Remember the store I helped some investors buy in 2015 that was losing money? I shared two updates so far and now here is the 3rd one about how that store is doing now. This is a long awaited episode, but here it is. Enjoy!

Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 61. This is the show where we discuss everything under the sun about the gas station and convenience store business, how to buy these businesses, how to operate them and how to grow them to be a million dollar success.

Now on to the show.....

On Episode 23, I brought you a real life store sales data and analysis, where I was helping a group of buyers decide if they should buy a location or not. If you recall, in that episode I published the real sales figures of the store and some projected ones as well. Based on their sales data I created some P&L's of my own and it showed for the month of October the seller had lost about $2500. But despite the fact that the store was losing money, I did go ahead and recommended that they buy the store based on few factors which I discussed in that episode 23 as well. If you recall, in that episode (episode 23) I discussed few issues, and few opportunities of the store and we covered 9 points:

1. The store and its location
2. Demographics
3. Age and brand
4. Physical inspection of the store and the issues we noticed
5. Recommended upgrades and how much those upgrades would cost
6. Indoor Issues
7. Outdoor Issues
8. Sales and financials
9. Projected P&L vs. Real P&L

If you have time, please go back and listen to Episode 23 and 29 this way you will know the whole story.

In episode 29 I shared some P&L for March 2016, in that episode, I did compare P&L’s from October 2015 which the sellers provided us to what the new owners did in March 2016, and if you recall there was a drastic difference between those two. The new owners increased the business and made it a very profitable one. But to get to that increase, the new owners implemented these nine strategies that I proposed.

Strategies we implemented:

1. Address all maintenance issues
2. Upgrade all lighting and put a fresh coat of paint
3. Clean up the store
4. Remerchandising the store based on its traffic flow
5. Bringing in products that sell in the area
6. Advertise heavily via reader board, pump toppers and on the front door
7. Bringing in EBT and money order
8. Implementation of new fuel and merchandise pricing strategy
9. Full on marketing and promotional campaign

As you can see it was not one single strategy that made the business profitable but a combination of many factors. It was not an easy task, but the credit goes to the management team of the store who were able to follow directions and implement everything we suggested for the store.

Now let’s take a look what and how the store has done since March 2016 until December 2016, instead of showing you month by month P&L, I can tell you that the new owners have seen a gradual increase in business and enjoyed a positive growth each month. Let’s now take a look at the P&L from this last December.

But remind you in most areas, November through February are usually the slowest winter months. Business usually slows down quite a bit compare to the summer months. So I figured if we can see something positive even in December then we can be assured that the business will make more sales and show more profit during the summer months.

Here is the P&L for the same month of December 2016

 (If the Excel Spreadsheet is not viewable, please visit my blog at GasStationBusiness101.com to view them)

Let’s look at the Profit and Loss history of this store. If you remember in October 2015 right before the new owners took over the store lost $2574.51, then the new owners took over in December, and by March the store became profitable which I shared in episode 29, the P&L then showed a profit of $5193.33.

Now fast forward to December 2016, which is a slower month for most gas station business, and with less fuel sales, the store generated $6,875.46. It is important to share that in this past one year, their best month was August 2016, and for that month the net profit was $9,612.90., But I wanted to give you a full year’s snapshot so I brought December and not August in this calculation.

What have they done differently? Well, nothing other than keeping up with the proper inventory, making sure the pricing is right and superior customer service. That’s the secret sauce of success in this line of business.

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

In the meantime, if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Here is a link to my podcast page on iTunes, if you follow this link you can give me a review right on that page. Trust me it will make my day and won't cost you anything other than maybe 30 seconds of your time.

https://itunes.apple.com/us/podcast/gas-station-business-101-podcast/

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!

In this 2nd part of our last Q&A episode, I answer remaining 5 questions all related to buying gas stations and how to understand the numbers and if the stores are really making money or losing money. I also answer questions about how to grow your business with financing and how to take on a new partnership. I think you may find this episode helpful if you are in the market to buy a business. Here I analyze some sales numbers and see which ones are making money and which ones are not. Stay tuned.

Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 60. This is the show where we discuss everything under the sun about gas station and convenience store business, how to buy these businesses, how to operate them and how to grow them to be a million dollar success.

