Start-up Funding | |
Start-up Expenses to Fund | $101,500 |
Start-up Assets to Fund | $108,500 |
Total Funding Required | $210,000 |
Assets | |
Non-cash Assets from Start-up | $90,000 |
Cash Requirements from Start-up | $18,500 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $18,500 |
Total Assets | $108,500 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $150,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $150,000 |
Capital | |
Planned Investment | |
Robert Cole | $60,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $60,000 |
Loss at Start-up (Start-up Expenses) | ($101,500) |
Total Capital | ($41,500) |
Total Capital and Liabilities | $108,500 |
Total Funding | $210,000 |
Allensburg’s Food and Gas sells the following products:
Located on rural Highway 310, Allensburg is 30 miles south of the city of Kent and 34 miles north of the city of Willard. Highway 310 connects Kent and Willard that both have universities and a cumulative population of 200,000 residents. The highway is the main road through town and is used daily by thousands of commuters between the two cities. The closest gas station in either direction is over 20 miles away.
These commuters currently have no convenient shop in which to buy food to or from work once they are on Highway 310; more importantly, eighty percent of Highway 310 commuters fits the demographic profile of customers of upscale organic/natural food stores:
The target customers of Allensburg’s Food and Gas are the commuters that use Highway 310.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Commuters | 10% | 5,500 | 6,050 | 6,655 | 7,321 | 8,053 | 10.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 10.00% | 5,500 | 6,050 | 6,655 | 7,321 | 8,053 | 10.00% |
Allensburg’s Food and Gas will focus on becoming a routine stop for the commuter traffic on Highway 310, not just for those people who need gas, but for those who are looking for a healthy, tasty snack on their drive, or need to pick up some small grocery item on their way home. Allensburg’s Food and Gas will aim to be more than a gas station to its customers, it will be a friendly place to stop for tired commuters.
The competitive edge for Allensburg’s Food and Gas is the following:
Allensburg’s Food and Gas will keep its gas prices competitive with other stations in a fifty mile radius of the station in order to attract commuters. Customers that purchase more than $10 worth of gas will be given 15% coupon on purchases in the store during the first month of operation, to encourage purchases and to introduce them to the concept of buying quality organic foods at the gas station.
In order to maintain competitive gas prices, the cost of gas to the consumer will never exceed 15% of wholesale cost. Allensburg’s Food and Gas will focus on increasing food sales in order to meet total sales forecast goals.
The following is the sales forecast for three years.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Gasoline | $623,000 | $660,000 | $700,000 |
Food, Drinks, and Produce | $185,000 | $198,000 | $210,000 |
Total Sales | $808,000 | $858,000 | $910,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Gasoline | $544,000 | $570,000 | $582,000 |
Food, Drinks, and Produce | $37,200 | $41,000 | $44,500 |
Subtotal Direct Cost of Sales | $581,200 | $611,000 | $626,500 |
Robert Cole, owner of Allensburg’s Food and Gas, has seven years of experience in managing gas stations/convenience stores. Robert has a reputation as an excellent staff supervisor. From 1993 to 1996, Robert was the manager of Higgins Texaco, one of the largest gas station/convenience stores in Willard. At Higgins, Robert supervised a staff of seven. In 1997, Robert became manager of the Barger Chevron, located at the southern tip of Kent, near Highway 310.
The Allensburg Food and Gas will have a staff of five:
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Robert Cole | $33,600 | $37,000 | $40,000 |
Store/Deli Staff | $42,000 | $44,000 | $46,000 |
Gas Attendants | $42,000 | $44,000 | $46,000 |
Total People | 5 | 5 | 5 |
Total Payroll | $117,600 | $125,000 | $132,000 |
The monthly break-even point is approximately $49,500.
Break-even Analysis | |
Monthly Revenue Break-even | $49,539 |
Assumptions: | |
Average Percent Variable Cost | 72% |
Estimated Monthly Fixed Cost | $13,905 |
The following table and charts highlight the projected profit and loss for three years.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $808,000 | $858,000 | $910,000 |
Direct Cost of Sales | $581,200 | $611,000 | $626,500 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $581,200 | $611,000 | $626,500 |
Gross Margin | $226,800 | $247,000 | $283,500 |
Gross Margin % | 28.07% | 28.79% | 31.15% |
Expenses | |||
Payroll | $117,600 | $125,000 | $132,000 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $11,424 | $11,424 | $11,424 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $3,600 | $3,600 | $3,600 |
Insurance | $3,600 | $3,600 | $3,600 |
Rent | $13,000 | $13,000 | $13,000 |
Payroll Taxes | $17,640 | $18,750 | $19,800 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $166,864 | $175,374 | $183,424 |
Profit Before Interest and Taxes | $59,936 | $71,626 | $100,076 |
EBITDA | $71,360 | $83,050 | $111,500 |
Interest Expense | $13,375 | $10,500 | $7,500 |
Taxes Incurred | $13,968 | $18,338 | $27,773 |
Net Profit | $32,593 | $42,788 | $64,803 |
Net Profit/Sales | 4.03% | 4.99% | 7.12% |
The following table and chart highlight the projected cash flow for three years.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $808,000 | $858,000 | $910,000 |
Subtotal Cash from Operations | $808,000 | $858,000 | $910,000 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $808,000 | $858,000 | $910,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $117,600 | $125,000 | $132,000 |
Bill Payments | $637,424 | $681,157 | $701,506 |
Subtotal Spent on Operations | $755,024 | $806,157 | $833,506 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $30,000 | $30,000 | $30,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $785,024 | $836,157 | $863,506 |
Net Cash Flow | $22,976 | $21,843 | $46,494 |
Cash Balance | $41,476 | $63,319 | $109,813 |
The following table and chart highlight the projected balance sheet for three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $41,476 | $63,319 | $109,813 |
Inventory | $56,540 | $59,439 | $60,947 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $98,016 | $122,758 | $170,760 |
Long-term Assets | |||
Long-term Assets | $80,000 | $80,000 | $80,000 |
Accumulated Depreciation | $11,424 | $22,848 | $34,272 |
Total Long-term Assets | $68,576 | $57,152 | $45,728 |
Total Assets | $166,592 | $179,910 | $216,488 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $55,500 | $56,029 | $57,804 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $55,500 | $56,029 | $57,804 |
Long-term Liabilities | $120,000 | $90,000 | $60,000 |
Total Liabilities | $175,500 | $146,029 | $117,804 |
Paid-in Capital | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($101,500) | ($68,907) | ($26,119) |
Earnings | $32,593 | $42,788 | $64,803 |
Total Capital | ($8,907) | $33,881 | $98,684 |
Total Liabilities and Capital | $166,592 | $179,910 | $216,488 |
Net Worth | ($8,907) | $33,881 | $98,684 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5541, Gasoline Service Station, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 6.19% | 6.06% | 10.80% |
Percent of Total Assets | ||||
Inventory | 33.94% | 33.04% | 28.15% | 13.30% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 25.60% |
Total Current Assets | 58.84% | 68.23% | 78.88% | 49.50% |
Long-term Assets | 41.16% | 31.77% | 21.12% | 50.50% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 33.31% | 31.14% | 26.70% | 31.60% |
Long-term Liabilities | 72.03% | 50.03% | 27.72% | 23.10% |
Total Liabilities | 105.35% | 81.17% | 54.42% | 54.70% |
Net Worth | -5.35% | 18.83% | 45.58% | 45.30% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 28.07% | 28.79% | 31.15% | 16.50% |
