Business Plan: Easy Oil Filling Station - Munich, Business Development

This document presents a comprehensive business plan for Easy Oil Filling Station, a proposed oil filling station in Munich. It details the products and services offered, including gasoline, diesel, automotive repairs, and convenience store items. The plan includes an environmental and industry analysis, i...Read More

Business Plan
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Contents
Introduction...........................................................................................................................................3
Description of the products and services of the gas station....................................................................4
Patents and licenses required.............................................................................................................4
Environment and industry analysis........................................................................................................5
Product and service target market..........................................................................................................7
Business to business markets.................................................................................................................8
Business to customer market.................................................................................................................8
Marketing and sales strategy.................................................................................................................9
Production and distribution outsourcing..............................................................................................10
Management and personnel.................................................................................................................11
Critical risk factors..............................................................................................................................12
Financial projections............................................................................................................................13
Business Model...................................................................................................................................14
Conclusion...........................................................................................................................................15
References...........................................................................................................................................16
Appendix.............................................................................................................................................17
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Introduction
In the report provided below, the business plan for starting an oil filling station named Easy
Oil Filling Station has been stated. The main focus of this report has been kept on the
processes and the services which are required to be considered before starting the business. In
order to collect the information required to start the business, various industrial surveys and
marketing tools have been used in this project. Apart from it, the quantitative and qualitative
methods of data gathering have also been used which have further enhanced the viability of
this project. It should be noted that if all the operations of business have been conducted in
accordance to the projections keeping aside the contingencies, the project would be
successful.
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Description of the products and services of the gas station
The gas filling station which is also known by the name of petrol station, will be a business
facility which emphasises on the delivery of gasoline, diesel and lubricants to the consumer.
The station will be providing three kinds of services to the customers i.e. the full, partial and
self service options. In the self service options, the customer would have to perform the entire
services on their own and in order to avail extra services, they would have to spend extra
amount. Also the products that would be offered to the customers are majorly based on the
fossil fuel i.e. crude oil which will be made available by the partnering with Perenco
MUNICH. The services and products that will be offered by the company are specified below
as follows:
 Petroleum;
 Diesel;
 Gas (CNG);
 Automotive repairs and wash;
 Automotive related goods;
 Wheel alignment services;
 And retailing of soft drinks and groceries.
In order to test the authenticity and viability of the raw and finished product, fractional
distillation and filter paper testing would be done. Also there are plans to improve the product
and its density which will be launched after the success of the business. The fuel for
supercars will also be offered but in later stages (Li & Lam, 2015).
Patents and licenses required
In order to conduct the business operation smoothly, the patents and licenses required are
described below as follows:
 Health department license;
 Fire department license;
 Air and water pollution control permit;
 Sign permit;
 Usage of hazardous substance permits et. al.
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All of these licenses would be made available from the government of MUNICH respectively
(Oetomo, 2014).
Environment and industry analysis
The business is likely to face direct and indirect competition in the business arena but as the
initial business is small, the business would face the competition on the local levels. It has
been identified that the business would open in Munich where the major market share is
enjoyed by other large and established oil filling stations leaving Easy Oil Filling Station
restricted to small and local competition. There are various properties of the market which
have been specified below as follows:
Market focus To excel in the business and in the market.
Resource product Crude oil, partnered with Perenco
Goals To expand and become one of the largest oil
filling chains
Strategy Excellence in customer service with optimum
quality of products
Strengths Good quality of resources and finished
products
Weaknesses Strong competition in the area
It has been identified that the majority of services are already being offered but the USP of
the station would be the optional services which would be patented such that no other
company may copy this strategy. The competition would try to copy the idea and it would
take about 7 days until it is fully copied but optimum quality of raw materials is major
strength of the company (Greenwood, 2016).
Industry analysis
Size World’s largest industry in terms of dollar
value
Growth rate 8% annual growth
Outlook Is expected to grow in terms of
manufacturing and production by 2025
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Industry segment (Emerging, emerged,
elite)
Easy Oil Filling Station fits in emerging
segment of the industry
Demand and supply It is one of the most developed and regulated
industry in terms of demand and supply
which is regulated by the barrel prices of oil
Force driving the industry The biggest force driving this industry is the
regulations and demand and supply
Government regulations The company is required to abide by the
government regulations i.e. maintain safety
standards, insure the employees, produce
good quality of materials, no embezzlement
should be done with the products.