Question #4

Hope this email finds you and your family well.

I personally want to thank you for writing a book about Gas Station Business. You have explained very well process of how to buy and what to keep in mind before purchasing store.

I am in Gas Station with C-Store business since The year 2005. I have been thru many challenges similar to yours which you have explained in your book. I am currently looking for something to understand how to get finance to expand like big national corporations? Can you explore few points of financial strategies in order to expand in gas station business?

Your help will be highly appreciated.

Question #5

Dear Shabbir,

I will be running a gas station from April 1st. Let me give you the picture; the store owner still has 3.4 million volume of gas volume under contract. He splits his profit, expenses, credit card fees, and maintenance fees with a small oil company.

If I take his contract, I have to split the fuel profit 50/50, but I get 3 cents cheaper than other gas store. If I don't take his contract, I have to pay 3 cents more than his contract price. Which deal will generate more profit for me? Being a 1st-time business runner, I would appreciate your suggestions.

Question #6

Hi Shabbir

Thanks for the great article, it helps a lot. One question, though: when a seller say his store sales are 37k, does that figure normally including lotto and scratch off sales?

I am asking because one of the stores I looked at treated lotto, scratch off tickets and prepaid phone cards separate, so inside sales were more than what they were saying.

Thanks and keep it up

Question #7

Thanks for the great info. I had limited fund like around 100k, and most money making gas stations as I saw on websites are expensive. Do you think it is a good idea to go in partnership with a stranger? I have posted on cl for partnership and got responses, but I am curious about it.

Answer: Check out episode #21 where I spoke in details about how to create effective partnerships.

Question #8

Andres sent me this question, he is a long time listener and contributor of this show, he asked

Hi Shabbir I hope you are fine. Do you have a good template to control cigarettes in your stores? I would imagine your employee has to count the cigarette boxes when he starts the shift and also at shift end to reconcile the daily sales, right? If not, how do you do it?

Tune in and listen to this episode for all the answers.

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

In the meantime, if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Here is a link to my podcast page on iTunes, if you follow this link you can give me a review right on that page. Trust me it will make my day and won't cost you anything other than maybe 30 seconds of your time.

https://itunes.apple.com/us/podcast/gas-station-business-101-podcast/

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!

In this episode, I answer three questions all related to buying gas stations and how to understand the numbers and if the stores are really making money or losing money. I think you may find this episode helpful if you are in the market to buy a business. Here I analyze some sales numbers and see which ones are making money and which ones are not. Stay tuned.

Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 59. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

First my apology once again for not coming up with an episode sooner, I was busy with a few projects and had to put the blog and the podcast on the backburner for just a bit, but I am back, and hopefully I will be posting new episodes sooner rather than later. I still haven’t forgotten about the episode I promised you where I would share the new P&L of the subject store I helped some investors buy about 14 months ago. I have some new updates on that store and recorded that episode halfway through already, which I will share soon I promise.

Now as for this episode, I had to do this one first because I have had way too many emails lately where many of the blog readers and podcast listeners have been asking me various due diligence questions, and it is hard to answer them via email. So I have decided to pick just 6 out of them since they are mostly all similar in nature, and I thought by sharing them with rest of you, it will benefit everyone. For various privacy reasons, I have decided not to mention any names of the people that sent me these emails here.

Let’s dive right on…

Question #1

I need your advice about the valuation for the store based on the following information.

Inside Sale# $55000/month (27% profit margin)

$55,000 x 27% = $14,850

Outside Sale# 25000 Gallon/month (10 cents per gallon)

25,000 gallon x 10cents =$2,500

Lottery commission# 4000/month, ATM# $200/month

Total Gross Profit $21,550

Owner absentee

Capability to open deli with grill.

Store located in small town and mostly neighborhood business.

Expense:

Rent# 5000 "NNN."

Utility# 1300

Credit# 1000

Payroll# 2400 (Two full-time employees)

Other# 500

______________________

Total Expenses: $10,200

Net profit: $21,550 – $10,200 = $11,350

Asking price is $225,000

What would be the price we should go for?

Question#2

Shabbir, here are few questions.

Please note that I do not have prior experience, so how can I convince them that I am serious and are there any training provided by gas companies?

