How to open a gas station and why you have to choose a franchise

What are gas filling stations?

Unlike a conventional gas station, at a gas filling station the source of raw materials is various types of gases.
They are supplied to the station by various methods:

• in specially equipped tanks - from storage bases;
• via an underground pipeline directly from the processing plant.

Regardless of the supply method, the gas is poured into containers and stored there in a liquid state achieved due to the high pressure of the balloons. The pressure level determines the temperature regime. If you need to fill the mixture into a car cylinder, the pressure is artificially increased and the filling is carried out using a pump.

You can pump gas in the following ways - all of them are actively used at domestic gas stations:

• pump - the principle of its operation is described above;
• evaporative - heating systems powered by electricity are used to increase pressure;
• compressor - pressure is pumped up using special generating units.

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)
• manager

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.

Market situation

According to experts, the market for gas filling stations in Russia continues to develop rapidly. In particular, a number of factors contribute to the development of the gas station network in our country, including:

• The growth of the country's GDP and its economy contributes to the construction of new roads, which entails the emergence of corresponding roadside services: cafes, hotels, service stations and, of course, gas stations.
• In Russia, the fleet of cars and trucks continues to grow, by an average of 5-7% per year. It is logical that the increase in the number of cars also contributes to the increase in the number of gas stations.
• The saturation of gas stations in our country lags far behind the leading countries of the world. Thus, in Russia there are about 3,500 gas filling stations, while in the United States the number of gas filling stations exceeds 45,000.
• In the USA, the number of cars per gas station is more than 7,000, while in Russia this figure hardly exceeds 3,000 cars.

The development of the PGS market makes it attractive for various types of investments. The emergence of new stations today occurs mainly through the purchase of land plots and the construction of gas stations on them. Sales of operating stations occur extremely rarely, which indicates the sustainability of the business.

The largest market players today are: SG-trans OJSC, Kubangazification LLC, Gazenergoset OJSC, Oka-Propan-NN LLC, Akoil LLC, 21 Century LLC, Siberian Gas OJSC. Yes, their share accounts for about 50% of the entire liquefied petroleum gas retail market. The remaining part of the market is occupied by small businesses and private gas stations.

Today, there are three main methods of filling with liquefied gas: pump, pump-compressor and pump-vapor. The first option, pump, is the simplest and cheapest way to refuel. With the pump method, liquefied gas is pumped from a thermally insulated container under high pressure using a pump and enters the cylinder. The most expensive, but at the same time the most effective method is the pump-evaporation method. Here, in addition to conventional pumps, the gas supply system includes electric heating and evaporation units, which allow pumping gas under high pressure even at temperatures below - 20 degrees.

Selecting equipment for opening a gas station

When considering the range of equipment and choosing what you need to open a gas station, you should pay attention to the adequacy of the equipment. To open and develop a young business at a gas station, you will need no more than five containers for storing and supplying fuel, an emergency tank and 6-8 gas pumps.

Standard equipment for stations is ordered from specialized companies. The composition of the units is standard, can be expanded depending on the coverage of additional areas

In most cases, beginning entrepreneurs are limited to a small budget: installing a canopy over the pumps and a closed cash register with access to the street. If it is planned to commission a turnkey gas station in Russia, it will cost much more. To fully automate processes, you will need to purchase specialized fuel vending machines. This format is currently implemented at Gazprom Neft enterprises built on a turnkey basis. It must be borne in mind that the budget for the construction of stations in such companies is almost always compensated by increased prices for refueling.

To equip infrastructure facilities, it is necessary to provide for the placement of a fire-fighting stand and the purchase of supporting equipment and software. For the safety of employees working with cash at night, sales posts should be equipped with alarms, bars on windows and cash registers, and armored glass.

What does a gas station work on?

Fuel, which is classified as gaseous and is used to refuel cars, comes in two types:

• liquefied propane gas;
• natural gas methane.

Propane is a product of oil refining, and methane is ordinary household gas, which is supplied through pipes to our apartments and used in gas furnaces.

It is necessary to decide which of them will be used at the gas station, or whether both options will be used, at the project planning stage.

Note! Propane is more expensive, but its demand is higher than methane.

What equipment needs to be purchased for a gas station?

To open a gas station, you should not save on purchasing equipment. Since its quality determines the period it will last. Also, working with fuels and lubricants is classified as unsafe, so any defects in the equipment can lead to undesirable consequences.

For a small gas station you need to purchase:

• container for storm drainage system (1 pc.);
• fuel storage tank (4 pcs.);
• container for storm drain system (1 pc.);
• gas station (2 pcs.);
• cables, remote controls.

