Pre-Opening Activities For Petrol Station Project In Tanzania
The retail petrol station subsector has been very stable. Three major brands dominated the industry. Many small, independent entrepreneurs have been investing in petrol station projects in recent years. The Kalibrate’s market study revealed that over 150 petrol stations were under construction in 2021.
This indicates more people are taking advantage of this growing segment in Tanzania.
Recently we have seen rapid growth of service stations, which besides selling petrol, diesel, kerosene, cooking gas, and engine oil, offer car washing services, coffee shops, car repair services, a restaurant, supermarkets, and shopping malls.
They can sell a huge volume of fuel profitably at low markups because the overhead cost of a retail outlet can be spread between fuel and other complementary services.
The purpose of this article is to describe the activities of the opening petrol station.
1.Selecting Petrol Station Site Location:
It takes substantial time and resources to build a petrol station. So why should you risk the investment without knowing whether your target location will be profitable? Tanzania’s retail petrol station is highly competitive and subject to constant regulations. After finding a likely area for the petrol station, gather and analyze relevant information about the proposed site’s market, technical, financial, and operational feasibility.
How many petrol stations like yours are there? Can you find out something about their sales volume?
Can you determine the number and type of vehicles passing on your site? Does your location meet and comply with the regulation and standards of Tanzania?
Can you offer complementary services besides fuel? This outcome enables you to make more accurate investment decisions.
Today, many investors and entrepreneurs spend substantial time and resources on project planning and execution, while they pay little attention to assessing the viability of their petrol station project location.
This leads to investing in the wrong places or making a decision that may not help them win in this competitive market.
2.Secure sufficient capital.
Proper capital is required to start and grow a successful petrol station business. Money is also needed to expand your petrol station business. Before looking for capital, determine your needed working and investment capital. Investors and banks know that petrol station ventures can generate a steady flow of revenue with profit on the horizon. And having a sound business plan is key to obtaining capital from banks.
Set up a plan for the petrol station project plan.
Good planning guides you through the project’s implementation and closure phases. It will also help you manage time, costs, quality, changes, and risks. Also, this will help control staff and external suppliers to ensure that the project is delivered on time, within budget, and within schedule. Your project implementation plan aims to establish a schedule, resource plan, costs, and delivery date.
3.Government Permit, Regulations, and Licenses.
In Tanzania, the fuel market sector is subject to constant regulations. Understanding procedures, costs, and complying with all regulations and standards of setting up a petrol station are critical to the successful operation of your project.
