Funding Alone is Insufficient to Successfully Run a Fuels Business

Entrepreneurship is known as a process of identifying an opportunity and combining resources (land, labour and capital) to produce products and services that solve problems and satisfy needs in society. The skill of combining the resources is derived from acquired knowledge, experience and other tools that enable the entrepreneur to take calculated risks, strike and maintain a balance in the business. Getting a sense of what it takes to make a business successful is of paramount importance.

Some upcoming entrepreneurs merely identify an opportunity perhaps by getting a piece of land (inherited or purchased), search for funding and want to start , for example a fuel service station on that piece of land with all the qualifications but no business experience in fuels industry. Indeed, on the surface, a business in the fuel industry appears to be lucrative yet, there are underlying challenges such as the long registration process to follow and numerous requirements to comply with since the industry is highly regulated. This makes the entrepreneur to be dependant on outside assistance for interpretation and understanding of what the business is all about. As a result, the capability of effective management is compromised.

Entrepreneurship involves an effective balancing of planning, organizing, directing and controlling so as to achieve organizational goals. Without entrepreneurial skills, an opportunity with a potential for success that could have been grabbed on time and exploited is lost because it was in the wrong hands. The view about the learning curve where mistakes are accommodated applies only under normal business operation. In a competitive environment, you need to have the right people at the right place at the right time so as to avoid costly mistakes.

The advice to upcoming entrepreneurs is to get non-financial assistance first before venturing in deep waters.

Also, it is of vital importance to acquaint yourself with the environmental factors in which your business interest lies. Perhaps exposure to relevant legislation, regulations and authorization required, market trends and consumer interests can be of help.

A choice of a business in an almost saturated industry such as that of energy with high competition requires you as an aspiring buyer to be vigilant and identify key success factors that place your business at a competitive edge. In positioning your business, you must highlight these unique factors that make your business and service different from competition. Such advice is relevant and possible for an independent business owner.

The same cannot be said about a franchise because in a franchisee-operated business, the franchisor maintains control over the product quality and broader marketing, leaving the franchisee very little space to be innovative. However, there is still an open space for the franchisee to utilize the interaction at the point of sale (namely, fuel station) to maximize value creation while reducing costs and boosting sales volumes. Making all employees appreciate and own good customer service can inculcate a positive influence on the attitude of clients about customer service and the business.

Having the correct qualifications for funding without the requisite knowledge, skills and support in the industry is no guarantee for success in business.