Is it Possible to Run My FedEx Business as an Absentee Owner?
Becoming a FedEx contractor is a lucrative business opportunity for many would-be entrepreneurs, but it takes the right type of person to establish and grow a profitable FedEx route enterprise.
That said, absentee ownership, in the most literal sense, is typically not a recommended strategy. To understand why that is, let’s look at the definition of an absentee owner.
What does absentee ownership mean?
Absentee ownership means that while you own—and, in theory, profit from—your business, someone else takes care of running it in your absence. Absentee owners are rarely on the premises and have little to do with managing the day-to-day affairs and transactions such as personnel management, processing payroll, and other necessary tasks.
If 100% absentee ownership sounds appealing to you, becoming a FedEx contractor may not be the right fit—at least not during your early years of ownership. However, if you prefer to take a more hands-on approach to building a profitable business but would still like the freedom and flexibility of managing things remotely, buying your own FedEx routes is definitely a smart move.
Yes, you can own and operate your FedEx business from out of state.
Many businesses are operating remotely these days, and FedEx routes are no exception. Not only is it possible to manage your FedEx route business remotely, but it is also a great (and sometimes required) way to expand your FedEx footprint. Due to FedEx scale requirements, FedEx will often mandate that a contractor only own a certain percentage of a given area. Growth-minded contractors are then forced to expand to other geographic areas if they are looking to grow their business.
As a general rule, however, it helps if you are within driving distance of your primary terminal in case your presence is required—particularly if you are a new FedEx contractor. For new owners, it is vitally important that you immerse yourself in the business while you are learning the ropes. As you become more familiar with the business, you should be able to reduce your commitment over time.
Be prepared to show that you will be an engaged owner.
As part of your initial application to become a FedEx contractor, FedEx will surely ask you about your level of involvement during the FedEx approval process. FedEx will want to see that you will be committed to your business, your customers, and your drivers, and that you will be available for any problems or issues that may arise.
The good news? Thanks to advanced technology and logistics software, remote management is simpler than ever, provided you have a good foundation and a strong team in place.
KR Capital can help you navigate the FedEx approval process.
Whether you plan to operate your business remotely or remain on site, you will need to first get approved by FedEx—a process that involves multiple steps and can be difficult to navigate without the right support. Working with the experienced brokers at KR Capital will help you have a better idea of what to expect during the FedEx approval process and the steps it will take to get your business up and running as quickly as possible.
Contact KR Capital today or fill out our online form to learn more.