Are You Clear and Very Specific About Whether Your Land Is Viable For Petrol Station Business?

Are you clear and specific about whether your site is a suitable petrol station?

One challenge investors face is identifying suitable land for their next petrol station.

The mistake of building a petrol station at a lousy site makes investors lie awake at night, crippled by the thought of their petrol station business going to bust.

Choosing a suitable land increases your chances of success so you can sleep at night without worrying about the future of your business.

Here is a step-by-step guide to knowing sites suitable for the petrol station business.

1. Traffic count. A good petrol station location is determined by checking the traffic count on the road before you. Determine the quantity and type of cars and vehicles passing on your site daily.

By collecting data, you will estimate the fuel volume you expect to sell in your trading areas and project the monthly fuel volume your location might sell. 

This will also identify whether there is an opportunity to achieve greater volume. It will also aid you in determining infrastructure requirements, such as the fuel storage tank’s capacity to buy for your new site.

Read also: Are You Clear and Very Specific About Costs and Requirements For Running Petrol Stations?  

2. Competition: It is crucial to understand who your closest competitors are in your trading areas and identify their strengths and weakness and what volume they are achieving.

If there are already other petrol stations existing in the same trade area. Identify their financials and what volume they are achieving. 

 Identify how did they achieve those financial? What strategies are they using, and who are their suppliers?

3. Visibility:  How easily can the motorist/customers see the location? Check visibility from the road time taken for drivers to slow down to enter the petrol station

4. Accessibility:  How easy is it for your customers to get to the location

5. Security  How safe is the location? This is critical to control theft. Ignore this and watch robbers flock in now and then.

Whether you are new to the fuel industry, add to your portfolio of fuel filling stations or look to buy the fuel stations that already exist in the market. Selecting the right location for your fuel station is crucial to maximizing profit and ensuring your business’s long-term success.

If you are considering opening a new petrol station, get comprehensive due diligence before setting up of petrol station.

A lot goes into assessing the feasibility of a petrol station site. But no need to stress. 

Our team has worked with several investors like you to help them make informed investment decisions and protect their capital and reputation.