fedex business plan

Business Plan Template for Fedex

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Starting or expanding a delivery or logistics company can be an exciting but daunting task. To ensure that your business has a solid foundation and attracts potential investors or partners, you need a comprehensive business plan. And if you're specifically interested in becoming a FedEx authorized service provider, ClickUp's Business Plan Template for FedEx is the perfect tool for you.

This template will help you outline your company's vision, goals, target market, operational strategies, financial projections, and marketing plans—all tailored specifically for the delivery and logistics industry. With this template, you can confidently secure funding and chart a course for success as you embark on your journey to becoming a FedEx authorized service provider. Don't miss out on this opportunity to set your business up for growth and profitability—get started with ClickUp's Business Plan Template for FedEx today!

Business Plan Template for Fedex Benefits

Writing guidelines-

• markdown format
• 75 words: 1-2 sentence description with bulleted list that starts with a different word each
• tone of voice is casual professional that's enticing and confident

Example:Ready to take your delivery or logistics company to new heights? The business plan template for FedEx can help you do just that by:

• Clearly defining your company's vision, goals, and target market
• Outlining effective operational strategies to optimize your business
• Creating accurate financial projections to secure funding and attract investors
• Developing comprehensive marketing plans to reach your target audience
• Setting a solid foundation for your business to ensure long-term success

Main Elements of Fedex Business Plan Template

If you're an entrepreneur or business owner looking to start or expand a delivery or logistics company, ClickUp's Business Plan Template for FedEx is here to help you outline your company's vision, goals, and strategies.

This template includes:

• Custom Statuses: Keep track of your progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect of your business plan is accounted for.
• Custom Fields: Use custom fields like Reference, Approved, and Section to provide additional details and organize your business plan effectively.
• Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide, allowing you to easily navigate through various sections and aspects of your business plan.

With ClickUp's Business Plan Template for FedEx, you can confidently outline your company's future and attract potential investors or partners.

How To Use Business Plan Template for Fedex

If you're looking to create a business plan for your FedEx business, follow these six steps using the Business Plan Template in ClickUp:

1. Executive Summary

Start your business plan with an executive summary that provides an overview of your FedEx business. Include key details such as your business name, mission statement, target market, and unique selling proposition. This section should be concise but compelling to grab the reader's attention.

Use the Docs feature in ClickUp to write your executive summary and keep it easily accessible.

2. Company Description

In this section, provide a detailed description of your FedEx business. Explain your business structure, ownership, and any legal considerations. Discuss your business's history, its current operations, and future goals. Also, highlight the specific FedEx services you offer and how they meet the needs of your target market.

Use the Table view in ClickUp to organize and present information about your business structure, operations, and goals.

3. Market Analysis

Conduct a thorough market analysis to understand the competitive landscape and identify opportunities for growth. Research the FedEx industry, your target market, and your competitors. Analyze market trends, customer demographics, and purchasing behavior. Use this information to develop a comprehensive understanding of your market and how your business fits into it.

Create custom fields in ClickUp to track and analyze market data, customer demographics, and competitor information.

4. Marketing and Sales Strategy

Outline your marketing and sales strategies to attract and retain customers. Define your target market segments and develop a marketing plan that effectively reaches them. Determine the most appropriate marketing channels, such as online advertising, social media, or direct mail. Additionally, detail your sales approach and any partnerships or collaborations that can help drive sales.

Use tasks in ClickUp to create a timeline for your marketing campaigns and assign responsibilities to team members.

5. Operations and Management

Describe the daily operations of your FedEx business, including your supply chain, logistics, and customer service processes. Highlight your team's experience and expertise, as well as any key partnerships or vendor relationships. Discuss your organizational structure, roles, and responsibilities. Also, outline your business's legal and regulatory compliance measures.

Utilize the Gantt chart feature in ClickUp to visualize your operations and manage project timelines.

6. Financial Projections

Provide financial projections for your FedEx business, including revenue forecasts, expense estimates, and cash flow analysis. Include a profit and loss statement, balance sheet, and cash flow statement. Also, discuss your funding requirements, investment opportunities, and potential risks. Present your financial projections in a clear and organized manner.

Use the Dashboards in ClickUp to create visual representations of your financial projections, monitor your business's financial health, and track key performance indicators.

By following these steps and utilizing the Business Plan Template in ClickUp, you can create a comprehensive and compelling business plan for your FedEx business.

Get Started with ClickUp’s Business Plan Template for Fedex

Entrepreneurs and business owners looking to start or expand a delivery or logistics company, including those interested in becoming a FedEx authorized service provider, can use the ClickUp Business Plan Template for FedEx to outline their company's vision, goals, target market, operational strategies, financial projections, and marketing plans.

Here's how to make the most of this template:

Hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Choose the Space or location in your Workspace where you want to apply this template.

Invite relevant team members or guests to your Workspace to start collaborating on your business plan.

Utilize the different views available to organize and visualize your business plan:

• Use the Topics View to break down your plan into different sections and topics.
• The Status View will help you track the progress of each section and task.
• The Timeline View allows you to set deadlines and milestones for your business plan.
• The Business Plan View provides an overview of your entire plan, allowing you to see the big picture.
• The Getting Started Guide View offers a step-by-step guide to help you navigate the template.

Customize the template by adding the following custom fields:

• Use the Reference field to link supporting documents or resources to specific sections.
• The Approved field can be used to indicate which sections have been reviewed and approved.
• The Section field allows you to categorize and organize different sections of your business plan.

Organize tasks into four different statuses: Complete, In Progress, Needs Revision, To Do, to keep track of progress.

Update task statuses as you work through your business plan to keep everyone informed of progress.

Monitor and analyze your business plan using ClickUp's features to ensure maximum productivity and success.

By using the ClickUp Business Plan Template for FedEx, you can create a comprehensive and well-structured plan that will help you secure funding, attract potential investors or partners, and set a solid foundation for your delivery or logistics company.

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FedEx Business model – Operational Insights and Revenue Streams

“Happiness is getting a package from FedEx.”

A brilliant idea owes its existence to a college assignment. The revolutionary concept that is responsible for first centralizing the courier delivery . The idea that promises you to deliver your package safely in one piece, the idea that also incited the delivery tracking system’s patent, the concept that connects people with possibilities. That idea that has so much of glory, magic, and marvel associated with it, is none other than FedEx.

The genesis of FedEx

In 1965, a Yale University graduate, in his term paper, outlined the logistic problems faced by firms and proposed a system to accommodate time-sensitive deliveries. Consequently, the foundation-stone of Federal Express was laid in Little Rock, Arkansas, in 1961. In 1994 Federal Express was officially rebranded as FedEx.

FedEx Business Model

FedEx uses wholly-owned subsidiaries to provide a portfolio of transportation, e-commerce , and business services . FedEx generates value by offering ‘high value-added’ package delivery services to 220+ countries. The inceptive bedrock of FedEx, i.e., “When it absolutely, positively has to be there overnight,” encapsulates its business model. FedEx stays ahead of the curve by delivering the promise of speedy delivery with over 99% reliability. For this purpose, FedEx banks upon its ultra-efficient operating systems that are pivoted on aircraft. Fed uses a hub-spoke model where-in instead of flying directly, FedEx aircraft pass through one of the strategically placed FedEx hubs. Consequently, packages are immediately placed on outbound aircraft, and thus this operational model reduces the delivery time .

FedEx Business Model: Operating Segments

FedEx has the following key operating segments:

• FedEx Express:  The global network responsible for providing time-sensitive and air-ground express service.
• FedEx Ground:  Renders reliable B2B delivery or convenient residential services. Although FedEx serves customers & businesses across the globe transcending geographical barriers but FedEx Ground is exclusively for North America.
• FedEx Freight:  Provides an array of LTL (less-than-truckload) choices to address customer needs.
• FedEx Services:  It uses technology to address customer needs, be it global supply chain issues or e-commerce problems.

