Thinking Outside the Box: How to Enter the Fuel Market In 6 Steps

You don’t have to start an e-commerce store or trade stocks to start a business in 2022. A lot of people think that you do have to do these things, but that’s wrong. There are lots of other things that you can do.

One of them is getting started in the fuel market, buying and selling fuel to people. While this is a very unconventional and somewhat challenging business to start, it is definitely possible. This post will tell you everything that you need to do if you want to get started in the fuel industry:

Business Plan

It’s not easy getting into the fuel industry. The first thing that you need to do if you intend on starting a business in it is to devise a plan. This plan should include research about things like fuel storage tanks, which are essential, and the licensing that you will need to be able to legally operate a fuel business in the United States. If you don’t have the correct licensing, then you will be closed down in a matter of days.

The formulation of a business plan might seem difficult, but actually, it’s really easy. If you are struggling to create a plan for your new business, then you can hire a business expert to help you. There are lots of business and marketing professionals that work freelance, helping small businesses to get off of the ground.

Before hiring a professional to offer advice on a plan, make sure that you read their reviews and see what previous clients have to say about them. A business or service’s reviews will give you an idea of what customers actually experience.

Finding Suppliers

Once you have written a plan, the next step is to start looking for suppliers. Going back to storage first for a moment, which was touched upon in the previous point, you need to make sure that you have the correct equipment and enough space. If you don’t store your business’s fuel according to government guidelines, then it can be seized.

The reason for this is that businesses that don’t store their fuel safely are a safety hazard. Fuel is highly flammable, so if fuel needs to be stored in flameproof and heat-resistant containers, in a place that’s out of the way and inaccessible.

Moving onto suppliers. You won’t be able to start your fuel business until you have a supplier in the fuel industry.

Unfortunately, it’s not easy to find suppliers offering their services for a reasonable price, especially with everything that’s going on right now in terms of global fuel use and prices.

Even so, you still will be able to find a supplier, but you will have to accept that you will have to pay a little extra. You will also need to buy fuel in bulk, otherwise, they likely won’t offer you good prices or any fuel at all.

Physical Location

Once you have secured a supplier, have written a plan, and know where you are going to store your fuel, you can go ahead and open a physical location for your business. When you are in the fuel business, you have two options. You can either sell privately to businesses and other private individuals, or you can start a filling station.

The most profitable out of these two is to start a filling station. In addition to being the most profitable, it is also easiest to start a filling station, because you don’t have to search for private clients and once people know where your location is, they will start coming to you.

If you are going to open a filling station, then location is everything. Ideally, you should find a location that’s in a high-traffic area. The reason that your store needs to be in a high-traffic area is that the more visible your location is to people passing by in their vehicles, the more likely they will be to stop. If your filling station’s located in a remote part of town, then you aren’t going to get as much business as you would if it was on the main street.

Online Marketing

All businesses can benefit from a little bit of online marketing, no matter what industry. While it’s hard to market a filling station online, it is possible. You should market it to people in your local area, which you can do on social media, or privately through DMs. It’s also a good idea to create a social media page for your business. The most effective way of attracting customers is to offer reasonable prices. You might also want to consider offering other products for sale inside your store, like snacks, drinks, and tobacco products.

Correct Pricing

There are industry regulations governing the price of fuel. If you go below these outlined prices, then you can be driven out of business and fined. It’s very important that you adhere to these prices. With that said, these prices will often still give you a little room to lowball your local competition. The lower your prices are, the more customers will come to you. Everybody wants to save money on their fuel, even if it’s only by a few dollars or even cents. Visit every fuel station in your area and work out how much you can affordably and legally lower your fuel price.

Outselling Competition

Finally, if you want to make it in the fuel industry, then you need to outsell your competition. There are a few ways that you can do this, but the most effective is by offering additional products in your store, as already mentioned. Sell coffee to travelers, hot food, and other drinks. When people are looking around for fuel and something to eat, they will stop at your filling station. You could even offer home-cooked meals to travelers, although as your business gets larger, this will become more and more difficult to do. Even so, if you think that you can manage it, it’s a great idea and a surefire way to drum up business.

The fuel industry isn’t easy to get into. With the right attitude and some determination, however, it is possible. This post’s guidance will help you to get your foot in the door, so study each step carefully.