HOW A COMMUNITY COLLEGE DROPOUT FOUND ENTREPRENEURIAL SUCCESS
You think your market conditions are tough, what about Colorado? According to the latest Bureau of Labor Statistics (BLS) data, the Denver area's average weekly wages are $1,242. Think it's easy to find drivers? The BLS also lists the area unemployment rate at 2.4%. Way lower than the U.S. average.
What made a young guy from out of town who knew nothing about the logistics industry think that he could buy a Ground business to support his growing family? Sure he's smart, but he's so young.
"There's no selling, no advertising, no collecting money from past due accounts. I'm not saying it's easy, but it beats a lot of other options out there," Preston Wengert says.
Preston was not a professional financial analyst. He had no experience running a service business. But he had a desire to learn, he had confidence in himself, and he was wise enough to seek help.
WHAT TO KNOW BEFORE BUYING A FEDEX GROUND BUSINESS
In reality, he wasn't totally naive. Wengert kept in touch with a former customer of his who moved away to take over FedEx Ground routes far from their homes in Arizona. The two kept in touch and Preston was able to ask many questions from his trusted source.
But his source was new to the business himself and couldn't provide the real insight that Wengert needed. Preston came upon eTruckBiz that offered him a foundation upon which he could build a successful operation.
- First, he needed a Productivity, Efficiency, Earnings and opinion of Value, otherwise know as a PEEV Report. Wengert wanted to utilize a valuation methodology dependent upon productivity and efficiency, rather than just a profit and loss statement.
- Secondly, he knew financial data can be manipulated. Operational data cannot. It's highly important that a potential owner understands the operational data in order to ensure that the financial data matches up to the operations.
- And finally, equipment is typically a major part of the investment especially if the seller is including it in the cost of the business. Potential owners need to know the age of the fleet, the maintenance history, and the condition of the motor, drive train, etc.
At eTruckBiz we work with both buyers and sellers seeking expert advice. There are many reputable brokers to choose from in this business. Plus, access to information online allows buyers to more easily identify a broker with whom they feel the most comfortable. While it's not totally necessary to use the services of a broker, generally it's a wise move. Most brokers will save you from yourself when you're new to the business.
To read more about Preston's (and others') successes, click below. Preston's story is at the bottom of the list.