Selling, General & Administrative Expenses | 24.04% | 23.80% | 24.03% | 10.40% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.20% |
Profit Before Interest and Taxes | 7.42% | 8.35% | 11.00% | 0.50% |
Main Ratios | ||||
Current | 1.77 | 2.19 | 2.95 | 1.55 |
Quick | 0.75 | 1.13 | 1.90 | 0.91 |
Total Debt to Total Assets | 105.35% | 81.17% | 54.42% | 54.70% |
Pre-tax Return on Net Worth | -522.73% | 180.41% | 93.81% | 2.50% |
Pre-tax Return on Assets | 27.95% | 33.98% | 42.76% | 5.50% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 4.03% | 4.99% | 7.12% | n.a |
Return on Equity | 0.00% | 126.29% | 65.67% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.91 | 10.54 | 10.41 | n.a |
Accounts Payable Turnover | 12.49 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 30 | 30 | n.a |
Total Asset Turnover | 4.85 | 4.77 | 4.20 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 4.31 | 1.19 | n.a |
Current Liab. to Liab. | 0.32 | 0.38 | 0.49 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $42,517 | $66,729 | $112,956 | n.a |
Interest Coverage | 4.48 | 6.82 | 13.34 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.21 | 0.21 | 0.24 | n.a |
Current Debt/Total Assets | 33% | 31% | 27% | n.a |
Acid Test | 0.75 | 1.13 | 1.90 | n.a |
Sales/Net Worth | 0.00 | 25.32 | 9.22 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Gasoline | 0% | $40,000 | $40,000 | $48,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 |
Food, Drinks, and Produce | 0% | $10,000 | $12,000 | $14,000 | $15,000 | $16,000 | $16,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 |
Total Sales | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Gasoline | $35,000 | $35,000 | $42,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | |
Food, Drinks, and Produce | $2,000 | $2,500 | $2,900 | $3,000 | $3,200 | $3,200 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | |
Subtotal Direct Cost of Sales | $37,000 | $37,500 | $44,900 | $51,000 | $51,200 | $51,200 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Robert Cole | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
Store/Deli Staff | 0% | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Gas Attendants | 0% | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Direct Cost of Sales | $37,000 | $37,500 | $44,900 | $51,000 | $51,200 | $51,200 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $37,000 | $37,500 | $44,900 | $51,000 | $51,200 | $51,200 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | |
Gross Margin | $13,000 | $14,500 | $17,100 | $19,000 | $19,800 | $19,800 | $20,600 | $20,600 | $20,600 | $20,600 | $20,600 | $20,600 | |
Gross Margin % | 26.00% | 27.88% | 27.58% | 27.14% | 27.89% | 27.89% | 28.61% | 28.61% | 28.61% | 28.61% | 28.61% | 28.61% | |
Expenses | |||||||||||||
Payroll | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Insurance | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Rent | $0 | $0 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
Payroll Taxes | 15% | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $12,822 | $12,822 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | |
Profit Before Interest and Taxes | $178 | $1,678 | $2,978 | $4,878 | $5,678 | $5,678 | $6,478 | $6,478 | $6,478 | $6,478 | $6,478 | $6,478 | |
EBITDA | $1,130 | $2,630 | $3,930 | $5,830 | $6,630 | $6,630 | $7,430 | $7,430 | $7,430 | $7,430 | $7,430 | $7,430 | |
Interest Expense | $1,229 | $1,208 | $1,188 | $1,167 | $1,146 | $1,125 | $1,104 | $1,083 | $1,063 | $1,042 | $1,021 | $1,000 | |
Taxes Incurred | ($315) | $141 | $537 | $1,113 | $1,360 | $1,366 | $1,612 | $1,618 | $1,625 | $1,631 | $1,637 | $1,643 | |
Net Profit | ($736) | $329 | $1,253 | $2,598 | $3,173 | $3,187 | $3,762 | $3,776 | $3,791 | $3,805 | $3,820 | $3,835 | |
Net Profit/Sales | -1.47% | 0.63% | 2.02% | 3.71% | 4.47% | 4.49% | 5.22% | 5.24% | 5.27% | 5.29% | 5.31% | 5.33% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Subtotal Cash from Operations | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | |
Bill Payments | $2,356 | $69,710 | $42,025 | $58,309 | $63,158 | $57,288 | $57,082 | $57,698 | $57,471 | $57,457 | $57,442 | $57,427 | |
Subtotal Spent on Operations | $12,156 | $79,510 | $51,825 | $68,109 | $72,958 | $67,088 | $66,882 | $67,498 | $67,271 | $67,257 | $67,242 | $67,227 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $14,656 | $82,010 | $54,325 | $70,609 | $75,458 | $69,588 | $69,382 | $69,998 | $69,771 | $69,757 | $69,742 | $69,727 | |
Net Cash Flow | $35,344 | ($30,010) | $7,675 | ($609) | ($4,458) | $1,412 | $2,618 | $2,002 | $2,229 | $2,243 | $2,258 | $2,273 | |
Cash Balance | $53,844 | $23,834 | $31,509 | $30,900 | $26,442 | $27,855 | $30,472 | $32,474 | $34,703 | $36,946 | $39,204 | $41,476 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $18,500 | $53,844 | $23,834 | $31,509 | $30,900 | $26,442 | $27,855 | $30,472 | $32,474 | $34,703 | $36,946 | $39,204 | $41,476 |
Inventory | $10,000 | $40,700 | $41,250 | $49,390 | $56,100 | $56,320 | $56,320 | $56,540 | $56,540 | $56,540 | $56,540 | $56,540 | $56,540 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $28,500 | $94,544 | $65,084 | $80,899 | $87,000 | $82,762 | $84,175 | $87,012 | $89,014 | $91,243 | $93,486 | $95,744 | $98,016 |
Long-term Assets | |||||||||||||
Long-term Assets | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
Accumulated Depreciation | $0 | $952 | $1,904 | $2,856 | $3,808 | $4,760 | $5,712 | $6,664 | $7,616 | $8,568 | $9,520 | $10,472 | $11,424 |
Total Long-term Assets | $80,000 | $79,048 | $78,096 | $77,144 | $76,192 | $75,240 | $74,288 | $73,336 | $72,384 | $71,432 | $70,480 | $69,528 | $68,576 |
Total Assets | $108,500 | $173,592 | $143,180 | $158,043 | $163,192 | $158,002 | $158,463 | $160,348 | $161,398 | $162,675 | $163,966 | $165,272 | $166,592 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $68,328 | $40,087 | $56,197 | $61,248 | $55,386 | $55,159 | $55,783 | $55,556 | $55,542 | $55,528 | $55,514 | $55,500 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $68,328 | $40,087 | $56,197 | $61,248 | $55,386 | $55,159 | $55,783 | $55,556 | $55,542 | $55,528 | $55,514 | $55,500 |
Long-term Liabilities | $150,000 | $147,500 | $145,000 | $142,500 | $140,000 | $137,500 | $135,000 | $132,500 | $130,000 | $127,500 | $125,000 | $122,500 | $120,000 |
Total Liabilities | $150,000 | $215,828 | $185,087 | $198,697 | $201,248 | $192,886 | $190,159 | $188,283 | $185,556 | $183,042 | $180,528 | $178,014 | $175,500 |
Paid-in Capital | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) |
Earnings | $0 | ($736) | ($407) | $846 | $3,444 | $6,617 | $9,804 | $13,566 | $17,342 | $21,133 | $24,938 | $28,758 | $32,593 |
Total Capital | ($41,500) | ($42,236) | ($41,907) | ($40,654) | ($38,056) | ($34,883) | ($31,696) | ($27,934) | ($24,158) | ($20,367) | ($16,562) | ($12,742) | ($8,907) |
Total Liabilities and Capital | $108,500 | $173,592 | $143,180 | $158,043 | $163,192 | $158,002 | $158,463 | $160,348 | $161,398 | $162,675 | $163,966 | $165,272 | $166,592 |
Net Worth | ($41,500) | ($42,236) | ($41,907) | ($40,654) | ($38,056) | ($34,883) | ($31,696) | ($27,934) | ($24,158) | ($20,367) | ($16,562) | ($12,742) | ($8,907) |
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British Columbia BC PNP Visa Business Plan
Food Delivery Business Plan
Published Mar.26, 2018
Updated Apr.23, 2024
By: Noor Muhammad
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Table of Content
Are you thinking of starting a gas station ? A gas station was also known as a petrol station is a business that retails diesel, gasoline and various types of motor vehicle lubricants. The increase in the number of automobiles has pushed up the demand for gasoline and diesel which makes the gas station business plan a lucrative venture. The oil and gas industry has in recent times gone through various challenges, but it still remains one of the most lucrative business sectors. Investing in a gas station requires a significant amount of investment, but with a sound business strategy , you can be assured of recovering your entire investment.