It is best to connect the storm drainage system to city communications.

At the gas station, it is worth laying good asphalt and installing reliable rain canopies. You also need to make software settings that will help optimize all trading and accounting operations at gas stations.

If you plan to open a gas station that will sell gaseous fuel, it is worth purchasing special equipment for it.

How much money does it take to open a gas station?

If you decide to open your own gas filling station, keep in mind that the cost of starting a project can exceed 5 million rubles, and in some cases even 7-10 million rubles. Most of the funds will be spent on the purchase of land and equipment. Some of the funds will be spent on approval of the project in various authorities. The purchase of just one modular gas filling station with a double-walled underground capacity of 10 m3 and a two-gun fuel dispenser will cost more than $100,000.

When constructing a gas filling station, car traffic passing by this site should be taken into account. In this regard, it is best to place gas stations on federal highways connecting two large cities or adjacent to large populated areas. In general, before building a gas station, it is recommended to seek help from specialists, for example, the Russian Roadside Service Association. Anyone who understands this matter will tell you that first you need to carefully study the car traffic and the number of competitors in the next few kilometers. Vehicle traffic is measured quite simply - they place a person on the highway and for 20 - 30 minutes he counts the number of cars passing by. Then the resulting figure is multiplied by coefficients corresponding to the time of day (there is a coefficient for morning, afternoon and evening, since the flow of cars at different times is very different).

Financial plan

The biggest problem in organizing a gas station is the cost. They are too big for new entrepreneurs. You may recall Robert Kiyosaki, who said, “The rich get richer and the poor get poorer, because profitable investments require a large budget.”

Expenses

We won’t bore you and will immediately figure out how much it costs to open a regular gas station.

As a result, to open a gas station we will need 33.5 million rubles, and monthly expenses will be 1,655,000 rubles. Of course, no one will invest their last money in the initial investment; in any case, you will need a few more millions to pay monthly expenses in the first months.

Profit and payback

On average, such a gas station will bring 600,000 rubles. monthly profit. In this case, the payback will be a little more than 4 years (56 months). If you organize a cafe or store, this will help increase your profit by 100,000 rubles. Then the monthly profit of the gas station will be 700,000 rubles, and the initial investment will pay off in 48 months.

Co-founders

If you decide to open a gas station, then in order to reduce the costs of its creation, you can involve co-founders and partners in the work. With their help, it will be possible not only to reduce the initial capital (for each partner the required amount will be divided depending on the share in the business), but also to work on mutually beneficial conditions (advertising the partner’s main business, for example). You can create a gas station together with a company that provides car washing services and supplies detergents for self-washing cars. In addition, you can work together with a cafe that needs to promote itself, etc.

Please note that you need to select partners carefully; you should not enter into an agreement with an unreliable co-founder, or with someone who has a large number of debts and problems with government agencies (tax, police, etc.). Remember - business must be legal.

I have no money and no partners, what should I do?

As we said earlier, not every entrepreneur has 33.5 million rubles or an investor who is able to provide them. This is indeed a very large amount. Theoretically, it is quite possible to save money, but for this you must already have experience in opening gas stations and you must know exactly what and how to do. Usually, all attempts by novice entrepreneurs to save money result in even larger expenses and, as a result, most fail to complete the task.

The solution to this situation is franchises. Each of them has a huge number of points open. They know how to save money, how to negotiate with the land owner, their suppliers provide equipment at discounts, etc. As a result, the cost of opening can be 5 times less than if you did it yourself.

We will talk about this in more detail a little later, but for now we will study the general aspects of opening gas stations.

How to open a gas station: a step-by-step plan

If you compress the entire procedure for opening a gas filling station into individual steps, you will get a plan containing the main stages of actions preceding the opening:

1. Independent development of a business plan, taking into account approximate prices according to the desired result. This way, you can assess your real possibilities for opening and decide whether this business option is right for you.
2. Registration of a legal entity (LLC) or individual entrepreneur and receipt of OKVED codes.
3. Next, you need to decide whether you intend to open your own gas station or operate as a franchise. The second option is the most acceptable and cost-effective, especially for beginning businessmen.
4. Selection of a suitable plot of land that meets fire safety standards. If you are opening a gas station not as a franchise, then take care of the favorable position of the site so that there is no other more competitive gas station nearby. This way, you will secure more clients.
5. The selected site must be approved by fire safety authorities.
6. After this, you need to contact specialists to create a project for your future gas station. First of all, a sketch is created, which undergoes a number of modifications, after which the actual project is made.
7. The project is being approved by Rospotrebnadzor. Only then do we move on to the implementation stage - that is, construction.
8. For a ready-made gas station, everything necessary for operation is purchased - a gas dispensing station, tanks, as well as other equipment for setting up workplaces.
9. Let's move on to personnel selection. The number of workers at the station will depend on its scale, the services provided and your wishes. Typically, a gas station employs 1-2 cashiers and 2-3 fuel attendants. Each employee must have a medical record, the registration of which is paid for by the employer.
10. You need to find a fuel supplier. It is desirable that it be permanent. Be sure to consider and analyze several options to choose the best one. A fixed-term or open-ended contract is concluded with the supplier.

