How to Start A Gas Station Business On A Lean Budget

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Gas station businesses are not cheap. In fact, they are quite expensive, particularly if you’re planning to build them up from scratch. So if you want to build your own gas station business and you need to keep help keeping things affordable then here’s what you need to know.

How Much Does It Cost to Start A Gas Station Business?

Before we can talk about how you can keep your costs low, we will first need to discuss how much it takes to build a standard gas station.

In the United States, a standard gas station will require the following items in order to get it up and running:

– Business registration fees ($750)
– Legal expenses, accounting services and special permits ($15,300)
– Marketing services and expenses ($3,000 to $3,500)
– Business consultant services ($2,500)
– Insurance costs ($30,000 to $35,000)
– Leasing costs ($150,000 to $250,000)
– Construction costs, including gasoline tanks and reservoirs ($400,000)

  • – Phone and utility deposits ($6,500)
  • – Start up expenses ($500)
  • – Operational costs for the first 3 months, including bills and salaries ($60,000)
  • – Tools and startup inventory ($550,000 to $600,000)
  • – A gasoline tanker ($45,000)
  • – Store equipment ($14,000)
  • – Furniture and gadgets ($14,000)
  • – Miscellaneous costs ($11,000)
  • – Opening Ceremony/Party ($5,000 to $8,000)
  • If we are to compute the total cost for all these items, we would end up with around $2 to $2.5 million. This is how much an entrepreneur needs to invest in order to start a medium-sized gas station in the United States. Take note that this only applies to gas stations that sell automotive fuels. If it is sell cooking gas and vehicle related goods then you may need to invest another $500,000.

In contrast, large scale gas stations can cost as much as $7,000,000 to $10,000,000, while smaller ones only cost around $900,000 to $1.5 million. In other words, starting a gas station business is not cheap. It requires a lot of time and capital to organize.

How to Reduce the Cost of Starting A Gas Station Business 

The best way to reduce the total cost of starting a gas station business is through its construction. If you are on a tight budget then you will need to go with a small or modest gas station. This means smaller gas tanks and reservoirs, a cheaper gasoline tanker and cheaper leasing costs, all of which will allow you to save hundreds of thousands of dollars on your construction costs.

Aside from construction, you can also hire a good business consultant with a background in gas station businesses. These guys can usually help you cut down your costs by offering alternatives and referring suppliers who can offer you discounts.

Another way to keep your costs down is by reducing your budget for miscellaneous items, like furniture, gadgets and unnecessary startup inventory. These measures won’t give you an attractive gas station, but they can keep everything affordable.

Finally, you should hire a reliable but affordable construction company to build your gas station. A good construction company can lower gas station business costs by tens of thousands of dollars. One good example of a reliable example is Tom Sawyer Construction. Not only do they offer competitive rates for their services, they also have a lot of experience building gas stations all over the country.