1. When buying just the business, I mean just goodwill without R/E, how do I make sure that my investment is protected? For Example, If I buy the lease for 500k and pay 16K a month. What if the lease is for two years and after two years the owner does not want to renew the lease. How can I make sure 100% that I will not lose everything?

1. As far as tax benefits are concerned at the end of the year, which option is better buying or leasing? I would appreciate if you only focus on the tax benefits since you have already talked about pros and cons from other angles. For example, let's say that gas station A is leased with goodwill paid by on-hand cash and gas station B is bought with R/E with a bank loan. Let's say both gas stations have exactly same per month profit after all lease or loan payments.

Now at the end of the year when I will file income tax, which option will give me bigger return? What is the best way to approach companies which own multiple stations around me?

Question#3

Good Morning Shabbir,

Glad, I ran into your website. I found a gas station business for sale for

$85K. We did our due diligence to look into the traffic, etc. Mostly the sales are from Cigarettes and Beer. The other items are pretty much a stand still.

In addition, this station the gas is unbranded. They are selling like 700

Gallons per day, inside the store with the majority of sales been Cigar and

Beer. The sales is about 40K revenue and 35% profit, and expense is about

9.5K. Profit is about $2,750 is what I am estimating.

Is the goodwill they are asking outrages? Currently, the owner is not opening the store properly and wants to sell it.

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

In the meantime, if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Here is a link to my podcast page on iTunes, if you follow this link you can give me a review right on that page. Trust me it will make my day and won't cost you anything other than maybe 30 seconds of your time.

https://itunes.apple.com/us/podcast/gas-station-business-101-podcast/

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!

I am sure you have seen a gas station or two that are closed up in your area and wonder why did someone close it or if you should buy it, or would it do great business if you start it up? Listen and find out as I answer 6 burning questions from our listeners in this episode.

Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 58. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

First my apology for coming up with an episode sooner, I was little under the weather at first then got busy with a few projects and had to put the blog and the podcast on the backburner for just a bit. Well, we all have to make money to survive right? I was doing just that too. But I am back, and hopefully, I won’t take much breaks anymore. Even though I told you in the last episode that this next one will be about the update and P&L of the story I helped some investors buy back in December 2015, but I am still analyzing and sorting out those P&L numbers, so hopefully it will be in the next episode.

As I said I have been busy so I didn’t even get to answer some of yours email yet, and if I haven’t, my apology. But I picked out 6 questions out of 30 or so email I looked at in last two days and decided to answer them on this episode this way everyone gets to benefit from the answers.

In this 3rd Q&A episode, I answer 6 questions

1. I am looking to buy a closed up gas station with the property, what do I need to worry about in this process?

1. In one of the podcasts, you had mentioned that one of the reasons someone could sell their gas station is because some competitor is crushing them on fuel prices. How can we figure out if this reason why a seller is selling his gas station.
2.  
3. I am buying a gas station, but the seller wants to sell the tanks, canopy, and pumps for $1.00. What I want to know is if I leave the business at the end of the lease term due to not finding any buyer then what should I do if it is in my name? What if the landlord doesn’t want to buy it for a $1 like I did 
4. I have been meaning to tell you how much I enjoyed the gas station/c-store development podcast you did. Thank you! One point I was not clear on was about reselling or leasing the property. Let’s say I stabilized the business in 3 years and it does: 

1. 120,000 Gallons/Month on fuel sales
2. 22,000 gallons of Diesel sales
3. $75,000 on inside merchandise sales
4. $90,000 in Fast food sales

My question is what should my resale value be after 3 years of operation?