Before the opening, final testing of the entire gas station is carried out for the safety and functioning of all elements. Before opening, you can additionally organize an advertising campaign to attract customers if you are not working with a franchise.

Step by step plan

The step-by-step plan for opening a gas station will not be different for a business from scratch or opening a franchise. Below are 8 steps you need to pay attention to when starting a business.

Step 1 - Business Registration

Licensing of gas station activities is not required. The most important thing in this business is to choose the right taxation system. Basically, enterprises operate on a common system, paying VAT. Please note that suppliers do not work with those gas stations that do not pay this tax. In addition, preference for a particular gas station will depend on the form of activity. Gas stations are mainly created on the basis of LLCs.

Step 2 - Selecting a location

When developing a business to open a gas station, you need to decide on the right location. This is necessary so that there is the necessary demand for fuel, but not enough competitors around. An entrepreneur needs to study certain information, namely the number of motorists in the city, the availability of free land for construction, etc.

Gas stations should be located in areas with heavy traffic. It is necessary to make convenient access to the gas station. The size should be guided by:

• The variety of fuels sold (gasoline, diesel fuel, methane or propane);
• Number of fuel dispensers;
• Availability of cafes or mini shops.

On average, the area of ​​a gas station should be at least 120 square meters. m. Buying land in advantageous locations with such an area can cost you 4-10 million rubles, depending on the region.

Step 3 - All necessary documents

Necessary documents for opening a gas station:

• Purchase of a plot with all documents confirming the ownership of this plot. If you are renting out a place, you must provide a rental agreement.
• Write an application for permission to locate a gas station (at the city council).
• Obtaining permission from the sanitary inspection, fire service, land administration and environmental commission.
• Obtain permission from Gorgaz, Gorenergo, Gorvodokanal and Gorsvet. You also need to obtain urban planning justification. These documents are processed within 2-3 months.

It is worth considering that many documents have an expiration date, so you need to collect and prepare documents quickly enough.

Step 4 - Project Development

Before launching a gas station, you need to clearly develop a refueling project. Therefore, it is worth turning to the services of professionals in this field. They begin to develop technical specifications, collect documents, and submit them to the relevant authorities.

When drawing up a project, the following standards must be taken into account:

• Firefighters;
• Sanitary;
• Environmental.

Please note that gas stations cannot be located at a distance of less than 30 from residential complexes, gardens, and schools. Also, gas stations should not disrupt the appearance of the city. After developing the plan, they move on to the actual construction of the gas station.

The cost of professional project development can reach 1.5 million rubles

Step 5 – Construction

After developing a plan, you should carefully approach the search for a construction company that specializes in the construction of automobile gas stations. Gas stations are built mainly on a turnkey basis.

You need to pay attention to the reliability of the company. Please note that the longer a company has been on the construction market, the more experience it has, and, therefore, there is no doubt about its reliability. Listen to the company's advice, but have your own opinion.

Construction work for a regular gas station usually costs 5-8 million rubles

Step 6 - Hardware Installation

The necessary equipment must be purchased:

You also need to buy software to automate the fuel dispensing process. With its help, you can automatically accept fuel and generate reports for the day. In addition, rest areas need to be built for motorists to pass the time.

Step 7 - Purchasing fuel

Before opening a gas station, you need to take care of a reliable fuel supplier. The most important thing is to find high-quality fuel, and, therefore, a conscientious partner. It is best to organize cooperation directly with the oil refinery.

Step 8 - Hiring staff

To ensure the operation of a car gas station you need to hire:

• Technical specialists who will help with tire inflation and provide other car repair services;
• Cashier and manager (gas station operator). His responsibilities will include accepting currency, dispensing fuel and lubricants, and generating daily reports.
• Seller (if there is a store).
• Gas station manager.

In addition, you can hire a car wash operator (if there is a car wash on the territory of the gas station), an electrician, etc.

