The Business Of Independent Service Provider Contracting

10 Differences Between New CSP's & Old Contractors

Posted by Ben Weil on Mar 15, 2020 3:06:54 PM

Here's a quote that correctly sums up today's blog post , "The past is in your head. The future is in your hands."

You'll recall that our last blog post dealt with the fact that today's FXG Contracting environment is very different than it was several years ago. More specifically we said what is being done has not changed as much as how it's being done differently.

Old Ways Wont Open New Doors sign with beach background

So, let's take a deeper dive and have a little fun by comparing ten things that are different in today's world.

10 Things Old Contractors Did vs 10 Things NEW CSP’s Do

  • Old Contractors monitored Inbound Local Service (ILS) as a measure of their success.
  • New CSP’s first monitor their daily operating margin, then ILS as measure of daily success.
  • Old Contractors recruited only when necessary.
  • New CSP’s recruit consistently preparing for turnover and frequent operational changes.
  • Old Contractors knew "everything" about their lifestyle business.
  • New CSP’s value expert business and operations training to constantly expand their knowledge and capabilities.
  • Old Contractors relied on FXG to direct them on compliance and administrative issues.
  • New CSP’s create sound business plans so that they can rely upon themselves.
  • Old Contractors derived all of their revenue from one source - FXG.
  • New CSP’s diversify their revenue streams through different sources so that they don’t solely rely on FXG.Old Habits - New Habits signpost with forest background
  • Old Contractors blamed FXG as the root of their problems.
  • New CSP’s create systems and processes allowing them to avoid problems before they start.
  • Old Contractors tried to handle their negotiations on their own.
  • New CSP’s seek professional advice and guidance for their negotiation because they know how important they are.
  • Old Contractors were oblivious to their Financial results.
  • New CSP’s follow professional advice and accept support to monitor and interpret their Financial results.
  • Old Contractors “thought” they knew what their business was worth.
  • New CSP’s understand that operational decisions impact Financial results, which directly impacts business value. They monitor the value of their businesses often.
  • Old Contractors paid drivers by the day.
  • New CSP’s pay drivers by the hour.

We stopped at ten, but you if you think of more, feel free to leave a comment. Maybe we'll even reply if it's appropriate.

Our mission remains helping our customers realize their goals. And we do that by being their partner and guide for the long haul.

Stay tuned for our next blog post.

 

Topics: FedEx Ground, contractor, Profit, leadership

Independent Service Provider (ISP) Tips And Advice

Learn From Industry Experts And Successful Contractors

Get valuable, actionable information from our founder and other industry participants that also have a deep understanding of your business and want to help you maximize your opportunity. Keep up with all the issues that affect your business.

  • Stay Informed
  • Find and Implement Other Best Practices
  • Learn Profit Maximizing Strategies
  • Make Running Your Business Easy
  • Create More Time To Do The Things You Want To Do

Subscribe to Receive New Posts

Recent Posts