The Gas Guys

By: Tyler Judd

 Description of Business
 Mobile gas service designed to provide gas for people who run out of gas or don’t have enough to make it to a marina
 Life cycle: Intro phase
 Competitive differentiation: none/towing service already there
 Image and market platform: “The gas guys got your back”, social media marketing/advertising, boat advertising, newspaper
 Legal organization: LLC (limited liability company)
 Regulatory and Risk Analysis
 Taxes: state corporate income tax, individual income tax, federal tax, sales and use tax, personal property tax,
 Licenses: boating license, general business license,
 Insurance: business owners policy (includes general liability insurance, medical payment insurance, professional liability insurance),
business income insurance,
 Location Analysis

 Challenges: competition from tow company, competitive gas rates at marinas

 Opportunities: expansion, busy summer months, busy/popular marina = more people seeing advertising/more customers
 Site selection: Bridgewater marina
 Management Analysis

 Family owned and operated

 Chain of command: CEO, board of directors, employees
 Staffing: only 1 or 2 employees, on call mechanic
 Major operations: gas tank and pump on a pontoon boat, I will go out to people who are in need of gas/expand to a mobile repair also?
 Market Analysis

 Customers: anyone living at or visiting smith mountain lake who owns a PWC (personal watercraft) and needs assistance. People who
either run out of gas on the water or don’t have enough gas to make it to a marina. Will also sell small 5 gallon gas cans.
 Population of area: SML area- 18,000, within 40 mile radius-600,000
 This business fits more of a necessity that doesn’t depend on specific socio-demographics.
 Decision process: Can they afford it? Is it worth the extra money? Is it convenient compared to other options? Better than getting towed
by the other service(other competition)? What about taking personal car to go get gas?
 Financial Analysis
22ft. Pontoon boat- $35,600
Gas pump- $1,261
Gas tank (350 gallon)- $2,528
5 gal. gas can- $23.98 each
Fee for renting slip at marina to keep boat- $500-$3000/year
Advertising- free or paid social media, newspaper, boat signage
Website startup- $9.06 to register
Business email- $12/month
Logo- free
Trademark logo- $500+
Business owner's policy w/ liability- $371/year (includes medical coverage, general liability insurance, professional liability insurance)
Start up LLC- $100 to register (includes general business license, registering your business), then $50 annually
State corporate income tax- 6% of net income
Sales and use tax- 5.3%
Individual income tax- varies
Personal property tax- 2.41% per $100 (owe $857.96 on boat purchase)
Boating license- free
Merchants capital- 1.08% per $100
Federal tax- 10% (depends on tax bracket)
Business income insurance- $500-$3000 (varies)
 Feasibility

 I think business is feasible based on financial analysis, risks involved

 I would obtain funding from family members involved in business and a bank loan
 Side notes

 Based on other gas prices I found online at marinas avg. $3.00 - $3.50/gallon so I would probably charge atleast $4.50/gallon or more
 EPA certified FDV (fuel demand valve)
 Sprayless connectors
 Gas needs to be vented
 Unable to vent leads to vapor/pressure buildup
 References
https://thefranklinnewspost.com/news/smith-mountain-lake-facts/article_b7bfe2b8-04ec-522c-9fc5
-90946e00022d.html
https://www.qualtrics.com/experience-management/brand/what-is-market-segmentation/
https://www.amazon.com/Fill-Rite-FR311VB-Discharge-Automatic-
Mechanical/dp/B00CXG7ISQ/ref=asc_df_B00CXG7ISQ/?tag=hyprod-
20&linkCode=df0&hvadid=312252474452&hvpos=&hvnetw=g&hvrand=1686083749821000174
5&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9008741&hvtargi
d=pla-570757244823&psc=1

https://www.equipmenttrader.com/Industrial-Equipment/listing/-CUSTOM+BUILT-35
0+Gallon+Fuel+Storage+Tank-106455010
https://www.franklincountyva.gov/202/Tax-Rates-and-Due-Dates
 References continued
https://www.amazon.com/GarageBOSS-GB351-Gallon-Press-Pour/dp/B07GBBG5LZ/ref=sr_1_1?dchild=1&
keywords=red+gas+can+10+gallon&qid=1604090685&sr=8-1