Newbie considering getting into the business. any tips or advice would be greatly appreciated.

[almendarezd5796]

I am actively exploring opportunities to acquire a gas station or convenience store, despite having limited experience as a business owner. With a steady income of $50,000 per year and average credit , I have diligently saved approximately $370,000 in cash for this purpose. My relevant experience includes working as an employee in gas stations (sales associate) and I currently work as a janitor , I am 29 years old. I am highly motivated to become an entrepreneur and am seeking guidance on the most strategic approach.

Should I:

A) Accumulate sufficient funds to purchase the property and business outright, avoiding financing (am willing to save more if necessary)
B) Acquire the business only and lease the property
D) Make a down payment and finance the property and business

I would appreciate advice on the most suitable option, considering my circumstances. Additionally, would it be beneficial to engage a consultant to review potential businesses and provide guidance on the acquisition process, given my limited experience? Any recommendations for novice entrepreneurs like myself would be valuable. Any good websites or places to find businesses for sale ?

Note: I do not have access to alternative funding sources, such as wealthy friends or family, as they are also lower-income."

 

[Administrator]

Awesome question and thanks for joining the site! First, amazing you saved that much money, really that's incredible! #1- I'm happy to hear that you have actually worked in a store most people want to skip that step. What I would personally be looking for on a long term play is one with the real estate. If know what you are buying, have confidence in the location and your ability I'm going with the real estate all day long! I just wrote a post earlier today about something similar. https://gasbiz.community.forum/threads/real-estate-hack.21/

 

[Guardian-Jackson]

I'll post in the Buy/Sell area, but I'm curious if there is rough valuation math for a Gas Station business above and beyond the real estate value?

BizBuySell seems to have a range of options:

 

[Gas_Biz]

I use this formula. I also have a great proforma that I’ll be posting tomorrow.
Thread 'Gas Station Valuations'
https://gasbiz.community.forum/threads/gas-station-valuations.4/

 

[Guardian-Jackson]

WOW, how did I miss that valuation post. That's incredibly comprehensive.

@almendarezd5796, what do you want out of it? Would the 'owners salary' + (uninvested) net cash replace your current income?

 

[myfolder]

What would you say is the best method to look for potential sites to build gas stations. Outside of the state that you live in? you want to just build one that will get the most ROI.

 

[almendarezd5796]

WOW, how did I miss that valuation post. That's incredibly comprehensive.

@almendarezd5796, what do you want out of it? Would the 'owners salary' + (uninvested) net cash replace your current income?

Yes basically want to create my own career.