2.1 the business.
The gas station will be registered under the name Savoy Gas and will be located in Princeton, New Jersey on Exit 2 off the New York Philadelphia interstate highway. This is an excellent location considering the high amount of vehicular traffic that uses the highway on a daily basis. Savoy gas station will be owned and managed by Mike Wall who is a Petroleum Engineer.
Mike Wall is an expert Petroleum Engineer who has had a successful career spanning over twenty-five years. Mike has worked for large and reputable international organizations in the oil and gas industry. He has overseen numerous large-scale industry projects that have earned him respect and recognition in the industry.
Savoy Gas Station aims to offer a fully equipped gas station facility for motorists using the busy Interstate highway. Identifying potential customers is a critical step of starting your own gas station business plan .
To succeed in its mandate, the gas station intends to focus on harnessing the latest technologies in the oil and gas industry to offer quality and reliable services to motorists.
3.1 company owner.
Mike Wall is a Petroleum Engineer who has worked for several high profile oil and gas companies across the United States. He is credited for his professionalism and spearheading of numerous technical projects. Mike has worked in various senior capacities in different organizations, as well as participated in numerous local, regional and global petroleum conferences.
Starting your own gas station requires a good understanding and knowledge of the oil and gas industry. Having been in the industry for almost three decades, Mike was deeply involved in policy making and technical implementation of gas station projects. Working closely with gas station stakeholders, Mike thought it would be a great idea to transfer his expertise to entrepreneurship.
As a Petroleum Engineer, Mike Wall already has the technical knowhow of the infrastructure and technologies required to start a gas station. However, he has closely worked with financial experts to formulate a sound financial plan to support the business model. The following is key financial information for Savoy Gas station.
Legal | $3,000 |
Consultants | $6,000 |
Insurance | $12,000 |
Rent | $14,000 |
Research and Development | $7,000 |
Expensed Equipment | $6,000 |
Signs | $3,500 |
TOTAL START-UP EXPENSES | $51,500 |
Start-up Assets | $0 |
Cash Required | $60,000 |
Start-up Inventory | $23,000 |
Other Current Assets | $14,000 |
Long-term Assets | $10,000 |
TOTAL ASSETS | $107,000 |
Total Requirements | $52,000 |
$0 | |
START-UP FUNDING | $70,000 |
Start-up Expenses to Fund | $25,000 |
Start-up Assets to Fund | $20,000 |
TOTAL FUNDING REQUIRED | $0 |
Assets | $12,000 |
Non-cash Assets from Start-up | $8,000 |
Cash Requirements from Start-up | $0 |
Additional Cash Raised | $50,000 |
Cash Balance on Starting Date | $20,000 |
TOTAL ASSETS | $0 |
Liabilities and Capital | $0 |
Liabilities | $0 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
TOTAL LIABILITIES | $0 |
Capital | $0 |
Planned Investment | $0 |
Investor 1 | $20,000 |
Investor 2 | $15,000 |
Other | $0 |
Additional Investment Requirement | $0 |
TOTAL PLANNED INVESTMENT | $150,000 |
Loss at Start-up (Start-up Expenses) | $50,000 |
TOTAL CAPITAL | $70,000 |
TOTAL CAPITAL AND LIABILITIES | $45,000 |
Total Funding | $105,000 |
Savoy Gas station is focused on offering a professional service in line with the growing demand for well-equipped gas station facilities in Princeton, New Jersey. Opening a gas station requires great innovation in service delivery. Savoy Gas station will offer the following diversified services.
For Savoy Gas station to be successful, a comprehensive market analysis was carried out to pinpoint areas of focus that will drive business development.
This gas station business plan sample explains the strategy the gas station intends to follow to meet its targets. Using this strategy, the business intends to get a good amount of revenue considering it lies on a main interstate highway that is used by thousands of commuters on a daily basis. Currently, commuters don’t have a well-equipped shop where they can get adequate food supplies while travelling since the nearest gas station is over 15 miles away.
5.1 market segmentation.
After realizing there are few gas stations around Princeton area off the interstate highway, Savoy Gas has found a market it can effectively explore and provide a critical service for its customers. Based on market research and findings, the business is targeting the following customers for inclusion in its gas station marketing plan . Anyone looking for gasoline and diesel as well as a well-stocked food and drinks outlet is a potential customer for the business.
Automobile engines rely on gasoline and fuel in order to operate efficiently. Savoy Gas station will be located on the main New York to Philadelphia Interstate highway at Princeton, New Jersey. This is an extremely busy highway with thousands of vehicles using the highway on a daily basis. The nearest gas station is about fifteen miles away and Savoy gas station knows it’s located in a strategic location to offer key services to vehicle owners. In addition, the business intends to sell automotive products such as oil and different types of lubricants which are essential products to car owners. Given the scarcity of gas stations in the area, Savoy gas station intends to capitalize on the untapped market by setting up a fully equipped and professionally managed gas station. Motorists are the key customer target included in this gas station business plan template.
Because of the gas station’s strategic location on a main highway, services and products offered will help regular commuters, as well as long distance travellers using the interstate highway. With the wide range of services offered by the gas station, the business intends to rely on the high number of people using the highway to stop and buy food, snacks, drinks and other products at the facility.
Princeton, New Jersey has nearby residential households that will benefit a great deal when the gas station is set up. The gas station business plan has focused on stocking a wide variety of foodstuffs, drinks and other products that primarily cater for household consumers. Starting a gas station business plan should include a strategy that incorporates the local community as customers. Local communities living around the gas station are excellent customers because the gas station business plan will get steady revenue from them. Savoy gas station is expected to be nearest shopping facility that stocks basic items.
The vicinity of the gas station has many educational facilities including the famous Princeton University. Savoy gas station plans to market its products especially drinks and snacks to students from nearby high schools, colleges and universities.
Potential Customers | Growth | CAGR | |||||||
Automobile Owners | 35% | 25,000 | 27,000 | 30,000 | 33,000 | 36,000 | 10.00% | ||
Communters and travellers | 30% | 22,000 | 23,000 | 26,000 | 29,000 | 32,000 | 8.00% | ||
Households | 20% | 15,000 | 18,000 | 21,000 | 24,000 | 27,000 | 12.00% | ||
Students | 15% | 10,000 | 13,000 | 16,000 | 19,000 | 22,000 | 7.00% | ||
Total | 100% | 80,000 | 95,000 110,000 | 125,000 | 140,000 | 11.00% |
Savoy gas station intends to open in an area with a lot of business potential. There is no doubt one of the greatest strengths and advantages outlined in this gas station business plan is the strategic location. The plan is to implement a unique business model that focuses on an exemplary customer service approach and provision of topnotch products and services. Savoy gas station will recover its entire startup capital after three years in operation. There is a projection of annual sales growth of between 20-25%.
A good gas station business plan & startup guide should always give guidance on how product pricing will be implemented. In the case of Savoy gas station, prices for various products and services have been determined using a competitive approach. After considering price ranges from nearby gas stations, the business has carefully priced its products.
