Common Mistakes Owners Make With FedEx Ground Routes for Sale
You put your blood, sweat, and tears to build your independent business into a juggernaut. Yet despite all of the care and attention that you poured into your business while you were actively looking to grow it, there’s a shocking reality out there: You would be astonished at how many people either mail it in or make foolish errors when going to sell their business. It might be the last step of a journey for the seller, but it is a critical one. Let’s clear up a few misconceptions and help YOU avoid errors/issues when it comes time to sell your routes.
Common Mistake #1:
FedEx route owners thinking that they will sell their business in several days. There are many steps to the FedEx business process. Among them, legal issues, financial preparation, FedEx approval, and normal business transactions like securing a lawyer and contracts and loans. When you put a FedEx ground route for sale, it can take several months to sell — even if an offer comes in immediately — so don’t wait until the last minute and plan ahead.
Common Mistake #2:
FedEx Ground Contractors attempt to sell their route(s) on their own. Routes for sale by owner often take longer to sell and do not yield the highest price for sellers. A broker makes things easier, and all but guarantee that you will save time and make more money. Don’t learn the hard way, learn from other people’s mistakes.
Common Mistake #3:
FedEx independent owners who pick the wrong season to list their routes. Depending on your geography, weather and other seasonal issues can play into your decision to put your FedEx ground routes for sale. Many people choose to list their routes after pocketing the profits from the holiday season. This also helps the buyer, as they will have several months, at a minimum, to ramp up for the next holiday season. Weather can impact transportation and that can create a stressful backlog of deliveries. Keep in mind that package volume generally steadily rises between September and December, until finally hitting a holiday crescendo.
Common Mistake #4:
Potential FedEx sellers rely on what they see online. You can’t believe everything you read when it comes to a FedEx ground route for sale. Many forums and message boards are filled with people who are writing from a point of view of emotion or lack of the proper FedEx-related information/experience. We’re not trying scare anyone off, but as with any independent business transaction, there are nuances that many outsiders cannot understand or articulate properly.
Common Mistake #5:
FedEx route sellers who change their mind about selling after listing. We all know FedEx routes are a lucrative business, but they also require hard work and dedication to hit the pinnacle of success. You always have the right to change your mind, after all, it is your independent business. However, much like real estate, listing and then unlisting, can raise flags if you decide to sell in the future. When listing your FedEx ground routes for sale, be sure that you’re fully committed to selling.
Common Mistake #6:
Sellers give themselves an inaccurate valuation. We’ve all watched enough Shark Tank to know that an improper valuation can send would-be investors running in the opposite direction. Many people, despite their best effort, cannot separate emotion from the pure financials. This clouded vision leads to an error in judgment that could end up keeping routes listed for too long, making them stale and unattractive. This is a common routes for sale by owner error that a good broker will help you avoid.
Common Mistake #7:
Sellers who do not pre-qualify buyers. Getting the offer is one thing, but as any good journalist would tell you, know your source! Even buyers with good intentions must be pre-qualified before you can take their proposition seriously. This secures data integrity for both sides, which in this day and age, is of paramount importance.
Common Mistake #8:
FedEx route owners who are not truthful. They say it takes a lifetime to earn trust and a second to lose it. The numbers that sellers put forward should be honest, truthful, and validated where possible. Far too often there are stories about sellers who are inflating or exaggerating numbers in order to get the best return possible for their business.
If you decide to put your FedEx ground routes for sale, we strongly suggest you hire a professional to help you. Sound business judgment needs to be in force from the start of the business adventure to the very end. Whatever your reason for contemplating selling your routes, keep your eye on the prize and whatever you do, do not commit the cardinal sins listed above.