Gas Station

Business Plan
2021 - 22

Upmetrics
10200 Bolsa Ave, Westminster, CA, 92683

(650) 359-3153

[email protected]

https://upmetrics.co
Table of Contents

Executive Summary 3
Objectives 4
Keys to Success 4
Mission 5
Financial Summary 5
3 Year profit forecast 5
Company Summary 7
History 8
Startup Summary 8
Startup cost 9
Products and Services 12
Features 13
Market Analysis 14
Industry Analysis 15
Market Trends 15
Market Segmentation 15
Strategy & Implementations 16
Advertising Strategy 17
Pricing Strategy 17
Sales Strategy 17
Sales Forecast 18
Operations Plan 19
Service Functions 20
Administrative Functions 20
Milestones 20
Financial Plan 21
Important Assumptions 22
Brake-even Analysis 22
Projected Profit and Loss 23
Profit Yearly 24
Gross Margin Yearly 24
Projected Cash Flow 25
Projected Balance Sheet 26
Business Ratios 27

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1.

Executive Summary
Objectives
Keys to Success
Mission
Financial Summary

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Before you think about how to start a Gas Station service, you must create a
detailed Gas Station business plan. It will not only guide you in the initial
phases of your startup but will also help you later on.

Read More 

Maxwell Gas Station is a fully registered and licensed standard gas station that
will be located along a busy highway in Detroit – Michigan, U.S. Our chains of
gas stations that will be scattered all around major cities in the United States of
America will adopt full service, minimum service, and self-service as it suits the
Read More 
location.

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Objectives

To capture an increasing share of the commuter traffic passing through

Detroit.

To offer our customers superior products, at an affordable price.

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To provide customer service that is second to none.

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Keys to Success

Good quality products at competitive prices.

Excellent customer service that will promote customer loyalty.

A location that will assure that commuters will stop. Read More 

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Mission

The mission of Maxwell Gas Station is to offer commuters on Highway 310

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.

Read More 

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Financial Summary

Capital Requirements and Use of Funds

Maxwell is seeking total funding of $260,000 of debt capital to launch its gas
station. The capital will be used for funding capital expenditures and location
Read More 
build-out, hiring initial employees, marketing expenses, and working capital.

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3 Year profit forecast

Sales Gross Margin Net Profit

15.00k

10.00k

5.00k

0
Year1 Year2 Year3

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Financial Summary Year 1 Year 2 Year 3

Revenue $965,742 $1,878,611 $2,718,300

Read More 

Start Writing here..

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2.

Company Summary
History
Startup Summary

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Maxwell is engaged in selling and marketing gasoline and diesel products. We
are committed to better, safer, cleaner, more efficient, more innovative, and
more accessible energy. We offer refined petroleum products and lubricants for
retail and commercial channels.
Read More 
Maxwell Gas Stations is owned and managed by Mr. John Moore and his
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History

For 12 years, Maxwell has been City’s leading company for crude oil and gas
production. It was in 2015 when Mr. James Moore first established his first gas
station. He decided to open up a small gas station after seeing that there is no
existing gas station within 5 miles from his location. It quickly gathered patrons
Read More 
until it expanded its operations. Today, Mr. James Moore has 5 stations in

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Startup Summary

John Moore will invest $60,000 in Maxwell Gas Station. Robert aims to secure
an SBA of $150,000 to finance the remainder of the start-up costs.

The following chart and table show projected initial start-up costs for Maxwell
Gas Station. Read More 

