Freight Broker Life...Myth vs Reality
The Myth: Start a freight brokerage they said, you'll make so much money and can work from home. You will have so many customers because of the demand and the cost of starting your operation is minimal.
The Reality: Well that is a whole different story. Our real-life experience with some pointers below.
#1. Starting a freight brokerage is just like starting any other business. There are costs to incorporate with your state pending your business structure. This is very important, and it is not an easy or cheap decision and should be discussed in detail with a lawyer or any partners involved. Protecting yourself is extremely important and needs to be done the right way.
#2. Getting the freight broker bond, licensed by the FMCSA and purchasing insurance is not cheap...at all. It will cost into the thousands of dollars by the time you are done with getting the initials set up.
#3. Purchasing equipment, supplies, materials, marketing materials, website design, and other everyday supplies for every business is the same as for a freight broker. There are many costs to think about when starting any business including the "minimal cost" of a freight brokerage. It is simply a myth that it is inexpensive to start a freight brokerage company.
#4 Getting customers is easy because of the demand. This is probably the biggest myth of them all. GETTING CUSTOMERS IS EXTREMELY DIFFICULT. We were fortunate to go into our business with customers already lined up. But the customers we initially had were not enough to continue operating the business long term. We have had to spend money on advertising, do a lot of things with social media, invest in cutting edge technology and many other things to get new accounts. The simple truth is getting customers for a freight brokerage is as hard as getting customers for any business. You must let them know who you are, what you do, and how you can help them solve a problem on a daily basis.
#5 You can work from home and not commute to an office. While this is true for some of us it is in fact much harder to work from home then it is from a dedicated office away from home. We find that working from home, works in small bursts if you have to be around for your children or if you have something going on for a day. There are simply too many distractions to be 100% focused and committed. We found a great office space for what we would consider is below market value for rent. It is new, in a perfect spot and really allows us to focus properly on our business. Working from home, works for some people but we believe it should be used in small doses and not for everyday business operations and building.
If we can help move any of your shipments or solve any of you logistics issues please reach out to us at the below. Experience the Accurate Difference today.
Accurate Logistics Group LLC
2 First Ave Suite 104-1
Peabody, MA 01960