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[G55]Gas Station Business For Sale

by Bill Henthorn, Bil

All of these different options make for an interesting mix to consider if you are in the market to own a ?gas station?. The first big difference to be considered is the fact that there is a big difference between a brand name station and a convenience store operation. In the first place a brand name station must buy its gas from the oil company it represents. A private convenience store can buy its gas from any supplier willing to sell to them. Or they may be tied to the convenience store chain they are part of.

The path to ownership of a gas station can be done two ways. The owner can buy an existing business or start up a new one. There are many facets to buying an existing situation. This is particularly true if it is a brand name station or a name convenience store operation. These situations can be only a partner like situation and not a complete ownership deal. There are many variations in these deals and a business broker would be a good place to get advice as well as any of the brand name companies. In any case, be sure you understand completely any restrictions that will be placed on your business. After the purchase is not the time to discover that you do not have a free hand to run your business.

Buying one or starting one could be very high in the requirement for capital. In either case the new owner of the business is going to have to come up with some decent amounts of capital in order to get into the business.

Finding the opportunities in the Gas Station Business

The way to find opportunities in this business is to talk to people who know what is available and the details of how it works. The buyer would be wise to speak directly with some of the brand name companies and also visit with business brokers to discuss their listings. The brokers will be aware of many of the deals that are currently open and they should be able to answer most questions that you have in mind. The convenience store operators will also be worth speaking with, as they are very interested in expanding their operations. They offer different deals depending on what they are after, just like the brand name gas companies.

You can find all of this information or contact info on the NET. Using this resource can save time and allow the buyer to get quality facts and figures. This is very helpful in finding the right deal for you and deleting those that do not fit the your expectations. You might also approach some of the facilities near you and see if you can get any information from that owner. If nothing else you may be able to get a contact number.

Convenience Stores are different

Convenience stores are more like a retail operation and they make their money not only selling gas, but also by selling all manner of other products. Gas sales for most of them are really a convenience for the customer and not a big profit item. The other consideration for a prospective buyer is you are going to need employees to run the store. These stores usually are open seven days a week and 24 hours every day. This means it is mandatory to have employees to keep the doors open. This becomes an on going monthly expense that needs to be covered by the sales that are run through the cash register. If you are not good at hiring people and then managing them this could be a problem in owning one of these stores. The chain outfits are very good at teaching these skills to owners that have never done it before. If you learn easily, then this possible problem can be avoided.

If you get into a private convenience store ownership, you do not have the immediate name recognition. You may gain the ability to buy from any company that will sell to you. The pros and cons in this area should be studied and many questions asked of the broker or the old owner. These questions should include the advantages of no brand name connection. A person looking to go into this area of gas sales should know all of the answers about the operation of the convenience store before purchasing this type of business.

Find the Money and Make the Deal

If a buyer has the money the deal is easy to make happen. If the buyer can find the money the deal is still possible. The point is, there are companies that show up on the Internet that specialize in making business purchases and sales happen. These companies will show up just by putting in ?financing a business purchase? into the search engine. The results are huge when this is put into the search engine. There are any number of companies that finance business purchases.

The advantage of having the money for the purchase is simple. The buyer can usually get a substantial break in price when offering an all cash deal. The savings can make whatever you pay in interest for the loan seem small compared to the savings. A cash offer is very difficult for a seller to ignore as long as the offer is in the realm of reason. This could give you an edge if there is another buyer in the picture.

If you do not have the money and can not borrow it, this leaves the seller as the possible source of the money you need to complete the deal. Maybe the terms from the seller will be something the buyer can live with and even tolerate.

Conclusions

The gas station business is not as simple as it once was. The sales are made by brand stations or by stores that sell gas as a convenience for the customer and not as a great profit maker. Private companies can be a good buy if they have an isolated customer base. This business does not lend itself into getting started in it slow way. The first step is all in or not.

A person with a reasonable down payment should be able to gain the rest of the money needed if the figures for the business show that it is a profit maker that could cover the loan. The seller may even consider carrying some paper back to facilitate the sale.

