 so there is an assurance that the clients will be served whenever they arrive at the station.
The Company intends to employ [X] mechanics and [A] cashiers during peak hours and [Y] mechanics and [B] cashiers during off-peak hours. [Company name] anticipates having [Z] customers on a weekly basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles.
Service Functions
- Mechanic
- Gas pump assistance
- Maintenance personnel
- Customer service/cash register functions
Administrative Functions
- General & administrative functions including marketing, bookkeeping, etc.
- Sourcing products and taking inventory for the minimart
Milestones
[Company name]’s long term goal is to become the dominant provider of gas and related services and products in the [city] area. The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name]store |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name] who has been in the gas station business for 20 years. While [Founder] has never run a gas station himself, he has extensive knowledge on the fuel industry. He began his career in [19xx] when he received a certification from [School] and began work at [major chain], where he worked for X years.
[Founder] graduated from the University of ABC where he majored in Communications.
[Other person’s name] will serve as the assistant. He/she has extensive experience in operations and accounting.
Hiring Plan
[Founder] will serve as the store manager. In order to launch our gas station, we need to hire the following personnel:
- Mechanic
- Gas pump assistance
- Maintenance personnel
- Customer service/cash register functions
- Administrative assistant
- Product and Inventory manager
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the sale of gas and related products.
The major cost drivers for the company’s operation will consist of:
- Cost of Fuel
- Salaries
- Lease
Moreover, ongoing marketing expenditures and cost of good sold expenses are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $260,000 of debt capital to launch its gas station. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $140,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model.
| Number of customers per day | |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease ( per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