Environmental issues The only environmental issues faced is the
repeatedly depleting natural resources and
pollution caused from petroleum
consumption
Political and industrial regulations In order to effectively operate, the company
is required to conduct business in ethical
manner and according to the code of conduct
of the industry (Greenwood, 2016).
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Product and service target market
The target market for the company would be the users between the age group of legal driving
age i.e. 18-60. It should be noted that there is differentiation between the users and
customers. The customers of the company would be the individuals and on the other hand the
users would be the industries and factories that are dependent on the station for their fuel and
raw materials. The customers would benefit from the company be optimum quality of
products and services while on the other hand, the company would provide heavy discount to
users on contracts and bulk purchases. The product has been identified to fulfil the needs of
optimum quality of services which are one in all collaboration such as wheel alignment, car
wash, repair etc. The opportunity for the company is big and promising and is expected to
attract many consumers. The tool that would be used to measure the demand of products and
services is online marketing and surveys conducted by the company (Chen et. al., 2014).
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Business to business markets
Key players and frequency of product
purchase
The key players of the market are the
suppliers and frequency of product re-use is
identified to be high
Market size of company The initial market size of company would be
under 5km radius which would-be expanded
afterwards by the means of opening new
franchise and promotions
Market share Low, being a new entrant
Business to customer market
Demographics Income level: Low, middle and high class
Age: Prescribed driving age in the country
Sex: Customers are irrespective of sex
Educational level: Not required
Nationality: Not required
Psychographic factors Preferred customers of sane mind
Relevant behaviours Frequency of purchase is high
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Marketing and sales strategy
Introduction of gas station By the means of introductory letters to
capture customer focus
Advertising On local and social media
Promotion Via official website and social platforms
Sales On-site sales for customers and delivery
option to the udders (Businesses and
factories)
Strategic partnership Strategic partnership with Perenco for raw
material supplies. Partnering with big
supplier also gave company the privilege to
access various other industries and resources.
Distribution strategy Product is hazardous, thus direct distribution
Pricing strategy The pricing strategy would be based to cover
the cost and for the premium services price
would be high. No irrelevant prices would be
charged whether it is higher or lower to that
of the competitors.
Payment options Cash, card, e-wallet, online banking
Other issues The other issues that may arise in the
marketing and sales is the payment failure,
tough competition and innovation in the
product. This may damage the reputation of
the station (Anderson Jr, 2015).
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Production and distribution outsourcing
Supply sources Perenco Oil Ltd. is the major crude oil
supplier of the station.
Terms of contract The product should be supplied only as
required in the quotation. Product should not
be less than the standard quantity of
depletion in transit.
Security The trade secrets would be managed by
online and cloud computing techniques
which would be protected by software’s with
128 bit encryption,
Service design The designing, measurement and
improvement would be done on basis of
customer feedback for which feedback box
would be installed in site.
Stakeholders The only stakeholders are the suppliers,
business traders and the customers of the
company (Anderson Jr, 2015).
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Management and personnel
CEO The owner of the station, responsible for
managing, recruiting and training the
employees. Also would develop and
implement the policies.
Gas station manager Responsible to see the smooth functioning of
station and implementing strategies.
Also responsible for management of
operations.
HR and admin Can be CEO and if recruited, will be
responsible for management, training, hiring/
firing of employees.
Convenience store manager Responsible for the functioning of
convenience and groceries store at the station
Accounts cashier Responsible for preparing final accounts and
ensure the financial activity of the station.
Pump attendants Maintain the service provision and product
delivery at the pump.
Also maintains the pumping machines
Security guards Responsible for maintaining security
Car wash manager Responsible to oversee car washing
employees and services (Magambo, 2016)
Experience: It has been identified that apart from the CEO, it is essential for other employees
to have minimum 2 years of experience in their area of specialisation.
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Critical risk factors
Factors Risk Mitigation
Political With new laws and
regulations, the business
structure and operations may
be affected.
Compliance with these laws
is necessary.
Economical Fluctuation in price of oil
may hinder profit margins.
The price of purchasing oil
must be stated on quotation
of supply. Compliance with
distribution price is
necessary.
Social Social preferences may
hamper the business.
