Start-up Funding | |
Start-up Expenses to Fund | $101,500 |
Start-up Assets to Fund | $108,500 |
Total Funding Required | $210,000 |
Assets | |
Non-cash Assets from Start-up | $90,000 |
Cash Requirements from Start-up | $18,500 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $18,500 |
Total Assets | $108,500 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $150,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $150,000 |
Capital | |
Planned Investment | |
Robert Cole | $60,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $60,000 |
Loss at Start-up (Start-up Expenses) | ($101,500) |
Total Capital | ($41,500) |
Total Capital and Liabilities | $108,500 |
Total Funding | $210,000 |
Allensburg’s Food and Gas sells the following products:
Located on rural Highway 310, Allensburg is 30 miles south of the city of Kent and 34 miles north of the city of Willard. Highway 310 connects Kent and Willard that both have universities and a cumulative population of 200,000 residents. The highway is the main road through town and is used daily by thousands of commuters between the two cities. The closest gas station in either direction is over 20 miles away.
These commuters currently have no convenient shop in which to buy food to or from work once they are on Highway 310; more importantly, eighty percent of Highway 310 commuters fits the demographic profile of customers of upscale organic/natural food stores:
The target customers of Allensburg’s Food and Gas are the commuters that use Highway 310.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Commuters | 10% | 5,500 | 6,050 | 6,655 | 7,321 | 8,053 | 10.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 10.00% | 5,500 | 6,050 | 6,655 | 7,321 | 8,053 | 10.00% |
Allensburg’s Food and Gas will focus on becoming a routine stop for the commuter traffic on Highway 310, not just for those people who need gas, but for those who are looking for a healthy, tasty snack on their drive, or need to pick up some small grocery item on their way home. Allensburg’s Food and Gas will aim to be more than a gas station to its customers, it will be a friendly place to stop for tired commuters.
The competitive edge for Allensburg’s Food and Gas is the following:
Allensburg’s Food and Gas will keep its gas prices competitive with other stations in a fifty mile radius of the station in order to attract commuters. Customers that purchase more than $10 worth of gas will be given 15% coupon on purchases in the store during the first month of operation, to encourage purchases and to introduce them to the concept of buying quality organic foods at the gas station.
In order to maintain competitive gas prices, the cost of gas to the consumer will never exceed 15% of wholesale cost. Allensburg’s Food and Gas will focus on increasing food sales in order to meet total sales forecast goals.
The following is the sales forecast for three years.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Gasoline | $623,000 | $660,000 | $700,000 |
Food, Drinks, and Produce | $185,000 | $198,000 | $210,000 |
Total Sales | $808,000 | $858,000 | $910,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Gasoline | $544,000 | $570,000 | $582,000 |
Food, Drinks, and Produce | $37,200 | $41,000 | $44,500 |
Subtotal Direct Cost of Sales | $581,200 | $611,000 | $626,500 |
Robert Cole, owner of Allensburg’s Food and Gas, has seven years of experience in managing gas stations/convenience stores. Robert has a reputation as an excellent staff supervisor. From 1993 to 1996, Robert was the manager of Higgins Texaco, one of the largest gas station/convenience stores in Willard. At Higgins, Robert supervised a staff of seven. In 1997, Robert became manager of the Barger Chevron, located at the southern tip of Kent, near Highway 310.
The Allensburg Food and Gas will have a staff of five:
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Robert Cole | $33,600 | $37,000 | $40,000 |
Store/Deli Staff | $42,000 | $44,000 | $46,000 |
Gas Attendants | $42,000 | $44,000 | $46,000 |
Total People | 5 | 5 | 5 |
Total Payroll | $117,600 | $125,000 | $132,000 |
The monthly break-even point is approximately $49,500.
Break-even Analysis | |
Monthly Revenue Break-even | $49,539 |
Assumptions: | |
Average Percent Variable Cost | 72% |
Estimated Monthly Fixed Cost | $13,905 |
The following table and charts highlight the projected profit and loss for three years.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $808,000 | $858,000 | $910,000 |
Direct Cost of Sales | $581,200 | $611,000 | $626,500 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $581,200 | $611,000 | $626,500 |
Gross Margin | $226,800 | $247,000 | $283,500 |
Gross Margin % | 28.07% | 28.79% | 31.15% |
Expenses | |||
Payroll | $117,600 | $125,000 | $132,000 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $11,424 | $11,424 | $11,424 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $3,600 | $3,600 | $3,600 |
Insurance | $3,600 | $3,600 | $3,600 |
Rent | $13,000 | $13,000 | $13,000 |
Payroll Taxes | $17,640 | $18,750 | $19,800 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $166,864 | $175,374 | $183,424 |
Profit Before Interest and Taxes | $59,936 | $71,626 | $100,076 |
EBITDA | $71,360 | $83,050 | $111,500 |
Interest Expense | $13,375 | $10,500 | $7,500 |
Taxes Incurred | $13,968 | $18,338 | $27,773 |
Net Profit | $32,593 | $42,788 | $64,803 |
Net Profit/Sales | 4.03% | 4.99% | 7.12% |
