What You Need to Do to Start Successful Petrol Station In Tanzania and Africa(Step By Step)

Due to the economic recovery efforts and increased access to private transport, Tanzania has registered significant demand growth for petroleum products in the recent past. Starting a petrol station can be a profitable business.

But building a profitable and popular petrol station business can be a challenging task. Many companies have attempted and discovering it is not as easy as thought. However, if this market is approached conservatively, one in which significant risks are addressed before too many company resources are committed, the resulting sales can be rewarding.

Here’s what you need to do to start petrol station business successfully

Building Petrol Station From Scratch
Suppose you want to start a petrol station from scratch. In that case, you need to think about the site locations of your proposed petrol station, its visibility, accessibility, number and type of cars passing in the region, competitors in the areas, and their tactics. This will help you avoid spending time, effort, and money developing a petrol station where you have little chance of success. You must design the layout of the petrol station to attract customers and display stock to get extra revenue from product sales. It would help if you thought about how you will attract competent staff, find reliable fuel and pump suppliers,

Also, it would be best to think about how you will market your petrol station and recoup the initial set-up costs in the years ahead. If you are going to the bank to raise capital, you must capture all this in the business plan.

Renting or Buying Existing Petrol Stations
If you want to start a petrol station by renting or buying an existing business with an established customer base, you need to understand the health of that business. Are the finances reliable? Why is the current owner selling? If the business runs down, how can you market it to increase its potential? What will you offer to attract customers and grow revenues? And will the business sustain the extra costs of taking action to make such improvements? You need to think through all these issues to create a realistic business plan.