Owning a gas station goes beyond pumping fuel—it’s a business with plenty of potential. As demand for convenient and well-placed gas stations increases, there’s a great opportunity for new business owners.
But creating a successful gas station involves more than just finding a prime spot—it requires careful planning and smart strategies. To make things easier, we’ve put together a sample gas station business plan using AI business plan generator. This example will help you take the right steps towards building a thriving business.
Let’s get started.
Gas Station Business Plan Example
Let's take a look at FuelOne Express' complete business plan and gain valuable insights to help you draft each section of your own gas station business plan.
Executive summary
FuelOne Express is a full-service gas station located in Southtown, California, serving the fueling and convenience needs of local residents, commuters, and travelers. With a strategic location near Highway 5, FuelOne Express provides a wide range of fuel options, including regular, premium, and diesel, alongside essential automotive services such as oil changes, tire pressure checks, and an automated car wash. Our on-site convenience store offers snacks, beverages, and travel essentials, making FuelOne Express a one-stop solution for all customers' travel needs.
Mission
To deliver dependable, convenient, and customer-focused fueling and automotive services, ensuring every driver can continue their journey with confidence and ease.
Vision
To be recognized as the most reliable and customer-friendly gas station in Southtown, setting the standard for quality service, community involvement, and operational excellence.
Market analysis
FuelOne Express targets a diverse market, including local residents, daily commuters, commercial vehicles, and tourists traveling through Southtown. Key competitors include major brands like Shell, Chevron, ExxonMobil, and 76 Gas Station. FuelOne Express differentiates itself through competitive pricing, customer-focused service, and a strong community presence, offering a more personalized experience than larger, corporate chains.
Products and services
FuelOne Express offers multiple grades of fuel (regular, premium, and diesel), automotive services (oil changes, tire pressure checks, and windshield washer refills), air and water services, and a convenient automated car wash. The on-site convenience store provides a wide range of snacks, beverages, and automotive supplies, catering to the needs of both local customers and long-distance travelers.
Marketing and sales strategy
FuelOne Express will establish a strong presence in Southtown through local advertising in newspapers, radio, and billboards. A targeted digital marketing campaign on social media platforms like Facebook and Instagram will attract younger customers. The business will also implement a loyalty program, offer seasonal promotions, and engage with the community through local events. Additionally, partnerships with local businesses will offer exclusive discounts for corporate fleets, driving repeat business.
Funding request
FuelOne Express is seeking $250,000 in funding to support the launch and initial operations. The funds will be allocated as follows:
- $100,000 for initial fuel inventory.
- $50,000 for automotive service equipment, including car wash systems.
- $30,000 for convenience store setup and inventory.
- $20,000 for marketing campaigns.
- $50,000 is reserved as working capital for operational expenses.
Financial projections
| Year | Revenue | COGS | Gross Profit | Operating Expenses | Net Profit (Before Tax) | Net Profit Margin |
|---|---|---|---|---|---|---|
| Year 1 | $4,788,000 | $3,992,400 | $795,600 | $290,000 | $505,600 | 10.56% |
| Year 2 | $5,027,400 | $4,192,020 | $835,380 | $304,500 | $530,880 | 10.56% |
| Year 3 | $5,278,770 | $4,401,621 | $877,149 | $319,725 | $557,424 | 10.56% |
Exit strategy
FuelOne Express aims to position itself as an attractive acquisition target for larger gas station chains or local investors within the next 5-7 years. Other options include franchising or retaining ownership for passive income by hiring a management team. These strategies ensure flexibility in maximizing the long-term value of the
Business description
FuelOne Express is a full-service gas station located in Southtown, California, strategically positioned near Highway 5 to serve a diverse range of customers, including local residents, daily commuters, and travelers. The business offers multiple grades of fuel—regular, premium, and diesel—to meet the varying needs of passenger vehicles and commercial fleets. In addition to fuel, FuelOne Express provides essential automotive services such as oil changes, tire pressure checks, and an automated car wash, all aimed at enhancing customer convenience and vehicle maintenance.
The on-site convenience store offers a selection of snacks, beverages, automotive supplies, and travel necessities, creating a one-stop-shop experience for customers. By focusing on providing high-quality products and services at competitive prices, FuelOne Express aims to become a preferred choice for fueling and convenience needs in the Southtown area.
Mission statement
To deliver dependable, convenient, and customer-focused fueling and automotive services, ensuring every driver can continue their journey with confidence and ease.
Vision statement
To be recognized as the most reliable and customer-friendly gas station in Southtown, setting the standard for quality service, community involvement, and operational excellence.