Finding a business for sale is a natural for the Internet to do. The buyer can certainly find business brokers that would have listings that included these types of businesses. Speaking with these experts could go a long way toward helping the buyer make a good decision. The more factual information the buyer has at his disposal will improve the decision making process. There is no substitute for doing the homework when looking for a business to buy.

As banking has tightened its credit standards and less money is out there, small businesses have to find alternative ways of obtaining credit. In the past, the increase in real estate prices and easy credit was a way many small businesses were obtaining capital. Due to the real estate downturn and problems in the banking community, this is no longer an alternative for the small business. An alternative to this cash flow and/or working capital problem can be resolved in the business cash advance or the merchant cash advance area. This industry is based upon a different set of standards which we will describe below..

First of all, what is a cash merchant advance? .An established business in existence for one year or more with visa and mastercard sales can qualify for a loan or a merchant cash advance on their past activity up to $150,000 from a financial institution and $750,000 or more per location from a true merchant cash advance company. The monthly average of their visa and mastercard sales x 1.5 will be a qualifying amount that the lender will fund up to. Here is an example for you, assuming your business averages monthly $50,000 for visa and mastercard sales over the last year. The financial institution will use that $50,000 x 1.5, therefore your lending base will be $75,000 for this example. Pretty neat, bet you didn't know these programs were even out there.

For this advance program discussed today, this program allows you to obtain 1.25 x your monthly average of your master, visa, discover and american express cards. This program is buying a piece of your future cards based upon your past performance. The repayment amount is a fixed percentage of what you collect subsequently. Additionally, this program will advance up to $750,000.

Here is an example of this program, lets say your average monthly average credit cards sales average $100,000 per month and the advance company oks a advance of $125,000. They will apply a percentage to this amount say 15% and after funding, every credit sale you collect they will be paid 15%. If you have a great or a bad day, the percentage is always the same. This process will continue until the amount is paid off. Once you pay off 80% of the advance, you can apply for another advance.

This program isn't Fico driven which is a reason many companies can't qualify at the bank today. This program doesn't require additional collateral and personal guarantees. Usually, these cash advances are paid off in months not years. This program doesn't require personal income tax returns and other asset documentation...There are no application fees and/or this advance doesn't effect your current working capital line at a financial institution if that applies.. One thing you should be aware of, this merchant cash advance company will require you to change your current processor. They will also guarantee to beat the rates you are paying at the present time and offer other perks that they will assist you in any resistance you might have....

Another benefit to this program is that you can use these monies for whatever purpose you had in mind. Whether it is expansion capital, pay off old bills, debt consolidation, new equipment acquistions, buying new inventories, etc it is your decision..

The types of industries this business cash advance program covers are : independent owned gas stations, gas stations with a convenience store, service stations, gas related and accessories stories, gas stations with related auto repair shops, gas stations with attached car washes, full service gas station with a convenience store, discount gas station with a convenience store,

The requirements to get this program going is for the applicant to fill out the cash advance application and fax the summary page of your last six months merchant statements to the merchant cash advance company.

The approval process takes as little as 24-48 hours and the funding within 7 business days

Happy hunting for your money....

Article Source : Pg. 262

About Author

Both Bill Henthorn & Jm Luna are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Bill Henthorn has sinced written about articles on various topics from Online Marketing, Writing and Franchise Opportunities In. Bill Henthorn formerly was principal broker and owner of a resort / commercial real estate brokerage in Honolulu which specialized in representing sellers in transactions up to $50MM.He currently serves as the marketing director of http://www.acquireo.com. Bill Henthorn's top article generates over 165000 views. to your Favourites.

Jm Luna has sinced written about articles on various topics from Finances, Trucks and Finances. J.M Luna has over thirty years experience in the financial field. This includes accounting and taxes, leasing, hard asset money and commercial loans. U.S Corporate Capital Leasing assists the startup and the seasoned business for financing in all differen. Jm Luna's top article generates over 8100 views. to your Favourites.