FedEx Business Model: Revenue Insights

In 1973, FedEx witnessed the growth, and since then, there’s no turning back. Apart from the four main vital segments, FedEx Logistics & FedEx Office, also contributes to the total revenue. In FY20, FedEx managed to earn $69.2B, out of which 51% was donated by FedEx Express, 33% FedEx Ground, 10% by FedEx Freight, and the rest by others and eliminations. From FT16 to FY19, FedEx witnessed an annual growth rate of 11.6%. During this period, i.e., FY16-FY19, revenue for FedEx Express & FedEx Ground grew due to higher packages being shipped. In the future, volume growth could touch high single digits owing to an increase in e-commerce . Freight shipments also grew, leading to FedEx Freight revenue growth.

Factors affecting business & revenue

• Overall customer demand for a mix of services in the FedEx portfolio of services
• Macroeconomic factors & global factors affecting the market of FedEx customers
• The volume of transportation services, gauged using shipment weight & average daily volume
• The cost controlling ability of FedEx to match with the changing volume levels
• The yield earned by FedEx measured in terms of revenue per package or revenue per hundredweight etc

What the future holds for FedEx

Market analysts forecast that a 15.5% raise will be witnessed in the EPS of FedEx shares for FY21. Its forward price ratio of 13.8 highlights that the stock provides the stock’s safety as a growth strategy is implemented. FedEx has undertaken some remarkable digital transformations. For instance, FedEx delivery managers aimed at increasing visibility and control for customers, autonomous vehicles like Roxo, the FedEx SameDay Bot inciting cutting-edge innovation, and their newest solutions FedEx Surround and SenseAware ID to advance their industry-leading tracking technology. FedEx’s realigned strategy is helping FedEx deliver its purple promise in more meaningful ways, and clearly, the best years of FedEx and its customers are ahead.

If you’re also looking for creating excellent delivery management services with real-time tracking , Tookan is the ultimate cure-all for you. Route optimization , end to end planning, automated dispatch , and geofencing are some of the many excellent features that Tookan has got in store to help you streamline your business.

If you enjoyed reading this, we’re sure you will also love checking out what we have in store on our  Youtube channel . You can also head to our  home page  for more information!

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FedEx Presents “Deliver Today, Innovate for Tomorrow” Strategy

Today’s investors meeting outlines strategic roadmap to deliver for customers, stockholders, and team members adjusted consolidated operating income targeted to increase $3.0–$4.5 billion in fiscal 2025 vs. fiscal 2022 fiscal 2025 ratio of capital expenditures to revenue expected to be at or below 6.5% adjusted earnings per share (eps) expected to grow between 14–19% cagr through fiscal 2025 targeting 18–22% annualized total shareholder return (tsr) through fiscal 2025.

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MEMPHIS, Tenn., June 29, 2022 – FedEx Corp. (NYSE: FDX) is hosting an investors meeting today where President and Chief Executive Officer Raj Subramaniam and the FedEx leadership team will present a strategic plan to deliver more value for customers, stockholders, and team members. FedEx will also outline its fiscal 2025 financial targets.

“The FedEx team and its unparalleled network have been connecting the world and creating opportunities since our founding,” Subramaniam said. “As we enter the next phase of FedEx, we will unlock value from this foundation to deliver outstanding returns to all of our stakeholders. Our strategy is focused on driving yields, expanding margins, and elevating returns through profitable growth and capital efficiency. We have tremendous momentum and a committed leadership team focused on delivering today, while innovating for tomorrow.”

Fiscal 2025 Financial Targets

FedEx is targeting to deliver 18–22% annualized TSR through fiscal 2025 based upon these balanced financial goals for fiscal 2025:

• 4–6% compound annual revenue growth through fiscal 2025
• 11–12% FedEx Ground adjusted operating margin
• 8–9% FedEx Express adjusted operating margin
• 20–22% FedEx Freight adjusted operating margin
• Adjusted dividend payout ratio of at least 25%
• Ratio of capital expenditures to revenue equal to or less than 6.5% and an increase of 200 basis points in FedEx’s return on invested capital (ROIC) compared to fiscal 2022
• Fiscal 2025 adjusted consolidated operating income improvement of $3.0–$4.5 billion compared to fiscal 2022 adjusted consolidated operating income
• Compound annual growth rate for adjusted EPS of 14–19% through fiscal 2025.

Deliver Today, Innovate for Tomorrow Strategy

The FedEx executive leadership team will discuss its strategy and detailed plans to Deliver Today, Innovate for Tomorrow during today’s investors day. The plans will guide the company’s short- and long-term priorities to maximize value for customers, stockholders, and team members.

During today’s presentations, the leadership team will focus on how FedEx is Delivering Today by:

• Delivering revenue quality with a differentiated value proposition, targeting high-value customer segments
• Expanding margins through more efficient networks
• Increasing stockholder returns through profitable growth, lowered capital intensity, and increased ROIC focus

The leadership team will also outline how FedEx is Innovating for Tomorrow by:

• Enabling intelligent supply chains by leveraging its technology, data, and digital capabilities
• Leading through its continued commitment to sustainability
• Reinventing work and empowering people

Speakers will include Subramaniam; Mike Lenz, executive vice president and chief financial officer; Brie Carere, executive vice president and chief customer officer; and other key members of the FedEx executive leadership team.

Webcast and Materials

The Investors Meeting will be streamed beginning at 8:30 a.m. CDT on June 29, 2022 at investors.fedex.com . Individuals may view the presentation and download the materials presented during the meeting. This release contains only a short summary of the information to be presented and should be read in conjunction with the management presentations and other materials, including the appendix of non-GAAP financial measures, made available on the Investor Relations website.

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $94 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively, and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its 550,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about .

Additional information is contained in the company’s annual report on Form 10-K, Form 10-Qs, Form 8-Ks, and Statistical Books. These materials are available on the company’s website at investors.fedex.com . The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our Securities and Exchange Commission (SEC) filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media, and others interested in the company to visit this website from time to time, as information is updated and new information is posted.

Certain statements in this press release may be considered forward-looking statements, such as statements regarding future financial targets, business strategies, management’s views with respect to future events and financial performance, and the assumptions underlying such targets, strategies, and statements. Forward-looking statements include those preceded by, followed by, or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends,” or similar expressions. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; our ability to meet our labor and purchased transportation needs while controlling related costs; a significant data breach or other disruption to our technology infrastructure; the continuing effect of the COVID-19 pandemic; anti-trade measures and additional changes in international trade policies and relations; the effect of any international conflicts or terrorist activities, including as a result of the current conflict between Russia and Ukraine; our ability to successfully implement our business strategy, effectively respond to changes in market dynamics, and achieve the anticipated benefits and associated cost savings of such strategies and actions, including our ability to successfully implement our FedEx Express workforce reduction plan in Europe and to continue to transform and optimize the FedEx Express international business, particularly in Europe; our ability to achieve our fiscal 2025 financial performance goals; damage to our reputation or loss of brand equity; changes in the business or financial soundness of the U.S. Postal Service, including strategic changes to its operations to reduce its reliance on the air network of FedEx Express; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the ongoing conflict between Russia and Ukraine; our ability to match capacity to shifting volume levels; the effect of intense competition; an increase in self-insurance accruals and expenses; our ability to effectively operate, integrate, leverage, and grow acquired businesses and realize the anticipated benefits of acquisitions and other strategic transactions; the future rate of e-commerce growth and our ability to successfully expand our e-commerce services portfolio; the timeline for recovery of passenger airline cargo capacity; evolving or new U.S. domestic or international laws and government regulations, policies, and actions; future guidance, regulations, interpretations, challenges, or judicial decisions related to our tax positions; legal challenges or changes related to service providers engaged by FedEx Ground and the drivers providing services on their behalf; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; our ability to achieve our goal of carbon-neutral operations by 2040; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

The financial targets and guidance included in this press release reflect FedEx’s expectations for fiscal years 2023 through 2025 and are provided on a non-GAAP basis as FedEx cannot predict certain items which are included in reported GAAP results. See “Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures” below for additional information on non-GAAP financial measures and reconciliations of non-GAAP financial measures to GAAP financial measures. The financial targets and outlook provided herein assume the company’s current economic forecast and fuel price expectations, no additional COVID-19-related business restrictions, and no additional adverse geopolitical developments.

