How to start a gas station
Gas stations are a cash-flow business — thin fuel margins, healthy c-store margins. Getting the site and supply agreement right matters more than almost anything else.
Franchise vs independent
Branded franchises (Shell, BP, 7-Eleven) give you fuel supply, marketing, and brand — at a royalty cost.
Independents keep more margin but must negotiate their own supply and marketing.
Site selection is the whole game
Traffic count (20,000+ vehicles/day is a common threshold), corner lots, and ease of entry/exit matter most.
Check EPA history — buried tank contamination can cost more than the land.
Capital and licensing
Total cost typically runs $250K (existing station acquisition) to $2M+ (new build).
You'll need EPA, state fuel dealer, tobacco, lottery, and often liquor licenses — plan 4–6 months.
Find operating partners
Gas-station investors on Venturα often already own one or two stations and know the ropes.
SBA 504 loans are commonly used for real-estate-heavy gas station deals.
Frequently asked questions
- How profitable are gas stations?
- Fuel margins run 10–20 cents/gallon; c-store margins are the real profit driver — often 25–30% gross.
- Can I buy an existing gas station instead?
- Yes — most first-time owners buy existing stations to skip permitting and get instant cash flow.
Meet partners on Venturα
Match with vetted small-business owners and investors in your city.
Get started