The following table and chart highlight the projected cash flow for three years.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $808,000 | $858,000 | $910,000 |
Subtotal Cash from Operations | $808,000 | $858,000 | $910,000 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $808,000 | $858,000 | $910,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $117,600 | $125,000 | $132,000 |
Bill Payments | $637,424 | $681,157 | $701,506 |
Subtotal Spent on Operations | $755,024 | $806,157 | $833,506 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $30,000 | $30,000 | $30,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $785,024 | $836,157 | $863,506 |
Net Cash Flow | $22,976 | $21,843 | $46,494 |
Cash Balance | $41,476 | $63,319 | $109,813 |
The following table and chart highlight the projected balance sheet for three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $41,476 | $63,319 | $109,813 |
Inventory | $56,540 | $59,439 | $60,947 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $98,016 | $122,758 | $170,760 |
Long-term Assets | |||
Long-term Assets | $80,000 | $80,000 | $80,000 |
Accumulated Depreciation | $11,424 | $22,848 | $34,272 |
Total Long-term Assets | $68,576 | $57,152 | $45,728 |
Total Assets | $166,592 | $179,910 | $216,488 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $55,500 | $56,029 | $57,804 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $55,500 | $56,029 | $57,804 |
Long-term Liabilities | $120,000 | $90,000 | $60,000 |
Total Liabilities | $175,500 | $146,029 | $117,804 |
Paid-in Capital | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($101,500) | ($68,907) | ($26,119) |
Earnings | $32,593 | $42,788 | $64,803 |
Total Capital | ($8,907) | $33,881 | $98,684 |
Total Liabilities and Capital | $166,592 | $179,910 | $216,488 |
Net Worth | ($8,907) | $33,881 | $98,684 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5541, Gasoline Service Station, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 6.19% | 6.06% | 10.80% |
Percent of Total Assets | ||||
Inventory | 33.94% | 33.04% | 28.15% | 13.30% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 25.60% |
Total Current Assets | 58.84% | 68.23% | 78.88% | 49.50% |
Long-term Assets | 41.16% | 31.77% | 21.12% | 50.50% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 33.31% | 31.14% | 26.70% | 31.60% |
Long-term Liabilities | 72.03% | 50.03% | 27.72% | 23.10% |
Total Liabilities | 105.35% | 81.17% | 54.42% | 54.70% |
Net Worth | -5.35% | 18.83% | 45.58% | 45.30% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 28.07% | 28.79% | 31.15% | 16.50% |
Selling, General & Administrative Expenses | 24.04% | 23.80% | 24.03% | 10.40% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.20% |
Profit Before Interest and Taxes | 7.42% | 8.35% | 11.00% | 0.50% |
Main Ratios | ||||
Current | 1.77 | 2.19 | 2.95 | 1.55 |
Quick | 0.75 | 1.13 | 1.90 | 0.91 |
Total Debt to Total Assets | 105.35% | 81.17% | 54.42% | 54.70% |
Pre-tax Return on Net Worth | -522.73% | 180.41% | 93.81% | 2.50% |
Pre-tax Return on Assets | 27.95% | 33.98% | 42.76% | 5.50% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 4.03% | 4.99% | 7.12% | n.a |
Return on Equity | 0.00% | 126.29% | 65.67% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.91 | 10.54 | 10.41 | n.a |
Accounts Payable Turnover | 12.49 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 30 | 30 | n.a |
Total Asset Turnover | 4.85 | 4.77 | 4.20 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 4.31 | 1.19 | n.a |
Current Liab. to Liab. | 0.32 | 0.38 | 0.49 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $42,517 | $66,729 | $112,956 | n.a |
Interest Coverage | 4.48 | 6.82 | 13.34 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.21 | 0.21 | 0.24 | n.a |
Current Debt/Total Assets | 33% | 31% | 27% | n.a |
Acid Test | 0.75 | 1.13 | 1.90 | n.a |
Sales/Net Worth | 0.00 | 25.32 | 9.22 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Gasoline | 0% | $40,000 | $40,000 | $48,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 | $55,000 |
Food, Drinks, and Produce | 0% | $10,000 | $12,000 | $14,000 | $15,000 | $16,000 | $16,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 | $17,000 |
Total Sales | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Gasoline | $35,000 | $35,000 | $42,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 | |
Food, Drinks, and Produce | $2,000 | $2,500 | $2,900 | $3,000 | $3,200 | $3,200 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | $3,400 | |
Subtotal Direct Cost of Sales | $37,000 | $37,500 | $44,900 | $51,000 | $51,200 | $51,200 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Robert Cole | 0% | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
Store/Deli Staff | 0% | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Gas Attendants | 0% | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Direct Cost of Sales | $37,000 | $37,500 | $44,900 | $51,000 | $51,200 | $51,200 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $37,000 | $37,500 | $44,900 | $51,000 | $51,200 | $51,200 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | $51,400 | |
Gross Margin | $13,000 | $14,500 | $17,100 | $19,000 | $19,800 | $19,800 | $20,600 | $20,600 | $20,600 | $20,600 | $20,600 | $20,600 | |
Gross Margin % | 26.00% | 27.88% | 27.58% | 27.14% | 27.89% | 27.89% | 28.61% | 28.61% | 28.61% | 28.61% | 28.61% | 28.61% | |
Expenses | |||||||||||||
Payroll | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | $952 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Insurance | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Rent | $0 | $0 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