Media Contact: Jenny Robertson 901-434-4829 Investor Contact: Mickey Foster 901-818-7468

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES

Fiscal 2022 and 2021 Financial Measures

FedEx reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our fiscal 2022 and 2021 consolidated adjusted operating income, adjusted operating margin, adjusted net income, and adjusted diluted earnings per share (“EPS”), fiscal 2022 consolidated return on invested capital (“ROIC”), and fiscal 2022 adjusted dividend payout ratio.

Adjusted Operating Income and Margin, Net Income, and Diluted EPS

Our fiscal 2022 and 2021 consolidated operating income and margin, net income, and diluted EPS have been adjusted to exclude, as applicable:

• Mark-to-market (“MTM”) retirement plans accounting adjustments in fiscal 2022 and 2021;
• Business realignment costs in fiscal 2022 and 2021;
• Costs related to a FedEx Ground legal matter in fiscal 2022;
• TNT Express integration expenses incurred in fiscal 2022 and 2021; and
• Loss on debt extinguishment in fiscal 2021.

We have provided these non-GAAP financial measures for the same reasons that were outlined in our fourth quarter fiscal 2022 earnings release issued on June 23, 2022.

Return on Invested Capital and Adjusted Dividend Payout Ratio

Our consolidated ROIC for fiscal 2022 is calculated, in part, using non-GAAP financial measures. Adjusted operating income is included in the numerator, as we believe it is most indicative of our core operating performance. We add back to adjusted operating income interest on average operating leases, which we believe improves the comparability of ROIC between FedEx and other companies with different capital structures, and subtract adjusted current income taxes calculated using our adjusted current income tax rate in order to determine the after-tax adjusted return earned in the current period. Additionally, one input of the denominator is average net working capital as of May 31, 2022 and May 31, 2021, adjusted to exclude (i) average cash and cash equivalents in excess of those required to support daily business operations and cash equivalents held in restricted offshore accounts from average current assets, as these items do not contribute to the generation of operating returns, and (ii) the current portion of long-term debt and operating lease liabilities from average current liabilities, as we consider these items part of total invested capital used to support the generation of operating returns. We have provided reconciliations of our 2022 adjusted current income tax rate to our 2022 current income tax rate and of our average adjusted total current assets and total current liabilities as of May 31, 2022 and May 31, 2021 to our average total current assets and total current liabilities as of May 31, 2022 and May 31, 2021 under “Full-Year Fiscal 2022—Return on Invested Capital” below.

We believe ROIC is a meaningful measure of how effectively we are deploying our key assets and using capital to generate profits. Numerous methods exist for calculating ROIC. Accordingly, the method used by FedEx may differ from the methods used by other companies. We encourage you to understand the methods used by another company to calculate ROIC before comparing its ROIC to ours.

Our adjusted dividend payout ratio for fiscal 2022 is calculated as cash dividends paid on our common stock in fiscal 2022 divided by fiscal 2021 adjusted consolidated net income. We calculate our adjusted dividend payout ratio, in part, using a non-GAAP financial measure that we believe excludes items that may not be indicative of, or are unrelated to, our core operating performance. We believe our adjusted dividend payout ratio is a meaningful measure of how effectively we have returned profits to holders of our common stock.

Fiscal 2023 and 2025 Forecasts

We have also provided forecasts for the following metrics for fiscal 2025: consolidated adjusted operating income and adjusted operating margin, adjusted net income, and adjusted EPS; adjusted FedEx Ground, FedEx Express, and FedEx Freight segment operating margins; adjusted dividend payout ratio; and ROIC. Additionally, we have provided an adjusted dividend payout ratio forecast for fiscal 2023.

Other than our forecasted adjusted dividend payout ratio for fiscal 2023, we do not provide a reconciliation of these non-GAAP financial forecasts to the most directly comparable GAAP forecasts because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort. For example, we are unable to predict the amount of the fiscal 2025 MTM retirement plans accounting adjustments, as they are significantly impacted by changes in interest rates and the financial markets. Additionally, we may incur costs during fiscal 2023, 2024, and 2025 related to business optimization initiatives as well as other costs that are unrelated to our core operating performance and/or extraordinary in nature. We are currently unable to forecast the amount and timing of these additional costs. These items are inherently uncertain and depend on various factors, many of which are beyond our control, and as such, any associated estimate and its impact on our GAAP financial measures could vary materially.

Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our fiscal 2022 and 2021 non-GAAP financial measures and fiscal 2023 forecasted adjusted dividend payout ratio to the most directly comparable GAAP measures.

Full-Year Fiscal 2022

Return on Invested Capital

Adjusted Dividend Payout Ratio

Full-Year Fiscal 2021

Fiscal 2023 Adjusted Dividend Payout Ratio Forecast

1 – Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.

2 – Effect of “total other (expense) income” on net income amount not shown.

3 – Reflects the year-end adjustment to the valuation of the company’s defined benefit pension and other postretirement plans. For fiscal 2022, the MTM retirement plans accounting adjustments also include the second quarter TNT Express MTM retirement plans accounting adjustment related to a noncash loss associated with the termination of a TNT Express European pension plan and a curtailment charge related to the U.S. FedEx Freight pension plan. For fiscal 2021, the MTM retirement plans accounting adjustments also include the second quarter TNT Express MTM retirement plans accounting adjustment related to a noncash loss associated with amending a TNT Express European pension plan to harmonize retirement benefits.

4 – Business realignment costs were recognized at FedEx Express.

5 – These charges were recognized at FedEx Corporation.

6 – These expenses were recognized at FedEx Corporation and FedEx Express.

7 – Represents the hypothetical interest expense implied within rentals expenses the company would incur if property under operating leases were owned or accounted for as finance leases. Estimated using the weighted-average discount rate for operating leases, which was 2.85% for 2022, applied to the total of the average current and long-term operating lease liabilities as of May 31, 2022 and May 31, 2021, respectively. See “Fiscal 2022 and 2021 Financial Measures—Return on Invested Capital and Adjusted Dividend Payout Ratio” above for additional information.

8 – Calculated as 2022 adjusted operating income with the add-back for interest on average operating leases multiplied by the 2022 adjusted current income tax rate of 11.9%. Our current income tax rate for 2022 of 15.3% is calculated by dividing our current tax provision by income before income taxes, and has been adjusted as follows:

See “Fiscal 2022 and 2021 Financial Measures—Return on Invested Capital and Adjusted Dividend Payout Ratio” above for additional information.

9 – Other than average adjusted net working capital, amounts are averages of the applicable line items included in FedEx’s condensed consolidated balance sheets for the fiscal years ended May 31, 2022 and May 31, 2021, respectively.

10 – Calculated as our average total current assets for the years ended May 31, 2022 and May 31, 2021, adjusted as follows, minus our average total current liabilities for the years ended May 31, 2022 and May 31, 2021, adjusted as follows:

Dollars in millions

11 – Does not sum to total due to rounding.

FedEx consolidation plan: From timeline to leadership, here's what we know

FedEx Corp. announced one of the company’s most significant changes in recent history during an investors’ event at the New York Stock Exchange on Wednesday.

FedEx will soon undergo a phased transition consolidating FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies into a single company,  Federal Express Corporation , according to a news release.