Business objectives
- Establish market presence: Build brand recognition in Southtown through targeted local and digital marketing efforts.
- Achieve profitability: Attain positive cash flow and profitability within the first year of operations by managing costs and maximizing sales.
- Customer satisfaction: Focus on providing a superior customer experience through friendly service, a clean and well-maintained facility, and high-quality products.
- Community engagement: Actively participate in local events and support community initiatives, fostering strong relationships with Southtown residents.
Legal structure
FuelOne Express is established as a Limited Liability Company (LLC), providing flexibility in management while offering personal liability protection for the owner, Evan Porter. This structure allows the business to operate efficiently while preparing for future growth and potential partnerships.
Market analysis
The gas station and convenience store industry is a crucial part of the broader transportation and retail sectors, providing essential services to both local communities and travelers. This industry remains in demand due to the consistent need for fuel, automotive services, and convenience items.
As vehicle ownership continues to be strong in the United States, gas stations have opportunities to serve both regular commuters and long-distance travelers. Recent trends indicate a growing emphasis on customer convenience and service quality.
Many gas stations are incorporating additional services such as car washes, quick automotive services, and loyalty programs to attract and retain customers. There is also an increasing interest in eco-friendly options, such as electric vehicle charging stations, as the automotive industry transitions toward sustainable solutions. FuelOne Express is well-positioned to capitalize on these trends by offering a range of high-quality services tailored to its local market.
Target market
FuelOne Express serves a diverse customer base, focusing on the following segments:
- Local residents: Residents of Southtown who rely on regular, convenient fuel services for their everyday transportation needs.
- Daily commuters: Individuals who commute to work or school in and around Southtown, often requiring quick fuel stops and automotive services.
- Commercial vehicles: Truck drivers and commercial fleets that rely on high-quality diesel fuel and essential automotive supplies to keep their vehicles running smoothly.
- Tourists and travelers: Long-distance travelers and tourists passing through Southtown on Highway 5, seeking a convenient place to refuel, refresh, and service their vehicles.
This diverse target market allows FuelOne Express to maintain steady foot traffic throughout the day, with peak periods during morning and evening commutes and increased activity on weekends and holidays due to travelers.
Competitor analysis
FuelOne Express faces competition from several established gas stations in the Southtown area, including:
-
Shell Station
Strengths: Strong brand recognition, nationwide loyalty programs, and high-quality fuel.
Weaknesses: Higher prices and less focus on personalized, community-oriented service.
-
Chevron
Strengths: Known for premium fuel options and consistent customer trust.
Weaknesses: Higher prices and a more corporate service model, which may lack the personal touch that local stations can offer.
-
ExxonMobil
Strengths: Wide network, quality fuel, and loyalty programs.
Weaknesses: Premium pricing and a lack of focus on community engagement.
-
76 Gas Station
Strengths: Competitive fuel pricing and convenient locations.
Weaknesses: Smaller brand recognition compared to major competitors and a more basic convenience store offering.
SWOT analysis
A SWOT analysis for FuelOne Express highlights its strengths, weaknesses, opportunities, and threats:
Products and services
FuelOne Express offers a comprehensive range of products and services designed to meet the needs of local residents, commuters, commercial vehicles, and travelers. The key offerings include:
Fuel options
- Regular fuel: Suitable for standard vehicles, offering affordability and consistent quality.
- Premium fuel: Designed for high-performance vehicles, providing enhanced engine performance.
- Diesel fuel: High-quality diesel for trucks, commercial vehicles, and other diesel-powered engines.
Automotive services
- Oil changes: Quick and reliable oil change services, ensuring vehicles maintain optimal engine performance.
- Tire pressure checks: Regular tire pressure checks to improve safety and fuel efficiency.
- Windshield washer refills: Convenient refills to keep windshields clean for better visibility.
Air and water services
- Air pumps: For tire inflation, ensuring proper tire pressure for safety and longevity.
- Water services: Available for vehicle cleaning and basic maintenance needs.
Automated car wash
- A quick and efficient car wash option that helps customers keep their vehicles clean and well-maintained, adding to the convenience of a one-stop service center.
Convenience store
- Snacks and beverages: A variety of snacks, cold drinks, coffee, and quick meals for customers on the go.
- Automotive supplies: Essential products like motor oil, wiper fluid, and vehicle care products.
- Travel necessities: Items such as maps, phone chargers, and personal care products for travelers passing through.