Payroll Taxes | 15% | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 | $1,470 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $12,822 | $12,822 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | $14,122 | |
Profit Before Interest and Taxes | $178 | $1,678 | $2,978 | $4,878 | $5,678 | $5,678 | $6,478 | $6,478 | $6,478 | $6,478 | $6,478 | $6,478 | |
EBITDA | $1,130 | $2,630 | $3,930 | $5,830 | $6,630 | $6,630 | $7,430 | $7,430 | $7,430 | $7,430 | $7,430 | $7,430 | |
Interest Expense | $1,229 | $1,208 | $1,188 | $1,167 | $1,146 | $1,125 | $1,104 | $1,083 | $1,063 | $1,042 | $1,021 | $1,000 | |
Taxes Incurred | ($315) | $141 | $537 | $1,113 | $1,360 | $1,366 | $1,612 | $1,618 | $1,625 | $1,631 | $1,637 | $1,643 | |
Net Profit | ($736) | $329 | $1,253 | $2,598 | $3,173 | $3,187 | $3,762 | $3,776 | $3,791 | $3,805 | $3,820 | $3,835 | |
Net Profit/Sales | -1.47% | 0.63% | 2.02% | 3.71% | 4.47% | 4.49% | 5.22% | 5.24% | 5.27% | 5.29% | 5.31% | 5.33% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Subtotal Cash from Operations | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $50,000 | $52,000 | $62,000 | $70,000 | $71,000 | $71,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | $72,000 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | $9,800 | |
Bill Payments | $2,356 | $69,710 | $42,025 | $58,309 | $63,158 | $57,288 | $57,082 | $57,698 | $57,471 | $57,457 | $57,442 | $57,427 | |
Subtotal Spent on Operations | $12,156 | $79,510 | $51,825 | $68,109 | $72,958 | $67,088 | $66,882 | $67,498 | $67,271 | $67,257 | $67,242 | $67,227 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $14,656 | $82,010 | $54,325 | $70,609 | $75,458 | $69,588 | $69,382 | $69,998 | $69,771 | $69,757 | $69,742 | $69,727 | |
Net Cash Flow | $35,344 | ($30,010) | $7,675 | ($609) | ($4,458) | $1,412 | $2,618 | $2,002 | $2,229 | $2,243 | $2,258 | $2,273 | |
Cash Balance | $53,844 | $23,834 | $31,509 | $30,900 | $26,442 | $27,855 | $30,472 | $32,474 | $34,703 | $36,946 | $39,204 | $41,476 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $18,500 | $53,844 | $23,834 | $31,509 | $30,900 | $26,442 | $27,855 | $30,472 | $32,474 | $34,703 | $36,946 | $39,204 | $41,476 |
Inventory | $10,000 | $40,700 | $41,250 | $49,390 | $56,100 | $56,320 | $56,320 | $56,540 | $56,540 | $56,540 | $56,540 | $56,540 | $56,540 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $28,500 | $94,544 | $65,084 | $80,899 | $87,000 | $82,762 | $84,175 | $87,012 | $89,014 | $91,243 | $93,486 | $95,744 | $98,016 |
Long-term Assets | |||||||||||||
Long-term Assets | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
Accumulated Depreciation | $0 | $952 | $1,904 | $2,856 | $3,808 | $4,760 | $5,712 | $6,664 | $7,616 | $8,568 | $9,520 | $10,472 | $11,424 |
Total Long-term Assets | $80,000 | $79,048 | $78,096 | $77,144 | $76,192 | $75,240 | $74,288 | $73,336 | $72,384 | $71,432 | $70,480 | $69,528 | $68,576 |
Total Assets | $108,500 | $173,592 | $143,180 | $158,043 | $163,192 | $158,002 | $158,463 | $160,348 | $161,398 | $162,675 | $163,966 | $165,272 | $166,592 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $68,328 | $40,087 | $56,197 | $61,248 | $55,386 | $55,159 | $55,783 | $55,556 | $55,542 | $55,528 | $55,514 | $55,500 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $68,328 | $40,087 | $56,197 | $61,248 | $55,386 | $55,159 | $55,783 | $55,556 | $55,542 | $55,528 | $55,514 | $55,500 |
Long-term Liabilities | $150,000 | $147,500 | $145,000 | $142,500 | $140,000 | $137,500 | $135,000 | $132,500 | $130,000 | $127,500 | $125,000 | $122,500 | $120,000 |
Total Liabilities | $150,000 | $215,828 | $185,087 | $198,697 | $201,248 | $192,886 | $190,159 | $188,283 | $185,556 | $183,042 | $180,528 | $178,014 | $175,500 |
Paid-in Capital | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) | ($101,500) |
Earnings | $0 | ($736) | ($407) | $846 | $3,444 | $6,617 | $9,804 | $13,566 | $17,342 | $21,133 | $24,938 | $28,758 | $32,593 |
Total Capital | ($41,500) | ($42,236) | ($41,907) | ($40,654) | ($38,056) | ($34,883) | ($31,696) | ($27,934) | ($24,158) | ($20,367) | ($16,562) | ($12,742) | ($8,907) |
Total Liabilities and Capital | $108,500 | $173,592 | $143,180 | $158,043 | $163,192 | $158,002 | $158,463 | $160,348 | $161,398 | $162,675 | $163,966 | $165,272 | $166,592 |
Net Worth | ($41,500) | ($42,236) | ($41,907) | ($40,654) | ($38,056) | ($34,883) | ($31,696) | ($27,934) | ($24,158) | ($20,367) | ($16,562) | ($12,742) | ($8,907) |
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The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.
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"Why Invent Mediocrity, When You Can Copy Genius?"
That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?
[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]
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I've been involved in small business for the past 31 years of my life, as a business coach, manager of a Gas Station firm, a seminar leader and as the owner of five successful businesses.
During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.
Here's what you'll discover in the 'How to Start a Gas Station Business' book:
Success Tip: Setting Goals
Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.
Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.
Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.
