Should You Really Be Thinking About Starting Your Own Brokerage?

Adrian Hall

21d (edited) • General discussion

The short answer is absolutely "yes". If you're committed, you can do this.

The slightly longer answer might be "not yet".

Even though freight brokering can be a low-cost start-up home business, it's not nothing.

At a minimum to start, you're going to need:

A good enough credit score to get a surety bond, and cash to pay that bond. (Or $75k in cash in trust fund).
Cash for insurance
A space to work that's equipped (Desk, PC, phone)
Cash for load board and software subscriptions

Then, the next bit is tricky: a cash float.

Why? Carriers want paid fast. Shippers pay slow.

Sometimes, when you're new, carriers want 50% up front and 50% on delivery.

The shipper might pay you in 30 days... or 45 ... or...

So, to manage your cash flow, you need a cash float.

You can handle this with:

Savings
A line of credit
Invoice factoring

Most new brokers aim to rely on the last of these, factoring. But what happens if the factoring companies won't take you on board because a) you're new b) you're credit ain't good or c) they don't trust your customers?

That takes you back to options 1 or 2.

From next week, we'll be offering a new course "Freight Broker Factoring & Cash Flow Management". It includes a module "How to pay carriers as a new broker"

This will be included as part of the full "90-Day Freight Broker" training program. (Just another reason to get the whole damn thing - BOOK A CALL).

BUUUT, what happens if you're not ready to go all in, if you're not ready financially?

We also have a new Freight Agent Training Program. This takes the best from the broker program and adds some agent-specific training at a lower price. You can get it today, right here.

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