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Startup cost

Amount

100.00k

75.00k

50.00k

25.00k

0
Expenses Assets Investment

Cost distribution Amount

Expenses 50000

Assets 80000

Investment 35000

Start-up Expenses Amount

Legal $75,500

Consultants $0

Insurance $62,750

Rent $22,500

Research and Development $42,750

Expensed Equipment $42,750

Signs $1,250

TOTAL START-UP EXPENSES $247,500

Start-up Assets $0

Cash Required $322,500

Start-up Inventory $52,625

Other Current Assets $222,500

Long-term Assets $125,000

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Start-up Expenses Amount

TOTAL ASSETS $121,875

Total Requirements $245,000

START-UP FUNDING $0

START-UP FUNDING $273,125

Start-up Expenses to Fund $121,875

Start-up Assets to Fund $195,000

TOTAL FUNDING REQUIRED $0

Assets $203,125

Non-cash Assets from Start-up $118,750

Cash Requirements from Start-up $0

Additional Cash Raised $118,750

Cash Balance on Starting Date $121,875

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 $312,500

Investor 2 $0

Other $0

Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $695,000

Loss at Start-up (Start-up Expenses) $313,125

TOTAL CAPITAL $221,875

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Start-up Expenses Amount

TOTAL CAPITAL AND LIABILITIES $221,875

Total Funding $265,000

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3.
Products and
Services

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Maxwell Gas Station is a fully registered and licensed standard gas station that
is positioned in the gas station industry in the United States of America to
maximize profits. Aside from the point that we will be retailing gasoline and
diesel, we will also engage in other complimentary services that will help us
Read More 
maximize profits.

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Features

Gas Diesel

 
Automotive services Non Automotive fuel

 e.g. repairs, car washes and

general parts

Retailing automotive fuels Selling automotive-related

 e.g. diesel fuel and gasoline

 goods

Automotive-repair services Wheel related services

  Providing Wheel Alignment,

Wheel Balancing and Vulcanizing
Services

Retailing of Groceries and

 soft drinks

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4.

Market Analysis
Industry Analysis
Market Trends
Market Segmentation

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The most important component of an effective Gas Station business plan is its
accurate marketing analysis. If you are starting on a smaller scale, you can do
marketing analysis yourself by taking help from this Gas Station business plan
sample or other Gas Station business plans available online.
Read More 

Industry Analysis

The Gas Stations industry has experienced growth over the past five years to
2020. Since the majority of the industry’s business is generated from
consumers rather than commercial businesses, consumer spending plays a
major role in determining industry performance. Consumer spending has
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increased over the five years, boosting spending.

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Market Trends

There is hardly anyone who doesn’t have a need for gas, this is why it is really
vital that one key into this industry. One of the trends in the gas station industry
is that, in the bid to stay afloat in the highly competitive gas station industry,
owners of gas stations now go the extra mile to ensure that they make their
Read More 
facility welcoming and conducive for customers.

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Market Segmentation

The target customers of Maxwell Gas Station are the commuters that use
Highway 310.

Potential Growth Year1 Year2 Year3 Year4 Read More 

CAGR
Customers
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5.
Strategy &
Implementations
Advertising Strategy
Pricing Strategy
Sales Strategy
Sales Forecast

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After identifying the market demand, market trends, and the potential
customers of the startup, the next step is to define an effective strategy for
attracting those customers. Like marketing analysis, sales strategy is also an
important component of a Gas Station business startup and must be properly
planned before you think about starting your own Gas Station business. Read More 

Advertising Strategy

Despite the fact that our gas station is a standard one with a wide range of
other complimentary services and products that can favorably compete with
other leading brands in the gas station industry, we will still go ahead to
intensify publicity for all our products and brand. We are going to explore all
Read More 
available means to promote Maxwell Gas Station.

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Pricing Strategy

It is the wish of all businesses to have a pricing system that will yield loads of
profits for them; as such we are working on having very competitive pricing. At
Maxwell Gas Station, our pricing system is going to be based on what is
obtainable in the industry, we don’t intend to charge more (except for premium
and customized services) and we don’t intend to charge less than ourRead More 

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Sales Strategy

Maxwell Gas Station 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 a 15% coupon on
purchases in the store during the first month of operation, to encourage
Read More 
purchases and to introduce them to the concept of buying quality organic foods

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Sales Forecast

In order to maintain competitive gas prices, the cost of gas to the consumer will
never exceed 15% of wholesale cost. Maxwell Gas Station will focus on
increasing food sales in order to meet total sales forecast goals.

