Sample Of Petrol Station Business Plan In Tanzania 2021

Petrol Station Business Plan in tanzania

If you want to start a Petrol Station business in Tanzania or expand your current Petrol Station business in Tanzania, you need a business plan.

The following Petrol Station business plan template gives you the key elements to include in a winning Petrol Station business plan in Tanzania.

Below are short summary to each of the key sections of your Petrol Station business plan:

I. Executive Summary
II. Company Overview
III. Industry Analysis
IV. Customer Analysis
V. Competitive Analysis
VI. Marketing Plan
VII. Operations Plan
VIII. Management Team
IX. Financial Plan

I. Executive Summary

Business Overview

[Company name] is a petrol station located in [Location]. We offer refined petroleum products and lubricants for retail and commercial channels, and bitumen used in asphalt. Also engaged in selling and marketing liquefied petroleum gas (LPG) and other petroleum products, we are committed to better, safer, cleaner, more efficient, more innovative and more accessible energy.

By positive economic, social and environmental benefits. Our top priority is to support the operation of oil depots, storage, and transport services within the [Location] area.

Products Served

[Company Name]’s products and services are classified under the following categories:

  • Biodiesel
  • Gasoline
  • Diesel
  • Lubricants
  • Engine and Transmission Oils
  • Coolant
  • Brake & Engine Fluids
  • Liquified Petroleum Gas
  • Snacks and Beverages

Customer Focus

[Company Name] will serve the residents of [company location] and the immediate surrounding areas as well as those who work in [company location]. The area we serve is populated mostly by the middle class; as a result, they tend to have vehicles and thus are key to our business.

Management Team

[Company Name] is led by [Founder’s Name] who has been in the petrol station business for 20 years. He has worked extensively at major petrol stations for the past 20 years. He began his career in [19xx] when he received a certification from [School] and began work at [major chain], where he worked for X years.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • The Company will fill a need for additional Petrol station options in the growing community we are entering.
  • Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
  • The management team has a track record of success in the Petrol
  • station business.

Financial Highlights

Capital Requirements and Use of Funds
[Company Name] is seeking total funding of Tsh. 260,000 of debt capital to launch its Petrol station. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

  • Store design/build: Tsh. 140,000
  • Working capital: Tsh. 120,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive

Topline projections over the next five years are as follows:

 Year 1Year 2Year 3Year 4Year 5
RevenueTsh. 1,080,000Tsh. 2,472,768Tsh. 2,830,825Tsh. 3,240,728Tsh. 3,709,986
Total ExpensesTsh. 962,000Tsh. 1,539,107Tsh. 1,719,742Tsh. 1,901,321Tsh. 2,112,641
EBITDATsh. 118,000Tsh. 933,661Tsh. 1,111,082Tsh. 1,339,407Tsh. 1,597,344
DepreciationTsh. 25,600Tsh. 25,600Tsh. 25,600Tsh. 25,600Tsh. 25,600
EBITTsh. 92,400Tsh. 908,061Tsh. 1,085,482Tsh. 1,313,807Tsh. 1,571,744
InterestTsh. 29,946Tsh. 26,202Tsh. 22,459Tsh. 18,716Tsh. 14,973
Pre Tax IncomeTsh. 62,455Tsh. 881,858Tsh. 1,063,023Tsh. 1,295,091Tsh. 1,556,772
Income Tax ExpenseTsh. 21,859Tsh. 308,650Tsh. 372,058Tsh. 453,282Tsh. 544,870
Net IncomeTsh. 40,595Tsh. 573,208Tsh. 690,965Tsh. 841,809Tsh. 1,011,902
Number of locations11111
Average customers/day5080120200275

II. Company Overview

Who is [Company Name]?

[Company name] is engaged in selling and marketing gasoline and diesel products. We are committed to better, safer, cleaner, more efficient, more innovative and more accessible energy. We offer refined petroleum products and lubricants for retail and commercial channels.

We will also have a minimart that offers a selection of snacks, beverages and automotive products.

[Company Name]’s History

For [x] years, [Company Name] has been [City]’s leading companies for crude oil and gas production. It was in [year] when [Founder’s name] first established his first petrol station in [Location]. He decided to open up a small petrol station after seeing that there is no existing petrol station within 5 miles from his location. It quickly gathered patrons until it expanded its operations. Today, [Company name] has [x] stations in [Location].

Since incorporation, the company has achieved the following milestones:

  • Developed the company’s name, logo and website
  • Determined equipment and supply requirements
  • Began recruiting key employees with experience
  • Surveyed other possible locations for expansion

The business is currently being run by [Founder’s Name]’s son, [Name]. [Name]’s focus for the company is to bring value to every stakeholder; from our employees, business partners, franchisees to the community and the environment.

[Company Name]’s Products/Services

[Company Name]’s products and services are classified under the following categories:

  • Biodiesel
  • Gasoline
  • Diesel
  • Lubricants
  • Engine and Transmission Oils
  • Coolant
  • Brake & Engine Fluids
  • Liquified Petroleum Gas
  • Snacks and Beverages

III. Industry Analysis

The Petrol Stations industry has experienced growth over the past five years to 2020. Since the majority of the industry’s business is generated from consumers rather than commercial businesses, consumer spending plays a major role in determining industry performance. Consumer spending has increased over the five years, boosting spending.

Driving rates are expected to increase and as people drive more, they will require more fuel for their cars. Coupled with low oil prices, this trend has also encouraged consumers to trade up to premium grades of vehicle fuel, facilitating industry profit growth.

Moreover, the decline in the world price of crude oil has enabled operators to lower purchase costs without passing on all of the savings to consumers, boosting profit. With business owners relying more on convenience store sales, as in-store products are more profitable than gasoline, the average industry profit margin has reached historically high levels over the past five years.

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