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Here're other free books in the "how to start a business" series that may interest you:
Here's a Sample 'Executive Summary' for a Gas Station Business plan :
COMPANY NAME is a convenient store and gas station that has served the community for the last 40 years. As a staple in the community for gas and cooked food, COMPANY NAME is looking to expand to a full service discount store. This convenience store is looking for funds that will allow this already successful business to offer laundry services, discount groceries and an upgraded store front. Industry: The gas station industry is fragmented industries with no real dominate company. The industry has revenue of over 115 billion of annually. In recent years, almost 127,000 gasoline service stations operated in the United States. These establishments took very different forms than they had before, with self-service islands and ancillary retail outlets—convenience stores, known as C-stores—creating major changes in the distribution of market share. Company Goals:
Our company has been a minority own business for 40 years and has the backing of the local community. Our goal is to increase the product we offer in hopes of additional revenue from our already existing client and customer base.
1.1 Objectives
COMPANY NAME has established three firm objectives it wishes to achieve in the next three years:
To provide customer service that is second to none.
The mission of COMPANY NAME is to offer commuters competitive gas prices and great food. The company will make a healthy profit for its owners and provide a rewarding work environment for its employees.
COMPANY NAME is a convenience store and gas station in [INSERT TOWN]. OWNER’S NAME the current owner has seven years of experience in managing gas stations. OWNER’S NAME will focus on the commuters that pass through the town daily. They will offer its customers the best gas prices and quality food products.
OWNER’S NAME , the owner and operator of the business has had over seven years of management and retail experience. The store was purchased by OWNER’S NAME from his father whom owned the store for over 40 years. The ownership of this store understands the importance of building relationships with the local community.
The COMPANY NAME store was formed as a sole proprietary company in 1970 in the state of [INSERT STATE] in the [INSERT COUNTY]. COMPANY NAME has been a minority owned and managed business for the last 40 years and has become a staple in the local community.
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| FY 2008 | FY 2009 | FY 2010 |
Sales | $750,000 | $785,000 | $765,000 |
Gross Margin | $335,000 | $335,000 | $335,000 |
Gross Margin % | 44.67% | 42.68% | 43.79% |
Operating Expenses | $427,000 | $431,000 | $436,000 |
Collection Period (days) | 0 | 0 | 0 |
Inventory Turnover | 0.95 | 0.95 | 0.95 |
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Balance Sheet |
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| FY 2008 | FY 2009 | FY 2010 |
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Current Assets |
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Cash | $10,000 | $10,000 | $10,000 |
Accounts Receivable | $0 | $0 | $0 |
Inventory | $7,100 | $7,100 | $7,100 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $17,100 | $17,100 | $17,100 |
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Long-term Assets |
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Long-term Assets | $150,000 | $150,000 | $150,000 |
Accumulated Depreciation | $135,000 | $135,000 | $135,000 |
Total Long-term Assets | $15,000 | $15,000 | $15,000 |
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Total Assets | $32,100 | $32,100 | $32,100 |
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Current Liabilities |
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Accounts Payable | $0 | $0 | $0 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities (interest free) | $0 | $0 | $0 |
Total Current Liabilities | $0 | $0 | $0 |
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Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $0 | $0 | $0 |
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Paid-in Capital | $75,000 | $75,000 | $75,000 |
Retained Earnings | ($42,900) | ($42,900) | ($42,900) |
Earnings | $0 | $0 | $0 |
Total Capital | $32,100 | $32,100 | $32,100 |
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Total Capital and Liabilities | $32,100 | $32,100 | $32,100 |
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Other Inputs |
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Payment Days | 0 | 0 | 0 |
Sales on Credit | $0 | $0 | $0 |
| 0.00 | 0.00 | 0.00 |
There are over 4000 different skews that are offered on a daily basis at the Discount Corner store. The following is a general list of products.
With the grant money they will be able to offer more products and services such as, groceries, and a laundry mat.
1. Delegate to someone who is naturally responsible and accountable.
Anything less and you've got a problem.
2. Link performance to salary.
Make the task/accountability that you're delegating a requirement for the person to get paid.
3. Identify what the signs/measures of failure are.
This way, you can inform the person, in advance, what isn't acceptable, and what you'll be "looking out for...." This works.
4. Identify the measurables of the job/task/item.
Then, you'll both know if the job is getting done.
5. Develop an iron-clad reporting system.
A daily checklist, a weekly report, a monthly financial statement, a weekly meeting. Whatever it takes.
6. Install an oversight process.
Have someone else that you trust to check in/check up on the employees performance, results, accuracy, honesty.
7. Identify consequences for inadequate performance, in advance.
This way, no surprises and whatever actions you take are not punitive or arbitrary.
8. Double-check the work yourself from time to time.
This means to review the work, chat with customers, get outside verification.
9. Build in a system of continuous improvement of the delegated task/accountability.
This keeps the employee focused on creating new and better ways of doing what you need.
10. Customize a reward/incentive package, if appropriate.
Everyone has their own unique way to be motivated. Make sure that you understand theirs and create something around that, not around your own way. But don't be too generous -- that usually backfires. Remember, you're their employer, not their friend or business partner.
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Published Mar.26, 2018
Updated Apr.23, 2024
By: Noor Muhammad
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Table of Content
Are you thinking of starting a gas station ? A gas station was also known as a petrol station is a business that retails diesel, gasoline and various types of motor vehicle lubricants. The increase in the number of automobiles has pushed up the demand for gasoline and diesel which makes the gas station business plan a lucrative venture. The oil and gas industry has in recent times gone through various challenges, but it still remains one of the most lucrative business sectors. Investing in a gas station requires a significant amount of investment, but with a sound business strategy , you can be assured of recovering your entire investment.
2.1 the business.
The gas station will be registered under the name Savoy Gas and will be located in Princeton, New Jersey on Exit 2 off the New York Philadelphia interstate highway. This is an excellent location considering the high amount of vehicular traffic that uses the highway on a daily basis. Savoy gas station will be owned and managed by Mike Wall who is a Petroleum Engineer.