The following is the sales forecast for three years. Read More 

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Gasoline Food, Drinks, and Produce

1.00M

750.00k

500.00k

250.00k

0
Year1 Year2 Year3

Financial Year Gasoline Food, Drinks, and Produce

Year1 623000 185000

Year2 660000 198000

Year3 700000 210000

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6.

Operations Plan
Service Functions
Administrative Functions
Milestones

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Maxwell Gas Station will be open 24/7 so there is an assurance that the clients
will be served whenever they arrive at the station.

The Company intends to employ 12 mechanics and 2 cashiers during peak

Gas More 
hours and 8 mechanics and 1 cashier during off-peak hours. Maxwell Read
Station anticipates having 1000 customers on a weekly basis.
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Service Functions

Mechanic

Gas pump assistance

Maintenance personnel Read More 

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Administrative Functions

General & administrative functions including marketing, bookkeeping,

etc.

Sourcing products and taking inventory for the minimart

Read More 

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Milestones

Maxwell Gas Station’s long-term goal is to become the dominant provider of

gas and related services and products in the city area. The following are a
series of steps that lead to our vision of long-term success. Maxwell Gas
Station expects to achieve the following milestones in the following 15 months:
Read More 

Start Writing here..

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7.

Financial Plan
Important Assumptions
Brake-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios

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The last component of a Gas Station business plan is an in-depth financial
plan. The financial plan crafts a detailed map of all the expenses needed for the
startup and how these expenses will be met by the earned profits. It is
recommended that you use our financial planning tool for guiding you through
all financial aspects needed to be considered for starting a Gas Station
Read More 
business.

The company will be financed by John himself and he will control the direction
of the business to make sure that it is expanding at the forecasted rate. As for
the Gas Station business start-up, no equity funding or outside loans will be
required. With the help of financial experts, John has developed the following
financial plan for his start-up business, which outlines the financial Read More 

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Important Assumptions
The financial projections of the company are forecast on the basis of the following assumptions. These
assumptions are quite conservative and are expected to show deviation but to a limited level such that
the company’s major financial strategy will not be affected.

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10,00% 11,00% 12,00%

Long-term Interest Rate 10,00% 10,00% 10,00%

Tax Rate 26,42% 27,76% 28,12%

Other 0 0 0

Brake-even Analysis
Monthly Units Break-even 5530

Monthly Revenue Break-even $159 740

Assumptions:

Average Per-Unit Revenue $260,87

Average Per-Unit Variable Cost $0,89

Estimated Monthly Fixed Cost $196 410

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Projected Profit and Loss
Year 1 Year 2 Year 3

Sales $309 069 $385 934 $462 799

Direct Cost of Sales $15 100 $19 153 $23 206

Other $0 $0 $0

TOTAL COST OF SALES $15 100 $19 153 $23 206

Gross Margin $293 969 $366 781 $439 593

Gross Margin % 94,98% 94,72% 94,46%

Expenses

Payroll $138 036 $162 898 $187 760

Sales and Marketing and Other Expenses $1 850 $2 000 $2 150

Depreciation $2 070 $2 070 $2 070

Leased Equipment $0 $0 $0

Utilities $4 000 $4 250 $4 500

Insurance $1 800 $1 800 $1 800

Rent $6 500 $7 000 $7 500

Payroll Taxes $34 510 $40 726 $46 942

Other $0 $0 $0

Total Operating Expenses $188 766 $220 744 $252 722

Profit Before Interest and Taxes $105 205 $146 040 $186 875

EBITDA $107 275 $148 110 $188 945

Interest Expense $0 $0 $0

Taxes Incurred $26 838 $37 315 $47 792

Net Profit $78 367 $108 725 $139 083

Net Profit/Sales 30,00% 39,32% 48,64%

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Profit Yearly

Profit

15.00k

10.00k

5.00k

0
Year1 Year2 Year3

Financial Year Profit

Year1 10000

Year2 12000

Year3 14000

Gross Margin Yearly

Gross Margin

15.00k

10.00k

5.00k

0
Year1 Year2 Year3

Financial Year Gross Margin

Year1 10000

Year2 12000

Year3 14000

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Projected Cash Flow
Cash Received Year 1 Year 2 Year 3