How much can I sell and/or lease the business for which will not include the R/E

How much can I sell the business with R/E

5. First of all, thanks for your podcast and for all the resources you share with us. It's great to learn from someone with all your experience. Keep it up! The public restroom at my gas station is located outside, meaning people have to ask for the key at the counter to use it. Normally we give the key to customers (people who actually buy) and people we know (customers from the past who might not be buying anything on that day) but sometimes people get very mad when we don't give the keys out if they are not buying anything (people who only stop at the station to use the restroom). That being said, the cashier is many times "forced" to give out the keys to non-customers in order to avoid headaches. The problem is that people don't care about the restroom. They pee on the floor, misuse the toilet paper, soap and paper towels and write graffiti on the walls. Some others use it to consume drugs and have other illegal activities. The main problem is that once every week the toilet gets clogged, sometimes so badly that I've had to actually replace the toilet 3-4 times a year as it is impossible to unclog it. I've been trying to find the best solution for this. It is mandatory to have public restroom according to Florida laws so I can't close it. I am also forced to offer toilet paper, soap, and paper towels even if people misuse them and it represents a high cost to my business. Some people have suggested installing a coin lock, so I charge something small to use the restroom, but I'm afraid this would make me lose real customers. While I know the coin lock does not fully solve the problem, at least it would generate me some cash to keep the restroom neat. Have you had this problem in your stations? What is the best way to tackle this, so the restroom does not become a drain of my profit? Thanks for any hints you might share to help me out. (Andres sorry for the delayed response to your question)

 6. I have noticed in 3 of my dispensers the regular unleaded runs very slow but other two grades are fine, it has been happening on and off, what should I do?

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

In the meantime, if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Here is a link to my podcast page on iTunes, if you follow this link you can give me a review right on that page. Trust me it will make my day and won't cost you anything other than maybe 30 seconds of your time.

https://itunes.apple.com/us/podcast/gas-station-business-101-podcast/

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!

I get asked this question often, and I have tried to answer them before as well, but let’s answer it once again in very much details so we can clear up any and all the confusion, let’s discuss how you can figure out how to calculate your fuel profit precisely and accurately.

Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 57. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

Before we start, one important announcement, my new email server is working beautifully now, so if you are on my email newsletter list, I am sure you already noticed you are receiving my seven very important how to find and buy a gas station email series. If any of you are not receiving these emails, please sign up again, and that should solve the issue, you can simply go to http://gasstationbusiness101.com/subscribe or go to my blog at http://gasstationbusiness101.com and sign on the landing page. You will also receive my free eBook 9 Passive income idea book for signing up.

Okay now on to the show… 

First take a look at the attached daily fuel price notification that we all receive from our jobber/suppliers. This is the price we pay to buy our fuel. Remember it will vary city to city, state to state and country to country. What I pay for a gallon of regular in Alabama may not be the same as someone buying the same brand fuel in NY City. But a couple of things to consider here, if you look at this fuel prices you will notice there is a difference in price between the regular, Mid-grade and premium right?

Well, typically, your mid-grade price should be around 15 cents higher than your regular price, the same way your premium price should be around 50 cents higher than your regular price. So, you need to price your fuel accordingly.

Let me show you how.

Price       Regular         Mid-Grade             Premium

Cost        $1.89             $2.04                   $2.39

Retail       $1.99             $2.39                 $2.89

1. Profit:   $.10               $.35                     $.50

(Listen to the show for details on how we price our fuel)

Now let’s look at the Excel image of the fuel margin calculation, it will be easier for you to understand this episode if you can see the excel sheet. You can also download this and use it for your business as well.

(Listen to show for full discussion on this)

To download the Fuel Profit Calculator please click below (In Microsoft Excel Format)

http://www.gasstationbusiness101.com/Fuel-Profit-Calculator

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

In the meantime, if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Here is a link to my podcast page on iTunes, if you follow this link you can give me a review right on that page. Trust me it will make my day and won't cost you anything other than maybe 30 seconds of your time.

https://itunes.apple.com/us/podcast/gas-station-business-101-podcast/

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!

I want to tell you about five proven marketing strategies that have worked for me for last 18 years. But remind you they will sound silly at first, but I want you to hear them out in their entirety before you knock any of them out.  After you hear me out then maybe you can go try them in your business and see how your business rises to the top.

Welcome to Gas station business 101 podcast, I am your host Shabbir Hossain, and this is episode 56. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

Here are five silly sounding strategies you can take and become a unique retailer in your area. Trust me they work; I have tried and tested them for last 18 years. Just trust me on this okay? Before you knock these proven ideas, hear me out, let me explain each and you will see and hopefully agree with me. So here we go...