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In order to understand how to open a gas station and be successful, there must be a well-defined sales strategy. Mike Wall has cooperated with business startup and strategy gurus to find a creative and smart way of boosting business revenue. The following is a detailed sales strategy for Savoy gas station.
Savoy gas station is located in an excellent location off a busy interstate highway and near a large residential area. This is the only gas station within a fifteen mile radius, the demand for gas station business plan and products is expected to be high.
To ensure Savoy gas station captures the intended market, the gas station business model will rely on the following sales strategy to increase customer numbers and boost sales.
Savoy gas station is keen to implement its sales strategies to achieve its targets. Below is a summary of sales forecasts for the gas station.
Unit Sales | Year 3 | ||
Retail gasoline and siesel | 310,000 | 350,000 | 390,000 |
Selling automobile products | 150,000 | 170,000 | 190,000 |
Automobile repair services | 200,000 | 220,000 | 240,000 |
Selling soft drinks | 300,000 | 320,000 | 340,000 |
TOTAL UNIT SALES | |||
Unit Prices | Year 1 | Year 2 | Year 3 |
Retail gasoline and siesel | $150.00 | $170.00 | $190.00 |
Selling automobile products | $120.00 | $140.00 | $160.00 |
Automobile repair services | $110.00 | $130.00 | $150.00 |
Selling soft drinks | $100.00 | $120.00 | $140.00 |
Sales | |||
Retail gasoline and siesel | $300,000 | $320,000 | $340,000 |
Selling automobile products | $170,000 | $190,000 | $210,000 |
Automobile repair services | $100,000 | $120,000 | $142,000 |
Selling soft drinks | $200,000 | $220,000 | $240,000 |
TOTAL SALES | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Retail gasoline and siesel | $2.20 | $4.20 | $5.00 |
Selling automobile products | $2.00 | $3.00 | $4.00 |
Automobile repair services | $1.60 | $2.60 | $5.00 |
Selling soft drinks | $3.00 | $7.00 | $5.00 |
Direct Cost of Sales | |||
Retail gasoline and siesel | $120,000 | $140,000 | $160,000 |
Automobile repair services | $160,000 | $180,000 | $190,000 |
Selling soft drinks | $125,000 | $135,000 | $150,000 |
Comic Books | $140,000 | $150,000 | $165,000 |
TOTAL | $315,000 | $385,000 | $465,000 |
Savoy gas station has diversified its product range and service niche meaning the business requires staff of different expertise and backgrounds to run the gas station business plan . When determining how much does it cost to start a gas station business , the issue of staff and their salaries has to be considered.
Savoy gas station is owned by Mike Wall, a Petroleum Engineer who will also be the Chief Executive of the gas station. The gas station business plan will employ the following staff to work in various departments.
Successful applicants will undergo an intensive training and induction session before the gas station opens to the public.
Savoy gas station intends to pay its staff the following salaries for the first three years after launching operations.
Gas Station Manager | $62,000 | $70,000 | $75,000 |
Store Manager | $28,000 | $33,000 | $36,000 |
3 Pump Attendants | $75,000 | $80,000 | $86,000 |
2 Sales and Marketing Executive | $60,000 | $65,000 | $70,000 |
1 Cashier | $24,000 | $28,000 | $31,000 |
2 Security Guards | $50,000 | $55,000 | $64,000 |
2 Auto Mobile Repair Technicians | $50,000 | $55,000 | $70,000 |
Assitant Manager | $35,000 | $40,000 | $45,000 |
Total Salaries | $384,000 | $426,000 | $480,000 |
Savoy gas station has an elaborate financial plan that will serve as the business roadmap towards attaining success. Opening a gas station cost must be known and other key financial variables that will steer the gas station business plan to prosperity identified. The gas station startup capital will come from Mike’s personal savings as well as a loan to supplement initial capital. Two investors will also contribute to the initial business startup capital. Aside from determining how much does a gas station cost to open , other important financial variables have been captured in the sections below.
Savoy gas station’s financial forecasts are based on the assumptions shown below.
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 15.00% | 12.00% | 10.00% |
Long-term Interest Rate | 3.00% | 3.00% | 3.00% |
Tax Rate | 12.00% | 14.00% | 16.00% |
Other | 0 | 0 | 0 |
Savoy gas station Brake-even Analysis is illustrated in the graph below.
Monthly Units Break-even | 8000 |
Monthly Revenue Break-even | $25,000 |
Assumptions: | |
Average Per-Unit Revenue | $320,000.00 |
Average Per-Unit Variable Cost | $2.50 |
Estimated Monthly Fixed Cost | $370,000 |
Profit and Loss information for Savoy gas station calculated on a monthly and annual basis is shown below.
Sales | $430,000 | $470,000 | $520,000 |
Direct Cost of Sales | $31,000 | $41,000 | $51,000 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | |||
Gross Margin | $305,000 | $320,000 | $335,000 |
Gross Margin % | 50.00% | 56.00% | 63.00% |
Expenses | |||
Payroll | $365,000 | $400,000 | $425,000 |
Sales and Marketing and Other Expenses | $5,300 | $7,300 | $9,500 |
Depreciation | $3,500 | $5,000 | $7,000 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $3,000 | $5,000 | $7,000 |
Insurance | $1,000 | $1,200 | $1,700 |
Rent | $20,000 | $25,000 | $30,000 |
Payroll Taxes | $24,000 | $27,000 | $32,000 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $320,000 | $350,000 | $380,000 |
Profit Before Interest and Taxes | $40,000 | $50,000 | $60,000 |
EBITDA | $15,000 | $20,000 | $25,000 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $17,000 | $20,000 | $23,000 |
Net Profit | $120,000 | $140,000 | $150,000 |
Net Profit/Sales | 40.00% | 30.00% | 20.00% |
Below is Savoy gas station’s Profit and Loss Analysis.
The diagram below shows pro forma cash flow, subtotal cash received, subtotal cash from operations, subtotal cash spent on operations and subtotal cash spent.
Cash Received | |||
Cash from Operations | |||
Cash Sales | $400,000 | $430,000 | $460,000 |
Cash from Receivables | $4,000 | $9,000 | $13,000 |
SUBTOTAL CASH FROM OPERATIONS | |||
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
SUBTOTAL CASH RECEIVED | |||
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $30,000 | $34,000 | $38,000 |
Bill Payments | $25,000 | $30,000 | $36,000 |
SUBTOTAL SPENT ON OPERATIONS | |||
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
SUBTOTAL CASH SPENT | |||
Net Cash Flow | $22,000 | $27,000 | $32,000 |
Cash Balance | $25,000 | $30,000 | $35,000 |
Depicted below is Savoy gas station Projected Balance Sheet that shows capital, assets, liabilities, long term assets and current liabilities.
Assets | |||
Current Assets | |||
Cash | $405,000 | $420,000 | $470,000 |
Accounts Receivable | $300,000 | $310,000 | $330,000 |
Inventory | $40,000 | $40,000 | $45,000 |
Other Current Assets | $11,000 | $15,000 | $17,000 |
TOTAL CURRENT ASSETS | |||
Long-term Assets | |||
Long-term Assets | $5,000 | $10,000 | $13,000 |
Accumulated Depreciation | $7,000 | $9,000 | $11,000 |
TOTAL LONG-TERM ASSETS | |||
TOTAL ASSETS | |||
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $7,400 | $9,000 | $12,000 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | |||
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | |||
Paid-in Capital | $20,000 | $23,000 | $27,000 |
Retained Earnings | $16,000 | $19,000 | $21,000 |
Earnings | $130,000 | $150,000 | $170,000 |
TOTAL CAPITAL | |||
TOTAL LIABILITIES AND CAPITAL | |||
Net Worth | $400,000 | $420,000 | $505,000 |
Business Rations, Business Net Worth and Ratio Analysis for Savoy gas station have been show below.
