How to Start a Freight Brokerage Business
Freight brokers make a good living by setting companies up with dependable shippers. There are a few key steps that you should follow to start your own freight brokerage business and get in on your share of this billion dollar industry.
- Difficulty:
- Moderately Challenging
Instructions
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1
Incorporate your business, so that clients know that you are legitimate and will be more willing to take you seriously. Don't skip this step just to save money. Since you are new to the industry, you will need to make yourself look as experienced and professional as possible.
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2
Set up an office space. If you don't have the capital to rent office space, you can put it somewhere in your home. Make sure the spot is secluded and quiet, so that you don't have interruptions when talking to clients.
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3
Give your business a corporate identity by creating a website, logo, letterhead, and business cards. You also need to set up a separate phone line in your business name, if your office is in your home.
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4
Get clients. You can try different marketing strategies to bring them in, including both online and offline methods. Ideas include a direct mail campaign, a sponsored ad with major search engines, banner advertisements, a half to full page phone book ad and small business magazine ads, just to name a few. Any business that sells a product, is a potential customer for you and you should not limit yourself to any one type of business.
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Find shippers. You can call companies within your client's area to get pricing information. If you have several shipments in one area, you can also inquire about bulk pricing. It is best to try and establish a relationship with any shipper that you might use often, as that company will be more likely to 'reward' you with all of your business via price discounts.
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Invest a percentage of your profits into expanding your business. You can work on getting a real office space (if you have been working out of your home) and hiring your first batch of employees. The larger your client base grows, the larger your company can grow.
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Comments
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Wats up Issac , Im Kevin what steps did u take to make ur company legal. Ive heard about the bonds and fees , And now reading the other comments it makes me wonder. But i live in a place were a lot freight moves and i really want to try it out. Do u mindsharing the the info. I no sum things may be different i live in Miss.
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Iwant more guidance Ihave started a freight broking company.
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freightbroker
Dec 13, 2010
Being a veteran of the Freight Brokering Industry, I would not reccomend starting a brokerage at all! The big players out there now, CH Robinson, Landstar, etc;, Will survive the upcoming surety bond requirment changes. Before, any Joe could go get the 10k surety bond to start a brokerage. Now, most companies will not deal with you without atleast a 100k surety bond. And a lot of the big brokerages have a 250k bond. Small brokerages will fall when they are required to up their bond to 100k, a possible new regulation. I reccomend being an agent for a brokerage, not opening your own. As an agent, you work under a companies authority, bond, insurance, and they usually provide load boards. Sure, they take, on average, 40% of your take; A small price to pay for not having to bankroll 300k to pay carriers before you get paid and having to carry the insurance.