We collect the necessary documents

Proper paperwork is the most important thing you need to open your gas station. Collecting documents is a procedure that requires visiting a number of different organizations, collecting additional papers and, of course, a lot of time. You can do this yourself or entrust the entire process to document collection specialists who, for a small amount, will do everything for you in a short time.

If you still decide to collect it yourself, then here are the documents you need to open your own gas station:

• First, you need to register as an entrepreneur. The ideal option is to register an individual entrepreneur: it ensures minimal taxation, is processed quickly and on favorable terms. In addition, there is the option of registering a legal entity, i.e. companies. The procedure takes place at the tax office. Here you will also need to obtain OKVED codes corresponding to the type of your activity.
• One of the important documents is a lease agreement for a gas station or a document confirming ownership. It will need to be presented in almost all organizations in the future. Pay special attention to the fact that the selected site must comply with fire safety standards, which can be obtained from the relevant authority. Without this, your gas station will be built illegally.
• Then you need to prepare a project for the gas station itself. First, you work out the details together with the designer, after which you submit the finished work to Rospotrebnadzor. Specialists must give written permission to construct the facility. Without this, it is prohibited to proceed with further actions.
• Also, before opening a gas station, you will need to obtain a number of permits. To do this, we contact the following authorities: sanitary and epidemiological station, fire and environmental services. Additional permissions will need to be obtained if you provide additional services to clients. For example, if a food outlet or minimarket is opened on the territory of a gas station, a permit to sell products will be required.
• A special license will be required to store fuel and sell it. This document is prepared by the Ministry of Energy.
• Then, to open a gas station, you will need to find a suitable fuel supplier. A fixed-term or open-ended contract is concluded with him, which should always be at your fingertips.

Just before the opening of a gas station, the workplaces represented in your organization are certified to ensure their compliance with existing standards.

Equipment - what needs to be purchased?

To know exactly what equipment you need, it is important to decide on the type of refueling - above-ground or underground.

According to experts, opening an above-ground gas station can cost 25%-30% more than an underground one. They differ in that the fuel tanks are installed underground or on the ground.

Let's look at what is needed to open a gas filling station with one dispenser (single-pistol) and one tank:

• fuel tank (10 cubic meters);
• gas dispenser;
• pumping station;
• equipment for the tanker to control the amount of fuel supplied.

The average price of this equipment, excluding its installation, is approximately 11 thousand dollars. There are now many different variations on the supply market that differ in price and quality, ranging from domestic to foreign manufacturers (Poland and Germany).

Useful article : Production of plastic bags as a business.

Construction site

You need to choose a location for a future gas filling station based on the road plan. The ideal option is the busiest location on key roads, where there are no other stations within the next few kilometers. At the same time, having a gas station with gasoline nearby will not be a problem for you. There should also be enough space to accommodate equipment and other objects.

It is also worth remembering about safety: distance from residential complexes (at least 500 m), farmland, protected areas, etc. Please read the entire list of requirements in this regard carefully.

Related types of business

In addition to directly selling propane, it makes sense to open a store and cafe at a gas station. As a rule, related types of business help to obtain additional profit from the property due to the large and stable traffic of solvent buyers.

1. Automotive goods and consumables store

The store's assortment consists of food and non-food groups. These are usually various types of car products and consumables - from anti-freeze liquids, in demand in winter, to car interior fragrances and motor oils. At the same time, the markup on these products is usually much higher than in traditional convenience stores or supermarkets. And we are buying - often the driver does not have time to make a special trip to buy this group of goods at a separate store or car market.

2. Products and mini-cafe

The grocery section in the store near the gas station is relevant even if there is a cafe - many would prefer to take a “snack” with them on the road rather than waste time eating at the gas station. Energy drinks, snacks, etc. are in great demand. The assortment of cafes is mainly coffee and fast food. You can place a store and a cafe in one room, which is being built on the territory of a gas filling station.

Often, the development of the entire project as a whole is favorably affected by the opening of such parallel areas as tire fitting, car wash, and car service. Interestingly, the share of profit from related types of business in the form of a cafe and a store can often be 30% or more.

What equipment is needed for gas filling?

This is the most expensive expense item. Since you are working with flammable substances, you cannot save money here. Use only new and high-quality equipment.

A gas distribution station (at least one) is required. You will need it to refill gas cylinders. The list of other equipment depends on what gas you will be working with.

Which gas to choose

There are two types of gaseous fuel for refueling cars: methane and propane. You need to select fuel before you start purchasing equipment.

Methane

Gas refueling using methane has a significant disadvantage in the cost of equipment, but at the same time the cost of methane is significantly lower than propane. The reason is that cars only run on liquefied gas. Methane is supplied through a gas pipeline and liquefied on site using special expensive equipment.

