Service Station Business Plan

Service Station Business Plan-78
South Africa petrol stations fall into two categories, independent and franchise operations, both of which are funded in the same way.Independently owned garages still play a big roll in the South African economy.Once you complete the business plan you’re ready to write an executive summary that outlines how your gas station will provide a much-needed fueling resource while standing out from competitors and making a profit.

South Africa petrol stations fall into two categories, independent and franchise operations, both of which are funded in the same way.

If you want customers to come inside, explain what products you plan to sell, such as snacks, chips, beverages, souvenirs, groceries or automotive products.

To increase profits, you might also want to offer mechanical repairs or a car wash.

According to South African Petroleum Retailers Association (SAPRA), who represents all the stakeholders in the petroleum industry, before a new filling station can be opened, three sets of approvals, authorisations and licenses are needed.

In terms of the Petroleum Products Act, 1977 (PPA) as amended in 2006, and which is administered by the national Department of Energy, one cannot apply for a site and/or retail license before you have both land use rights and an environmental authorisation.

After extensive market research, the franchisor determines which business units are suitable for the particular site and grants a licence to a single franchisee to operate the entire outlet.

The Franchise offers a certain name brand of petrol related products, which are subject to the rules and regulations of the franchisor.

Existing filling stations are in a particularly strong position because of the PPA which controls the energy authorities to ensure that the number of filling stations is appropriate to local sales volumes and does not exceed the optimal number for an area.

Petro companies (Engen, Sasol, etc) offer franchises which include intensive training programmes and stipulations for franchisees.

If you are thinking of starting a filling station you should read by Moky Makura, (2008) published in paperback by Penguin Books.

It tells the story of T K Mmusi, a man armed with little knowledge or experience, who started a Total petrol station in Botwana.

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