How To Purchase A Gas Station In A Tight Economy - By: Richard K Parker

It wasn't so long ago that our communities were much more tightly knit and we seemed to focus on that local corner store from day-to-day. Due to our almost total reliance on a car to get us everywhere, it seems that our favorite neighborhood focal point is now the gas station and convenience store. It's easy to see why an entrepreneur would look favorably at buying a gas station for sale, especially as it seems that we simply cannot do without our transportation.

For those in the market to buy a business, a gas station could be viewed as a bankable bet. We all need gasoline and can be tempted into buying all kinds of other goodies in the attached store as we are on the property and can "kill two birds with one stone." The would-be buyer could be forgiven for salivating at the opportunity, but there is a lot to check into first.

Be wary of the unexpected. This holds true when you purchase any kind of business, but especially when it comes to a gas station. Remember that gasoline is a controlled substance which is heavily regulated. The industry is under scrutiny from environmentalists and you need to be sure that you have everything checked off and above board.

For example, do not buy gas station business rights until you have checked into the condition of the storage tanks and surrounding soil. Within older establishments, steel tanks are very vulnerable to leakage and if this is found it will require extensive excavation and downward pressure on your bank balance. There are also specific regulations for double-walled tanks that must be installed by certain dates and here again, it is a key point to investigate. Think twice before investing in an older property like this. You might be far better off seeking out a location which has already installed the more up-to-date, double skinned tanks.

Once you have convinced yourself that environmental and safety issues have been accounted for, make friends with the planning department at your local authority. If you live in an area that is prone to rapid population growth, understand that there are always plans on the books to reconstruct roadways and access points. While these may not actually come to fruition, you definitely need to know if any impending road construction, six months or a year ahead, may cause considerable difficulties. Remember, if people who had been used to coming into your gas station are forced to go elsewhere, even for a short period of time due to road construction, they may form a habit which now excludes your business and favors another.

While you may be interested in the business habits of the seller and the local conditions which are applicable, make sure that you take a good look at the franchisor as well. Get to know the industry position of the oil company whose name is on the billboard and don't assume that their interests in the property will continue, come what may. We have all learned from the economic events of the past few years that no organization is bulletproof.

About the Author

Richard Parker is the president and founder of Diomo Corporation - The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream to buy a business. Want to find out more about business buying strategies that really work, then look no further than=> http://www.howtobuyagasstation.com

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