Fill Station Articles
to Buy a Petrol Station in South Africa
the petrol price keeps rising, fill stations or better known
as petrol stations, still make enormous profits. The South
African public is used to driving to their destinations
and thus need petrol to get there; no matter what the cost
is! If you want to buy a petrol station in South Africa,
you need to follow a guideline that is slightly different
from the one that you will use to shop for a retail business
in South Africa.
to locate the fill stations for sale
the fill stations in the suburb you want to operate
in or province for instance, Gauteng and the city Pretoria.
You can make use of business brokers to find suitable businesses
or you can enquire from Realtors that specialize in fuel
station franchises for sale. There are several places on
the Internet where you search for such. As is the case with
any commercial property you need to view the business, examine
the financial records, enquire about the reasons for selling,
and about the traffic flow in the area.
for additional services
for a service station that has other services such as a
convenience store or quick shop, carwash facility, tyre
repair services, autobank, and sells cellphone cards, since
these services not only bring additional customers, but
also ensure higher profits that are still market related
for the petrol industry.
next step is to examine the franchise royalty fees, penalty
clauses, support, training, and requirements. You, as
the business owner, will be marketing and offering a certain
name brand of petrol related products, which are subject
to the rules and regulations of the franchisor. It is
sometimes called brand name association. You don't need
to sell the present brand, but if you want to change brand
names, it might become very expensive. Consult with a
business broker on the procedures before you change brand
franchisor will conduct an interview with you to establish
whether you qualify as a franchisee or need additional
funding or training.
safeguard your investment, you should make the transferring
of the contract a precondition in the offer to purchase
the fill station.
sure that all licenses, agreements, and permissions are
in place for instanc,e the liquor license, food permit,
right to sell lottery tickets, site and retail licenses
- which will need to be converted, etc. These should also
be preconditions in the purchase offer. Don't take the
owner's word. Ask your broker to make enquiries at the
local authorities on the conditions, requirements and
the present state of permits held by the owner. It is
also important to check on the price structure and regulations
of all the items.
out where the competition is located, what services they
offer, prices, years established, potential, and what
their reputations are. It is better to have little competition
in you immediate area. Evaluate your chances of competing
and consider how you can out perform the competition.
you plan on getting into the fuel forecourt business make
sure that you locate one that is situated in an area where
there is enough traffic to sustain the fill station.
with the city planning division of for instance, Pretoria
to find out if any large road changes are planned, and
what building plans have been approved in the area. You
can make use of a business broker for this purpose.
The last step is to draw up a comprehensive business plan
for the fill station. Make use of a professional
business plan writer or broker since the plan should include
all the necessary details for financial institutions.
more on how to buy a petrol station in our Complete Petrol
Station Guide For South Africa 2017