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Starting a Freight Service Company of Your Own

23 Sep 2013

Are you fed up with job uncertainty? Well, most of us are. Companies keep laying people off and finding new employment can be a daunting task. So why not become your own boss? Consider positioning yourself in the freight broker industry.

Let us discuss the various steps required to start a freight company.

Step 1

Experience is of utmost importance in this industry like any other business. Hence, to start with, it is a good idea to gain some experience by joining a Freight Company and learn the inside secrets of the trade. Learn the process of the business and once you are convinced you are all set, jump to the next step.

Step 2

Decide which part of the Freight Brokerage Business you want to concentrate on. By taking firsthand experience of working with a freight company, you are now well aware of the areas. Choose if you want to cater the immediate area, or specialize in large loads, or cater to some specific industry.

Step 3

Make a detailed plan. Include your marketing, operational and income growth strategy, as well as make note of the capital and operational expenses. Make a detailed report which will help you in running the business in the future.

Step 4

Organize the funds required as per your business plan. Keep surplus funds for contingencies. Apply for a loan if you do not have the capital.

Step 5

Select your office space. You can buy an office, or take it on rent. If you intend working all by yourself and not employing staff, you can do the business from your home too. This would save a lot of expenses and will eventually increase your income.

Step 6

Complete the legal formalities relating to registration of your company such as, getting the license to begin work and such other aspects. These licenses are issued by the County Clerk Office, or the Department of Licensing & Inspections. They require filling of forms and payment of applicable fees.

Step 7

Once your office location is finalized, the next in line is to buy the equipment like computer or laptop, printer, telephone, fax machine, accounting software etc.

Step 8

Apply for Liability Insurance and get a Bond if needed.

Step 9

Draft your business contracts. You can take the help of a lawyer for the legal part of it and a chartered accountant for the financial part. These agreements would be necessary for initiating business with the shipper as well as the freight carrier.

Step 10

It is now time to follow your marketing plan. Contact your prospective clients. Use all your marketing skills to tap them. Create your database. Advertise in magazines, local newspapers etc. Send direct mailers. Get a web site up and running and market it on Search Engines.

Step 11

Contact freight carriers who suit the requirements of your clients. Check their credibility and reputation. You can search reputed agencies on the internet, or ask people for references.

Step 12

Do the liaison work. Close the deal and provide the best of service. Keep proper records. You need to have your contracts in place. Do the accounting jobs meticulously.

So, are you ready to give the other Freight Brokerage Agents a run for their money? Just follow the steps given above and materialize all your dreams!