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petrol station for sale FREE
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How
to buy a petrol station in South Africa
Isebell
Gauché
Copyright
2006©
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Although
the petrol price keeps rising, fill stations or better
known as petrol stations, still make enormous profits.
The South African public is used to driving to their destinations
and thus need petrol to get there; no matter what the cost
is! If you want to buy a petrol station in South Africa,
you need to follow a guideline that is slightly different
from the one that you will use to buy a retail business
in South Africa.
Considerations when you buy a petrol station
in South Africa
How
to locate the fill stations for sale
Locate
the petrol stations or fill stations for sale
in the suburb you want to operate in or province for instance
Gauteng and the city Pretoria. You can make use of business
brokers to find fill stations for sale, or you can
enquire from Realtors that specialize in fuel station franchises
for sale. There are several places on the Internet where
you search for fill stations for sale. As is the case with
any commercial property you
need to view the business, examine the financial records,
enquire about the reasons for selling, and about the traffic
flow in the area.
When
you buy a petrol station in South Africa look for additional
services
Search
for a fill station that has other services such as
a convenience store or quick shop, carwash facility, tyre
repair services, autobank, and sells cellphone cards, since
these services not only bring additional customers but also
ensure higher profits that are still market related for
the petrol industry.
Franchise
regulations for the fill stations for sale
-
The
next step is to examine the franchise royalty fees, penalty
clauses, support, training, and requirements. You as the
business owner will be marketing and offering a certain
name brand of petrol related products, which are subject
to the rules and regulations of the franchisor. It is
sometimes called brand name association. You don't need
to sell the present brand, but if you want to change brand
names, it might become very expensive. Consult a business
broker on the procedures before you change brand names.
-
When
you buy a petrol station in South Africa the franchisor
will conduct an interview with you to establish whether
you qualify as a franchisee or need additional funding
or training. Enquire whether the contract with the present
owner can be transferred to you or should you apply for
a new contract. To safeguard your investment, you should
make the transferring of the contract a precondition in
the offer to purchase the fill station.
-
Make
sure that all licenses, agreements, and permissions are
in place for instance the liquor license, food permit,
right to sell lottery tickets etc. These should also be
preconditions in the purchase offer. Don't take the owner's
word, ask your broker to make enquiries at the local authorities
on the conditions, requirements and the present state
of permits held by the owner. It is also important to
check on the price structure and regulations of all the
items.
-
Find
out where the competition is located, what services they
offer, prices, years established, potential, and what
their reputation is. It is better to have little competition
in you immediate area. Evaluate your chances of competing
and consider how you can out perform the competition.
-
When
you plan to buy a petrol station in South Africa,
make sure that you locate one that is situated in an area
where there is enough traffic to sustain the fill station.
The fill station must be on the way home since people
have more time to stop, fill up and buy several items
at the convenience store.
-
Check
with the city planning division of for instance Pretoria
to find out if any large road changes are planned, and
what building plans have been approved in the area. You
can make use of a business broker for this purpose.
The last step when you plan to buy
a petrol station in South Africa is to
draw up a comprehensive business plan for the fill
station. Make use of a professional business plan
writer or business broker since the plan should include
all the necessary detail for financial institutions.
Learn
more on how to buy a petrol station in our Complete Petrol
Station Guide For South Africa 2011
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