1. Know your Customer
2. Give them something for Free
3. Feed them Free
4. Support your local community
5. Give out Candy to Kids

(Listen to the episode for all the details)

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

For all our international listeners, if you are interested in learning about the investment category visas and how to get one of those by investing in a gas station business, do check out my new book USA Investment Visa to Green Card, How to Qualify, Apply and Obtain EB-5, E-2 and L-1 Visa. You can find this book on most online retailers like Amazon, Apple iTunes store, Barnes and Noble, Kobo and most other online booksellers.

In the meantime, if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Here is a link to my podcast page on iTunes, if you follow this link you can give me a review right on that page. Trust me it will make my day and won't cost you anything other than maybe 30 seconds of your time.

https://itunes.apple.com/us/podcast/gas-station-business-101-podcast/

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!

How can you tell if an employee or customers are stealing from you? How do you know someone is not stealing your beer, cigarettes or other merchandise? Is your business losing money every day and you just don't know about it? Let's see how a great inventory management system can help you stop the leaks, stay tuned..

Welcome to Gas station business 101 podcast, I am your host Shabbir Hossain, and this is episode 55. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

The topic today is How to have an effective Inventory management system. Sounds complicated? It is really not, I will not be talking about any complicated computer program or any such things. Instead, I will take a very simple decade old method that business owners used for years.

If you recall from my previous episode where I talked about various types of theft, then you may recall there are two different ways theft takes place in our business

1. External
2. Internal

External is where your vendors and customers are walking away with your money or products without paying, and internal theft is where your employees are walking away with your money and merchandise.

Since stealing cash is typically harder than stealing merchandise, and we did address the cash issue in the previous episode, let's discuss how we can have a great yet very simple inventory management system to check and see if you are losing your merchandise due to either kind of theft.

First, I need to tell you how big chain stores and companies do their inventory management then I will talk about how we do it.

There are two ways you can do inventory management

1. Item level inventory tracking
2. Department level inventory tracking

Big corporations like Circle K, 7-11, Wawa food and many other regional, local and national chains practice Item level inventory while small business owners like us typically practice department level inventory. Item level inventory tracking is more cost and labor intensive; this system requires more labor and dedicated managers on duty on every shift. Which is usually not cost-effective for most of us small business owners.

First, let's recall your typical merchandise categories and see which ones are more prone to theft.

Typical product categories:

• Cigarettes
• Beer
• Tobacco
• Soda/Drinks
• Grocery
• Automotive
• Fountain/Coffee
• Novelty

Let's discuss each category and see which ones are an easy target and which ones are not, also which ones are easy to track and which ones are not.

(Listen to the episode for the whole story)

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

In the meantime, if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Here is a link to my podcast page on iTunes, if you follow this link you can give me a review right on that page. Trust me it will make my day and won't cost you anything other than maybe 30 seconds of your time.

https://itunes.apple.com/us/podcast/gas-station-business-101-podcast/

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!

Once you finish the construction of your new gas station how do you get it open up for business? How to pass the inspections, how to merchandise, how to get everything ready, let's discuss and let's see if we can finally open your new store for business. Stay Tuned...

Welcome to Gas station business 101 podcast, I am your host Shabbir Hossain, and this is episode 54. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

Today's episode is the third and final part of How to build a gas station from start to finish.

In this episode we will discuss:

The final inspections (Building, fire, electrical and most importantly the health dept. inspection and what they look for)

• How to merchandise your store for the first time
• How to hire people
• How to train them
• When to buy your first load of fuel
• How to set up your POS
• How to set up all the pricing
• The actual opening of your store
• How to do a grand opening
• Resale value of your newly build store

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

Good news is the email transition process has started, so in about a week or so we will be able to start sending out emails that many of you have been waiting for.

In the meantime, if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Thank you once again for joining me in this episode; I will see you in the next one.

Would you like to know how to build a gas station from ground up? Do you wonder what all it takes to build one of those? Let's discuss what it takes to build a gas station from start to finish. Stay tuned...

Welcome to Gas station business 101 podcast, I am your host Shabbir Hossain, and this is episode 53. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

Today's episode is the second part of How to build a gas station from start to finish. The idea for this topic came from a long time listener name Shahnawaz so this episode too is dedicated to him. A big thanks goes to Shahnawaz for bringing such a wonderful and important topic to the forefront.

