Start your own freight brokerage business by selecting a well-defined market niche, finding carriers who offer services that are appropriate to that niche, gathering the startup costs, establishing a line of credit with your banker, and performing the necessary functions to maintain operations at your new brokerage business. Freight brokers are the middlemen who connect shippers with carriers, which means you don't need to pay for a warehouse, loading dock or customer area when starting your business.Continue Reading
Targeting a particular market segment is a fundamental step in starting your freight brokerage business; it allows you to customize your service packages and marketing materials to meet that market segment's specific needs. This can place you ahead of competitors and improve your specialized expertise. Choose your niche based on geography, cargo type, load sizes, specific industries or any other relevant variables.
Don't overlook the critical role of bankers when beginning your business. New brokers often need a line of credit that ranges from $250,000 to $300,000 to pay carriers before receiving payment from shippers. If you don't pay carriers at the appropriate time, they don't transport the product for the shippers, and you don't make money. Go to your banker with an excellent credit record and a solid business plan that establishes your credibility.Learn more about Managing a Business