Propane

Propane gas stations will be cheaper in terms of equipment, since propane is supplied already liquefied. But at the same time, the cost of the gas itself will be more expensive than methane. Which gas is best to choose will depend on demand in your region and prices from suppliers.

What are the features of business at gas filling stations?

Gas filling stations are one of those types of business where well-thought-out station placement and strict control of product safety and quality are of fundamental importance.

Like any other business, there are some nuances here:

• Location.
  It is very important to choose the right place for future refueling, because this directly affects your income. Placing a station close to other stations is a bad idea.

Make sure that there are no other such gas stations within the next few kilometers. Also, carefully study road plans and traffic patterns. Gas stations should be located on the busiest highways, for example, between two large cities. Choose main roads, where there are always a lot of cars, rather than secondary roads, where rarely anyone drives. You should also make sure there are no farmland or nature reserves nearby.

• Decor.
  Since the gas station works with explosive substances, you will need to collect a package of permits to open a business. You can’t just buy equipment, gas and rent a room.
• Correct advertising.
  In order for your potential clients to know about you, you need to take care of advertising banners on the roads and other means of marketing. The more you are heard by drivers, the more customers will refuel at your location. Of course, subject to proper service and fuel quality.
• Fuel quality.
  Be sure to monitor the quality of the gas you fill your cars with. No one wants to fill up with fuel after which the car's engine has to be repaired.
• Safety.
  A negligent attitude to work in the case of working at a gas station can lead to catastrophic consequences. Therefore, it is important to check the serviceability of the equipment and all stages of work. The same applies to the staff. You cannot hire workers without training and certification.
• Competitive prices.
  There are a lot of gas suppliers in the regions, and prices can vary greatly depending on the region. Therefore, it is important to conduct preliminary monitoring of competitors’ prices, gas prices from suppliers and estimate what price for fuel you need to set in order not to make a loss and be competitive in the market.
• Fuel selection.
  Another important point that you need to decide before you purchase equipment and start building your gas station is the gas you will be working with. It can be of two types: propane and methane. Both have their pros and cons, but the equipment used for them is completely different. Therefore, it is important to decide on this before you make your first purchase. Analyze what people drive most in your region and which gas will be more profitable for you to work with.
• Start-up capital
  . Registering a business and purchasing equipment in this niche will not be cheap. This industry is more suitable for experienced businessmen with sufficient free funds for investment than for beginners. But if you do not have enough funds to open, and you are confident in your strengths and experience, then you can find an investor who is ready to invest in your idea.
• Additional services
  . To increase your income from gas stations, it’s worth thinking about additional services that you can provide to customers. For example, you can additionally open a car wash or tire service. It would also be nice to have a small minimarket with a cafeteria where you can drink coffee and order quick food. According to the rules, while refueling a car, passengers and the driver must leave the car for safety. This way you can provide customers with a cozy place to wait and earn extra money.

Personnel for gas station

Recruiting personnel for a gas station is a serious matter. Since your employees deal with explosives, they must be trained and pre-qualified.

It is optimal to hire four gas station attendants who will work in shifts and two cashiers. It is also necessary to hire an administrator who will check the safety of the equipment and all processes.

Recruitment

After the paperwork and completion of construction, the gas station can begin to accept its first customers, but without staff it will not be possible to serve them. The minimum possible team should consist of:

• Cashiers. They are required to have computer knowledge and the ability to work with a cash register, since they will be responsible for accepting payments and dispensing fuel.
• A senior manager or manager who will monitor the work process and take on organizational issues. Immediately after opening, this position can be filled by the gas station owner himself. This will allow you to save on employee salaries and identify and eliminate problems in the organization.

It is not necessary to hire gas station attendants from the very first days.

If the “gas station” initially offers additional services, for example, has a store with essential goods or a cafe on site, workers with appropriate qualifications will be required.

Separately, it is worth emphasizing the fact that stations with additional services attract much more customers, while within the city limits gas stations with a car wash are more popular, and outside the city - with a store.

Is this business profitable?

Taking into account the trend in gas and gasoline prices, this market will only grow. Car owners are increasingly switching to gas because they cannot afford to drive on gasoline. Although it will require a lot of investments, and the payback period will be 3-5 years, this business can bring a stable income that will grow every year.

With a competent approach and proper organization, business at gas filling stations will become a profitable investment with a long-term perspective. It is unlikely to be suitable for a beginner in business, but for an experienced entrepreneur it is a promising investment.

How much does gas cost at the gas station and how much can you earn?