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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Gas Station SWOT Analysis

 

Strengths

 

Gas stations generate extremely predictable streams of revenue from the ongoing sales of gasoline and small food items at their locations. The barriers to entry for a new gas station are extremely high. This is due to the fact that gas stations need to be properly zoned in order to have underground fuel storage tanks. The startup costs for a new gas station runs from $250,000 to $1,000,000 depending on the location and whether or not the location is franchised. Once established, gas stations are able to generate through a number of means. First, they generate income from selling gasoline and diesel fuel. Second, they can generate substantial gross margins from the sales of food products that can offered in an onsite convenience store facility. There are not many operating risks related to operating a gas station.

 

Weaknesses


Energy prices are highly volatile. Depending on the structure of the gas station, the owner may be responsible for purchasing expensive inventories of fuel that are sold to the general public. This can cause dramatic shifts in the profits of a business. This risk can be remedied by working with a national level franchisor. In this case, the revenues generated from gasoline sales are managed by the franchising company.

 

Opportunities

 

The best way to boost the income of a gas station is to maintain an onsite convenience store that can sell food and beverage products to the general public. The gross margins generated from these products are far more substantial that what can be earned through the sale of gasoline and diesel fuels. Establishing additional locations is always an option for gas station expansion. It should be noted that some facilities have begun to install electric car charging stations. As this is the wave of the future, gas station owners benefit by providing charging services. Owners of these businesses can also benefit by having onsite car repair services.

 

Threats

 

Many automotive manufacturers are developing electric cars. As such, the need for gasoline is expected to decline substantially over the next 10 years. Gas station owners may need to retool their operations to account for the needs of these vehicle owners. This is one of the major threats that a gas station owner need to take into account. However, this change is expected to be slow moving so there is plenty of time to deal with this situation.


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