“ Over the last 50 years , we built networks that have created a differentiated and unmatched portfolio of services,” FedEx President and CEO Raj Subramaniam said in a statement. “This organizational evolution reflects how we represent ourselves in the marketplace — focused on flexibility, efficiency, and intelligence. As one FedEx team, we are well positioned to execute on our mission to help customers compete and win with the world’s smartest logistics network.”

Here are three things to know about FedEx’s consolidation plan.

FedEx consolidation: What are the risks and rewards of new restructuring plan?

FedEx Express: FedEx pilots picket on Wall Street for a better contract as negotiations stall

Why is FedEx undergoing this transition?

FedEx has announced a series of cost-cutting measures over recent months due to continually decreasing demand and high operating costs with Wednesday’s news being the latest one.

The new single company will operate as a unified, fully integrated air-ground network under the FedEx brand.

FedEx’s consolidation effort is part of its DRIVE initiative to generate $4 billion of permanent cost reductions in fiscal year 2025. DRIVE is the company’s multiyear effort to improve the efficiency with which FedEx picks up, transports and delivers packages in the U.S. and Canada.

Who will be leading the FedEx company?

Subramaniam will serve in the same roles as president and CEO of the combined FedEx organization.

Effective April 16, John A Smith will become president and CEO of U.S. and Canada Ground Operations at FedEx Express and assume leadership of surface operations across the FedEx Express, FedEx Ground and FedEx Freight businesses.

Richard W. Smith will serve as president and CEO, Airline and International at FedEx Express, overseeing all other regions and FedEx Logistics.

FedEx package handler to pilot: How a Memphis native turned childhood dream into reality

Logistics: How FedEx, Amazon and UPS are cutting costs in the current economic climate

When will the FedEx transition begin?

Full implementation of the plan is expected in June 2024.

FedEx said the company will not change its financial reporting segments during the transition period until June 2024.

Also FedEx Freight will continue to provide less-than-truckload freight transportation services as a stand-alone company under Federal Express Corporation.

Omer Yusuf covers the Ford project in Haywood County, FedEx, tourism and banking for The Commercial Appeal. He can be reached via email  [email protected]  or followed on Twitter @OmerAYusuf.

FedEx to combine delivery units as part of $4 billion cost-cut push

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Lisa Baertlein covers the movement of goods around the world, with emphasis on ocean transport and last-mile delivery. In her free time, you'll find her sailing, painting or exploring state and national parks.

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Starting a Business | Ultimate Guide

FedEx Routes for Sale: The Ultimate Guide

Published December 11, 2019

Published Dec 11, 2019

WRITTEN BY: Robert Newcomer-Dyer

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This article is part of a larger series on Starting a Business .

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Much of FedEx’s success is due to the over 12,000 independent business owners who own the routes and deliver and pick up packages, keeping the FedEx machine running smoothly. These entrepreneurs hire and train delivery personnel, purchase and maintain vehicles and other equipment, and oversee the day-to-day operations on their route.

Where to Find FedEx Routes for Sale

FedEx routes for sale can be found a number of different ways. One common method is through word-of-mouth. Prospective route owners that have contacts in the shipping or logistics industries can tap their network to determine what routes are for sale that might be of interest to them.

While FedEx lists routes for sale at its website, BuildaGroundBiz.com, at the time of writing this article only a dozen or so routes were listed. Another common method for finding a FedEx route for prospective owners that don’t have existing industry experience or contacts is through business brokerage sites. Brokers like KR Capital maintain targeted buyer lists and can notify buyers when new routes come up for sale that meet their criteria.

Some of the top sites that list FedEx routes for sale are:

• KR Capital : Broker that lists nationwide FedEx routes for sale, with about two dozen at the time of this writing. Maintains a targeted buyer’s list with nearly 10,000 buyers that are notified when specific routes come up for sale.
• BizBuySell : Business listings website listing nationwide FedEx routes for sale, search “FedEx” using advanced search feature.
• BizQuest : Business listings website listing nationwide FedEx routes for sale, with about 300 at the time of this writing.
• Routes to Success : Broker that lists FedEx routes for sale in NY, GA, NJ, PA, SC, TX, VT, with about a dozen listings at the time of this writing.
• Capital Route Sales : Broker that lists FedEx routes with about a dozen listings at the time of  this writing.

Although finding the right route may prove challenging, it’s important to do due diligence when a route that meets your criteria does become available. Most industry experts recommend not buying a route without riding it first. This will give you valuable insight into problems that may arise in the field such as unhappy employees, poorly maintained vehicles, and other logistics that likely won’t be covered in conversations with the seller.

Minimum Eligibility to Own a FedEx Route

Contrary to what you might think, most people who buy FedEx routes don’t have driving or trucking experience, and that is OK. You don’t need such experience to own a FedEx route. However, most usually become interested in the opportunity because of a background in logistics, shipping, or management.

To own a route with FedEx, you will have to sign a contract with FedEx and become an independent contractor . This means you are not an employee of FedEx and will not receive health insurance, a retirement plan, or other benefits from FedEx. Additionally, FedEx requires that your business is set up as a Corporation .

Some of the logistics a FedEx contractor is responsible for are:

• Equipment: Contractors are responsible for buying or leasing equipment such as vehicles, as well as maintaining that equipment.
• HR: All hiring, training, and employee retention is the responsibility of the route owner.
• Benefits: Route owners will be responsible for offering insurance and retirement plans (if applicable).
• Accounting: Accounting and bookkeeping responsibilities such as payroll and business taxes are managed by the contractor.

Although you are an independent business owner and will oversee the day-to-day operations of the route, you must also comply with certain FedEx rules. For example, you and your employees will have to wear FedEx uniforms, and the drivers you hire will need to satisfy FedEx’s driving safety rules.

Most owners of FedEx routes are owner-operators. Not only do they own the route, but they also drive and deliver packages regularly or from time to time when their employees call out sick or are unavailable. If you plan on driving, you will have to meet FedEx’s driving safety rules. You should see your contract for any additional requirements.

The minimum standards that must be passed by an owner-operators are:

• No more than 3 moving violations in the last three years, and a maximum of one in the last 12 months
• Able to pass a Department of Transportation physical and drug test
• A valid Commercial Driver’s License (CDL)

The contractor agreement that you sign with FedEx lasts one to three years, and it renews automatically unless the contractor wants to get out of the business or if FedEx can demonstrate that the contractor is not meeting the terms of the contract.

Types of Routes You Can Buy

Before beginning the search for a FedEx route, you should narrow down the type of route you would like to purchase. There are two types of business opportunities available to contractors; FedEx Ground, which is the most common type of route, and Custom Critical. The FedEx Ground routes are further separated into pickup and Delivery (P&D), and Linehaul routes.

The two main types of FedEx independent contractor opportunities are:

• FedEx Ground: These consist of routes with residential and/or commercial customers. These are dedicated routes with set schedules. You own the route and can drive the route or can hire employees to do the driving.
• FedEx Custom Critical : This covers deliveries that require special handling such as temperature control. There’s no dedicated route and no set schedule, and you must be an owner-operator to participate (i.e., you own and drive the route).

The two different types of FedEx Ground routes are:

• Pickup and delivery (P&D) routes: You drive a van or truck and drop off and pick up packages to and from residential or commercial addresses (or a combination of both residential and commercial).
• Linehaul routes: You drive a tractor trailer and cross state lines to deliver loads to and from designated FedEx hubs. These routes are usually more expensive compared to P&D.

Independent Service Provider (ISP) Model

In May 2020, FedEx will finish transitioning to an independent service provider (ISP) model. With this transition comes some changes to route ownership requirements, and ISPs will be required to own at least five routes or 500 stops per day under the new model.

