Are you considering adding a second or third FedEx route to your business? There’s a lot of debate surrounding if it’s a smart move. Some people believe that it’s essential to have multiple sources of income to be resilient if one of your sources fails.
Others believe that buying a second or third route can be detrimental to your business, as it can lead to higher risks, higher responsibility, and more upfront investment. Which side of the fence do you stand on? Let’s have a look:
Are You Prepared for Another Route?
Before you decide on whether or not to add another route to your business, you should ask yourself a few important questions.
- Do you have the necessary energy, time, and resources to manage the new route?
- Will the additional work increase your workload?
- Do you have the truck(s) and other equipment already available?
- Do you have backup or vacation drivers who know these new routes well?
- You are prepared if you have these things or at least know what you might need when getting new route(s)!
Routes are Expensive
There’s no doubt about it- adding a new one is expensive. This doesn’t mean that you should never think about adding a second or third route. It just means that you need to be realistic about the financial implications of this decision. Ask yourself:
- How profitable is your current route?
- How well is it performing?
- Do you have drivers who can take this current route while you learn the new one?
- Do you have spare trucks you can use on new routes, or will you be getting new trucks?
- Do you have the money set aside so that you can invest in a new route without facing any challenges financially?
All of these factors will play a crucial role in helping you decide whether or not you are financially capable of buying another route or not.
Can You Spare Time to Learn About the New Route?
Buying a new route is not just about thinking in financial terms but also in terms of time you can spare. Since you are already managing your current route, do you think you can take out some time to learn the new route?
Will it be okay for you to manage your current route while getting training for the new one? You may also have to deal with a substitute driver on a daily basis to ensure he’s doing a fine job on the current route.
The Advantages of Purchasing a New Route:
- You can significantly increase your income (potentially double it). And once your earnings increase, you can save more money and potentially purchase more routes in the future, further boosting your earnings.
- You already have a legal counsel, tax professional, and accountant for the current route, so you don’t have to duplicate these services for the new route. Furthermore, even though your insurance may go up, it will still not double in premium size.
- You will already have one sub-driver for the current route; you can learn to manage him and understand all the costs that come with keeping a driver. Once your second route is up and running, you can get another driver for it, get yourself out of the driving, and take care of the management side of things. This will free up a lot of your time.
Give us a call today at (860) 453-0116 to make sure you are properly protected!