- April 30, 2018 at 6:54 pm #133102
I read your article on purchasing FedEx routes and found it very informative. I am a CPA working for the City of Fort Worth Texas. I have always wanted to own a business and this seems like a great opportunity. I am comfortable working with numbers and managing costs. I saw that some of the routes offer absentee ownership. Does it make good business sense to enter into an absentee ownership model with these type of businesses? Since I live in the DFW area, I was hoping to invest in routes outside of Texas since I did not see many opportunities in the DFW area. Also, what advise would you pass along for someone interested in purchasing a FedEx route, especially with no background in this type of business? I look forward to hearing from you soon!April 30, 2018 at 7:07 pm #189730
I can provide insight on your question. As a business owner with a background in finance and investing, I can tell you that small business ownership has high risk/return attributes. This means that there is great financial risk (e.g. losing up to 100% of your start up investment) but well worth the risk if you are successful.
Also from the investment perspective, whether it’s a stock or a FedEx route, it’s imperative that you understand what you are investing in.
With that said, absentee ownership will likely increase your cost and your financial risk. For example, as you may have noticed in our FedEx Routes article, a big expense with a FedEx route is the employees. With you not involved as an active employee, your overhead costs will be higher.
The bottom line: Be extremely cautious about absentee ownership because your financial risk will likely be greater without you actively involved.