Why You Need Help with the Writing of Business Plans for Filling Stations
All the major oil companies require buyers of filling stations to meet their requirements for forecourt owners. Such requirements include business plans and available working capital. Filling stations are rather complicated enterprises, and though financing is available for becoming fuel station franchisees or independent forecourt owners, the requirements are strict. It is thus important to seek professional help in the writing of business plans when it comes to such complex enterprises.
There are around 4 600 filling stations in the country, and though there has been an increase in independently owned and managed forecourts, most still operate as part of the franchise models from oil companies. Each company has its own requirements to be met, but the writing of business plans for any applications, whether for existing or new sites, is needed in all instances.
If you plan to set up a new fill station, you must have an environmental impact assessment carried out. In addition, you need to have anything from R14 million upwards for the set-up of the site. To this end, you will need from R2 million upwards to pay the franchisor for development costs. Even if you buy an existing fuel station, you must have sufficient working capital for fuel delivery, salaries, and owner benefit. Keep in mind that you also need insurance, such as fuel guarantee insurance.
A fuel price increase does not automatically mean an increase in income for the fuel retailer. Indeed, the retail margin is set and, as such, the forecourt owner gets a set amount per litre of fuel pumped. A price increase due to, for instance, carbon tax, simply means the motorist pays more at the pump. You have to make provision for such increases in your income projections. Every price increase means you must have more working capital available to pay for fuel deliveries.
When you make use of our expertise in the writing of business plans, you have the assurance that our auditors and industry experts already understand the fuel industry and costs to consider. They also understand that for every 10 cents increase in the fuel price, you need an additional R10 000 working capital. Our analysts have the expertise to calculate forecourt profit margins with consideration of fuel price fluctuations. An increase, for instance, means a reduction in profit unless the increase is due to the introduction of a higher retailer margin. They know how to analyse patterns, conduct demographic studies, and ensure that essential information is professionally presented. They also understand the c-store model and how to calculate the profit potential of the forecourt c-store.
Don’t risk being turned down for finance for your application to become a fuel station owner because your business plan lacks valuable information and accuracy. Get in touch for professional assistance in the writing of business plans for filling stations in South Africa.
