Oil Company Business Plan and SWOT Analysis

Oil Company Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Oil Company Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Oil Company business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Over the next 20 years oil companies are expected to continue to operate profitably given the continued and ongoing demand for oil and petroleum products. One of the best aspects of owning and operating a oil company is that these businesses can often use a number of financial instruments in order to lock in their profits while they distribute their oil to homes, gas stations, and related entities. These businesses have substantial access to capital given the fact that a vast majority of the amount of money needed to start a new oil company is based intangible assets as well as highly digestible oil and petroleum products inventories. Depending on the type of oil company being developed, the price range as it relates to start up costs typically runs anywhere from $1 million to $5 million. Almost all financial institutions as well as private investors are willing to provide the necessary capital in order to develop these types of businesses given the economic stability, large tangible asset base, and continued in strong demand for petroleum related products. These businesses have very high barriers to entry given the large amount of capital needed coupled with the substantial amount of licensure required to operate these businesses on a intrastate as well as the interstate basis. The gross margins from petroleum product sales typically range anywhere from 10% to 20% depending on whether or not these inventories are being divested on a wholesale or retail basis.

An oil company business plan should be developed if the entrepreneur is looking to source capital from a private investor or from a financial institution. This business plan should feature a three-year profit and loss statement, capital analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to the industry research portion, there are approximately 12,000 oil companies that operate within the United States and each of these businesses generate about $30 billion. The industry outlook at the moment is strong, but there are going to be some issues as it pertains to the continued rollout of alternative energy including solar power, hydroelectric power, wind energy, geothermal energy, and other forms of renewables that people are looking to use instead of traditional petroleum and fossil fuels. This should be noted heavily within the business plan, and a plan for how the business will respond to the continually changing energy grid should be included as well. A demographic analysis regarding the end-user should also be included within the business plan. A competitive analysis can also be included, but this can be done somewhat on the lighter side given the fact that oil companies operate in a heavy we commoditize market.

An oil company SWOT analysis should be produced as well. As it relates to strengths, oil companies can very quickly and always find customers for their inventories. As such, the risks associated with holding a large amount of oil on hand are not very high for this type of business. The gross margins are moderate, and the barriers to entry are very high.

For weaknesses, there is a time limit on oil companies these get days given the fact that more and more people are switching to renewable energy sources. However, it is going to be some time before oil companies start to become unprofitable. These businesses also have very high operating costs.

For opportunities, oil companies can readily expand by acquiring similar businesses that are already in operation while concurrently expanding their own internal infrastructures. As stated above, oil companies have tremendous access to capital given the fact that these businesses are highly economically secure.

For threats, there are going to be continued changes in regulations regarding the way that oil companies do business. Additionally, the rapidly growing market for renewable energy is causing a number of oil companies have to change their business models over a long run.

An oil company marketing plan should also be developed in order to ensure that people can continually place purchase orders for the oil and petroleum inventories carried by the business. This primarily includes developing ongoing relations with gas station chains, independent gas station owners, heating oil delivery companies, and any other entity in which the oil company can deliver wholesale inventories of specific petroleum products. A presence on the Internet is important, but this can be somewhat on a minimal basis given the fact that oil companies typically do business more on a face-to-face basis. This includes having a small sales force that will directly work with buyers on an ongoing basis.

A number of people that typically start oil companies already have extensive contacts within this field and are able to effectively develop purchase order relationships prior to the onset of operations. Many oil companies will also maintain relationships with investment banks and commodities trading firms in order to ensure that they can lock in pricing through the use of spots, futures, options, and related financial instruments. These relationships can further increase the volume of oil sold by the business given that these companies often act as an intermediary between different types of petroleum related businesses.

Oil companies are still going to be one of the most important aspects of the US economy and the worldwide economy moving forward. Over the next 20 years, there’s going to be a continued change in the way that these businesses conduct their operations. However, at this time – there is still a significant enough demand for worldwide oil especially in fast-growing countries to warrant the development of this type of business as a profitable enterprise.