I currently have a full time job, but am wanting to become self employed. I hate being dependent on others for the opportunity to earn; at any point in time, I can be fired, laid off, etc. I want to be independent in that regard.
I have a background in logistics, which I would like to put to use.
In the past, I considered starting a trucking business, but was turned away by how asset heavy that kind of operation is, along with how heavy the monthly operating costs would be too. In other words, the profit margin that I projected, wasn't generous enough for me to be comfortable with.
In the past, I also considered starting a full service dispatching service for Truckers. But, after hearing input from actual Owner Operators, I determined that the market just wasn't really there.
The only possibility left, that I can think of, is a freight brokerage.
To all the Freight Brokers out there, what are the typical monthly operating costs for a freight brokerage? If you would, please itemize, by type along with amount.
Freight Brokerage Monthly Operating Costs?
Discussion in 'Freight Broker Forum' started by Renegade92, Jan 7, 2023.
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####, you swing by the TRF for a friendly read, only to get hit with homework assignments.
Would you like anything else? Maybe my 2023 budget and complete OPEX broken up by line for the TTM? Do you need a vendor list as well?God prefers Diesels, Crude Truckin', Rideandrepair and 6 others Thank this. -
And let him in your office so he can job shadow you for a month or so.God prefers Diesels, Crude Truckin', Rideandrepair and 8 others Thank this. -
Id imagine its just like trucking. Depends on the operation. Probably a hell of a lot easier to buy a truck and trailer and go work off the load boards than it is to start a freight brokerage from scratch with no experience and nobody that you know trying to move loads !
Probably the best way to start would be to know people who need help moving #### then get ur broker authority...i dont know anything about anything tho. Just my worthless 2 centsLite bug, God prefers Diesels, Rideandrepair and 1 other person Thank this. -
Good luck.Starting a freight brokerage business isn’t easy.Any companies you want to get freight from are going to want to see your carrier base and starting out its going to be small to none so starting out your going to have to pay more of the percentage to attract carriers .And a lot of carriers are going to think twice about working with someone with no track record.
Rideandrepair and Renegade92 Thank this. -
Usually people work for a brokerage for some time, learn everything and then open up their own (if they can get around the "non-compete" clause)
Rideandrepair, jbatmick and Renegade92 Thank this. -
LOL. I'll take it if you are willing, but, what I really had in mind was just a simple list of the main monthly expenses, just to give me a rough understanding of funding a brokerage.
For example, if I were an OO, my monthly expenses would be: fuel, insurance, maintenance, etc.
Anything you are willing to share would be appreciated!Lite bug and Rideandrepair Thank this. -
Here's some of the items to think of, sorry for the random capitalizations, I'm multitasking like crazy today.
Load board(s)
TMS
Surety Bond
Contingent Cargo
Carrier vetting platform (RMIS, My Carrier Packets, Carrier 411, etc)
Geofence tracking (Macropoint or Fourkites)
Employee benefits
Employee Payroll
Office equipment (computers, desks, phones, printers)
Travel & Entertainment (e.g. flying to Chicago to meet with a customer and then take them to dinner)
Software liscenses (Outlook, phone system, etc)
Office Space (Rent)
Janitorial services
Some of the above won't be needed initially, but could end up being a cost down the line.Rideandrepair, LoneRanger, Renegade92 and 1 other person Thank this. -
Lite bug, Rideandrepair and Renegade92 Thank this.
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Thanks.
Typically, how much is a surety bond?
And what is contingent cargo?
Also, is it required that I make "fast pay" available to my couriers, or is that at my discretion?
Lastly, what recourse do I have if a shipper doesn't pay me?Rideandrepair Thanks this.
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