Mike Wall is an expert Petroleum Engineer who has had a successful career spanning over twenty-five years. Mike has worked for large and reputable international organizations in the oil and gas industry. He has overseen numerous large-scale industry projects that have earned him respect and recognition in the industry.
Savoy Gas Station aims to offer a fully equipped gas station facility for motorists using the busy Interstate highway. Identifying potential customers is a critical step of starting your own gas station business plan .
To succeed in its mandate, the gas station intends to focus on harnessing the latest technologies in the oil and gas industry to offer quality and reliable services to motorists.
3.1 company owner.
Mike Wall is a Petroleum Engineer who has worked for several high profile oil and gas companies across the United States. He is credited for his professionalism and spearheading of numerous technical projects. Mike has worked in various senior capacities in different organizations, as well as participated in numerous local, regional and global petroleum conferences.
Starting your own gas station requires a good understanding and knowledge of the oil and gas industry. Having been in the industry for almost three decades, Mike was deeply involved in policy making and technical implementation of gas station projects. Working closely with gas station stakeholders, Mike thought it would be a great idea to transfer his expertise to entrepreneurship.
As a Petroleum Engineer, Mike Wall already has the technical knowhow of the infrastructure and technologies required to start a gas station. However, he has closely worked with financial experts to formulate a sound financial plan to support the business model. The following is key financial information for Savoy Gas station.
Legal | $3,000 |
Consultants | $6,000 |
Insurance | $12,000 |
Rent | $14,000 |
Research and Development | $7,000 |
Expensed Equipment | $6,000 |
Signs | $3,500 |
TOTAL START-UP EXPENSES | $51,500 |
Start-up Assets | $0 |
Cash Required | $60,000 |
Start-up Inventory | $23,000 |
Other Current Assets | $14,000 |
Long-term Assets | $10,000 |
TOTAL ASSETS | $107,000 |
Total Requirements | $52,000 |
$0 | |
START-UP FUNDING | $70,000 |
Start-up Expenses to Fund | $25,000 |
Start-up Assets to Fund | $20,000 |
TOTAL FUNDING REQUIRED | $0 |
Assets | $12,000 |
Non-cash Assets from Start-up | $8,000 |
Cash Requirements from Start-up | $0 |
Additional Cash Raised | $50,000 |
Cash Balance on Starting Date | $20,000 |
TOTAL ASSETS | $0 |
Liabilities and Capital | $0 |
Liabilities | $0 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
TOTAL LIABILITIES | $0 |
Capital | $0 |
Planned Investment | $0 |
Investor 1 | $20,000 |
Investor 2 | $15,000 |
Other | $0 |
Additional Investment Requirement | $0 |
TOTAL PLANNED INVESTMENT | $150,000 |
Loss at Start-up (Start-up Expenses) | $50,000 |
TOTAL CAPITAL | $70,000 |
TOTAL CAPITAL AND LIABILITIES | $45,000 |
Total Funding | $105,000 |
Savoy Gas station is focused on offering a professional service in line with the growing demand for well-equipped gas station facilities in Princeton, New Jersey. Opening a gas station requires great innovation in service delivery. Savoy Gas station will offer the following diversified services.
For Savoy Gas station to be successful, a comprehensive market analysis was carried out to pinpoint areas of focus that will drive business development.
This gas station business plan sample explains the strategy the gas station intends to follow to meet its targets. Using this strategy, the business intends to get a good amount of revenue considering it lies on a main interstate highway that is used by thousands of commuters on a daily basis. Currently, commuters don’t have a well-equipped shop where they can get adequate food supplies while travelling since the nearest gas station is over 15 miles away.
5.1 market segmentation.
After realizing there are few gas stations around Princeton area off the interstate highway, Savoy Gas has found a market it can effectively explore and provide a critical service for its customers. Based on market research and findings, the business is targeting the following customers for inclusion in its gas station marketing plan . Anyone looking for gasoline and diesel as well as a well-stocked food and drinks outlet is a potential customer for the business.
Automobile engines rely on gasoline and fuel in order to operate efficiently. Savoy Gas station will be located on the main New York to Philadelphia Interstate highway at Princeton, New Jersey. This is an extremely busy highway with thousands of vehicles using the highway on a daily basis. The nearest gas station is about fifteen miles away and Savoy gas station knows it’s located in a strategic location to offer key services to vehicle owners. In addition, the business intends to sell automotive products such as oil and different types of lubricants which are essential products to car owners. Given the scarcity of gas stations in the area, Savoy gas station intends to capitalize on the untapped market by setting up a fully equipped and professionally managed gas station. Motorists are the key customer target included in this gas station business plan template.
Because of the gas station’s strategic location on a main highway, services and products offered will help regular commuters, as well as long distance travellers using the interstate highway. With the wide range of services offered by the gas station, the business intends to rely on the high number of people using the highway to stop and buy food, snacks, drinks and other products at the facility.
Princeton, New Jersey has nearby residential households that will benefit a great deal when the gas station is set up. The gas station business plan has focused on stocking a wide variety of foodstuffs, drinks and other products that primarily cater for household consumers. Starting a gas station business plan should include a strategy that incorporates the local community as customers. Local communities living around the gas station are excellent customers because the gas station business plan will get steady revenue from them. Savoy gas station is expected to be nearest shopping facility that stocks basic items.
The vicinity of the gas station has many educational facilities including the famous Princeton University. Savoy gas station plans to market its products especially drinks and snacks to students from nearby high schools, colleges and universities.
