New Year, New Route: Expanding Your FedEx Ground Business

As we end one year and look into the next, as FedEx Ground Business owners, it may be time to look at expansion and adding to your current business. You can do this in several ways, from breaking off one of your own routes into two separate ones to purchasing a new route or taking on a FedEx expansion route.

Whatever your business goals for your FedEx Ground Business are, there are several paths to get where you want to go. Here are several of them and how each one works.

Look at Growth in Your FedEx Ground Business

The first place to look is in your own FedEx Ground business. There may be an opportunity for route expansion, including either hiring a new driver and splitting one route into two parts or even officially creating an expansion route with FedEx. There is a difference in how you get paid, as a separate expansion route will earn you more money, so be aware of those differences as you make decisions.

Also, keep in mind that right after peak, you will need to evaluate the route you want to create over a “normal” time period. Don’t make a decision because of a spike on a route in the last busiest part of the year. You’ll need to ensure the route can sustain itself and be profitable year-round.

If your area was growing before peak, this might be an excellent opportunity to expand when things are a little more manageable and let the route grow over time. Just be sure to keep an eye on cash flow and ensure the new route is profitable.

Look at Expansion FedEx Ground Routes

From time to time, FedEx will create expansion routes you can add to your FedEx Ground business by purchasing them. This can be especially lucrative if these routes are geographically close to the ones you already own, so your current drivers can help you get the route up and running and train a new driver as needed.

These are often affordable routes, but competition to purchase them can be stiff, so be sure to keep your eye on any changes being made at your terminal. Ask management about areas where you see potential route growth or residential and business development. By being proactive, you can be more likely to be chosen should routes become available.

This is one of the most difficult plans for expansion because a great deal of the development is out of your control. However, because these are new and expanding areas, the opportunity for profitability is fairly certain in a short period of time. Acquiring one is often simply a matter of the right timing, so being engaged with management at your terminal is key.

Find Route Opportunities Close to Yours

Another option is to seek out routes for sale that are close to yours geographically or simply in the same terminal and general area. While many FedEx Ground business owners will offer their routes for sale to other owners near them, others will list them with a route broker to save them some of the time and effort required to find a buyer.

So while you can put the word out that you are looking for a route, you should also check listings with route brokers and other places where routes are listed for sale. A broker can help you evaluate the route and ensure that all the paperwork needed for an easy sale has been completed. They’ll be with you and the seller through the entire process, making everything from due diligence to closing as painless as possible.

Once you find a route that is close to yours, do your homework. Find out how profitable the route is and what comes with the purchase, including equipment. Find out if personnel are willing to stay on to work with a new owner so that you know the amount of work you need to do to make the route your own.

A route broker can help you with some parts of this process as well, and employing their services is well worth it.

Branch Out to Other Terminals in Your Region

Depending on the size of your FedEx Ground business, you may get to a point where you own all the routes you are allowed to in any one terminal. That number varies from 6-25% of stop volume, depending on your terminal location. But fortunately, there are often more than one terminal in a given region or area. You can check for routes that are available at a nearby terminal, and own routes there.

Overall, there are no limits on the number of routes you can own, but most terminals want you to live within a reasonable distance of the routes you own, and that distance can also vary depending on where you and the terminals are located.

This is another instance where a route broker will come in handy. They will know the rules for each terminal, area, and region and can help you find a route that meets your requirements but that you can also purchase within the guidelines of the FedEx Ground business operating procedures.

Owning routes at more than one terminal is common in many areas, and while it often requires hiring some management personnel, multiple routes offer several avenues to profitability. This can be a great way to expand a FedEx Ground business that is already successful.

Add a FedEx Line Haul Route to Your Business

One of the often overlooked but more profitable areas of FedEx Ground business expansion is FedEx line haul routes. These routes have a variety of options, from short to long runs, assigned routes, and more. You can read more about those options here.

It is fairly common for FedEx Ground business owners with pickup and delivery routes to expand to ownership of semi-trucks, hire CDL drivers, and take on this other type of route. Initially, there is a certain time commitment to learn more about running this aspect of the logistics process, but in the long run, these routes provide regular income, solid profits, and another great way to expand your FedEx Ground business.

A good way to get started is to purchase an existing line haul business or route, one that is well-established and less complicated than taking on something brand new, like a new leg or route added by FedEx.

Route brokers often list this kind of route as well and will know not only the information about the route but the differences in this process from buying a typical POD route, and can help you every step of the way.

Looking for Tomorrow’s Routes Today

“It is hard to predict things, especially when it comes to the future,” says a quote often attributed to Yogi Berra. But a savvy FedEx Ground business owner can look today for the routes that will be profitable into tomorrow and beyond. With the changes happening with FedEx Express, the creation of new long haul lanes, and more, FedEx is full of opportunities if you are willing to take a chance and grab onto it.

From expanding your own routes to finding expansion routes or routes for sale near you, there are a number of ways to find your next adventure. And if you want to seek opportunities at nearby terminals or even in FedEx line haul routes, those doors are open to you as well. It’s only a matter of finding the right route at the right time.

This is where consulting with a route broker is most beneficial. You can tend to the business of running and growing your current business while they help you find the next opportunity that will take you and your company to the next level.

A route broker deals with buying and selling routes nearly every day and can help you find the route that will work best for you. They’ll ensure the route is profitable and can help you with due diligence and the paperwork you need to make the sale painless and successful. A good route broker will be with you every step of the way.

At Route Advisors, we want to be that route broker for you. With our years of experience, extensive listing of routes around the country, and our knowledge of the buying and selling process, our expertise can make all the difference for you.

So contact us today. We’d love to hear about your goals and what you want to do next with your FedEx Ground business. We’ll be there to help you every step of the way.

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