Freight Brokers: Stop Making these 3 Costly Mistakes!
02-01-2018 at 12:00 AM
- Too much overhead. Freight brokering is a simple business which requires little beyond a computer and a phone, and can be operated from anywhere in the world. The simplicity and low investment to get started is a big reason many of us got into the fright broker business to begin with. Consider hiring agents who can work from their homes and avoid costly rent and other expenses of office space.
- Placing too many eggs in one basket. Having a large and diverse customer base is essential to the long-term success and health of your freight brokerage. It is easy to take the easy route and rely on those steady customers when things are going well, but never take your eye off the big picture. No matter how busy your brokerage is, carve out a portion of time to developing new leads for shippers, carrier relationships, etc. You never know when something unexpected may happen to one of your old favorites.
- Slow sending of invoices. Even though you may be focusing your time on booking new loads and finding new shippers, invoicing and collecting is the heart of your business and will keep it going strong. Without timely invoicing, your receivables will lag and you may find yourself in a very unpleasant cash flow crunch. Don’t let even a day go by between the time your load is completed and the invoice is sent to the shipper. If you use a freight broker management application such as LoadPilot, invoicing can be handled quickly and easily with just a click of the mouse.Try it out for free on our 30day Test Drive and start watching your bottom line get better and better.