The petrol station is a lucrative business in Tanzania or Africa that needs a lot of strategic planning. The good news is that with sufficient capital and conducting solid research, hardworking entrepreneurs can start a petrol station serving their communities and support their families.
Here are steps of being successful, effective energy entrepreneurs in all aspects of the retail petrol station industry.
1.Study the fuel market:
If you want to go into a business, the first thing would be to verify the profit potential of the business. And that’s so easy to find out abo the petrol station business. So start by looking at the potential of the petrol station business in Tanzania. The first thing you will need to do is to determine the requirement and break down the cost of starting a petrol station business in Tanzania. And how much does petrol station earn per day or month?
2.Identify profitable petrol station location through feasibility study
Having a successful petrol station business is more of the viability of the location than the cost involved,
Selecting the right location for your fuel station is crucial to maximizing profit and ensuring your business’s long-term success.
People make the biggest mistake: they purchase land and rush into the building or buying a petrol station without doing solid homework.
They spend a lot of money, time, and effort building or buying a petrol station only to find that the station is selling a little volume from the market in trading areas. They are losing investment time and effort.
So if you are thinking of opening a new petrol station, identify an area with the potential to achieve huge fuel sales volume. Here are some factors to consider when performing research within the area:
- How much fuel volume you expect to sell per month in the trading area?
Determine the quantity and type of cars and vehicles per day passing in your location. By collecting traffic data, you will estimate the fuel volume that you expect to sell in your trading areas and project the monthly fuel volume that your location might sell. This will also identify whether there is an opportunity to achieve greater volume in the future. It would also aid you in determining the underground fuel storage tank’s capacity to buy for your new site.
- .Who are your competitors?
It is crucial to understand who are your closet competitor are you trading areas and identify their strength and weakness and what volume they are achieving.
If there already other petrol stations existing in the same trade area, Identify what volume they are achieving. You may also need to identify the competitive advantage your new site could gain on its fuel volume. To collect competitor information, visit their sites and gather bits of intelligence from their pump attendants.
3.Prepare the business plan
Petrol station business plan will enable you to think through every aspect of your business in detail and will stand you in good stead for discussions with investors and loan agencies. It will also help you raise capital from investors and banks. The business plan also makes you look professional to investors as they know you have done your homework.
Your petrol station business plan should comprise an executive summary, vision and mission statement, objectives, industry trends, market analysis, SWOT analysis, marketing plan, operational plan, and financial data and cash flow projections.
4.Getting Needed Government Approval
There are several approvals you may need.
The first approval is town planning to ensure the location meets the plan of the city and doesn’t block any infrastructural facility or affect the plan of the town.
You will also need to get an environmental impact assessment. Through EIA you can obtain EIA Certificate which is mandatory by law for any project or investment.
You will also need to get EWURA approval to construct a petrol station as well as the license to selling fuel at your station.
I hope this helps.