How Do I Grow My Business?

Most FedEx contractors have ambitions of scaling their business. In fact, you may have been thinking about potential growth opportunities since the very first day you bought a FedEx route for sale! And now that you’ve spent months (or years) optimizing your FedEx operations, you may wonder how to grow your business.

Let Your Business Grow Organically

One way to grow your business is to let it naturally scale. As one of the biggest logistic companies in the world, FedEx has been on the path of rapid and sustainable growth – particularly in the era of COVID-19 and the ever expanding online commerce space.

In fact, the implementation of year-round, seven-day delivery was largely due to the rapidly growing e-commerce industry. This paved the way for increased stops, package counts, and ultimately higher revenue. With that said, FedEx contractors routinely count on increased organic growth and new growth opportunities awarded by FedEx.

It’s worth noting that FedEx is ultimately the deciding factor on which contractors receive newly available growth opportunities.  Consequently, until such opportunities arise, it’s important to keep putting in the hard work and ensuring your operations are up to par. This includes learning how to retain your FedEx route drivers, which is essential for long-term success.

Acquire a New Route

Another method for scaling your FedEx business is to acquire another route. This involves buying a route from another contractor who may or may not operate out of your terminal.

Keep in mind that FedEx has strict scale cap requirements, typically on a per-terminal basis. While the scale requirements vary from terminal to terminal, a typical FedEx contractor will often be limited to 10-20% of the routes in a given delivery terminal. (This scale cap might be more or less, depending on your geographical location.) These requirements are set in place to avoid over-reliance on a single contractor who may be having operational issues. If you’re unsure of your terminal’s unique scale cap, speak to your terminal manager.

Thinking of Growing Your FedEx Business? Contact KR Capital

Scaling your FedEx business requires careful planning and preparation. This is true even if you’ve been in the business for a long time. Remember, FedEx holds its contractors to high standards, which is precisely why the brand is so successful.

That’s why it’s important to work with an experienced FedEx broker like KR Capital. We can help you acquire new routes within your terminal, while ensuring you adhere to FedEx policy. KR Capital can also explain when and how to grow your business in a way that makes financial sense.

Contact KR Capital today. Call us at (503) 664-0753 or fill out our online form.