How to open a service station?

Business ideas by directions

The car service station provides services that every motorist needs.

Therefore, the demand for these services remains in demand and constant. It is logical to consider the service station business idea as a priority, because it is demand that creates the income stream of any business.

What needs to be done before the opening of the service station?

However, in order to open a service station, one must first carefully study the competition in the proposed opening area. It is no secret that the owners of service stations are trying to choose the most convenient places for their business, close to highways and parking lots. There are also environmental requirements for opening a service station, since it is necessary to dispose of fuels and lubricants.

Therefore, often in some areas of the city, service stations are found at every turn, while in others there are almost none. Studying the locations of competitors and the list of services they provide will allow you to choose the best option and ensure a constant influx of customers in the future.

Service station organization options

A service station as a business can be a variety of organization options.

1) The most difficult option for beginners is the creation of an authorized car service center.

To obtain such a status, you need to fulfill a number of manufacturer’s requirements, purchase modern equipment and recruit qualified personnel. Most often, either large businessmen or existing car services seeking development can afford this form of service station.

2) More acceptable forms of service stations for beginners are either a network car service station or a single service station not authorized by the manufacturer.

It is clear that authorized service stations receive almost all orders from owners of new cars, and the least profitable owners of old cars turn to single services.

On the other hand, the flow of such orders never dries up, as cars age and require increased attention during maintenance.

Therefore, when opening a service station, you need to decide who the service will focus on, what services it will provide and what price range will be set for car owners. It is these parameters that will be the main ones when opening a service station, since both the list of equipment and the costs of starting a business depend on them.

Service station opening costs

In any case, the service station must have diagnostic equipment, lifts, tool kits and consumables. The opening of a service station also imposes certain requirements on the very premises of the station and the qualifications of the staff, and the latter can become the main condition for a successful business and creating a circle of regular customers.
Experience shows that opening a small service station will require from 400 to 600 thousand dollars of expenses for the purchase of equipment and tools, excluding the cost of repairing and equipping the premises itself.
In the initial costs, you must also take into account the costs of registering a business and obtaining permits.

Operating expenses will consist of personnel salaries, premises rent and utilities, consumables and spare parts.
But the profitability of the business will depend on how quickly you can gain a client base and increase revenues.
Before implementing the project of opening a service station, it is better to calculate its payback. In order to calculate the payback of your business idea, you can follow this link:

To avoid unnecessary expenses and quickly reach payback, even at the stage of a business idea, you need to draw up a business plan that takes into account all possible costs and income. You can make a preliminary calculation of the profitability of a future enterprise for free on our website, as well as order a detailed service station business plan, which will be performed by highly qualified specialists.