HOW TO BUY A PETROL STATION IN SOUTH AFRICA Purchasing a petrol station or service station is not a very easy task; it requires lot of decision making process. Before purchasing a petrol station you must be having the complete idea of the location to be chosen and be aware of all the rules and regulations required for making your purchase a successful venture. The following points will explain how to purchase a petrol station in South Africa. Determine the type of petrol station you want to purchase- Franchise or Independent You can either purchase an independent petrol station or a franchise of an oil company. A franchise is restricted to purchase the franchiser's petroleum, participate in their promotions, and follow their policies. How to choose the best location for petrol station sale Research on the current or future plans for any roadways construction near any petrol stations that you are going to consider. If any construction is scheduled near the petrol station then its accessibility may be disrupted. o Look for the environmental laws of each location you want to choose as environmental compliance is costly in many areas. o Always try to look for a petrol station which is immediately accessible from a high traffic roadway. o Search for a petrol station that have little or no competition with any nearby petrol stations o
Look for Petrol Stations with additional service Search for a petrol station that has additional services such as a convenience store or quick shop, carwash facility, tyre repair services, auto bank, and many more, since these services not only bring additional customers, but also incur higher profits Know about franchise regulations The next step is to look into the franchise royalty fees, penalty clauses, support, training, and requirements. As you are the business owner, you will be marketing and offering a certain name brand of petrol related products, which are subject to the rules and regulations of the franchisor. You don't need to sell the present brand, but if you want to change brand names, it might become very expensive. Consult with Cyrus business broker on the procedures before you change brand names. To safeguard your
investment, you can make the contract a precondition in the offer to purchase the petrol station. Finalize the best Petrol station and conclude the deal Identify the best petrol station according to your financial status and negotiate a deal. After preparing a deal, draft a purchase agreement for the petrol station you want to buy. Be sure to include a full due diligence investigation in the purchase agreement. The last step is to draw up a comprehensive business plan for the petrol station. Make use of a professional business plan writer as the plan should include all the necessary details about the financial institutions and DOE for your application of a retail license. If you are interested about the Author’s Mark Business brokers South Africa. This article was written by the business marketer from www.petrolstationsforsale.co.za; check out business for sale, he is using the method you read in this article.