Potential Customers | Growth | CAGR | |||||||
Automobile Owners | 35% | 25,000 | 27,000 | 30,000 | 33,000 | 36,000 | 10.00% | ||
Communters and travellers | 30% | 22,000 | 23,000 | 26,000 | 29,000 | 32,000 | 8.00% | ||
Households | 20% | 15,000 | 18,000 | 21,000 | 24,000 | 27,000 | 12.00% | ||
Students | 15% | 10,000 | 13,000 | 16,000 | 19,000 | 22,000 | 7.00% | ||
Total | 100% | 80,000 | 95,000 110,000 | 125,000 | 140,000 | 11.00% |
Savoy gas station intends to open in an area with a lot of business potential. There is no doubt one of the greatest strengths and advantages outlined in this gas station business plan is the strategic location. The plan is to implement a unique business model that focuses on an exemplary customer service approach and provision of topnotch products and services. Savoy gas station will recover its entire startup capital after three years in operation. There is a projection of annual sales growth of between 20-25%.
A good gas station business plan & startup guide should always give guidance on how product pricing will be implemented. In the case of Savoy gas station, prices for various products and services have been determined using a competitive approach. After considering price ranges from nearby gas stations, the business has carefully priced its products.
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In order to understand how to open a gas station and be successful, there must be a well-defined sales strategy. Mike Wall has cooperated with business startup and strategy gurus to find a creative and smart way of boosting business revenue. The following is a detailed sales strategy for Savoy gas station.
Savoy gas station is located in an excellent location off a busy interstate highway and near a large residential area. This is the only gas station within a fifteen mile radius, the demand for gas station business plan and products is expected to be high.
To ensure Savoy gas station captures the intended market, the gas station business model will rely on the following sales strategy to increase customer numbers and boost sales.
Savoy gas station is keen to implement its sales strategies to achieve its targets. Below is a summary of sales forecasts for the gas station.
Unit Sales | Year 3 | ||
Retail gasoline and siesel | 310,000 | 350,000 | 390,000 |
Selling automobile products | 150,000 | 170,000 | 190,000 |
Automobile repair services | 200,000 | 220,000 | 240,000 |
Selling soft drinks | 300,000 | 320,000 | 340,000 |
TOTAL UNIT SALES | |||
Unit Prices | Year 1 | Year 2 | Year 3 |
Retail gasoline and siesel | $150.00 | $170.00 | $190.00 |
Selling automobile products | $120.00 | $140.00 | $160.00 |
Automobile repair services | $110.00 | $130.00 | $150.00 |
Selling soft drinks | $100.00 | $120.00 | $140.00 |
Sales | |||
Retail gasoline and siesel | $300,000 | $320,000 | $340,000 |
Selling automobile products | $170,000 | $190,000 | $210,000 |
Automobile repair services | $100,000 | $120,000 | $142,000 |
Selling soft drinks | $200,000 | $220,000 | $240,000 |
TOTAL SALES | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Retail gasoline and siesel | $2.20 | $4.20 | $5.00 |
Selling automobile products | $2.00 | $3.00 | $4.00 |
Automobile repair services | $1.60 | $2.60 | $5.00 |
Selling soft drinks | $3.00 | $7.00 | $5.00 |
Direct Cost of Sales | |||
Retail gasoline and siesel | $120,000 | $140,000 | $160,000 |
Automobile repair services | $160,000 | $180,000 | $190,000 |
Selling soft drinks | $125,000 | $135,000 | $150,000 |
Comic Books | $140,000 | $150,000 | $165,000 |
TOTAL | $315,000 | $385,000 | $465,000 |
Savoy gas station has diversified its product range and service niche meaning the business requires staff of different expertise and backgrounds to run the gas station business plan . When determining how much does it cost to start a gas station business , the issue of staff and their salaries has to be considered.
Savoy gas station is owned by Mike Wall, a Petroleum Engineer who will also be the Chief Executive of the gas station. The gas station business plan will employ the following staff to work in various departments.
Successful applicants will undergo an intensive training and induction session before the gas station opens to the public.
Savoy gas station intends to pay its staff the following salaries for the first three years after launching operations.
Gas Station Manager | $62,000 | $70,000 | $75,000 |
Store Manager | $28,000 | $33,000 | $36,000 |
3 Pump Attendants | $75,000 | $80,000 | $86,000 |
2 Sales and Marketing Executive | $60,000 | $65,000 | $70,000 |
1 Cashier | $24,000 | $28,000 | $31,000 |
2 Security Guards | $50,000 | $55,000 | $64,000 |
2 Auto Mobile Repair Technicians | $50,000 | $55,000 | $70,000 |
Assitant Manager | $35,000 | $40,000 | $45,000 |
Total Salaries | $384,000 | $426,000 | $480,000 |
Savoy gas station has an elaborate financial plan that will serve as the business roadmap towards attaining success. Opening a gas station cost must be known and other key financial variables that will steer the gas station business plan to prosperity identified. The gas station startup capital will come from Mike’s personal savings as well as a loan to supplement initial capital. Two investors will also contribute to the initial business startup capital. Aside from determining how much does a gas station cost to open , other important financial variables have been captured in the sections below.
Savoy gas station’s financial forecasts are based on the assumptions shown below.
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 15.00% | 12.00% | 10.00% |
Long-term Interest Rate | 3.00% | 3.00% | 3.00% |
Tax Rate | 12.00% | 14.00% | 16.00% |
Other | 0 | 0 | 0 |
Savoy gas station Brake-even Analysis is illustrated in the graph below.
