The automotive industry does not circle around selling of cars, distribution of auto parts or transportation only. In fact, one of its most important sector is the sale of petroleum products. This sector involves the upstream, midstream and downstream sectors. The downstream remains the most talked about, as its the easiest to start amongst the three, and demands lesser capital.

Many business men and women who wish to go into business transactions in that aspect of the industry find it difficult as they barely even know where to begin. We know how difficult it is finding such information. Therefore, Naijacarnews have decided to bring you this guide, detailing all you need to know about how to open a filling station.

1. Research and draw up a business plan

This almost goes without saying but it's important to complete this step before going to another. Interact with those who already have a filling station. Find out how much it costs them to purchase land, tanks, dispensers, office equipment and so on. You can also browse through the internet for more on it. While drawing up your business plan, put location into consideration.

There are areas in town where you can't have a filling station - like close to a school. Also consider an easily accessible area where drivers can stop to buy without any hassle. Find out how much it costs getting a land there. You can also look for old filling stations, buy and renovate. On the average, opening a filling station costs about 70 million naira.

There has been really much for this investment; you don't want it to fail

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2. Get a supplier and an insurance provider

Once your plan is drawn up, talk to suppliers in the downstream or the midstream. There are filling stations that buy from those in the midstream and sell to other stations. Make a list of such franchises and meet with them to discuss terms. Alternatively, you can also be part of an already existing brand. This makes it easy for you to sell. Once you have picked a supplier, find out about insurance. You need a cover for when emergencies happen. You want to lose sleep worrying about what you would do if there's ever an explosion some day.

3. Liaise with your bank

A filling station business is one that could see you raking in as much as five hundred thousand naira daily. You can't have such an amount of money lying around in the office. So you can liaise with your bank account manager to always come at certain times of the day to collect monies sold. It also helps in a better accounting process.

Big businesses always need close partnerships with the bank

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4. Consider including a mechanic workshop

Instead of having just a filling station, you can consider having a professional mechanic workshop inside the premises. This way, people getting fuel can also have their vehicles quickly checked - for a fee. Filling stations usually sell other petroleum products asides gas. This has made a lot of people also believe such workshops within the grounds of a filling station tends to have professionals as compared to road side workshops. Therefore, take advantage of it.

Finally, once your filling station is ready to open, you can make handbills and posters. Have them shared at motor parks and to drivers. You can also have a little opening ceremony as a way of advertising as well.

>>> Read more car buying & selling tips and news right here on Naijacarnews.com!