If you recall in the last episode we spoke about:

Site Selection Basic Market research Market study done by oil companies)

• Zoning
• Traffic count
• Demographics
• # of Competitors

What size to build

• How many MPD's
• Actual size of the store
• Deli or no Deli

Sales Projection

• Fuel
• Merchandise

In today's episode we will cover:

• Land development
• Drawing up the plans
• Applying for various permits

• Pitching to the oil companies
• Deciding on a Brand
• Hiring the Right Contractor or build it yourself(how much can you save)
• How to Save money in the process (installing one tank with compartments instead of 3 or 4 tanks)
• Cost to build per SQF

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

Good news is the email transition process ahs started, so in about a week or so we will be able to start sending out emails that many of you have been waiting for.

In the mean time if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Thank you once again for joining me in this episode; I will see you in the next one.

Would you like to know how to build a gas station from scratch? Do you wonder what all it takes to build one of those? Let's discuss what it takes to build a gas station from start to finish. Stay tuned...

Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 51. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

Today's episode idea came from a long time listener name Shahnawaz so this episode is dedicated to him and thank you Shahnawaz for bringing such a wonderful and important topic to the forefront.

He sent me a list of questions to answer, and these questions are:

1. What are good traffic count #s that make a profitable gas station site?
2. What are good income level demographics that make a profitable gas station site?
3. What are good population density demographics that make a profitable gas station site?
4. How far away from the site should other gas stations and hypermarkets be in order not to pose a threat to business?
5. What are some good design characteristics of a gas station/c-store?                  1. How many MPD and fueling positions should I put?                  2. Should I do a 4,000 sqf store with 2,000 sqf branded fast food? Advantages and Disadvantages for doing so?                 3. How many signs?  What's the cost vs. benefit for them?                 4. How many coolers, freezers, cashier stations, etc?                 5. Any other design mistakes that developers make?  Maybe have more expensive glass so people can see into store or have high ceilings and better modern design?     F. Based on the traffic counts, income levels, population, competition, and design characteristics, how do you forecast the following revenue?                 1. Fuel volume - # of gallons sold per month                 2. C-store sales - gross sales per month                 3. Fast food sales - gross sales per month

Since "how to build a Gas Station from start to finish" is a vast topic, I have decided to break it up in to two parts. In this first part we will cover:

Site selection, basic market research, demographics research, deciding what size to build and sales projection . On the next episode we will cover the actual planning, brand selection, hiring the right contractor, How to save money in the building process, cost to build, pre opening and grand opening.

Site Selection Basic Market research Market study done by oil companies)

• Zoning
• Traffic count
• Demographics
• # of Competitors

Here are the criteria for most major brand duel companies:

Not every site is suitable for retail fuel sales, and major oil companies such as Chevron, Shell, and ExxonMobil have established minimum criteria that must be met before sites can carry their brands. These site selection criteria are established to help retail operators select economically viable sites.

Brand identity and protecting their brand's public image are important to oil companies. The specific site selection criteria used by ExxonMobil are listed here to provide an example of how oil companies evaluate potential sites:

* Exclusivity of trade area--A trade area's supply and demand profile is a key factor in site selection.

* High traffic counts--There should be 18,000-20,000 vehicles passing by the convenience store each day.

* +56,000 net usable square feet--The company will consider less square footage for stores in metropolitan markets.

* Residential density--There should be 15,000 existing or planned residences within a 1.5-mile radius.

* Excellent visibility--The site must be visible from one-third of a mile away.

* Excellent accessibility--There should be convenient ingress and egress from both primary and secondary streets.

* Signalized corner intersections--Ideally, stores should be located at four-corner sites.

What size to build

• How many MPD's
• Actual size of the store
• Deli or no Deli

Sales Projection

• Fuel
• Merchandise

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Lastly, If you are about to buy a gas station for the first time, make sure to read my book "Gas Station Business Smart Start-up" How to measure profitability, how to come up with a valuation, how to calculate ROI, how to write a business plan and how to get financing for your new venture. You can find this book on most all retailers including Amazon, Apple iTunes, Kobo, Smashwords and Barnes and Noble.

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

Don't forget to tune in to listen the 2nd part of this episode which will be out in about a week or so. In the mean time if you haven't subscribed to this podcast, feel free to do so, and if you like this show, I would love to see a review from you on iTunes or where ever you download this episode from.