Sales Growth | 5.00% | 21.00% | 35.00% | 5.00% |
Percent of Total Assets | ||||
Accounts Receivable | 4.00% | 6.00% | 8.00% | 8.00% |
Inventory | 4.00% | 3.00% | 2.10% | 10.00% |
Other Current Assets | 5.00% | 4.00% | 3.24% | 24.00% |
Total Current Assets | 120.00% | 132.00% | 139.00% | 40.00% |
Long-term Assets | -6.00% | -15.00% | -20.00% | 30.50% |
TOTAL ASSETS | ||||
Current Liabilities | 6.00% | 4.50% | 2.60% | 17.40% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 18.40% |
Total Liabilities | 6.00% | 3.00% | 1.40% | 34.70% |
NET WORTH | ||||
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 80.00% | 82.00% | 86.00% | 0.00% |
Selling, General & Administrative Expenses | 50.00% | 65.00% | 72.00% | 55.50% |
Advertising Expenses | 4.00% | 3.20% | 2.22% | 3.60% |
Profit Before Interest and Taxes | 20.00% | 22.00% | 25.70% | 3.10% |
Main Ratios | ||||
Current | 14 | 10 | 16 | 0.8 |
Quick | 30 | 25 | 27 | 1.5 |
Total Debt to Total Assets | 4.31% | 3.00% | 2.50% | 45.00% |
Pre-tax Return on Net Worth | 92.00% | 85.00% | 92.00% | 4.10% |
Pre-tax Return on Assets | 78.00% | 65.00% | 56.00% | 8.00% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 14.00% | 17.00% | 20.00% | N.A. |
Return on Equity | 60.00% | 52.00% | 56.00% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 10 | 5 | 4.3 | N.A. |
Collection Days | 80 | 85 | 96 | N.A. |
Inventory Turnover | 14 | 17 | 21 | N.A. |
Accounts Payable Turnover | 8.2 | 12.9 | 16 | N.A. |
Payment Days | 15 | 15 | 15 | N.A. |
Total Asset Turnover | 1.9 | 0.6 | 0.4 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | 0 | -0.07 | -0.04 | N.A. |
Current Liab. to Liab. | 0 | 0 | 0 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $270,000 | $290,000 | $320,000 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 0.6 | 0.4 | 0.3 | N.A. |
Current Debt/Total Assets | 9% | 7% | 5% | N.A. |
Acid Test | 23 | 27 | 35 | N.A. |
Sales/Net Worth | 3.3 | 3 | 2.7 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
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How to write a simple dry cleaner drop-off business plan, how to write a wedding planning business plan.
A business plan gives you a daily guide on how to run your gas station. It also comes in handy when you’re seeking financing to lease or buy a station and stock it with fuel and products. Once you complete the business plan you’re ready to write an executive summary that outlines how your gas station will provide a much-needed fueling resource while standing out from competitors and making a profit.
Describe the products and services your gas station will provide, including different grades of gas and types of oil. If you want customers to come inside, explain what products you plan to sell, such as snacks, chips, beverages, souvenirs, groceries or automotive products. To increase profits, you might also want to offer mechanical repairs or a car wash.
Discuss the market for opening a gas station in the area, and provide details about your competitors, including their pricing strategy, target market, strengths and weaknesses. Explain how there is a need for another gas station and how you will differentiate your station from the others, such as by offering convenience goods, automotive repairs or the lowest prices. Your competitive advantage might focus on selling gas on a busy street where no other gas stations exist. Or you might want to explain the benefits of adding another station to the mix since so many cars travel through the area because of a busy highway, an airport or a business complex.
Develop a sales and marketing strategy that draws customers and keeps them coming back each time they need to fill their tank. Your strategy might include offering a rewards program and erecting signs to let drivers know your gas prices. Mention advertising food and beverages at the pump if you plan to sell products inside the station. If your station is part of a franchise, provide details on the marketing and advertising the parent company provides.
Explain your background as an owner so investors know you’ve got the skills and experience to build a profitable station. If you lack experience, explain how the other businesses you’ve worked for or owned will help you make this venture successful. If you lack personal experience managing a gas station, find and detail the background of a manager to bring on board who knows the industry.
Prepare financial projections to determine the startup costs of leasing or buying a gas station and making the pumps operational. Your financial documents also need to show the cost of required licenses, payroll, utilities and environmental services. Calculate the revenues you anticipate from the sale of fuel, automotive products and concessions in your revenue projections.
Nancy Wagner is a marketing strategist and speaker who started writing in 1998. She writes business plans for startups and established companies and teaches marketing and promotional tactics at local workshops. Wagner's business and marketing articles have appeared in "Home Business Journal," "Nation’s Business," "Emerging Business" and "The Mortgage Press," among others. She holds a B.S. from Eastern Illinois University.
How to write a business plan for car valeting, how to make a business plan for charter buses, how to make a haunted house business plan, how to make a business plan for a pool hall, owning an automotive service shop, how to make money with golf simulators, how to write a business plan for churches, how to open up a garage to work on cars, how to write a business plan for retail designer hats, most popular.
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Gas Station
Back to All Business Ideas
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on June 3, 2022 Updated on July 2, 2024
Investment range
$253,550 - $357,100
Revenue potential
$1.095 million - $2.19 million p.a.
Time to build
6 – 12 months
Profit potential
$109,000 - $219,000 p.a.
Industry trend
Gas stations are essential to any community, and most are also convenience stores where people can grab a drink or snack. The US gas station industry suffered during the pandemic, but has come back in a big way, up 34% from its 2020 low.
That means now is a good time to get in on the action and become a gas station owner. It requires significant investment, but gas stations provide a valuable service and can be very lucrative — you might even build a gas station franchise!
But before you turn on those pumps, it’s important to know how to start a business. Luckily, this step-by-step guide is filled with all the information you need to launch a successful gas station.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .
Pros and cons.
Starting a gas station has pros and cons to consider before deciding if it’s right for you.
Industry size and growth.
Trends in the gas station industry include:
Challenges in the gas station industry include:
Startup costs for a gas station range from $250,000 to $350,000 and could be much higher. Costs include a 30% down payment on land and gas station construction, as well as the inventory of gas and convenience store items.
Start-up Costs | Ballpark Range | Average |
---|---|---|
Setting up a business name and corporation | $150 - $200 | $175 |
Business licenses and permits | $100 - $300 | $200 |
Insurance | $100-$300 | $200 |
Business cards and brochures | $200 - $300 | $250 |
Website setup | $1,000 - $3,000 | $2,000 |
30% down payment on land and gas station construction | $150,000 - $200,000 | $175,000 |
Inventory of gas and convenience store items | $100,000 - $150,000 | $125,000 |
State gas station permits | $2,000 - $3,000 | $2,500 |
Total | $253,550 - $357,100 | $305,325 |
Gas prices obviously fluctuate, and convenience store item prices vary. The average person who visits your gas station might spend $30. Your profit margin after all costs will be about 10%.
In your first year or two, you might have 100 customers a day, bringing in $1,095,000 in annual revenue. This would mean $109,000 in profit, assuming that 10% margin. As you begin to get regular customers, those numbers could double. With annual revenue of $2,190,000, you’d make an outstanding profit of $219,000.
There are a few barriers to entry for a gas station. You biggest challenges will be:
Step 2: hone your idea.
Now that you know what’s involved in starting a gas station, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research gas stations in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a gas station with electric car plugins, or a gas station with a convenience store that offers fresh sandwiches.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as diesel fuel or premium fuel.
This could jumpstart your word-of-mouth marketing and attract clients right away.
Your products will be your gas and convenience store items. You could add additional revenue by having an air machine for tires or an ATM machine.