Cash from Operations

Cash Sales $40 124 $45 046 $50 068

Cash from Receivables $7 023 $8 610 $9 297

SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359

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 $47 143 $53 651 $55 359

Expenditures from Operations

Cash Spending $21 647 $24 204 $26 951

Bill Payments $13 539 $15 385 $170 631

SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582

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 $35 296 $35 489 $43 882

Net Cash Flow $11 551 $13 167 $15 683

Cash Balance $21 823 $22 381 $28 239

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Projected Balance Sheet
Assets Year 1 Year 2 Year 3

Current Assets

Cash $184 666 $218 525 $252 384

Accounts Receivable $12 613 $14 493 $16 373

Inventory $2 980 $3 450 $3 920

Other Current Assets $1 000 $1 000 $1 000

TOTAL CURRENT ASSETS $201 259 $237 468 $273 677

Long-term Assets

Long-term Assets $10 000 $10 000 $10 000

Accumulated Depreciation $12 420 $14 490 $16 560

TOTAL LONG-TERM ASSETS $980 $610 $240

TOTAL ASSETS $198 839 $232 978 $267 117

Current Liabilities

Accounts Payable $9 482 $10 792 $12 102

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102

Long-term Liabilities $0 $0 $0

TOTAL LIABILITIES $9 482 $10 792 $12 102

Paid-in Capital $30 000 $30 000 $30 000

Retained Earnings $48 651 $72 636 $96 621

Earnings $100 709 $119 555 $138 401

TOTAL CAPITAL $189 360 $222 190 $255 020

TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117

Net Worth $182 060 $226 240 $270 420

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Business Ratios
Year 1 Year 2 Year 3 Industry Profile

Sales Growth 4,35% 30,82% 63,29% 4,00%

Percent of Total Assets

Accounts Receivable 5,61% 4,71% 3,81% 9,70%

Inventory 1,85% 1,82% 1,79% 9,80%

Other Current Assets 1,75% 2,02% 2,29% 27,40%

Total Current Assets 138,53% 150,99% 163,45% 54,60%

Long-term Assets -9,47% -21,01% -32,55% 58,40%

TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%

Current Liabilities 4,68% 3,04% 2,76% 27,30%

Long-term Liabilities 0,00% 0,00% 0,00% 25,80%

Total Liabilities 4,68% 3,04% 2,76% 54,10%

NET WORTH 99,32% 101,04% 102,76% 44,90%

Percent of Sales

Sales 100,00% 100,00% 100,00% 100,00%

Gross Margin 94,18% 93,85% 93,52% 0,00%

Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%

Advertising Expenses 2,06% 1,11% 0,28% 1,40%

Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%

Main Ratios

Current 25,86 29,39 32,92 1,63

Quick 25,4 28,88 32,36 0,84

Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%

Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%

Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%

Additional Ratios

Net Profit Margin 19,20% 21,16% 23,12% N.A.

Return on Equity 47,79% 50,53% 53,27% N.A.

Activity Ratios

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Year 1 Year 2 Year 3 Industry Profile

Accounts Receivable Turnover 4,56 4,56 4,56 N.A.

Collection Days 92 99 106 N.A.

Inventory Turnover 19,7 22,55 25,4 N.A.

Accounts Payable Turnover 14,17 14,67 15,17 N.A.

Payment Days 27 27 27 N.A.

Total Asset Turnover 1,84 1,55 1,26 N.A.

Debt Ratios

Debt to Net Worth 0 -0,02 -0,04 N.A.

Current Liab. to Liab. 1 1 1 N.A.

Liquidity Ratios

Net Working Capital $120 943 $140 664 $160 385 N.A.

Interest Coverage 0 0 0 N.A.

Additional Ratios

Assets to Sales 0,45 0,48 0,51 N.A.

Current Debt/Total Assets 4% 3% 2% N.A.

Acid Test 23,66 27,01 30,36 N.A.

Sales/Net Worth 1,68 1,29 0,9 N.A.

Dividend Payout 0 0 0 N.A.

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