Monthly Units Break-even | 8000 |
Monthly Revenue Break-even | $25,000 |
Assumptions: | |
Average Per-Unit Revenue | $320,000.00 |
Average Per-Unit Variable Cost | $2.50 |
Estimated Monthly Fixed Cost | $370,000 |
Profit and Loss information for Savoy gas station calculated on a monthly and annual basis is shown below.
Sales | $430,000 | $470,000 | $520,000 |
Direct Cost of Sales | $31,000 | $41,000 | $51,000 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | |||
Gross Margin | $305,000 | $320,000 | $335,000 |
Gross Margin % | 50.00% | 56.00% | 63.00% |
Expenses | |||
Payroll | $365,000 | $400,000 | $425,000 |
Sales and Marketing and Other Expenses | $5,300 | $7,300 | $9,500 |
Depreciation | $3,500 | $5,000 | $7,000 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $3,000 | $5,000 | $7,000 |
Insurance | $1,000 | $1,200 | $1,700 |
Rent | $20,000 | $25,000 | $30,000 |
Payroll Taxes | $24,000 | $27,000 | $32,000 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $320,000 | $350,000 | $380,000 |
Profit Before Interest and Taxes | $40,000 | $50,000 | $60,000 |
EBITDA | $15,000 | $20,000 | $25,000 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $17,000 | $20,000 | $23,000 |
Net Profit | $120,000 | $140,000 | $150,000 |
Net Profit/Sales | 40.00% | 30.00% | 20.00% |
Below is Savoy gas station’s Profit and Loss Analysis.
The diagram below shows pro forma cash flow, subtotal cash received, subtotal cash from operations, subtotal cash spent on operations and subtotal cash spent.
Cash Received | |||
Cash from Operations | |||
Cash Sales | $400,000 | $430,000 | $460,000 |
Cash from Receivables | $4,000 | $9,000 | $13,000 |
SUBTOTAL CASH FROM OPERATIONS | |||
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
SUBTOTAL CASH RECEIVED | |||
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $30,000 | $34,000 | $38,000 |
Bill Payments | $25,000 | $30,000 | $36,000 |
SUBTOTAL SPENT ON OPERATIONS | |||
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
SUBTOTAL CASH SPENT | |||
Net Cash Flow | $22,000 | $27,000 | $32,000 |
Cash Balance | $25,000 | $30,000 | $35,000 |
Depicted below is Savoy gas station Projected Balance Sheet that shows capital, assets, liabilities, long term assets and current liabilities.
Assets | |||
Current Assets | |||
Cash | $405,000 | $420,000 | $470,000 |
Accounts Receivable | $300,000 | $310,000 | $330,000 |
Inventory | $40,000 | $40,000 | $45,000 |
Other Current Assets | $11,000 | $15,000 | $17,000 |
TOTAL CURRENT ASSETS | |||
Long-term Assets | |||
Long-term Assets | $5,000 | $10,000 | $13,000 |
Accumulated Depreciation | $7,000 | $9,000 | $11,000 |
TOTAL LONG-TERM ASSETS | |||
TOTAL ASSETS | |||
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $7,400 | $9,000 | $12,000 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | |||
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | |||
Paid-in Capital | $20,000 | $23,000 | $27,000 |
Retained Earnings | $16,000 | $19,000 | $21,000 |
Earnings | $130,000 | $150,000 | $170,000 |
TOTAL CAPITAL | |||
TOTAL LIABILITIES AND CAPITAL | |||
Net Worth | $400,000 | $420,000 | $505,000 |
Business Rations, Business Net Worth and Ratio Analysis for Savoy gas station have been show below.
Sales Growth | 5.00% | 21.00% | 35.00% | 5.00% |
Percent of Total Assets | ||||
Accounts Receivable | 4.00% | 6.00% | 8.00% | 8.00% |
Inventory | 4.00% | 3.00% | 2.10% | 10.00% |
Other Current Assets | 5.00% | 4.00% | 3.24% | 24.00% |
Total Current Assets | 120.00% | 132.00% | 139.00% | 40.00% |
Long-term Assets | -6.00% | -15.00% | -20.00% | 30.50% |
TOTAL ASSETS | ||||
Current Liabilities | 6.00% | 4.50% | 2.60% | 17.40% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 18.40% |
Total Liabilities | 6.00% | 3.00% | 1.40% | 34.70% |
NET WORTH | ||||
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 80.00% | 82.00% | 86.00% | 0.00% |
Selling, General & Administrative Expenses | 50.00% | 65.00% | 72.00% | 55.50% |
Advertising Expenses | 4.00% | 3.20% | 2.22% | 3.60% |
Profit Before Interest and Taxes | 20.00% | 22.00% | 25.70% | 3.10% |
Main Ratios | ||||
Current | 14 | 10 | 16 | 0.8 |
Quick | 30 | 25 | 27 | 1.5 |
Total Debt to Total Assets | 4.31% | 3.00% | 2.50% | 45.00% |
Pre-tax Return on Net Worth | 92.00% | 85.00% | 92.00% | 4.10% |
Pre-tax Return on Assets | 78.00% | 65.00% | 56.00% | 8.00% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 14.00% | 17.00% | 20.00% | N.A. |
Return on Equity | 60.00% | 52.00% | 56.00% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 10 | 5 | 4.3 | N.A. |
Collection Days | 80 | 85 | 96 | N.A. |
Inventory Turnover | 14 | 17 | 21 | N.A. |
Accounts Payable Turnover | 8.2 | 12.9 | 16 | N.A. |
Payment Days | 15 | 15 | 15 | N.A. |
Total Asset Turnover | 1.9 | 0.6 | 0.4 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | 0 | -0.07 | -0.04 | N.A. |
Current Liab. to Liab. | 0 | 0 | 0 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $270,000 | $290,000 | $320,000 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 0.6 | 0.4 | 0.3 | N.A. |
Current Debt/Total Assets | 9% | 7% | 5% | N.A. |
Acid Test | 23 | 27 | 35 | N.A. |
Sales/Net Worth | 3.3 | 3 | 2.7 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
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September 4, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful gas station. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your gas station's identity, navigate the competitive market, and secure funding for growth.