Gas prices will be determined by the market, as will your convenience store items. You should aim for a profit margin of about 10%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will be anyone with a car, so you should spread out your marketing to include sites like TikTok, Instagram, and Facebook.
When choosing a gas station location, it’s essential to consider several factors.
First, analyze the area’s traffic flow and identify high-visibility locations with easy access for vehicles.
Second, research local competition to ensure your station will not be overshadowed by a more dominant player.
Third, examine the demographics of the surrounding community to gauge demand for fuel and convenience store items.
Finally, review local zoning laws and environmental regulations to ensure the site can be developed for a gas station.
Here are some ideas for brainstorming your business name:
Discover over 250 unique gas station name ideas here. If you want your business name to include specific keywords, you can also use our gas station business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Find a Domain
Powered by GoDaddy.com
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to gas stations.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your gas station will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.
Choose Your State
We recommend ZenBusiness as the Best LLC Service for 2024
The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist , and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a gas station business.
Starting a gas station business requires obtaining a number of licenses and permits from local, state, and federal governments.
Check with your state for specific gas station license and permit requirements.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your gas station business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as LS Retail , SSCS , or PDI , to manage your inventory, fuel supplies, purchasing, and reporting.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your gas station meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your gas station business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a gas station business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in gas stations for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in gas stations. You’ll probably generate new customers or find companies with which you could establish a partnership.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a gas station business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Gas stations provide an essential product, along with snacks and drinks. Even with the emergence of electric cars, gas stations are not going away anytime soon. If you want to serve your community and make good money at the same time, starting up your own gas station could be just the ticket!
You know what’s involved now, so it’s time to find the perfect location and launch your successful gas station.
The key to having a profitable gas station is volume. You’ll need a location that has a large amount of traffic. A convenience store connected to your gas station also significantly improves profitability.
To ensure that your gas station is accessible and meets the needs of different types of customers, you can provide a range of fuel options, such as regular, mid-grade, and premium gasoline, as well as diesel and alternative fuels like ethanol and biodiesel. It’s also important to ensure that the gas station is accessible to customers with disabilities, including wheelchair ramps, handicapped parking spaces, and accessible restroom facilities .
A successful gas station should provide quality fuel and a range of convenient services to customers. It should also have a clean and well-maintained facility, a professional and friendly staff, and competitive pricing. Location is also important.
The amount of gas a gas station can hold varies depending on the size of the station and the number and size of the underground storage tanks. A small gas station may hold up to 10,000 gallons of fuel, while a larger station may hold up to 50,000 gallons or more.
The amount of energy it takes to run a gas station can also vary depending on the size and services offered. Some of the energy needs include lighting, heating and cooling, and running equipment such as pumps, compressors, and refrigeration units.
To ensure that your gas station business complies with safety and environmental regulations, you should stay up-to-date with any local, state, and federal laws and regulations related to the operation of a gas station. This may include regulations related to the installation and maintenance of underground storage tanks, handling, and disposal of hazardous materials, fire safety, and employee training.
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Gas station executive summary.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of gas station business you are operating and the status; for example, are you a startup, do you have an existing gas station business that you would like to grow, or are you operating a network of gas stations.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the gas station industry. Discuss the type of gas station you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
GAS STATION BUSINESS PLAN OUTLINE
Start Your Gas Station Plan Here
Are you considering starting a Gas Station Business and are in need of a petrol station business plan? if yes, you'll find this free book to be extremely helpful.
This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.
Checklist for Starting a Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
Here’s a Valuable Free Gift for You This is a high quality, full blown business plan template complete with detailed instructions and all related spreadsheets. You can download it to your PC and easily prepare a professional business plan for your business. Click Here! To get your free business plan template
The Single Most Important Ingredient for Business Success
The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.
Sounds exaggerated? Listen to this...
According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.
This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.
Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.
"Why Invent Mediocrity, When You Can Copy Genius?"
That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?
[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]
Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful Internet based information business. I'm also the author of numerous books, mostly in the area of small business management.
I've been involved in small business for the past 31 years of my life, as a business coach, manager of a Gas Station firm, a seminar leader and as the owner of five successful businesses.
During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.
Here's what you'll discover in the 'How to Start a Gas Station Business' book:
Success Tip: Setting Goals
Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.
Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.
Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.
Click here! to download your Gas Station Business plan PDF book for free
Learn how to improve your leadership skills and become a better manager and leader. Here's how to be the boss people want to give 200 percent for. In the following video you'll discover 120 powerful tips and strategies to motivate and inspire your people to bring out the best in them.
For more insightful videos visit our Small Business and Management Skills YouTube Chanel .
Here're other free books in the "how to start a business" series that may interest you:
Here's a Sample 'Executive Summary' for a Gas Station Business plan :
COMPANY NAME is a convenient store and gas station that has served the community for the last 40 years. As a staple in the community for gas and cooked food, COMPANY NAME is looking to expand to a full service discount store. This convenience store is looking for funds that will allow this already successful business to offer laundry services, discount groceries and an upgraded store front. Industry: The gas station industry is fragmented industries with no real dominate company. The industry has revenue of over 115 billion of annually. In recent years, almost 127,000 gasoline service stations operated in the United States. These establishments took very different forms than they had before, with self-service islands and ancillary retail outlets—convenience stores, known as C-stores—creating major changes in the distribution of market share. Company Goals:
Our company has been a minority own business for 40 years and has the backing of the local community. Our goal is to increase the product we offer in hopes of additional revenue from our already existing client and customer base.
1.1 Objectives
COMPANY NAME has established three firm objectives it wishes to achieve in the next three years:
To provide customer service that is second to none.
The mission of COMPANY NAME is to offer commuters competitive gas prices and great food. The company will make a healthy profit for its owners and provide a rewarding work environment for its employees.
COMPANY NAME is a convenience store and gas station in [INSERT TOWN]. OWNER’S NAME the current owner has seven years of experience in managing gas stations. OWNER’S NAME will focus on the commuters that pass through the town daily. They will offer its customers the best gas prices and quality food products.
OWNER’S NAME , the owner and operator of the business has had over seven years of management and retail experience. The store was purchased by OWNER’S NAME from his father whom owned the store for over 40 years. The ownership of this store understands the importance of building relationships with the local community.
The COMPANY NAME store was formed as a sole proprietary company in 1970 in the state of [INSERT STATE] in the [INSERT COUNTY]. COMPANY NAME has been a minority owned and managed business for the last 40 years and has become a staple in the local community.
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| FY 2008 | FY 2009 | FY 2010 |
Sales | $750,000 | $785,000 | $765,000 |
Gross Margin | $335,000 | $335,000 | $335,000 |
Gross Margin % | 44.67% | 42.68% | 43.79% |
Operating Expenses | $427,000 | $431,000 | $436,000 |
Collection Period (days) | 0 | 0 | 0 |
Inventory Turnover | 0.95 | 0.95 | 0.95 |
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|
Balance Sheet |
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|
|
| FY 2008 | FY 2009 | FY 2010 |
|
|
|
|
Current Assets |
|
|
|
Cash | $10,000 | $10,000 | $10,000 |
Accounts Receivable | $0 | $0 | $0 |
Inventory | $7,100 | $7,100 | $7,100 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $17,100 | $17,100 | $17,100 |
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|
|
Long-term Assets |
|
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|
Long-term Assets | $150,000 | $150,000 | $150,000 |
Accumulated Depreciation | $135,000 | $135,000 | $135,000 |
Total Long-term Assets | $15,000 | $15,000 | $15,000 |
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|
Total Assets | $32,100 | $32,100 | $32,100 |
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Current Liabilities |
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|
|
Accounts Payable | $0 | $0 | $0 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities (interest free) | $0 | $0 | $0 |
Total Current Liabilities | $0 | $0 | $0 |
|
|
|
|
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $0 | $0 | $0 |
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|
|
Paid-in Capital | $75,000 | $75,000 | $75,000 |
Retained Earnings | ($42,900) | ($42,900) | ($42,900) |
Earnings | $0 | $0 | $0 |
Total Capital | $32,100 | $32,100 | $32,100 |
|
|
|
|
Total Capital and Liabilities | $32,100 | $32,100 | $32,100 |
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Other Inputs |
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|
Payment Days | 0 | 0 | 0 |
Sales on Credit | $0 | $0 | $0 |
| 0.00 | 0.00 | 0.00 |
There are over 4000 different skews that are offered on a daily basis at the Discount Corner store. The following is a general list of products.