According to Kyle Rohner, CEO of KR Capital: “With the transition to the ISP model, there’s a route overlap component: historically you would have ground contractors—commercial accounts and businesses—and home delivery contracts, you might have one contractor that owned the ground routes in a certain ZIP code and a home deliver contractor sending his truck into that same area, which is not terribly efficient.”

Contractors that are unable to meet these upcoming requirements will be required to enter negotiations with FedEx to expand their routes, sell their routes, or merge with another contractor to satisfy the minimum requirements. Existing and prospective contractors should ensure they fully understand FedEx’s shift to the ISP model which becomes fully active in 2020.

Expected Costs & Earnings of a FedEx Route

In many ways, says Rohner, being a FedEx contractor is a “double edged sword.” On the one hand, you don’t have to spend time or money on sales and marketing, customer acquisition, rent, or utilities. However, the hours can be long, you have to work on some holidays , and most importantly, you must follow pay schedules and other rules set by FedEx in your contractor agreement.

Revenues & Profits

The three ways FedEx contractors are typically paid are:

• Annual rate: FedEx contractors are paid a flat annual rate based on the size and other characteristics of the route.
• Delivery and pickup payments: Contractors receive a payment for each delivery and pickup, for example $1 and $2 respectively.
• Bonuses: Contractors can earn bonuses for things like customer service and safety achievements.

When you add all this up, the average annual profit for a FedEx route is around $30,000-$40,000 per route. Keep in mind that this multiplies with every additional route that you own. Actual profits will vary based on where your route is located, how many employees you have, the number of loads you handle, and other factors.

The three biggest expenses of owning a FedEx route that may impact revenues are:

• Buying the route itself
• Paying and retaining employees
• Vehicles and other equipment (as well as fuel, maintenance costs, etc.)

While the cost of a route varies widely based on its location, number of employees, and other factors, the average price is about $100,000 per route, says Rohner. Several routes often come bunched together if you are buying linehaul routes. In fact, FedEx estimates that 92% of packages are handled by contractors with multiple routes.

The average number of people employed by a FedEx Ground contractor is seven. In addition to paying their salary, you will have to take into consideration employee benefits (should you choose to provide them) like health insurance and retirement plans.

Apart from the route and employees, you’ll need to purchase equipment.

Some examples of the type of equipment you’ll need to purchase are:

• Vans, trucks, and (depending on your route) planes
• Uniforms for yourself and employees
• Decals for vehicle
• FedEx scanners and software

There’s no particular dealer that you need to go through to purchase this equipment as long as it meets the specifications laid out in your contract. FedExTrucksforSale.com has several options for vehicles. Rohner says that most contractors use FedEx terminals where packages are stored to park their vehicles, so you most likely won’t have to pay for vehicle storage.

Adding all these expenses up, it’s apparent that owning a FedEx route can be a costly endeavor. That being said, if you can provide great service and build on your customers’ loyalty to their “FedEx guy” or “FedEx girl,” then you can potentially go very far in this business.

Benefits of Owning a FedEx Route

There are several distinct advantages to buying a FedEx route, and these routes are highly sought after for a number of reasons. Among these benefits, route owners will not be required to make any sales or marketing efforts, can expect to be paid on time, on a weekly basis, and may choose to manage remote routes that are not in close proximity to their residence or place of business.

Some of the primary benefits of owning a FedEx Route are:

No Sales or Marketing Required

FedEx handles all of the required sales and marketing efforts involved in developing routes. Owners only need to handle the logistics of picking up and delivering packages on scheduled routes. This can be a huge benefit for owners that are not interested in managing the development of routes, and would prefer to focus on transportation logistics instead.

A key concern prospective owners will want to be aware of is that routes may experience diminished performance over time, and there is very little control an owner can exercise over this. While the package delivery industry itself continues to grow, as does FedEx’s market share, some routes may be subject to heavy competition. Would-be FedEx route owners should consider diversifying routes to avoid an outsized impact to revenues from any one route.

Reliable, Quick Payments

FedEx pays its route contractors on a weekly basis, for the previous week’s package deliveries. Pay is executed by direct deposit, and is generally reliable. Revenue for routes is generally considered to be consistent week-over-week. However, pay can be impacted by both peak delivery periods, as well as dips in shipping activity. Contractors will want to plan accordingly, and ensure that they are managing logistics efficiently during seasonal changes.

May be Managed Remotely

While FedEx does not advertise its routes as absentee owner compatible, FedEx routes may be managed remotely, and many route owners do not perform any package delivery, instead focusing on the management of route logistics. Prospective owners looking for an absentee-owner route may find that the logistics of managing one or more routes requires more effort than they planned for, and in general FedEx does not encourage absentee ownership.

Excellent Growth Potential

“FedEx is growing very rapidly, organically. So based on the growth that FedEx is experiencing you might benefit from that directly. There are growth opportunities that become available to existing contractors at no charge. So, as FedEx opens up a new territory, or gains new customers, those new customers need to be serviced, and those opportunities are awarded to contractors that demonstrate an ability to be successful and serve customers well. “The way that works is FedEx will make an announcement that a new opportunity has become available, and existing contractors will put together an RFI making a case for why they should receive the new opportunity, creating additional upside for growth.” —Kyle Rohner, CEO of KR Capital LLC

Financing Options to Buy FedEx Routes

Most borrowers need some kind of financing to purchase a business such as a FedEx route. There are a variety of options for obtaining financing . Generally speaking, you will need a loan to cover the cost of equipment and working capital to hire and pay employees, storage fees, etc.

The least expensive source of financing for most people who buy a FedEx route will be an SBA loan , which can be for working capital and to buy equipment.

Some of the typical requirements to qualify for an SBA loan are:

• Credit score: At least 680
• Cash flow: Existing route should be cash flow positive
• Collateral: Primary personal residence may need to be put up as collateral, as well as FedEx vehicles and other equipment related to the business, up to 100% of the loan, or to the greatest extent possible

If you meet these requirements, we recommend South End Capital for SBA loans when buying a business. They excel at relatively quick turnarounds on SBA loans and offer free consultations. As with all SBA loans, borrowers should expect to bring up to a 30% down payment.

ROBS financing is an option for both SBA loan down payments and complete funding. Through a ROBS, aka “Rollover as Business Startup,” you can finance a business using your retirement account. You can learn more in our Ultimate Guide to ROBS Financing , or speak with our recommend ROBS provider, Guidant Financial.

Bottom Line

Buying FedEx routes for sale can be a lucrative and flexible way to get into business with fewer costs than traditional brick and mortar businesses. There are multiple opportunities to find a FedEx route of interest to you, and when you’re ready to purchase, there are multiple financing options to get you going.

Need financing to get started? Guidant Financial is an experienced ROBS provider which can help you convert your retirement funds into working capital today. They also offer free outside counsel throughout the entire process. Set up a free consultation with an agent today.

Visit Guidant

About the Author

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Robert Newcomer-Dyer

Robert has over 15 years of experience in sales leadership, finance, and business development. He recently spent six years leading a team of small business financing professionals, facilitating the deployment of critical capital to over 9,000 small businesses across the US.

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FedEx Business Account Setup: A Step-by-Step Guide for Entrepreneurs

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Opening a FedEx business account can provide small business owners with a range of benefits and services. By following a step-by-step process, entrepreneurs can set up their FedEx business account and unlock features such as shipping discounts, customer support, and streamlined logistics. This guide will walk you through the process of setting up a FedEx business account, ensuring that you can take advantage of all the benefits available to you.

Why a FedEx Business Account is Essential for Entrepreneurs

A FedEx business account offers a multitude of benefits tailored to support the growth and success of small businesses. By opening a business account, entrepreneurs gain access to a team of shipping experts who can provide personalized guidance and assistance throughout the shipping process. This level of expertise ensures that your packages are handled with care and delivered efficiently to their destination.

