Most economists now say that we will face a recession over the next couple of years. No one knows how long it will last or how severe it will be, but this is a common concern for small business owners. But you can use proven strategies to recession proof your FedEx Route Business, and even grow during an economic downturn.
In fact, this might even be a great time to buy a FedEx Ground route. Here are some practical steps to take.
Get a Handle on Your Cash Flow
One of the most important strategies to recession-proof your FedEx Route business, or any small business for that matter is to get a solid handle on your cashflow. Cashflow is really just the understanding of where your money comes from, where it is going, and ensuring that you have the money you need to operate your business at all times.
Business owners often struggle with this task. There are programs like QuickBooks Self-Employed (which you can also share with your accountant) or Oracle and others, but there are also simple spreadsheets you can create that look at your income over time.
It’s a good idea to have these for your FedEx route business, and to look at them often. Analyze what months are most expensive, and what months are most profitable, and be sure you save money from one to help cover costs in the other.
That’s cashflow at its simplest.
Invest in Your Drivers
One of the most important parts of any business is the people who make it run, and if you hire drivers because you own more than one route (more on that in a moment), they are the lifeblood of what you do. They have the contact with your customers, provide the most direct customer service, and they know your routes like no one else.
One of the biggest expenses a FedEx route business offers is hiring new drivers and replacing ones who leave for whatever reason. Make sure your drivers are happy and be sure you are paying them what they are worth. Offer what benefits you can and check on morale often.
Your drivers will keep you on track during any economic downturn. Treat them like the valued asset they are.
Recession Proof Your FedEx Ground Business by Cutting Expenses
It seems like this would be a no-brainer, and as a FedEx route business owner, you should be looking at this all the time anyway, but especially during a recession, you need to cut expenses. This can be everything from saving fuel to cutting back on excess supplies or making due with an older vehicle and waiting to upgrade.
Be careful though. Don’t cut expenses to the point where your drivers and customers are not being served. This can have a large, negative impact on your business, and can result in costs going up rather than down. Remember, sometimes you have to invest money to save money, even in a downturn.
However, there is good news for FedEx route businesses. As you recession proof your business, many of your customers are doing the same. And that can benefit you as well.
Expand Your Revenue from Existing Customers
There are two ways to expand your income from existing customers. You can educate them on the savings they will experience in time, money, and even damage claims by shipping with FedEx Ground. Educate them on shipping lanes, and the actual time it takes for packages to reach their destinations.
If you can save your customers money, they will ship with FedEx more, and you will make more money in the long run.
The other thing you can do is purchase adjacent routes. Yes, a recession can be a good time to purchase a FedEx route and expand your business. This can let you share stops and save money, and at the same time expand your customer base.
One of the best ways to recession proof your FedEx route business is to expand your income, even if that means buying another route (or more than one). The most successful route owners are multiple route owners.
Provide Excellent Customer Care
This is another thing that should be oblivious, but during a downturn like a recession, no one can afford to lose existing customers. This is especially true of FedEx route owners. This is why it is vital to offer the best customer experience possible. Be sure your drivers are doing the same thing.
- Show up to business pick ups on time, in the window designated
- Make deliveries on time
- Ensure packages are handled with care, bagged if they will sit out in the weather, and signed for if you are unsure about leaving them at a residence
- Respond to any complaints in a timely manner and handle them efficiently.
You can recession proof any business, including your FedEx route business by following these simple steps.
And if you want to expand your revenue streams, buying a FedEx route business right now can be one of the best things you do. Ready to talk about it? Contact us at Route Advisors today. We’re here to help every step of the way.