When it comes to careers, individuals have a lot of choices. In one case, that can be as a FedEx truck owner. Whether contracting or owning a truck, this can often be a great business. Although, when buying Ground routes for sale, individuals need to be cautious so as not to be scammed.
One new owner said the route had been purchased without any assistance a few years ago. The former owner provided documentation and proof of income. While this is the case, the buyer, a former finance manager was still scammed when purchasing the route.
If planning on purchasing a route, especially one designed where the owner is absent, individuals need be aware doing so can be a treacherous path. In addition, just because an owner is absent does not necessarily mean the business is being run correctly. For, in some cases, buyers purchase routes without ever having to get inside a car, van or truck associated with the purchase.
While sounding like a great way to make living and has been for a number of people, buyers need understand that there is no clear way to know how much money can be made in this type of business. As a result, sellers will often focus on proof of income and tax documents. While in most cases, the paperwork is accurate, the information does not reflect the pay for drivers, bookkeeping and other costs. Whereas, sales history information is rarely provided unless specifically requested by an interested buyer.
Buyers are often misled with regards to absent owner status as well. For, while individuals can run a business from a distance, owners often need put in two to three hours a week overseeing the business, customer satisfaction, payroll and workers. As such, just because a business is labeled as absent owner, this does not imply the owner can just sit back and relax without putting any time into the business.
While an absentee owner business may be attractive, any business can be run absentee. While this is the case, few businesses ran with absentee owners are successful. For example, an individual could buy a catering and delivery service in which owners are working sixty hours per week to manage employees, set up routes, deliver and service customers on a non-stop basis. As might be expected, if the owner is sitting at home getting drunk, then reselling the business as an absentee owner business, eventually the business will crumble.
In order to protect against scams, there are several things a buyer may want to ask. In most cases, this relates to documentation related to the seller and route. Whereas, obtaining recent earnings, operating costs, profits and sales history are all important questions buyers can ask when buying businesses, products, routes or services. For, only when reviewing this information, can potential buyers realize whether or not the business will be profitable or successful in the future.
The bottom line, sellers will do almost anything to convince buyers a business is a legitimate owner absent opportunity. If this is the case, sellers will not have a problem providing any information requested by buyers, including current operating expenses, outstanding loans, payroll, employee names and references. If an individual denies to provide such information, it is most likely a good time to walk away.
One new owner said the route had been purchased without any assistance a few years ago. The former owner provided documentation and proof of income. While this is the case, the buyer, a former finance manager was still scammed when purchasing the route.
If planning on purchasing a route, especially one designed where the owner is absent, individuals need be aware doing so can be a treacherous path. In addition, just because an owner is absent does not necessarily mean the business is being run correctly. For, in some cases, buyers purchase routes without ever having to get inside a car, van or truck associated with the purchase.
While sounding like a great way to make living and has been for a number of people, buyers need understand that there is no clear way to know how much money can be made in this type of business. As a result, sellers will often focus on proof of income and tax documents. While in most cases, the paperwork is accurate, the information does not reflect the pay for drivers, bookkeeping and other costs. Whereas, sales history information is rarely provided unless specifically requested by an interested buyer.
Buyers are often misled with regards to absent owner status as well. For, while individuals can run a business from a distance, owners often need put in two to three hours a week overseeing the business, customer satisfaction, payroll and workers. As such, just because a business is labeled as absent owner, this does not imply the owner can just sit back and relax without putting any time into the business.
While an absentee owner business may be attractive, any business can be run absentee. While this is the case, few businesses ran with absentee owners are successful. For example, an individual could buy a catering and delivery service in which owners are working sixty hours per week to manage employees, set up routes, deliver and service customers on a non-stop basis. As might be expected, if the owner is sitting at home getting drunk, then reselling the business as an absentee owner business, eventually the business will crumble.
In order to protect against scams, there are several things a buyer may want to ask. In most cases, this relates to documentation related to the seller and route. Whereas, obtaining recent earnings, operating costs, profits and sales history are all important questions buyers can ask when buying businesses, products, routes or services. For, only when reviewing this information, can potential buyers realize whether or not the business will be profitable or successful in the future.
The bottom line, sellers will do almost anything to convince buyers a business is a legitimate owner absent opportunity. If this is the case, sellers will not have a problem providing any information requested by buyers, including current operating expenses, outstanding loans, payroll, employee names and references. If an individual denies to provide such information, it is most likely a good time to walk away.
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