One of the key advantages of a FedEx business account is the potential for special pricing on select services. By leveraging your account, you can qualify for exclusive discounts, helping you save on shipping costs and enhancing your overall business profitability.

Furthermore, entrepreneurs who open a FedEx business account have the opportunity to join the My FedEx Rewards program. This program allows you to earn valuable points for every eligible shipment, which can be redeemed for a range of rewards, including merchandise, gift cards, and even travel vouchers. By becoming a member, you can enjoy added incentives for your shipping activities while accumulating rewards that can benefit both your business and personal life.

Another valuable feature of a FedEx business account is the ability to utilize picture proof of delivery . This feature provides you with visual confirmation that your packages have been successfully delivered to their intended recipients. Having this added layer of assurance can instill confidence in your customers and demonstrate your commitment to reliable and transparent shipping practices.

In summary, a FedEx business account presents entrepreneurs with a wealth of benefits and features designed to streamline their shipping operations and contribute to the success of their businesses. From expert guidance and personalized assistance to special pricing, rewards programs, and picture proof of delivery, a business account with FedEx is an essential tool for entrepreneurs looking to enhance their shipping processes, cultivate customer trust, and ultimately propel their business forward.

How to Create a FedEx Business Account

Creating a FedEx business account is a simple and straightforward process that allows small business owners to access a range of benefits and services. Follow the step-by-step guide below to sign up for a FedEx business account and enjoy features such as shipping discounts, customer support, and streamlined logistics.

Step 1: Visit the FedEx Website

To begin the account registration process, go to the FedEx website. Once there, locate and click on the “Sign up” option to get started.

Step 2: Choose a Business Account

After clicking “Sign up,” you will be prompted to choose the type of account you want to open. Select the option to open a business account.

Step 3: Complete the Registration Form

Fill out the registration form by providing the necessary details about your business. This may include your company name, address, contact information, and industry type. Ensure that all information is accurate and up-to-date.

Step 4: Link a Credit Card for Billing

Although opening a FedEx business account is free, you will need to link a credit card for billing purposes. This allows for easy and convenient payment for shipping expenses and other services.

Step 5: Start Enjoying the Benefits

Once your account is set up, you can start taking advantage of the various features and benefits offered by FedEx. These include discounted shipping rates, personalized customer support, and access to advanced shipping tools and technologies.

Creating a FedEx business account is a valuable step for entrepreneurs looking to streamline their shipping processes and enhance the efficiency of their operations. Sign up today to unlock the full potential of FedEx’s services and maximize the success of your small business.

The Benefits of a FedEx Small Business Account

A FedEx small business account provides a range of benefits to entrepreneurs. By opening a free account, small business owners can:

• Receive shipping and printing discounts
• Access customer support and shipping tools
• Earn rewards through the My FedEx Rewards program

Additionally, account holders may qualify for special pricing based on their shipping needs and volume. To access these benefits, users can log in to their FedEx business account using the provided login credentials.

With a FedEx small business account, entrepreneurs can streamline their shipping operations, save on costs, and enjoy additional perks that enhance their overall business efficiency.

Tips for Successful Product Shipping and Packaging

When it comes to shipping products, protecting them from damage is essential. Proper packaging plays a crucial role in ensuring that your items arrive safely at their destination. Follow these tips to protect your products during shipping and ensure customer satisfaction:

Choose the right-sized box

Select a box that provides enough space for your product and allows for proper cushioning. Using a box that is too small can result in damage during transit, while an oversized box may lead to shifting and potential breakage. Consider using FedEx’s Packaging Lab for guidance on selecting the appropriate box size for your specific item.

Use adequate cushioning materials

Cushioning materials such as bubble wrap, packing peanuts, or air pillows are essential for keeping your products safe during shipping. Ensure that your item is surrounded by at least 2-3 inches of cushioning material on all sides. This helps absorb any impacts and prevents movement within the box.

Avoid bulging packaging

Avoid overpacking your box to the point where it bulges or there is no room for proper cushioning. Bulging packaging is at higher risk of damage during handling and may not fit appropriately in shipping vehicles. Ensure that the box is securely sealed without any excessive bulges.

Consider using FedEx's Packaging Lab

If you are shipping fragile or unique items, FedEx offers complimentary package testing options through their Packaging Lab. The experts at the Packaging Lab can provide guidance on how to package your items in the best possible way to ensure their safe arrival. Take advantage of this valuable resource to minimize the risk of damage.

By following these tips, you can protect your products during shipping and enhance the customer experience. Proper packaging and cushioning materials are key to ensuring that your items arrive safely and intact, regardless of the shipping distance or handling conditions.

Understanding Customs Value and Declared Value in Shipping

When it comes to international shipping, it’s essential to have a clear understanding of customs value and declared value. These terms play a significant role in determining the import duty and liability associated with your shipment. Let’s dive deeper into the difference between customs value and declared value.

Customs Value:

The customs value is the total value of the items being imported. It serves as the basis for calculating import duty and other taxes. To determine the customs value, the value of the goods, transportation costs, insurance, and any applicable charges or expenses related to the importation must be considered.

Declared Value:

On the other hand, the declared value represents the maximum liability of FedEx in relation to the shipment. It is the value that you, as the shipper, declare for the package contents. Declaring a value for your package is optional but can be beneficial in certain situations.

It’s important to note that declaring a value for your package is not the same as shipping insurance. While declaring a value indicates the maximum liability of FedEx, it does not provide full coverage for potential loss or damage during transit. If you require comprehensive shipping insurance, it is advisable to purchase third-party insurance separately.

For detailed information on shipping terms, guidelines, and the legal framework surrounding customs value and declared value, entrepreneurs should consult the FedEx Service Guide and Freight 100-U Rules Tariff.

By understanding the distinction between customs value and declared value, you can navigate international shipping with confidence, ensuring compliance with customs regulations and making informed decisions about insurance coverage.

Additional Steps for Starting a New Business

Setting up a FedEx business account is just one step in starting a new business. To ensure a successful venture, entrepreneurs should also focus on conducting thorough market research and developing a pricing model for their products or services.

Market research plays a critical role in understanding the target audience, identifying competitors, and validating the business idea. By gathering data on consumer preferences, market trends, and industry dynamics, entrepreneurs can make informed decisions that drive growth and profitability.

Testing the concept is equally important. By piloting the product or service in a small market, entrepreneurs can gather feedback, make necessary adjustments, and improve the offering before expanding to a larger customer base.

Developing a pricing model that strikes the right balance between profitability and customer value is vital. Entrepreneurs should consider factors such as production costs, competitive pricing, and customer willingness to pay. A well-thought-out pricing strategy can help maximize revenue and gain a competitive edge.

Building a comprehensive business plan is essential as it serves as a roadmap for the new business. This plan outlines the vision, mission, target market, marketing strategies, financial projections, and more. It provides a clear direction while attracting potential investors and stakeholders.

Crafting a strong sales pitch is crucial for attracting customers and investors. Entrepreneurs must distill their unique value proposition into a concise and compelling message that resonates with the target audience.

To finance the new business, securing funding is crucial. Entrepreneurs can explore various options such as loans, grants, crowdfunding, or seeking investment from angel investors or venture capitalists.

In addition to these critical steps, entrepreneurs should also focus on deciding on a business structure, obtaining necessary licenses and permits, setting up accounting systems, and developing a brand identity that reflects their business’s core values.

By incorporating these additional steps into the process, entrepreneurs can set their new business on a path to success.

Starting a new business can be a complex and overwhelming process. However, by following a comprehensive checklist and taking advantage of the benefits of opening a FedEx business account, entrepreneurs can set themselves up for success. Market research and concept testing are crucial for validating business ideas and understanding the target market. Creating a solid business plan and securing funding are essential for long-term growth and sustainability.

