One of the things many entrepreneurs look at when they are ready to start or buy a business is the current economy. Everything from interest rates and lending climates to the performance of businesses across industries helps them decide where to invest and more importantly where not to. It’s the same when they are looking at purchasing a FedEx route.
Often franchises and other similar businesses can be impacted in a huge way by economic swings within their industry. Think of the connection between the construction trade, material suppliers, home renovations, various contractors, and other industries and the collapse of the housing bubble in 2008-09.
What’s an industry that is always relatively stable, even in a recession or down economy? The logistics and delivery business. Why? Here is how a FedEx route is a solid investment in any economy.
The Rise of Online Shopping
Stop to think about it for just a moment: when the economy is good, online shopping increases because people have more disposable income to spend on various things they want and need. The order them online because of the variety found there, and because there are often things they can’t find locally, at least not easily. Consumers also choose online shopping for convenience.
When the economy is down, people still shop online, but for different reasons, usually to save money. Things are often less expensive online and having them delivered saves them money and a trip to the store.
For the owner of a FedEx route, this means that no matter what the economy is doing, those purchases still must be delivered, and there are only a few ways for them to get from one place to another. People and businesses choose a name they can trust, and that name is often FedEx.
The Importance of Branding and Owning a FedEx Route
When it comes to logistics, why does brand matter so much? The simple reason is one you can probably answer for yourself. Think for just a moment about package delivery. Name the top five companies without thinking about it. The likelihood is that those companies include FedEx, the post office, and perhaps a couple of competitors.
The key is there is only one of those where you can own a route that is your own business: you control when you deliver packages and your time. You purchase your own truck or trucks and hire drivers to drive the routes you can’t complete yourself.
FedEx is one of the most trusted brands in delivery, and you can have their support and the backing of their branding for your very own business.
Infrastructure and a FedEx Route
One thing every small business needs is some kind of infrastructure, but thanks to the FedEx brand and the roads, loading docks, driveways, parking lots, and even the FedEx terminals where you’ll pick up packages, that infrastructure is already in place for you.
That’s important, as many common expenses associated with a small business are things you won’t have to create yourself. You’ll be stepping into a proven system with infrastructure already in place, meaning even if the economy is down, that infrastructure is not going anywhere.
Here’s how it works. A FedEx route is an established geographical territory that is yours to manage. As customers and businesses come and go, you’ll still have a consistent area to work in. And if that area is experiencing growth, you can even expand your current business by adding routes.
Even if things take a downturn, you’ll still have a consistent territory and a consistent customer base. Businesses still need to ship things, and customers still need those things they have ordered delivered. You’ll have a consistent bottom line you can depend on, and the potential for growth when things are going well.
Your Business is You
The heart of your business when you own a FedEx route is you: you set your hours to meet both your needs and the needs of your customers, you manage your fleet and your drivers if you own more than one route, and you manage your income and expenses all on your own terms.
One of the big reasons for owning your own business is that while you work within an established system, you don’t have to answer to anyone else for how you get things done. As long as you maintain certain customer service standards, your route is your own.
That’s a big comfort no matter what the economy does. You’re in control, and you can manage your business the way you need to in order to weather any storm.
When you start any small business, there’s a certain amount of risk involved. Working with a trusted partner like FedEx helps you to mitigate that risk. While you are your business and your business is you, you also have the support of a worldwide logistics leader that is both trusted and stable.
This takes away much of the risk of being out there on your own, running your own business. And that’s a big weight of your shoulders no matter what the economy does next.
Are you ready to embark on an adventure, owning and running your own business? If you are motivated, self-disciplined, and enthusiastic, investing in a FedEx route of your own could be the answer for you. Contact us today at Route Advisors to learn what routes are available and how to get started.