Company is required to abide
by the social laws and ethics
Technological Development of new
technology and innovation
may hamper current
practices.
It is important to update with
the technology (Lai et. al.,
2015).
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Financial projections
Below presented is the financial projection for Easy Oil Filling Station gas filling station in
Munich which is in accordance with the services and products offered by the company:
 Fist year: $450,000
 Second Year: $1,450,000
 Third year: $ 2,250,000
The projection is done o the basis that the products and services are effectively provided to
the customers and these are not copied within 5 mile radius of the gas station. The debt to
equity ratios for the business would be maintained at 1:1 which would be the most ideal ratio
for the business. The institutions that would be approached by the business would be
insurance institutions and the financial institutions especially the industrial banks.
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Business Model
Easy Oil Filling Station gas filling station is the family business which is run by the family
and is expected to be ran by the future generations of the owner. The business does not wish
to welcome any external partners for which the financing of the business has been done
through personal sources, soft loans from family members and applied loan from the banks.
The company is not in the manufacturing segment and outsourced the raw materials supply
with Perenco. The company is in the final stage of obtaining loan from the bank i.e. $
700,000 from the bank. The business is based in Munich, and in the company, employees
would be working in two shifts i.e. day shift (9 AM to 9 PM) and night shift (9PM to 9AM).
The storage of oil would be done under the operational site for which tanks to hold 1,000,000
litters of crude oil have been installed. The future of business is in the hands of the employees
of the company and loyal customers and it has been planned to open another facility within 5
years of successful operations. The place would be owned and developed according to the
business plan and blueprint. As company is not in the manufacturing segment, the only costs
levied would be operations costs which are expected to around $ 100,000 annually.
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Conclusion
Thus from the plan proposed above, it can be concluded that, the market business is
competing in is feasible and promising in nature which has potential to give expected returns
to business. Also the technology used by company is up to date which increases technical
feasibility. The business model is appropriate the only lag is the lack of finance which calls
for success of the business else it may have adverse impacts. Themanagment of the company
is also smooth as all the employees of the company are experienced. Business is financially
sound due to availability of finance and proper maintenance of debt to equity ratio. The exit
of business due to ideal dept of equity ratio is identified to be feasible.
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References
 Anderson Jr, I.H., 2015. The Standard-Vacuum Oil Company and United States East
Asian Policy, 1933-1941. Princeton University Press.
 Chen, P.F., Lee, C.C. and Zeng, J.H., 2014. The relationship between spot and futures
oil prices: Do structural breaks matter?. Energy Economics, 43, pp.206-217.
 Greenwood, J. ed., 2016. The effectiveness of EU business associations. Springer.
 Lai, O.M., Tan, C.P. and Akoh, C.C. eds., 2015. Palm Oil: Production, Processing,
Characterization, and Uses. Elsevier.
 Li, S.D. and Lam, S.M., 2015. Operation and maintenance strategies of a coal-fired
Power Station in Hong Kong.
 Magambo, J.O., 2016. Operational Risk Management in Petroleum Filling Station in
Kenya: A Survey of Nairobi Based Petroleum Filling Stations (Doctoral dissertation,
United States International University-Africa).
 Oetomo, H.W., 2014. The Development of Decision-support Model for the New Oil
Station Based of Geographical Information System.
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Appendix
Start up schedule/ Action plan
Activities Time required Description
Business planning and
model
1 month Here the business blue print
and business plan is
discussed.
Business registration 1 month Here the business would be
registered with the
government and in the
industry.
Planning with banks 1 month In this, the banks would be
partnered with for the
purpose of accepting
payments.
Application for license 1 month Here the licenses for the
business would be gathered
and obtained.
Generating capital from
banks and family members
2 months In this stage, the capital
would be generated from soft
sources and financial
institutions.
Marketing of company 3 months In this, advertising and
promotion of Easy Oil Filling
Station would be done.
Premises establishment 6 months In this stage, the oil filling
station would be established
which would require 6
months.
Gathering of materials 2 months
Establishing business
relations
1 month In this stage, the main focus
of the owner would be to
establish business relations
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with partners and suppliers.
Purchasing of trucks and
fuel tankers
2 months This is the last stage in which
the main focus would be to
purchase trucks and other
essential products for the
business.
Gantt chart
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