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If I Started a Freight Brokerage Today, I’d Do This …
Yup, I’d waste no time in getting things churning …
Of course, you know you’d first need to get a business name registered and then get your broker authority. This is all pretty much a no-brainer.
But then – what do you do next, and next, and next? You’re not going to just sit there and stare out the window or glance at your phone every 30 seconds. No, you gotta hustle!
First, I would decide if I wanted to go face-to-face talking to shippers …. or should I get on the phone? There are pros and cons for both.
So, let’s say I opt for getting on the phone …
Okay, then what?
Next, I’d open my computer and have a blank Word document ready to copy and paste shipper contact info.
Then I’d ask myself … where should I call?
What industry do I want to work with? Well, I know that produce has to be moved, growers need trucks – not all of them but many of them do.
It’s Fall Season – it’s coming to a close but produce is still being shipped – so I’d look for a produce growing season directory.
Bingo – here’s what I found …
Then I’d look for something that other brokers may not be interested in … you want to go where THEY’RE not going. So, I’m going to pick Swiss Chard – yes, this has got to be a winner!
Then I’d do a search. asking “Where in the U.S. do produce growers ship Swiss Chard in the fall season”.
So, after my search …
… Oops! … maybe Swiss chard is NOT so good – here’s what my search reveals – “Swiss Chard leaves wilt quickly once harvested. This makes it a high-risk product for long-haul shipping”.
If you’re new to brokering, save Swiss Chard for another day.
So, let’s grab another item – how about “parsnips”?
Okay, parsnips require a cooler area, and New York and New England might be the best areas to search. So, let’s do it … here’s the results below …
There’s more … if you were to view this image in its entirety, you’d see another 7-8 locations.
You have website addresses with phone numbers and maybe individual names too. Copy and paste them on your Word document.
Then, get on the phone, ask for the shipping manager and start asking questions after you identify yourself with your personal and business name.
I’d cut through the chase, once you get the shipping manager on the line, and ask if they are currently shipping and if they need trucks. (Don’t ask ONLY about parsnips – you want the shipping manager to open up wherever it leads).
There’s a lot of questions to ask … be prepared to conduct an interview (always ask them if they have a few minutes to talk before you start pumping them with questions).
Get the idea? Now you may not find even one grower willing to work with you out of this bunch … so you continue to search.
To be honest, it can get frustrating and that’s why you want to go where no one else is going as far as finding loads is concerned. You’ll likely find more receptive shippers if you go where the competition isn’t going.
Plus, you want to outlast your competition. You WILL get loads at some point! Do it, don’t stop.
At some point you can teach a family member or an agent to do this (and more).
So, you’ll focus on getting loads … then, you’ll focus on onboarding carriers.
There’s always been a certain amount of confusion in making good carrier selections and it’s too much to go into detail here. You’ll want to follow industry resources to see new developments. And be aware of fraud, double-brokering, bad scores and those with poor communication skills.
Don’t think that just any carrier will do … you’re going to vet them properly and once you find good carriers, treat them like gold. They are the ones that will bring the bacon home for you.
And it’s rinse and repeat from here … so, get organized, find loads, onboard and retain good carriers, follow industry resources and keep your nose clean. This in a nutshell is what I’d do if I were to restart my brokerage.
Want the nitty-gritty details? Call or email me. Now’s a great time to get started so that you can reach out to produce growers and carriers about the first of March next year.
You have to have trucks – the more the better. No trucks = no money. Load up your database with truckers BEFORE next Spring.
I hope this has been helpful …