Funding Needed for a New Gas and Food Station in South Africa

Opportunity Snapshot

Funding Needed for a New Gas and Food Station in South Africa Image courtesy: Jose Carlos Norte, 2009, Flickr CC.

Investment Opportunity

I am looking to purchase land and build a Gas Station, or alternatively purchase an existing petrol filling station. I need funding for the development or acquisition.

With world energy consumption set to rise by around 40 percent between 2015 and 2030, the energy system is changing fundamentally, making companies’ decisions about fuel more complex and important than ever before.

While clean and renewable transportation technologies are gaining ground, petroleum will remain the backbone of our useful fuel resources for decades to come. In light of this, companies must make smarter decisions about their current choices among fuels, which often will be choices within fossil fuels.

From my experience, in South Africa there is high demand of fuel since it is a developing country with growing economy. Therefore, investing in a petrol station is a sound decision that will generate stable revenues over a period of more than 20 years.

The maximum funding needed ZAR 5,000,000.00 (Five Million Rand) or approximately Five Hundred Thousand Dollars (US$). The investor will have share of net profit monthly or annually (depends on investor's decision). This will be discussed and agreed upon. The investment is valid for the number of years to be determined and agreed upon.

The competition will depend on the location where the station is going to be situated. The way to outperform my competitors is to know their weakness and capitalize upon my strengths as I have the experience and know-how.

The country gives entrepreneurs opportunity to make money in Petroleum as the sector enjoys high demand. The best strategy is to buy a petrol station that has recognizable brand name as consumers pay attention on the brand name such as Total, Shell, and Engine. Another key success factor is the location of the station.

The expected turnover per month is R2,400 000.00 (two comma four million rand) and the net profit is R170 000.00 plus after deductions of running costs.

Competitive Advantage

The competition will depend on the location where the station is going to be situated. The way to outcompete my competitors is to know their weakness and capitalize upon our strengths.

Rationale for the deal

The country gives entrepreneurs opportunity to make money in Petroleum as the sector enjoys high demand. As mentioned, I would run a gas station that has recognizable brand name as consumers pay attention on the brand name. Another key success factor is the location of the station. I have Business Qualifications and I’m ready to run the business. I am looking to improve the business by 6% margin per year.

Reasons for purchasing a franchise:
• Proven business
• Lower risk
• Established customer base
• Marketing umbrella
• Initial and ongoing support by the franchisor
• Exclusive rights for the territory
• Greater bargaining power towards suppliers

Use of financing

The expected turnover per month is R2,400 000.00 (two comma four million rand) and the net profit is R170 000.00 plus after deductions of running costs.
The maximum funding needed is up to R5,000,000.00 (Five Million Rand) and the amount will be used to acquire new land and build, or buyout the management. R1,000,000.00 will be kept as a reserve fund in case the business faces any contingency situations once taken over.

Opportunity for the investor

South Africa is one of the top African countries to invest in. The Investor will be at an advantage to invest in this business venture which has a high probability of growing and bringing in income. We have experience of running this for 14 years and started 4 new gas stations which are running profitably.

The investor won't need to be involved in day-to-day management and can act as a silent investor.

We are available for any meeting/skype in order to discuss further.

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