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Start Your Own Freight Brokerage Business

Overview

Write your own ticket to success matching carriers to shippers

Looking for an easy-to-start business that can turn a profit in a very short time? Then you should definitely consider starting a freight brokerage business. The majority of goods shipped in the United States are sent by truck. Without freight brokers, most of those goods would end up sitting in a warehouse or on the docks. As a freight broker, you'll match carriers with shippers and make a healthy fee in the ...

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Overview

Write your own ticket to success matching carriers to shippers

Looking for an easy-to-start business that can turn a profit in a very short time? Then you should definitely consider starting a freight brokerage business. The majority of goods shipped in the United States are sent by truck. Without freight brokers, most of those goods would end up sitting in a warehouse or on the docks. As a freight broker, you'll match carriers with shippers and make a healthy fee in the process. A freight brokerage business is simple to start. You don't need to specialize education or a knowledge of the shipping industry, and you can run your own business right out of your home. Our book tells you everything you need to know, including:

  • How to find reliable carriers
  • How to successfully market your services
  • What rates and commissions you should charge
  • Record-keeping requirements
  • Tips for hiring staff
  • Techniques for growing your business
  • Common pitfalls and how to avoid them

This book also includes a glossary of common terms, real-life tips and hints from successful freight brokers, as well as preprinted forms and worksheets you can use in running your business.

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Product Details

Meet the Author

McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide

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Table of Contents

Preface vii
Chapter 1 Introduction to the Freight Broker Business 1
The Players 3
How They Started 5
Specialist or Generalist? 7
Who's Minding the Store? 7
Do You Have What It Takes? 8
Chapter 2 What Does the Business Require? 11
Education and Experience 14
Building Carrier Relationships 14
Banking on Your Banker 16
Those Critical Customers 17
Record-Keeping Requirements 18
Chapter 3 Operations 21
Facts on File 22
Shipper Information 22
Carrier Information 24
Finding Carriers 25
Rates and Commissions 26
Quoting Rates 28
Documents 29
Carrier/Broker Agreement 29
Load Confirmation and Rate Agreement 30
Bill of Lading 30
Contract Labor Receipt 30
Invoices 33
Contract of Carriage 34
Are You on a Mission? 35
Seasonal Issues 37
Chapter 4 What Can Go Wrong? 39
Transit Delays 40
Cargo Loss or Damage Claims 40
Responding to Problems 42
Chapter 5 Locating and Setting Up 43
Put It in Writing 45
The Agent Option 45
Naming Your Company 46
Choosing a Legal Structure 47
Insurance 49
Professional Advisors 50
Create Your Own Advisory Board 52
Basic Office Equipment 53
Telecommunications 56
Keep Your Customers Out of Voice-Mail Jail 57
Transportation Brokerage Software 58
Inventory 60
Company Vehicle 60
Chapter 6 Staffing Your Company 61
Basic Positions 63
Calling All People 64
Evaluating Applicants 64
Benefits 65
Keep People in Perspective 65
The High Cost of Turnover 66
Why Train? 67
Training Techniques 67
Noncompete Agreements 69
Chapter 7 Marketing 71
Market Research 73
Choosing a Niche 73
Communicating with Your Customers 74
Know Thy Enemy 75
Outsourcing Opportunity 75
Join the Right Groups 76
Chapter 8 Sales 79
Phone or Face-to-Face Sales 80
Qualifying Prospects 80
Determining Needs 82
Why Do You Ask? 83
Steak or Sizzle 83
Does Anyone Object? 84
Ask for the Business 84
Chapter 9 Financial Management 87
Setting Credit Policies 89
Warning Signs 90
Cash Flow Controls 91
The Power of Compensating Balances 92
Managing Payables 93
Facts on Factoring 93
Chapter 10 Tales from the Trenches 95
Use Advertising and Marketing Techniques that Work 96
Prepare for the Future 96
Don't Reinvent the Wheel 96
Get Rid of Carriers that Don't Perform 96
Maintain a Broad and Diverse Customer Base 97
Get in the Spotlight 97
Be Open to Evolution 97
Protect Your Reputation 97
Appendix Freight Broker Resources 99
Glossary 103
Index 109
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