One key component of starting a new business is streamlining shipping operations, and a FedEx business account provides the necessary tools and resources. Opening this account enables entrepreneurs to access shipping discounts, customer support, and streamlined logistics. With a FedEx business account, entrepreneurs can simplify their shipping processes and focus on growing their business.

By following this step-by-step guide and ticking off the items on the starting a new business checklist , entrepreneurs can ensure they cover all necessary steps. From researching the market and developing a pricing model to setting up accounting systems and obtaining necessary licenses and permits, each step plays a crucial role in building a strong foundation for the new venture. With careful planning, utilizing a FedEx business account, and leveraging its benefits, entrepreneurs can navigate the challenges of starting a new business and position themselves for future growth and expansion.

How do I set up a FedEx business account?

To set up a FedEx business account, visit the FedEx website and click on the “Sign up” option. Choose to open a business account and complete the registration form with your business details. You will need to link a credit card for billing purposes. Once the account is set up, you can start accessing the various features and benefits offered by FedEx.

What benefits does a FedEx business account offer?

A FedEx business account provides shipping discounts, access to customer support and shipping tools, eligibility for special pricing, enrollment in the My FedEx Rewards program, and picture proof of delivery for added confidence in the shipping process.

How much does a FedEx business account cost?

Opening a FedEx business account is free. However, certain services may have associated costs depending on your shipping needs and volume. Eligibility for special pricing will depend on your shipping requirements.

How do I login to my FedEx business account?

To log in to your FedEx business account, use the provided login credentials and enter them on the FedEx website’s login page. Once logged in, you can access your account’s features and benefits.

How can I protect my products during shipping?

Proper packaging is essential for protecting products during shipping. Choose the right-sized box and use adequate cushioning materials. FedEx recommends adding 2-3 inches of cushioning on all sides for fragile items. You can also take advantage of complimentary package testing options through FedEx’s Packaging Lab for any tricky packaging situations.

What is the difference between customs value and declared value in shipping?

Customs value is the total value of the items being imported and helps determine import duty. The declared value, on the other hand, is optional and represents the maximum liability of FedEx in relation to the shipment. It’s important to note that declaring a value is not shipping insurance, and third-party insurance may be purchased separately.

What additional steps should I take when starting a new business?

In addition to setting up a FedEx business account, other steps for starting a new business include market research to validate your business idea, testing your concept, developing a pricing model, creating a business plan, securing funding, deciding on a business structure, obtaining necessary licenses and permits, setting up accounting systems, and developing a brand identity.

How can I ensure I cover all the necessary steps when starting a new business?

By following a comprehensive checklist, entrepreneurs can cover all the necessary steps when starting a new business. The checklist should include market research, concept testing, creating a business plan, securing funding, choosing a business structure, obtaining licenses and permits, setting up accounting systems, creating a brand identity, and opening a FedEx business account.

By: Parcel Path Editorial Team

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Magnet: The magnetic material used in these cards is often flexible and lightweight, allowing it to be easily attached to metal surfaces such as refrigerators, file cabinets, or whiteboards.

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Small Business Brain

Education, Inspiration & News to Help You Build a Thriving Career

FedEx is Helping People Follow Their Entrepreneurial Dreams Through the FedEx Ground Contracting Opportunity

Orginally Posted On: April 30, 2020 By Brittni Abiolu -- Updated On April 30, 2020

COVID-19 doesn’t have to stop the creation of new businesses or the expansion of existing businesses. Some of the most successful businesses were launched during a recession (e.g. Apple, Microsoft and Netflix, etc). So if the desire to start (or expand) a business is still in your mind, you may want to consider the FedEx Ground Contracting Business Opportunity . Here’s what you need to know about the opportunity before getting started.

It Has Low Startup Costs

Startup costs for the FedEx Ground Contracting Business Opportunity amount to about $25,000. There are no acquisition fees charged by FedEx. You may also need to have at least 4 trucks of your own. If you do need trucks, this will increase your startup costs significantly. However, you may be able to obtain equipment financing or other types of financing to cover the cost of purchasing the trucks. To qualify for truck financing, you will likely need a minimum 650 credit score. You credit history should also be free of negative or delinquent accounts like late payments, collections, tax liens, or bankruptcies, etc.

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Is a FedEx Ground Contracting Business Right for You?

If you want to start a new business or currently own a transportation business, this could be a great way to expand it. FedEx is a well-known global brand and will give your business instant credibility. The FedEx Ground Contracting Business Opportunity also enables you to work hands-on (if you desire) and diversify your business portfolio. You can use you own equipment and team of employees to provide transportation and delivery solutions to your customers and FedEx. You will also be assigned exclusive territories, giving you the opportunity to dominate the market in your area. To learn more, visit the FedEx Ground Contracting Business Opportunity site and submit your contact information.

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Become an Independent FedEx Delivery Contractor

Become an independent fedex delivery contractor: a step-by-step guide.

Are you looking to start your own business and become your own boss? Consider becoming an independent service provider for FedEx Ground. With the rise of e-commerce, the demand for delivery services has never been higher, and FedEx provides a valuable opportunity for entrepreneurs to grow their own delivery business. In this blog, we'll take a look at the steps you need to take to become a FedEx Ground contractor and financing options for obtaining your vehicle.

Step 1: Determine Eligibility

The first step in becoming a FedEx Ground contractor is to determine if you are eligible. FedEx requires that contractors meet certain criteria, including:

• Must be at least 21 years of age
• Have a valid driver's license and a clean driving record
• Possess a qualifying vehicle, such as a cargo van, box truck, or sprinter van
• Must pass a background check and drug screening

Step 2: Contact FedEx

Once you have determined that you are eligible to become a FedEx Ground contractor, the next step is to contact FedEx. You can visit the FedEx website or call them to learn more about the process of becoming a contractor.

Step 3: Determine Where Routes Are Available Near You

Where you live will determine several factors when it comes to purchasing a FedEx Ground business. If you are looking to be a hands-on owner, it is important to find routes available that are within a reasonable driving distance from your main residence. Many owners like to be within six hours maximum from their homes, as this does not require booking flights last minute in the event of an emergency. If you plan on being in the terminal each day, a distance of no farther than one hour from your home is recommended. 

Step 4: Complete Required Training

FedEx requires all contractors to complete training before they can begin delivering packages. This training covers everything from safety and customer service to delivery operations and more. The training is mandatory and must be completed before you start your deliveries.

In addition to completing the required training, it is recommended that you also look into additional training and advice from others already in the industry. Some of these options include groups such as ThinkISP . Current contractors that have been successful in the space can not only give great advice, but also give their thoughts on best practices as you enter the industry. 

Step 5: Route Financing

After you determine which set of routes are best for you, obtaining financing for the purchase of your business is the next order of business. There are several options available, including SBA loans and independent financing. Finding the best loan for your specific situation is critical to long term success. 

Step 6: Choose a Vehicle

To become a FedEx Ground contractor, you will need a qualifying vehicle. This can include a cargo van, box truck, or sprinter van. 

The most popular package delivery vans used by independent delivery contractors for FedEx ground are:

• Ford E450 P700
• Ford F59 P900
• Ford F59 P1000
• Ford F59 P1100
• Ford F59 P1200
• Freightliner MT45G P1000
• Freightliner MT55G P1100
• Freightliner MT55G P1200

You'll want to consider the specific needs of your route and driver(s) when deciding which vehicle is best for you. Our package delivery experts are here to guide you through this decision making process.   

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Step 7: Finance Your Vehicle

You may not have enough cash to buy a package delivery truck outright, and that's okay: TransLease offers financing options  to help you obtain a truck for your FedEx delivery business. Our team of finance experts will work with you to find the best financing option to fit your needs and budget. Purchase one unit or multiple vehicles for your fleet, all in a single, simple transaction. This way, you can spend less time negotiating and more time making your business money. 

