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Are gas stations good biz? Should I buy one?


I have some money to invest and since I don't have too much experience in biz, I was thinking to begin with something easy. I found this gas station that nets 100k/year and is selling for 200k. Sounds like perfect, right?

That's an awfully hard business. Insurances on everything are high. Employee turnover is high. You won't be able to go out of town. The Railroad Commission will always be wanting something.

The liabilities are pretty serious for gas stations. The tanks have to be dug up every once in a while to make sure there's been no seepage. I'm thinking that the net isn't true and there are some contingent costs that haven't been accounted for.

I would look a little more into that net profit. What about fixed and variable costs? What does the 200 include, liability? Cash flow? What kind of inventory are you gonna have to maintain outside of rising gas prices during a recession fear and election year?
Any lease or property tax involved? What type of sales volume is it generating? Why is it getting let go at 200. Forclosure?

And gas station owners get a tiny, tiny percentage of the actual cost of the gasoline....most of your income will be from the convenience store items you might sell.

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