ETA·BRAINa Katyella project

Acquiring Minds

Building a $25m FedEx Route Empire from $100k Equity

Excerpts · 386 segments · ~1:28:57 long

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And to this point about San Francisco, um, we can abstract what a good market is based on the inputs and outputs. And so you want your inputs to be low, your outputs to be high.

So what you're looking at in those two columns, inputs is... what the labor rate is, how easy it is to find people, and what else? Because it's not truck price because that's across the country.

It's really people and maintaining your trucks. That's majority, probably 80% of it. Yeah.

And then on the outputs, it's what FedEx pays in that market. So you want them to pay kind of more and you want labor and mechanics cost to be less. Low.

Trying to be efficient where running the fewest number of miles. So you're burning less fuel, less tires, less depreciation on the trucks. And then... building the routes such that they're profitable to begin with.

So like, you know, run full trucks. You want the truck to be full of packages and, you know, try and run as many of those full trucks as you can. You don't want to, you know, go out half full.

It's going to be hard to make anything on that. You probably lose. So you got to engineer it correctly. And then you got to make sure the workload is manageable for the driver.

You can't just... Yeah, yeah. Well, I'm going to make sure that all these trucks are just completely full and I'm going to make a lot of money. Well, drivers will probably quit, bring the truck back. Now you're in like an endless cycle of recruiting, hiring, training.

They quit again. So you got to find a balance. So there's a lot of variables here.

Yeah. Yeah. No, there are. It's definitely not those three or four inputs and outputs I said. Good. This is so educational, Avery. And then I heard you say at the top with your first acquisition that it was the only SBA eligible one in Texas.

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