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!        

In business we all have to do some degree of negotiation, when buying a home, a business or just with your suppliers or vendors, but we don't get to win each time, but we should win if we know and practice this 13 negotiating skills, stay tuned and let's find out what and how they work

Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 51. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.

This episode is also important because it is based on my new book " How to Master 13 Negotiating Skills and Win in Business" that I published a few months ago, I know I didn't mention it here before, but this is one book I have been working on for a while now and was finally able to finish it. It was a soft launch, as I wanted to get some feedback from people and see what they think of this book. Now that I got some great feedback, I am happy to announce that it is out and available on every digital and print platforms out there.

But this episode is not about my book but about the 13 skills that will help you win in business and in life

Let's dive right in and get started..

The first and most important lesson in negotiation is never to show desperation, no matter what you are buying or selling, the smell of desperation can spread really fast and ruin any chance at winning a deal.

There is some basic legwork that you need to do before each deal or negotiation, even long before you go to the table and sit down. You need to collect some data by research and discovery ahead of time so you can take the time to analyze it and then determine what your exact game plan is going to be.

I know this may sound confusing, but after I discuss all 13 skills sets I will walk you through a real-life example of a negotiation that I had done recently and how these skills sets worked in that negotiation process. I will share the details and the outcome of the negotiation so you can visualize how these 13 skills work in real life business situations.

Skill 1 - People Skill

Know how your behavior affects others. Understand various negotiating styles and which one you're dealing with. Change your style of meet the needs of the listener.

Skill 2 - Listening Skill

Using steps to learn the interest of others. Three levels of listening to gain information. How to perceive yourself while listening to win at negotiating.

Skill 3 - Develop a Full Plan Before You Go To Negotiate What a detailed plan should include. What alternatives should you be prepared for? Additional planning to be prepared.

Skill 4 - Knowing What You Want

Know what you want to gain. Know what you are willing to concede. Know timeline and expectations.

Skill 5 - Knowing What They Want Know their interests. Know their walk-away alternative. Know their authority. Know their arguments, questions and tactics.

Skill 6 - Knowing When to Walk Away Know your acceptable range. Know their acceptable range. Know your deal breakers. 

Skill 7 - Know How Much to Compromise What is a compromise? What can't be compromised? The perception of compromise.

Skill 8 - Knowing the Barrier Identifying the seven barriers Language differences Culture differences Physical barriers Personal problems Preconceived notions Reputation Exhaustion Overcoming barriers

Skill 9 - Knowing How to Control Your Emotion How do you want to feel and why What to do beforehand to put yourself in an emotional state. What can through off your emotional balance in a negotiation. How to regain emotional balance. How you want to feel when you're finished.

Skill 10 - Using the Time (Clock) to Your Advantage How deadlines affect negotiations How you can use deadlines to your advantage.

Skill 11 - Finding Mutual Gain Five principles of mutual gain. How to negotiate for mutual gain.

Skill 12 - Make Them Look Good, Let Them Brag Why this is important. How to do this.

Skill 13 - The Power of Paper Why you should put it in writing. When you should put it in writing.

If you have any question, feel free to send me an email at [email protected], or you can post it on my Facebook group page by going to shabbirhossain.net

Lastly, If you are about to buy a gas station for the first time, make sure to read my book "Gas Station Business Smart Start-up" How to measure profitability, how to come up with a valuation, how to calculate ROI, how to write a business plan and how to get financing for your new venture.  You can find this book on most all retailers including Amazon, Apple iTunes, Kobo, Smashwords and Barnes and Noble.

If you want to see the " How to Master 13 Negotiating Skills and Win in Business" just click on the name and the link will take you to Amazon. You can also find this book on Kobo, Barnes and Noble, Apple iTunes store and many other book retailers.

Don't forget to sign up for my very important newsletter; you can simply sign up for it by going to http://gasstationbusiness101.com/subscribe

I am working on a very important episode which will be our next episode, and it will be all about how to build a gas station from the ground up, the idea for this very episode came from a listener name Shanewaz, and he even sent me a breakdown of the whole episode. Thanks to Shanewaz in advance and I think it will be a great episode.

Thank you once again for joining me in this episode; I will see you in the next one.

Cheers!