Is a Gas Station a Good Investment?

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Is a Gas Station a Good Investment?

When a gas station for sale in Ontario looks like a good option, you will wonder if you are making the right decision. Is a gas station a good investment? As with most business decisions, the answer is most often, ‘it depends.’

Investment goals, location, demographics, and the traffic passing through are all critical. You will need to know these figures before buying a gas station for sale in Ontario.

The Nature of the Gas Business

A gas station is a strange business. Even though fuel is the most traded commodity at every gas station, it’s also the least profitable.

Do you want to make a profit on your fuel sales? Consider gas stations for sale in Ontario in locations where you can charge above the market for gas.  Look around areas with a gas station across the way from an airport car return or a major highway.

What Makes a Gas Station a Good Investment

You’re off to a good start if you can make a profit off your fuel and know you will be selling a lot of it. Yet, other considerations can make a gas station a good investment.

Gas stations with a convenience store can be a good investment if all the other variables add up. You will make most of your profit from selling snacks, sodas, coffee, and other incidentals. Any items that people buy on impulse or items they forgot to get from the grocery store, like bread and milk.

As of 2020, there were over 7,500 convenience stores around Canada doing around $8.57 billion in sales annually. Ontario and Quebec hold the most and represent nearly 70 percent of all convenience stores in the country.

Services like a service center or autobody shop are another income stream for profit.

Run The Numbers Before You Sign

Whether buying a gas station for sale in Ontario or Toronto, you make your money by running the numbers. How much a gas station costs is relative to its sales. When you crunch the numbers, break them into separate categories.

This way, you will know which areas of your new business will create most of your profit.

There may even be some areas that don’t make a cent. Knowing how much comes from where gives you advantages when you take over.

Other Options When Buying a Gas Station for Sale in Ontario

There’s more than one way to profit from buying a gas station for sale. Your options include purchasing the gas station as a business you operate yourself.

Another strategy is to buy the gas station for the underlying real estate. You then landlord the business by leasing it out. This business model is the way to go if you are looking for a more passive income stream.

If you are considering buying a gas station for your next investment, check out the many gas stations for sale in Ontario on GasStationsForSale.Ca today. You are sure to find some great candidates to suit your needs.

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