With the grant money they will be able to offer more products and services such as, groceries, and a laundry mat.
1. Delegate to someone who is naturally responsible and accountable.
Anything less and you've got a problem.
2. Link performance to salary.
Make the task/accountability that you're delegating a requirement for the person to get paid.
3. Identify what the signs/measures of failure are.
This way, you can inform the person, in advance, what isn't acceptable, and what you'll be "looking out for...." This works.
4. Identify the measurables of the job/task/item.
Then, you'll both know if the job is getting done.
5. Develop an iron-clad reporting system.
A daily checklist, a weekly report, a monthly financial statement, a weekly meeting. Whatever it takes.
6. Install an oversight process.
Have someone else that you trust to check in/check up on the employees performance, results, accuracy, honesty.
7. Identify consequences for inadequate performance, in advance.
This way, no surprises and whatever actions you take are not punitive or arbitrary.
8. Double-check the work yourself from time to time.
This means to review the work, chat with customers, get outside verification.
9. Build in a system of continuous improvement of the delegated task/accountability.
This keeps the employee focused on creating new and better ways of doing what you need.
10. Customize a reward/incentive package, if appropriate.
Everyone has their own unique way to be motivated. Make sure that you understand theirs and create something around that, not around your own way. But don't be too generous -- that usually backfires. Remember, you're their employer, not their friend or business partner.
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MISHAWAKA, Ind. (WNDU) - The Mishawaka Common Council has approved a rezoning plan to allow the construction of a Casey’s gas station at Fir and Douglas roads.
Critics of the rezoning plan fear a gas station at that location will endanger the new Juday Creek Water Wellfield. The concern is that gas storage tanks pose the risk of future groundwater contamination.
Mayor Dave Wood maintains the idea that Mishawaka needs to protect the considerable investment it made in the wellfield.
“We put in a very significant generational investment, $40 million into a new wellfield to service Mishawaka’s growth and also to help us with our pressure on the far north side and give us what I call water security for essentially our lifetimes,” Mayor Wood said. “This is a lifetime investment.”
While a council member, Gregg Hixenbaugh in the majority argued those risks were deemed acceptable when the city created the wellfield with a Family Express gas station convenience store nearby.
“It seems as though there was an analysis of the risk that was posed by Family Express when we built the wellfield, and I have no doubt that the city did its due diligence and looked at that in the proper context,” Hixenbaugh said. “But that appears to be a risk that was deemed allowable and acceptable more to the point based upon the fact that we then went forward and developed the wellfield.”
Once again, the council voted in favor of rezoning 2.3 acres at the southeast corner of Fir and Douglas roads from “general commercial” to “filling station commercial,” allowing a Casey’s convenience store and gasoline station.
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FILE - A gas station remains closed less than a week after a fatal shooting in Detroit, Michigan, Wednesday, May 10, 2023. The city of Detroit is taking steps to ban gas stations from locking people inside the store, a year after a man was fatally shot during an argument with another customer. (AP Photo/Ed White, File)
DETROIT (AP) — The city of Detroit is taking steps to ban gas stations from locking people inside the store, a year after a man was fatally shot during an argument with another customer.
Police said a clerk’s decision to lock the door while he was safely behind protective glass contributed to the shooting.
An ordinance approved Tuesday by the Detroit City Council would make it illegal for employees to push a button to remotely lock the door. It would apply to businesses whose workers are protected by glass, The Detroit News reported.
“The goal of this is to ensure that we keep the threat outside the convenience store, gas station, liquor stores or party stores,” council member James Tate said.
In May 2023, the failure to complete a $3.80 electronic purchase led to violence.
Video showed Samuel McCray repeatedly cursing and insisting he was going to leave a gas station with the items. Three more people entered before clerk Al-Hassan Aiyash pushed a button to lock the door, keeping the four inside.
Those three people were shot, and one of them died. McCray is facing charges of murder and attempted murder. Aiyash is charged with involuntary manslaughter. Their cases are pending.
“If not for the fact that he locked the door, none of this would have happened,” Judge Kenneth King said of Aiyash.
Aiyash’s attorney said he didn’t know McCray had a gun when he locked the door.
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy , stocks, and general market trends.
More Nigerians are switching to Compressed Natural Gas (CNG) as filling stations continue to sell Premium Motor Spirit (petrol) far above the expected N620 per litre.
According to data from the National Bureau of Statistics (NBS), the nationwide average petrol price for May 2024 stood at N769.62, a staggering 223.21% increase from the N238.11 recorded in May 2023.
Driver buys cheap fuel priced at N200, uses only N4,100 to fill car tank and travel for long journey
In some states, such as Jigawa , motorists at filling stations paid as much as N937 per litre, according to NBS reports .
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Also, filling stations in Ondo and Benue states adjusted their pumps to N882.67 and N882.22, respectively.
The states where filling stations charged the lowest petrol prices were Lagos , Niger, and Kwara, at N636.80, N642.16, and N645.15, respectively.
A survey conducted by Legit.ng showed that only NNPC stations in Nigeria sell petrol below N600, while every other private filling station sells it above the expected price of N620 per litre .
For example, in the Ikotun area of Lagos, two stations opposite each other had a price differential of N100.
While one sells to customers at N620, the other filling station sets its pump price at N720 per litre.
Okada riders slash fares despite rising fuel price, cheapest in 10 states
When asked why the different prices, a manager who gave his name as Akeem said:
"We buy from different depots and at various dollar exchange rates. If we get new stock and prices have increased, you don't expect us to sell at the same price. Maybe the other filling station has old stock, which is why theirs is cheaper."
With petrol prices not crashing anytime soon, CNG has emerged as a viable option for both private and commercial vehicle owners.
CNG is sold for cars, taxis, and tricycles at about N200 per standard cubic foot, while for heavy commercial vehicles, it is sold at N260 per standard cubic meter (SCM).
Legit.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPC) and Transit Gas Nigeria Limited (TGNL) completed and commissioned a 5.2 MMSCFD Compressed Natural Gas/Autogas facility at Ilasamaja, Lagos.
“It was sold for N3.5 million”: Expert speaks on new economy tickets price to UK, US
Oluwatosin Ibiwoye, a taxi driver who converted her car to run with CNG, said she now spends only N4,100 to refill her car compared to N28,000 on PMS.
A commercial vehicle driver, Wale Adeogun, also told Legit.ng that he paid N200 per standard cubic foot for CNG, spending only N1,900 instead of the N10,000 he would have spent on petrol.
"My brother, this is much better compared to petrol or diesel. Now, I wake up with peace of mind, knowing I can make enough daily profit to feed my family."
Legit.ng earlier reported that since November last year, the deployment of dispensing pumps for CNG has risen by 233%.
Michael Oluwagbemi, coordinator and chief executive of the Presidential Initiative on CNG (Pi-CNG), disclosed this as he addressed journalists at a Mikano International CNG Vehicle assembly plant tour in Ogun state.
“Buses, tricycles”: FG subsidises CNG conversion, transporters to buy fuel priced at N200
Mikano has shown interest in deploying about 18 CNG pumps nationwide for widespread CNG adoption.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: [email protected].
