3 Mistakes to Avoid in the Freight Broker Business
Category: Freight Broker
- Large overhead. There is no reason to invest in big office space and lots of equipment for your freight brokerage. Sure, it is nice to have some extra space and conveniences but freight brokering is a really simple business that basically just requires a phone and a computer. When you add to your staff, think about finding an freight agent, assistant or bookkeeper who can work from home. Keep big expenses low and your profit margin high.
- Be sure to diversify in your client base. If the bulk of your revenue is coming from a particular manufacturing industry, try to focus on a new niche as you prospect new business. Unexpected events occur often in the business world and you definitely don’t want to have all your eggs in one basket. The logistics world serves almost every manufacturing industry that exists. There are many new areas to explore. Grab some new ideas as you prospect in this recent blog.
- Waiting too long to collect. You might be busy finding new business for your freight broker business but you cannot ignore the very important task of invoicing and collecting. Without steady work in this area, your receivables will lag and that could result in a cash flow crisis. Make it a habit to send those invoices out immediately after a load is delivered. Consider using a freight broker management application such as LoadPilot.These types of online software make invoicing very quick and easy, and a natural part of the process to move loads.Take advantage of their free 30day Test Drive to try before you buy.