Being a freight broker can be rewarding and profitable. As you go through freight broker training, you should be aware of what working as a freight broker entails. Unfortunately, some fledgling freight brokers make mistakes early in their careers that slow them down on their path to success.
The following are six mistakes to avoid when you're just starting your career as a freight broker.
1. Being unaware of the licensing requirements you'll have to meet
Freight brokers in the United States need to have a license to meet federal regulations. Make sure you can meet all the licensing requirements before you decide to pursue a career as a freight broker. Also, make sure that you complete your licensing requirements and get your license before you start working with clients.
2. Failing to partner with multiple carriers
Any time you get a carrier on the phone, you should learn as much about that carrier as you can. You should be making an effort to partner with carriers even if you don't have any load that's appropriate for them at a given moment. In the future, you might have a load for them and be able to do business.
3. Not understanding what the total costs of entry are
One of the great things about becoming a freight broker is that the costs of entry are relatively low. Nevertheless, you will have to cover some initial expenses to get yourself set up in a freight broker business. Some of the expenses you'll have in the beginning include a computer, a business phone plan, and licensing requirements. Make sure you have enough capital upfront to cover these expenses.
4. Neglecting to build strong business relationships
Running a freight brokerage is all about building business partnerships with other industry professionals such as carriers. You need to focus on building strong business relationships right away when you begin your career.
5. Becoming frustrated when you run into obstacles
You need to be prepared for early challenges and not let them get you frustrated. There are difficulties and stress with running any type of business, and being a freight broker is no exception. Stick with it and your persistence will pay off in the long run.
6. Not finding a niche
You'll make things easier for yourself by finding a niche. If you can service a particular niche as a freight broker, this will give you some competitive advantage against other brokers in your industry.