400+ sample business plans will guide you through each section of your plan as a business mentor. 1. Executive Summary Objectives Keys to Success Mission ... Gas Station | Business Plan [YEAR] 11/35. Start-up Expenses Amount TOTAL ASSETS $121,875 Total Requirements $245,000 START-UP FUNDING $0
Below is a sample business plan for a gas station to help you create each section of your gas station business plan. ... Develop A Gas Station Business Plan - The first step in starting a business is to create a detailed fuel station business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and ...
hypothetical business operation presented only as a case- study. The Business Plan. 2. Personalized Cover Letter. QUICK MART, LLC Highway 3 and Main Street A Convenience Store in 200X. Stanley and Virginia Smith, Owners 123 Any Street Fortsville, Texas 55555 (512) 555-5555 (512) 123-4567. (As our services are always CONFIDENTIAL and free of ...
A petrol station also known as a gas station, filling station, or a service station is a facility that sell fuel and engine lubricants to motor vehicles. Fuel dispensers are used to pump fuel directly into the tanks of the motor vehicles. In the ever-growing automotive world, the demand for fuel remains consistently high, making petrol stations ...
We have created this sample for you to get a good idea about how perfect a gas station business plan should look and what details you will need to include in your stunning business plan.. Industry Overview. In October 2021, the monthly retail fuel sales in the US amounted to a whopping 55 billion dollars, significantly higher than the past month. And although the industry experienced a ...
Add a chart with a breakdown of relevant financial factors for the next three to five years. [Owner.Company] is seeking total funding of $ (amount) of debt capital to launch its gas stations. The capital will be used for (expenses). Specifically, these funds will be used as follows: Store design and build: $150K. (Purpose): $ (amount)
A Sample Gas Station Business Plan Template 1. Industry Overview. A gas station which also called a petrol station, filling station, fueling station, or service station is a business facility which retails gasoline (petrol), diesel and lubricants for motor vehicles. Gas stations offer one of three types of service to their customers: full ...
A gas station business plan is a plan to start and/or grow your gas station business. A filling station business plan provides details about your business concept, competition, target customers, presents your marketing plan and details your financial projections. This is true for a full service gas station, filling station, convenience store ...
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
Gas Station Business Plan. If you want to start a new gas station business or expand your current gas station, you need a business plan. The following gas station business plan template gives you the key elements to include in a winning business plan for all types of gas stations including a petrol station, automotive services, filling stations and other gas stations.
Download the Gas Station Business Plan 45-page PDF document. In the dynamic landscape of the fuel industry, developing a comprehensive gas station business plan is crucial for success. This template, expertly designed to align with industry standards, provides a robust framework for both new and seasoned business owners in the gas station industry. What are the Main Types of Gas Stations? Gas ...
Allensburg's Food and Gas is a new convenience store and gas station in Allensburg. Robert Cole, owner of Allensburg's Food and Gas, has seven years of experience in managing gas stations. Robert will focus on the commuters that pass through the town daily. Allensburg's Food and Gas will offer its customers the best gas prices and quality ...
The business plan for your gas station franchise should contain the different advertising strategies you plan to implement to market your business. List down and describe each strategy and the budget you plan to allot for the campaign. You should also indicate if the advertising for your gas station is part of a blanket advertising campaign and ...
A complete gas station business plan template. This fill-in-the-blanks template includes every section of your business plan, including Executive Summary, Objectives, SWOT Analysis, Marketing Analysis and Strategy, Operations Plan, Financial Projections and more (a similar template is sold elsewhere for $69.95). All this and much much more.
The plan is to implement a unique business model that focuses on an exemplary customer service approach and provision of topnotch products and services. Savoy gas station will recover its entire startup capital after three years in operation. There is a projection of annual sales growth of between 20-25%.
Gas Station Business Plan Sample - Free download as PDF File (.pdf), Text File (.txt) or read online for free.
Gas Station Business Plan Example (1) - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Maxwell Gas Station aims to capture market share along a busy highway in Detroit, Michigan by offering competitive gas prices and great food. The business seeks $260,000 in funding to launch its gas station, covering capital expenditures, initial employees, marketing, and working ...
Designing of gas stations is a complex, multi-stage process. When designing a gas station project, it is necessary to take into account the climatic, engineering-geological and socio-economic features of the territory that are developed in this particular place. Technological and auxiliary facilities should be located on the
Urban Design Guidelines For Gas Stations. Lexington Income Restricted 2 Bed Apartment Belmont Station. Revised Proposed Site Plan Taj 18x24 Port Hztb. S Petrol Station Layout Design In Pdf Cad 2 38 Mb Bibliocad. Fire Free Full Text Risk Analysis Of And Explosion Hydrogen Gasoline Hybrid Refueling Station Based On Accident Sment Method For System.
Structures of Gas Station in Saint Petersburg - Free download as PDF File (.pdf), Text File (.txt) or read online for free.
the renovation:Figure 11. Plan of the hostelOne of the rooms will be used as a kitchen zone, equipped with all the needed machinery (a stove, coffee machine, cutlery, etc.) Free tea, coffee and snacks will. .4.6.2 Project organisation and coordinationThe first important aspect of establishing the business is.