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Lets start with an interesting statistic. According to the NACS 2017 Retail Fuels Report, 59% of gas stations in the U.S. are one owner-operated. They own one store and often that store is attended by the owner. That type of business is what we call buying a job. The owners aren't working in the business because it makes so much money they are workimng there because they have to. Also interesting to note is that most major oil companies have sold off all or most of their fuel station holdings. Do you think you as a small business buyer have more market knowledge than the best business minds hired by the oil companies? Big oil is getting out of gas stations that should be a warning sign as shouold the huge number of single store owner operators. Many of these are struggling business owners making a living on very small margins. Which bring us to the next point 1. Small Margins. Here is a great infographic from the Orange County Register on where $50 spent at the pump goes. $30.75 to the oil company, $7.00 to the refineries, $6.00 on taxes, $4.00 to the delivery company, $1.25 on processing and transaction fees and finally right at the end of the chain you get $1.00. And that number can and does change sometimes even lower most owners suggesting an average of 1-3 cents net per gallon. If you speak with gas station owners as we do or even just visit forums and chatrooms with actual gas station owners most will tell you the gas is just a way to get people to the location and they actually make their money on cigarettes, soft drinks, coffee, and snack foods. But a huge problem today is more and more gas buyers are paying at the pump and not even entering the store making it even less profitable. But you will still have non driving walk in traffic leading us to reason #3 - rough customers 2. Most cheap gas stations are located in less than desirable neighborhoods and open 24 hours a day. And lets face it most gas stations are often frequented by some interesting people particularly in the late and early morning hours. We all watch Youtube and see some of the crazy stuff that happens in convenience stores and gas stations. That will also be happening to you - is that something you want to deal with? Ask your seller if they have ever had any issues where they had to call the police, and Google the address and see if any crime reports come up. There are over 7000 robberies each year at gas stations and 15,000 at conveniece stores which is disproportionate in relation to other businesses. 3. Franchising. Now there are many situations where the franchising model works. In my opinion gas is not one of them. In fact if you are at the mercy of buying only one companies gas at a fixed price, being unable to shop for better pricing, stuck with every promotion they decide on as well as having to pay franchise royalties and fees with your already slim margins, being profitable can be difficult. 4. Environmental issues.This is a problem specific to gas stations. Are the tanks leaking? If so the cost of cleanup can be costly. Many unwary buyers found themselves on the hook for huge bills because they chose to survey only assets that were above ground. 5. At the mercy of potential construction. Some unethical sellers pull a fast one and after determing that weeks or months of construction will make thier location inaccessible put it on the market. Always check with the local department of transportation prior to making an offer on a gas station. Or any business for that matter. Now in closing yes I understand that gas stations and convenience stores CAN be a good business or franchise. In these videos I provide the negative side because as we all know the seller is only giving you the good side. An business decision that has considered both the bad and the good is an educated one. Don't forget to like and subscribe and leave your business and franchising questions down below. http://www.franchise.city/buy-a-gas-station/ http://247wallst.com/economy/2014/05/22/why-are-there-115000-or-150000-gas-stations-in-america/ http://www.ocregister.com/2012/03/14/gas-prices-oil-prices-and-who-gets-the-money-you-pay-at-the-pump/ http://www.nacsonline.com/YourBusiness/FuelsCenter/Pages/Retail-Fuels-Report.aspx
Michigan Celebrates Small Business 2016
How great is it to own a Jet's Pizza franchise? We asked some current Jet's franchise owners for their thoughts and the response was amazing!
Franchise Opportunity - Michigan MICHIGAN FRANCHISE OPPORTUNITY Join one of the fastest growing home care companies, servicing the fastest growing population…SENIORS! Franchise opportunities all across Michigan are now available! From Grand Rapids, Ann Arbor, Detroit & more! Michigan is a midwestern state bordering 4 of the Great Lakes. It contains more than 11,000 inland lakes, spread across its lower and upper peninsulas. Its largest city, Detroit, is famed as the seat of the U.S. auto industry, which inspired Diego Rivera’s mural at the Detroit Institute of Arts. Also in Detroit is Hitsville U.S.A., original headquarters of the Motown record company. A perfect location to start your franchise ownership. A Golden Heart Senior Care franchise specializes in providing non-medical home care for the aging population. In the United States there are over 10,000 people per day becoming a senior and as they age they want to remain independent and age in place in their home. Your Golden Heart team will provide the necessary services to help them remain at home and to remain empowered and independent. Specifically, our franchise partners provide seniors with companionship, transportation, personal care, meal preparation and so much more to allow the aged population to enjoy life in their golden years. Upholding senior independence we advocate for senior rights and choices to keep seniors safe, healthy and happy in their own home.
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http://www.franchise.city/franchises/1-800-water-damage-franchise/ Many aspiring entrepreneurs never start a business of their own because of the fear of failure and the risks that are involved. As a multi business and franchise owner myself I can tell you it gets easier over time, but the first step is always the hardest. To help make that step easier the 1-800 Water Damage team has created an innovative new franchise model that completely eliminates risk on the part of a new franchisee. Lets take a look. Firstly 1-800 Water Damage is now owned by the Belfor group the leading disaster recovery company with over 6000 employees, 250 offices in 28 countries. So you can be assured that the company is in a financial position to help franchisees succeed. So here is the offer - and it really is unique. 1-800 Water Damage will buy your trucks, all your equipment, they will pay for your office, pay your employees, and even pay you, guaranteeing your salary the first year while your business is starting up. As a franchise owner you will also get medical insurance and a 401K plan They will also handle most of the back office paperwork and administrative functions of your business, as well as arrange appointments and referrals with clients If that wasn't enough Belfor also provides a money back guarantee to new franchise owners for one full year. As a franchise owner you manage crews who help commercial and residential customers recover after a situation has arisen from water, fire, sewage or mold damage. This is an in demand service as flooding from water heaters, burst pipes, washers, dishwashers or from the environment happen every single day. Now as 1-800 Water Damage will be investing about $250,000 in your business they want to make sure they have the right candidate. Qualified candidates will bring solid customer service skills and the ability and willingness to follow a proven business process in your territory. Previous management or customer service skills are beneficial. You should be a motivated hard worker with the desire to build a big business in your territory. You need to be a people person and preferably have contacts in your community. You also must have the ability to invest $79,000 in your business. Here at Franchise.city we represent over 600 Franchise brands and I can tell you the 1-800-Water Damage offer is completely unique. Now there is no good reason to not start your own business other than procrastination, plain and simple. If you would like more information or to apply for your own 1800-Water Damage franchise fill out the form on this page or if you are not on our website click the link. http://www.franchise.city/franchises/1-800-water-damage-franchise/