Organization and management
FuelOne Express is structured as a Limited Liability Company (LLC). The legal structure offers the flexibility needed for day-to-day operations while providing legal protections to the owner, Evan Porter.
The LLC structure shields personal assets from business liabilities, making it a suitable choice for a gas station with considerable initial investments in inventory and equipment. It also allows for simplified tax reporting and ease of management, which is ideal for the growth and scaling goals of the business.
Ownership Structure
Owner (CEO): Evan Porter
Evan Porter is the sole proprietor of FuelOne Express, holding the title of Chief Executive Officer (CEO). He is responsible for the strategic vision and overall management of the business. With a background in business management and a keen understanding of the fuel industry, Evan is committed to steering FuelOne Express toward long-term profitability and community impact.
Key roles and responsibilities
- Evan Porter: Strategic direction, overall business management, and high-level decision-making.
- Alan Foster: Financial oversight, budgeting, and financial reporting.
- Chloe Adams: Customer service management, staff training, and customer satisfaction.
- Kevin Green: Marketing strategies, promotions, and community outreach.
- Jack Murphy: Automotive service management, equipment maintenance, and safety standards.
Organizational Structure
The organizational structure of FuelOne Express is designed for efficiency and customer focus, ensuring that all areas of the business are well-managed and aligned with strategic goals:
Marketing and sales strategy
FuelOne Express will leverage a multifaceted marketing strategy to establish and grow its presence in Southtown. Key strategies include:
Local advertising
- Billboards: Strategically placed along Highway 5 to attract passing travelers and build brand recognition among local drivers.
- Newspapers and radio stations: Local ads to reach Southtown residents, promoting services and special offers.
- Community involvement: Sponsorship of local events and partnerships with community organizations to enhance brand visibility and reputation.
Digital marketing
- Social media campaigns: Targeted campaigns on platforms like Facebook and Instagram to engage with local audiences and promote special deals, such as discounts on fuel or car washes.
- Google My Business: Optimizing the business's presence online to make it easier for customers to find FuelOne Express, view reviews, and get directions.
Loyalty program
- Incentives for repeat customers: A rewards program offering discounts on fuel and in-store purchases for frequent customers. This program aims to increase repeat visits and foster customer loyalty.
Corporate partnerships
- Fleet discounts: Exclusive discounts for local businesses and their commercial fleets, encouraging steady fuel sales from corporate clients.
- Joint promotions with local businesses: Cross-promotional efforts to create bundle offers, such as discounted fuel or car washes for customers who shop at nearby businesses.
Seasonal promotions
- Holiday discounts: Offering special discounts during high-traffic periods like summer road trips and holiday weekends.
- Travel season offers: Targeted promotions during peak travel seasons to attract tourists and commuters.
Financial projections
Below is a three-year projection for FuelOne Express:
Income statement (3 years)
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | |||
| Fuel Sales | $4,320,000 | $4,536,000 | $4,762,800 |
| Convenience Store Sales | $360,000 | $378,000 | $396,900 |
| Automotive Services | $108,000 | $113,400 | $119,070 |
| Total Revenue | $4,788,000 | $5,027,400 | $5,278,770 |
| COGS | |||
| Fuel | $3,780,000 | $3,969,000 | $4,167,450 |
| Convenience Store | $180,000 | $189,000 | $198,450 |
| Automotive Services | $32,400 | $34,020 | $35,721 |
| Total COGS | $3,992,400 | $4,192,020 | $4,401,621 |
| Gross Profit | $795,600 | $835,380 | $877,149 |
| Operating Expenses | |||
| Salaries and Wages | $180,000 | $189,000 | $198,450 |
| Rent and Utilities | $60,000 | $63,000 | $66,150 |
| Marketing and Advertising | $20,000 | $21,000 | $22,050 |
| Insurance | $15,000 | $15,750 | $16,538 |
| Maintenance and Repairs | $10,000 | $10,500 | $11,025 |
| Miscellaneous Expenses | $5,000 | $5,250 | $5,513 |
| Total Operating Expenses | $290,000 | $304,500 | $319,725 |
| Net Profit (Before Tax) | $505,600 | $530,880 | $557,424 |
Cash flow statement (3 years)
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Cash Inflows | |||
| Cash from Sales | $4,788,000 | $5,027,400 | $5,278,770 |
| Loan/Funding Received | $250,000 | - | - |
| Total Cash Inflows | $5,038,000 | $5,027,400 | $5,278,770 |
| Cash Outflows | |||
| Initial Fuel Inventory | $100,000 | - | - |
| Automotive Service Equipment | $50,000 | - | - |
| Store Inventory Setup | $30,000 | - | - |
| Marketing Expenses | $20,000 | $21,000 | $22,050 |