Step 8: Start Delivering Packages

Once you have completed your training and obtained a vehicle, you are ready to start delivering packages for FedEx. As an independent contractor, you will be responsible for managing your own deliveries and scheduling, as well as maintaining your vehicle.

Becoming an independent FedEx Ground contractor is a great opportunity for entrepreneurs looking to start their own business. By following these steps and taking advantage of financing options like those offered by Transwest Truck Trailer RV, you can turn your dream of owning your own delivery business into a reality. For over 30 years Transwest has been trusted by independent delivery contractors for the largest package delivery companies such as Amazon, FedEx, UPS and more. As the leading package delivery truck dealer in the country, Transwest prides itself on making the process of purchase to delivery straightforward and easy. Our industry expert staff are here to help you find the perfect truck for each of your specific route needs. Transwest stocks the top last mile delivery brands such as Freightliner, Ford, GMC, and Chevrolet.

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Critical Components to Cover in Your Business Continuity Plan

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Fire, natural disasters or a national pandemic can quickly turn your day-to-day business operations upside down. When the unexpected happens, you need more than insurance to keep your company running—you need a business continuity plan to move forward and keep it afloat.

What is a business continuity plan? It’s a system that details the steps to take to keep your business going after a disruptive event occurs. A  business continuity template  can help guide you. Read on for more details on each step, and start putting a plan in place to ensure your business has the resources it needs to quickly recover from a disaster or crisis.

1. Perform a business impact analysis

Good business continuity planning starts with a business impact analysis. This first step identifies the essential components of your business and gives you a detailed understanding of the impact any disruption may have on your operations. FEMA offers questionnaire forms to help you get started.

Think about the core aspects that keep your business running and which areas, if disrupted, would cause revenue loss or harm to your brand reputation. The impact on your business depends on the disruptive event you experience. For example, a natural disaster that damages your storefront will affect your business differently than a pandemic that keeps customers at home. 

When performing your business impact analysis, ask yourself these questions:

• Which key areas of your business are essential to your revenue stream?
• What are the most critical functions of your business? What happens when these processes are disrupted?
• Which members of your team are considered essential? What would happen if one or more of your team members were affected by the crisis and unable to work?

You must also consider the dependencies between these components. If there is damage to any of these core areas or the chain that links them together, how will it further impact your business? 

2. Determine your priorities and strategies for response and recovery

Readiness strategies and procedures are crucial to a basic business continuity plan. Once you've determined which critical components of your business will be affected and the resulting damage, outline your plan for recovery and the first steps to take immediately after an emergency.

First, create a timeline for your recovery phase. Depending on the setback you experience, you may need a different approach for each possible scenario. For example, a cyberattack might take days to bounce back from, while fire damage can take weeks or months before you can resume normal operations. Having a timeline in place with specific steps gives you a starting point.

Next, write down detailed instructions and processes to follow. Cover the answers to these questions:

• Who is responsible for each recovery step? If a key team member is unable to work, who will take their place?
• If a core function of your business is offline, what needs to be done to fill the gap until operational status is restored?
• What resources do you still have access to?

The strategies you create may be the lifeline that saves your business when the unexpected occurs, so take the time to map out a comprehensive plan.

3. Form teams and conduct trainings

Once you've documented your plan, share it online and compile it in a manual to keep onsite for your team to access anytime. Unless your business employs just a few people, create groups that are responsible for different emergency responses and recovery solutions. Perform drills and hold regular training sessions to go over the details of your business continuity plan with your employees, and remember to update the plan anytime your core components shift or change.

The road to recovery after a disaster or crisis may not be an easy one, but a business continuity plan gives you something to rely on when times feel uncertain. Taking the time to create a thorough plan with detailed instructions for employees better prepares your business for any unexpected events that come your way.

The information on this page and links provided are as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by FedEx of any of business, products, services, or opinions of any other corporation or organization or individual. FedEx bears no responsibility for the accuracy, legality, or content of any external site or for that of subsequent links. It is important to do your own analysis based on your business needs before using any third-party products or services. Any actions you take upon the information on this page is strictly at your own risk.

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The U.S. Small Business Administration (SBA) has compiled a list of  guidelines for how business plans should be prepared, including what  needs to be outlined and included in order get funding from banks and  other institutions. MyGround Support® is an experienced FedEx Route SBA Business Plan author that can author your plan to these guidelines .  

Be sure to read our blog pos t on exact loans issued to FedEx Contractors including their Name, Location, Lender, and Loan Amount as well.

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The Origins of FedEx

Did the idea behind fedex earn that company's founder a failing mark while he was a college student, barbara mikkelson, published may 27, 2009.

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The core concept for FedEx's system of routing packages through a central hub was first expressed in a term paper penned by that company's founder while he was a college student.

The concept was not decried as unworkable or fool-headed by the professor who marked the paper, nor was the paper given a failing grade.

Especially prized in the realm of business lore are stories about well-known companies or concepts deemed unworkable by those supposedly in the know, yet their founders or originators forged on with those innovative plans despite the criticism they attracted and used them to establish wildly successful business entities. One of these yarns has to do with the core concept behind FedEx, one of the largest parcel delivery services in the world. According to a well-traveled bit of lore, the term paper in which the concept for FedEx was initially presented earned its author a failing grade as well as the derision of the professor who reviewed it:

A young person informed me that FedEx began when a college professor told his class to come up with a business plan which would work. A student submitted a plan for FedEx, although I'm not sure he named it so, and the professor allegedly told the student that he had failed, because, as was told to me, "My book says it won't work." The student, determined to prove that the professor was wrong, started the company. My young source tells me that at the home office of FedEx, there hangs on the wall the original business plan.

The spark of innovation that led to the creation of FedEx was indeed expressed in a college term paper penned by that company's founder while he was a student at Yale. However, the completing parts of the legend — that the paper earned a failing grade, or the professor who reviewed it arrogantly dismissed its premise as unworkable, even highly unrealistic and fool-headed — are not. Nor is the element that the professor's dismissal of the notion drove the student to show up his instructor by establishing the delivery system, thereby proving him a jackass. Instead, the tale is far more mundane.

In 1965, while he was earning a Bachelor's degree in economics at Yale University, Frederick Smith penned a term paper for Professor Challis A. Hall's Economics 43A class which contained an outline for a delivery service that would use a "hub and spokes" concept to handle the routing of parcels. (This plan entails first directing packages through a central sorting facility before dispatching them onwards to their intended destinations.) Such plan did eventually form the backbone of Federal Express, a company Smith started in 1971 upon his return from Vietnam, where he served as an officer in the U.S. Marine Corps from 1966 to 1970.

A number of sources assert the term paper earned a C from the instructor who marked it. However, while that aspect of the tale has been widely touted as fact, it does not appear to be verifiable. Smith himself fed the acceptance of this element of the story by once stating in an offhand comment about the term paper "I guess I got my usual gentlemanly C," but in a 2002 interview Smith acknowledged "I don't really remember what grade I got. I probably didn't get a very good one, though, because it wasn't a well-thought-out paper." (Questioning Professor Hall, the man who bestowed the grade, is out of the question because he died in 1968.)

Smith made no mention in his various recountings about the term paper story of the professor's having written dismissive comments on it or of having told him afterwards the idea was flawed or unworkable. That aspect of the tale appears to have been added by those who have repeated it over the years.

Reed, Dan.    "Smith Keeps His Eye on the Sky."       USA Today.     8 October 2004     (p. B2).

Smith, Fred.     "How I Delivered the Goods."       Fortune Small Business.     October 2002.

Trimble, Vance.    Overnight Success.         New York: Crown, 1993.     ISBN 0-517-58510-3     (pp. 80-82).

Ulfelder, Steve.     "Signed, Sealed and Delivered."      Computerworld.     30 September 2002     (p. 50).

By Barbara Mikkelson

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