Delivery Route: A Desirable Small Business

By Rick Coomer

One desirable business that has become a gold mine in the franchising world is the delivery route. Delivery routes are profit generating investments which are very lucrative and industrious. They give you the opportunity to be your own boss. Most routes aren't sold with just an established book of business but also with all the equipment needed to do the work. This means that the route starts generating income the moment it's bought. In most cases, you get to adjust your delivery schedule to suit your needs. The delivery business allows you to write off many business expenses and gives you the chance to add stops to your routes so as to help it grow.

Types of Routes

We have two main types: protected and independent route

Protected: This type of route comes with the protection of the location and a single supplier. It includes protected stops and protected territory. A protected stop means that the owner does not have a specific territory but only a specific location. The owner has the assurance that no one who distributes the same product can enter or sell to your specific location while a protected territory gives its owner the guarantee that nobody distributing the same product can enter the territory or geographical area of the route. examples of protected routes that come with geographic territorial boundaries are Wised. Pepsi and FedEx which are usually household names.

Independent: An independent route comes with high flexibility. That can receive products from as many suppliers has it wants thus giving the route ability to provide a variety of products at the different prices. Their diversity of products guarantees the best prices. Generally, independent routes offer higher nets for lower profits. Independent routes include vending machine, bread, snacks, meat, cakes, and provisions routes.

Finding a Route

Investing in a delivery business starts with the purchase of a route. the process of finding the best route to invest on can be pretty demanding and time-consuming. There are some websites which create listings and also provides leads for different types of    business routes. However, if you have a particular route in mind, you can always purchase directly from the company.

Funding options for Routes

One major challenge which you might face when engaging in the business is funding. Once you have decided on the particular route you want to own, you will be faced with various funding options. You might decide to obtain a home equity loan, a personal loan, or a second mortgage. Another funding option is the use of the ROBS solution (Rollover as Business Startups). This solution does not only enable you to access your retirement funds but also tax-deferred and penalty free. The moment an established route shows profits, it's natural for owners to choose to expand to new territories. Thus, it's good to have funds readily available in other to be able to purchase new routes once they become available.

IDA serves all the needs of Independent Route Delivery Drivers. We offer up to 30% savings on Commercial Auto and General Liability Insurance. We offer fast & accurate Business Formation services for route delivery drivers who work with the bread and snack industry in USA.