| Operating Expenses | $290,000 | $304,500 | $319,725 |
| COGS | $3,992,400 | $4,192,020 | $4,401,621 |
| Total Cash Outflows | $4,482,400 | $4,517,520 | $4,743,396 |
| Net Cash Flow | $555,600 | $509,880 | $535,374 |
| Ending Cash Balance | $555,600 | $1,065,480 | $1,600,854 |
Balance sheet (3 years)
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Assets | |||
| Cash | $555,600 | $1,065,480 | $1,600,854 |
| Fuel Inventory | $100,000 | $105,000 | $110,250 |
| Store Inventory | $30,000 | $31,500 | $33,075 |
| Automotive Service Equipment | $50,000 | $47,500 | $45,125 |
| Total Assets | $735,600 | $1,249,480 | $1,789,304 |
| Liabilities | |||
| Loan Payable | $250,000 | $250,000 | $250,000 |
| Accounts Payable (COGS) | $50,000 | $52,500 | $55,125 |
| Total Liabilities | $300,000 | $302,500 | $305,125 |
| Equity | |||
| Owner's Equity | $435,600 | $946,980 | $1,484,179 |
| Total Liabilities & Equity | $735,600 | $1,249,480 | $1,789,304 |
Key assumptions for financial statements:
- Depreciation: The automotive service equipment is depreciated over five years using straight-line depreciation.
- Fuel inventory: An increase of 5% per year is assumed to adjust for inflation and increased demand.
- Loan repayment: No principal repayment is assumed within the first three years to focus on cash flow availability for operations.
- Growth rates: Revenue growth is estimated at 5% per year due to increased customer acquisition and expanded marketing efforts.
Funding request
FuelOne Express is seeking $250,000 in funding to successfully launch and operate the business. The funds will be used for the following purposes:
| Use of Funds | Amount | Description |
|---|---|---|
| Initial fuel inventory | $100,000 | To secure the initial stock of regular, premium, and diesel fuel to meet customer demand from day one. |
| Automotive service equipment | $50,000 | For purchasing and installing equipment needed for oil changes, tire services, and automated car wash. |
| Convenience store setup | $30,000 | To set up shelving, display units, and point-of-sale systems, as well as stock the initial inventory. |
| Marketing budget | $20,000 | For local advertising (billboards, radio ads) and digital campaigns to build brand awareness. |
| Working capital | $50,000 | To cover day-to-day operational expenses, such as wages, utilities, and unforeseen costs. |
| Total Funding Required | $250,000 |
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Conclusion
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Frequently Asked Questions
What are the funding sources for your gas station business?
Here are a few common ways to fund a gas station business:
- Traditional bank loans: This is a popular option for new gas stations. Banks offer fixed interest rates and structured repayment plans, but you'll need a strong credit score and a well-thought-out business plan.
- SBA (Small Business Administration) loans: SBA loans are designed to help small businesses like gas stations. They typically offer better terms than regular bank loans, making them great for covering startup costs, fuel inventory, or buying equipment.
- Private investors or Venture capital: If you're open to giving up a share of ownership or profits, private investors or venture capitalists can offer flexible funding options. It can be a good way to get the capital you need without traditional loan terms.
- Personal savings: Many entrepreneurs use their savings to start a gas station, reducing the need to rely heavily on outside loans or pay interest.
- Equipment financing: Instead of draining all your cash flow, you can get specific financing for things like fuel pumps, car wash systems, and point-of-sale (POS) systems.
- Grants: Depending on your location, you may be able to get grants for supporting local employment or promoting green initiatives, such as installing EV charging stations.
What are the key financial projections I should include in my gas station business plan?
Here are some important projections:
- Income Statement (Profit and Loss Statement)
- Cash Flow Statement
- Balance Sheet
- Break-Even Analysis
- Sales Forecast
How can I make my gas station business plan stand out to investors?
Your gas station business needs a clear vision and mission to show how it stands out. Include a strong market analysis with data on demand and competition. Present solid financial projections and highlight your unique selling points, like location or eco-friendly options.
Cherry on top is to showcase your management team's expertise and have a plan to handle risks like fuel price changes.
What key elements should I include in the executive summary?
Some of key sections that should part of executive summary is :
- Business Overview
- Mission and vision statements
- Market opportunity
- Products and services
- Financial highlights
- Funding request
- Competitive advantage
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