Should I buy a propane delivery business or start one?

Propane delivery looks simple from the outside: a truck, a supplier and a list of customers. In practice, the customer list and the tanks sitting at homes and businesses are most of what the company is. That is why the question of buying or starting comes down to how you want to get those assets and what risk you are willing to carry while you do.

What buying gives you

A purchase can bring customer accounts, auto-delivery arrangements, tanks already set at customer sites, trucks and a supply agreement. It can also bring route density, meaning customers close enough together that deliveries are efficient. You also take on the seller’s history, including complaints, tank condition and old promises. Our page on which tanks and contracts go with a propane business looks at this from the seller’s side.

What starting means

A new business wins customers one tank at a time, and each tank is equipment you either buy or place under an agreement. You must arrange supply from nothing and may start with sparse routes. Learning the work, from safe filling to customer service, falls on you or on staff you hire. Some founders like that control, and others find the early months too slow.

What is true either way

Demand rises and falls with the seasons, so cash flow is uneven. Tanks tie up money, and the rules for tank handling and delivery may be set by a regulator, so ask your lawyer and the regulator what you would need before you operate. Before you compare the two paths, read what to check when buying a fuel delivery company, and think about how much you could manage alone.

• Can you wait for customers to build, or do you need income right away?
• How would you source your supply on day one?
• Who would know the routes and customers if you bought?