Starting your own petrol station can be a large and intimidating investment, especially if you don’t sufficient start-up capital and resources to build your own filling station from scratch.
The good news is that, by partnering with oil marketing company as a dealer, you have the opportunity to operate one of their corporate-owned stations, and they help ensure that you have everything you need to have a successful start in the retail fuel station industry.
With an initial investment of working capital between Tsh 150 million and Tsh300, you can become a retail petrol station dealer of one of the large oil marketing companies in Tanzania or East Africa.
Steps to Become a Company Owned Dealer.
Now below are steps to becoming a dealer of oil marketing companies. If you have the requisite finances, getting a dealership agreement with an oil company in Tanzania is quite easy
1.Conduct due diligence
Most oil marketing companies offer dealership opportunities on the leading local newspapers and on respective websites.
To uncover these opportunities, visit oil companies’ websites and read local newspapers, specifically the business section. You will see dealership advertisements there.
Also, you can knock on the door of oil marketing companies and ask whether they have dealership opportunities. Once they advertise dealership opportunities, you will apply and the qualified applicant will be appointed as a dealer.
Furthermore, perform research within a region to find an oil marketing companies that will offer you a good margin of fuel per liter, so as you can maximize your profit.
2.Submission of Retail Filling Station Operation Dealership.
You will have to submit your business plan for Running a petrol station business
Your business plan shows the direction of your petrol station business. It shows what you want to achieve and how you will achieve it. So it should contain your income projection.
You must demonstrate how you can manage cash flow. It must show market analysis and the kind of products and services you intend to offer.
You can write a business plan on your own or hire a professional to do it for you. You can also ask for help as long as its requirements are met. Creating a business plan is stressful work for many startups. However, if you have discipline, you will find it easier than you think
3. Approval & Signing a Dealership Agreement
After all the standard procedures have been completed, you will get approval and you will sign a dealership agreement with the oil company you applied to