Recession Proof Your FedEx Ground Route

With the talk of a potential recession, there is a lot of talk about how to recession proof your FedEx Ground route. Just like other small businesses, there are some basic guiding principles for running your route even if there is a downturn and inflation causes expenses to rise.

The good news is that you are probably already dealing with this when it comes to your FedEx Ground Route. The spike of fuel and oil costs and supply chain shortages have likely already inspired you to take cost-cutting steps and business actions similar to the ones you would take during a recession.

Here are some of those steps, and how to make them work for you.

Watch Your Cashflow

We talk often on this website about how important it is to watch your cashflow in any route business, whether you are looking to sell or buy a route, expand your business, or just maintain your profit margin.

This becomes especially important during a recession. Don’t overspend or engage in spontaneous spending and watch your income. If your delivery and pick-up schedule is lower, understand the income changes that will come with it, and prepare for them with cost-saving measures.

This includes being efficient about running your route, including the order you make deliveries and pick ups in, and minimizing extra driving time and fuel.

Be Careful with Debt

Most businesses have a healthy amount of debt. Enough debt to finance growth, but not to inhibit cashflow. So you should not go into debt to fund everyday operations and purchase things like fuel.

However, you could, even in a recession, take on debt to make the change to a more fuel-efficient vehicle or even go electric. This type of “smart debt” has little income on cashflow, and longer-term can even increase it.

Look at debt as a business tool you can use to make your business stronger.

Keep Your Current Customers Happy

Most of the time businesses do not decide who to use for shipping based solely on price. Service is important, and keeping their customers happy is a priority. That means during a recession, it is more important than ever that you set yourself apart from your competition by taking great care of your current customers:

  • Make pickups on time and accommodate the needs of your business customers.
  • Deliver packages promptly and undamaged. Report damage if you see it.
  • Crime goes up during a recession. Be aware of “porch pirates” and ensure you are delivering packages securely.
  • Continue to emphasize the advantages of shipping with FedEx to your customers and live out those values.

These are good ideas all the time but become especially vital during a recession when customer service is king.

Refocus on Your Business and Even Consider Expansion

The good news about steps to recessionproof your FedEx Ground route is that routes are largely recession-proof anyway. There are always packages to deliver, even if there are fewer of them, and these slowdowns in the United States economy rarely last long.

So a slowdown can be a good time to look at your business in detail. What could you do better or more efficiently? How could you make your business stronger? In some cases, this can even mean expansion and purchasing another route or splitting your current one while you can focus on the details without being exceptionally busy at the same time.

A downturn can come with plus sides, and it is a good idea to take advantage of them while you can. When some route owners are giving up and selling can be a great time for you to buy.

Recession Proof Your FedEx Ground Route

Regardless of the current economic situation, you should always be operating with prudent financial practices. Make sure you have a savings cushion for emergencies, ensure you have a strong cashflow plan and work to remain viable and profitable.

While it can seem obvious at times, these simple steps can keep your business on the right track today, tomorrow, and beyond no matter what the economy does.

If you’re ready to expand your business and purchase another route or you are just starting out, contact us at Route Advisors today. We can help you find the right route at the right price and at the right time. We want to be with you every step of the way.

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What our clients say

“

I am writing to highly recommend Miriam for her exceptional services in facilitating FedEx route transactions.

I purchased my first set of FedEx routes in 2018, and the business grew fourfold following the pandemic. As I reached retirement age, I decided to sell my routes and hired Miriam to manage the process. She successfully facilitated the sale of one portion in 2022 and the remaining two portions in 2025.

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Throughout our four transactions together, one purchase and three sales, Miriam demonstrated extensive knowledge of the FedEx process. During a complex partial sale of my entire CSA, she was instrumental in gathering all the necessary data required for the bank to secure financing for the buyer.

I strongly recommend her services to anyone looking to sell their FedEx routes.

Allison B.

“

I recently listed my Fedex routes with Route Advisors and had a fantastic experience from beginning to end. Miriam and her team were professional and easy to work with, helping at each stage to make sure we completed all steps to get to closing.

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In particular, they found a suitable buyer very quickly (within weeks of listing) and vetted the buyer before we moved to due diligence. We then had weekly calls to progress toward closing. The requirements were clear, advice was sound and decision points were presented with plenty of time to make good choices. We were able to move to closing in less than six months, achieving the deal structure and price that was beneficial to us and the buyer.

I highly recommend Route Advisors. Personal service, highly attentive and responsive (we were two time zones apart and I never felt ignored and never had a call that was missed), overall an A+.

Matt

“

Route Advisors was referred to me by a colleague, a former FedEx ISP contractor who successfully sold his business through Miriam. I interviewed approximately four different brokers before deciding to work with Route Advisors. My decision was based on my colleague’s successful experience with them and, more importantly, their extensive knowledge of handling complex FedEx transactions.

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Route Advisors ultimately sold my business at a price higher than I had expected. Throughout the transaction, Miriam was involved every step of the way. She connected the buyer with a lender experienced in FedEx transactions, guided both the buyer and seller through the entire sales process, helped the buyer prepare the RFI, and coached the buyer for the interview with FedEx.

I was very pleased with the experience and the outcome. After the sale of my business, I referred Miriam and Route Advisors to another colleague who was also looking to sell his FedEx business. She successfully sold his business as well.

Based on my experience, I would confidently recommend Miriam and Route Advisors to FedEx contractors considering selling their businesses.

Chris Gochis of Milwaukee, WI