Getting Ready to Sell Your Route Business? Avoid These Common Mistakes
Whether you’re retiring or relocating, selling your FedEx route business takes time and preparation. This is key for not only selling your route for the most value, but finding the most qualified buyer for the job.
That said, if you’re ready to sell your route, there are certain things you should keep in mind to ensure a successful sale. To start, avoid these common mistakes:
- Not Preparing Your Financials
Much like buying a route, selling a route requires meticulous planning and organization.
This includes making sure your financial documents—such as business tax returns and comprehensive profit and loss (P&L) statements—are in order. These documents will make it easier to accurately value your route. Plus, interested buyers will want to learn about your business’ financial health. The more organized your financials, the more appealing your business will be.
- Waiting Until the Last Minute to Prepare
On that note, it’s crucial to prepare your financials far in advance. The general recommendation is to start preparing at least six months to one year before listing your route. (Even better, begin more than one year in advance.)
During this extra time, you will be able to focus on optimizing your route and fine-tuning your operations. By the time you’re ready to sell, your route and financial paperwork will be in the best shape possible.
- Not Considering the Time of Year
Timing affects the sale of your business. Generally, the most appropriate time to sell your FedEx route is between January and August.
That’s because FedEx is less likely to accept route transfers just before or during the winter holidays (October, November, and December). These months are peak season for FedEx, which can be too stressful for brand new contractors. In turn, FedEx will typically block route transfers between October and December, then resumes processing transfers in January.
Also, a route transfer generally takes 3 to 6 months to complete. By selling your route earlier in the year (rather than later), you can ensure the sale is completed well before peak season.
- Ignoring Recent Sales of Similar Businesses
Before listing your route, be sure to assess the sales of other route businesses in your area. This will help you understand the typical selling price of similar businesses, and ultimately, help you establish a realistic asking price.
- Trying to Do it Yourself
The selling process is extensive and complex. With that in mind, it’s imperative to work with an experienced broker who is familiar with the FedEx approval process. A broker can ensure that you fulfill the specific requirements of each step, ensuring a smooth and successful sale.
Without professional guidance from a FedEx broker, you may be at risk of:
- Undervaluing your routes
- Failing to find the most qualified buyers for your route
- Poorly presenting your business
- Forgetting or missing required documents
- Becoming overwhelmed or stressed
Sell Your FedEx Route Business with KR Capital
If you’re planning to sell your FedEx route, it’s critical to avoid these common mistakes. In doing so, you can sell your business for a premium price and complete the process with ease.
To get started, we invite you to contact KR Capital to sell your routes. As the nation’s leading FedEx brokerage firm, our team has the resources and expertise necessary to coordinate an efficient FedEx sale. Contact us today.