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By Parks Kugle
By Parks Kugle | 3:08 PM Jul 3, 2024 CDT Updated 3:08 PM Jul 3, 2024 CDT
Gas station and convenience store Snack Shop opened off Westinghouse Road in Georgetown in mid June. (Dana Smyth/Community Impact)
Issues with charging has nearly half of electric-vehicle owners in the US considering going back to fossil fuels — the latest bad sign for the EV transition .
A recent consumer study conducted by McKinsey found that 46% of US EV owners surveyed were likely to switch back to a gas-powered vehicle, compared to a global average of 29% of EV owners who said they would likely switch back to an internal-combustion engine.
Respondents said the top reason for ditching their EVs was a lack of charging infrastructure . Other charging issues high on the list included a lack of charging at home and the impact of long-distance driving.
Related stories
Range anxiety and access to charging infrastructure have long been considered big barriers to electric-vehicle adoption , but the revelation that these same issues may drive current battery-powered car owners back into gas-powered cars is a new blow for the already rocky EV transition.
While there are plenty of shoppers interested in an electric vehicle, the options on sale are often too big, too expensive, or not practical enough to replace a gas-powered car.
Car companies are already scrambling to adjust to a sudden change in the electric-vehicle market to draw more new customers. The slowdown in EV sales growth has rocked everyone from Ford to Tesla , denting sales and forcing executives to rethink their long-term plans for electric vehicles.
While the industry has made great strides in electric-vehicle range and battery charging times, huge infrastructure holes make certain areas nearly impossible to navigate without a gas-powered engine.
McKinsey's study found this issue to be particularly acute in the US, which had the second-highest rate of respondents who said they were considering ditching their EV. (Australia was in first place, with 49% of respondents saying they were likely to switch back.)
America's high placement shouldn't come as too much of a surprise. Charging infrastructure in the US has long been a hot-potato issue , which has held back efforts to build more chargers.
Though a push from the automotive industry to fund charging infrastructure has led to a boom in public charging stations in the last two years, these have largely been money-losing ventures.
The Biden administration has set aside $7.5 billion for charging infrastructure and has said it would add 500,000 EV charging stations by 2030. But that effort has played out slowly so far, with only a handful of stations going live since the funding was approved two years ago.
Addressing charging infrastructure is already high on the industry's list of priorities when it comes to removing barriers to adoption, but the fact that it might also drive existing EV owners away only amplifies the issue.
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March 5, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful gas station. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your gas station's identity, navigate the competitive market, and secure funding for growth.
Develop A Gas Station Business Plan - The first step in starting a business is to create a detailed fuel station business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
We have created this sample for you to get a good idea about how perfect a gas station business plan should look and what details you will need to include in your stunning business plan.. Industry Overview. In October 2021, the monthly retail fuel sales in the US amounted to a whopping 55 billion dollars, significantly higher than the past month. And although the industry experienced a ...
A gas station business plan is a multi-page document that covers everything you'll need for the business's startup, as well as information that will be useful in the future. It includes sections like company history, planned products, advertising methods, and projected financials.
Gas Station Business Plan Template. If you want to start a new gas station business or expand your current one, you need a business plan. Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their gas stations.
Petrol Station Business Plan Automated Financial Statements - (Editable Excel File) The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, amount of fuel sold etc, and all the other financial statements will automatically adjust to reflect ...
A Sample Gas Station Business Plan Template 1. Industry Overview. A gas station which also called a petrol station, filling station, fueling station, or service station is a business facility which retails gasoline (petrol), diesel and lubricants for motor vehicles. Gas stations offer one of three types of service to their customers: full ...
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.
Lastly, address any funding needs in the "ask" section of your executive summary. 2. The presentation of the company. As you build your gas station business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.
Gas Station 10200 Bolsa Ave, Westminster, CA, 92683 https://upmetrics.co (650) 359-3153 [email protected] Business Plan John Doe
Features of the Gas Station Business Plan Template. Market Analysis: Conduct an in-depth review of the gas station industry, identify your potential customers, and study their behavior. Our template provides a systematic process for carrying out market analysis in the gas station sector. Business Model: Determine the unique value proposition of ...
When writing a business plan for a gas station, here are some points to research: List your products and services Gas stations are rarely limited to motor fuel.
1. Describe the Purpose of Your Gas Station Business. The first step to writing your business plan is to describe the purpose of your gas station business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.
Start your own convenience store gas station business plan. Allensburg's Food and Gas Executive Summary. Allensburg is a small town with a population 3,400. Located on rural Highway 310, the town is 30 miles south of the city of Kent and 34 miles north of the city of Willard. Highway 310 connects Kent and Willard that both have universities and ...
The business plan for your gas station franchise should contain the different advertising strategies you plan to implement to market your business. List down and describe each strategy and the budget you plan to allot for the campaign. You should also indicate if the advertising for your gas station is part of a blanket advertising campaign and ...
A gas station was also known as a petrol station is a business that retails diesel, gasoline and various types of motor vehicle lubricants. The increase in the number of automobiles has pushed up the demand for gasoline and diesel which makes the gas station business plan a lucrative venture. The oil and gas industry has in recent times gone ...
This post outlines the important sections with a summary of the key points to capture when writing a gas station business plan. At the end of this post, you can download a complete gas station financial forecast tool with 3-year financial projections including income statement, start-up costs, break-even analysis, and cash flow statement.
1. Describe the products and services your gas station will provide, including different grades of gas and types of oil. If you want customers to come inside, explain what products you plan to ...
1718 State Road 16. La Crosse, WI 54601. 24/7 Dispatch: 608.783.9516. Breaking into the gas station industry can be daunting, but we cover the key steps to take, from making a business plan to finding a wholesale fuel supplier.
The average person who visits your gas station might spend $30. Your profit margin after all costs will be about 10%. In your first year or two, you might have 100 customers a day, bringing in $1,095,000 in annual revenue. This would mean $109,000 in profit, assuming that 10% margin.
Gas Station Executive Summary. Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of gas station business you are operating ...
Increase sales at a rate of 15% per year to reach a level of $400,000 by the third year. Improve overall gross margin by 1% per year to a level of +29% (from 27.3%) over the current product line and maintain that level. Add products and services to meet market demand, again at 29% margin or above.
A complete gas station business plan template. This fill-in-the-blanks template includes every section of your business plan, including Executive Summary, Objectives, SWOT Analysis, Marketing Analysis and Strategy, Operations Plan, Financial Projections and more (a similar template is sold elsewhere for $69.95). All this and much much more.
Critics of the rezoning plan fear a gas station at that location will endanger the new Juday Creek Water Wellfield. The concern is that gas storage tanks pose the risk of future groundwater ...
FILE - A gas station remains closed less than a week after a fatal shooting in Detroit, Michigan, Wednesday, May 10, 2023. The city of Detroit is taking steps to ban gas stations from locking people inside the store, a year after a man was fatally shot during an argument with another customer.
The states where filling stations charged the lowest petrol prices were Lagos, Niger, and Kwara, at N636.80, N642.16, and N645.15, respectively. A survey conducted by Legit.ng showed that only NNPC stations in Nigeria sell petrol below N600, while every other private filling station sells it above the expected price of N620 per litre.
Snack Stop, a convenience store and gas station, opened at 1125 Westinghouse Road, Georgetown, in early June. The convenience store features a taqueria, which serves various Mexican foods such as ...
Road trips are not going to break the bank this Fourth of July. GasBuddy projects the national average price for regular gas will stand at $3.49 a gallon on Independence Day. That's a penny shy ...
Americans across the country will celebrate Independence Day with barbecues, fireworks and a day off from work for many employees. The Fourth of July marks the birth of American independence, the ...
A recent consumer study conducted by McKinsey found that 46% of US EV owners surveyed were likely to switch back to a gas-powered vehicle, compared to a global average of 29% of EV owners who said ...