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Delivery route: a desirable small business

A desirable business that has become a gold mine in the franchise world is the delivery route. Delivery routes are profit-generating investments that are highly lucrative and labor-intensive. They give you the opportunity to be your own boss. Most routes are sold not only with an established business book, but also with all the necessary equipment to get the job done. This means that the route begins to generate income from the moment it is purchased. In most cases, you can adjust your delivery schedule to suit your needs. The delivery business allows you to pay off many business expenses and gives you the opportunity to add stops to your routes to help you grow.

Types of routes

We have two main types: protected and independent route

Protected: This type of route comes with location protection and a single provider. 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 will be able to enter or sell to his specific location while a protected territory gives its owner the guarantee that no one who distributes the same product can enter the territory or geographical area of ​​the route. Examples of protected routes that come with geographical territorial limits were known. Pepsi and FedEx, which are often household names.

Independent: An independent route comes with great flexibility. That you can receive products from as many suppliers as you want, thus giving the route the ability to offer a variety of products at different prices. Its diversity of products guarantees the best prices. Generally, standalone routes offer higher networks for lower profits. Independent routes include vending machine routes, bread, sandwiches, meats, pastries, and groceries.

Find a route

Investing in a delivery business begins with buying a route. The process of finding the best route to invest can be quite demanding and time consuming. There are some websites that create listings and also provide leads for different types of trade routes. However, if you have a particular route, you can always buy directly from the company.

Financing options for routes

A major challenge you may face in getting into business is financing. Once you have decided on the particular route you want to own, you will be faced with several financing options. You can decide to get a home equity loan, a personal loan, or a second mortgage. Another financing option is the use of the ROBS (Rollover as Business Startups) solution. This solution not only allows you to access your retirement funds, but also tax-deferred and without penalties. The moment an established route shows profit, it is natural for owners to choose to expand into new territories. Therefore, it is good to have funds available in others so that you can buy new routes once they are available.

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