Freight Brokerage Business. The Staff of Entrepreneur Media, Inc.
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to your computer, or using an online fax service. By installing the appropriate app (such as JotNot Fax, Tiny Fax, eFax, or FaxFile), your tablet or smartphone can also serve as a scanner and fax machine. Make your decision based on your anticipated needs and style of operation.
• Postage Scale. Unless all your mail is identical, a postage scale is a valuable investment. An accurate scale takes the guesswork out of postage and will quickly pay for itself. It’s a good idea to weigh every piece of mail to eliminate the risk of items being returned for insufficient postage or overpaying when you’re unsure of the weight. Light mailers—one to 12 articles per day—will be adequately served by inexpensive mechanical postal scales, which typically range from $10 to $25. If you are averaging 12 to 24 items per day, consider a digital scale, which is somewhat more expensive—generally from $50 to $200—but significantly more accurate than a mechanical unit. If you send more than 24 items per day or use priority or expedited services frequently, invest in an electronic computing scale, which weighs the item and then calculates the rate via the carrier of your choice, making it easy for you to make comparisons. Programmable electronic scales range from $80 to $250.
• Postage Meter. Postage meters allow you to pay for postage in advance and print the exact amount on the mailing piece when it is used. Many postage meters can print in increments of one-tenth of a cent, which can add up to big savings for bulk mail users. Meters also provide a “big company” professional image, are more convenient than stamps, and can save you money in a number of ways. Postage meters are leased, not sold, with rates starting at about $15 per month. They require a license, which is available from your local post office. Only four manufacturers are licensed by the United States Postal Service to manufacture and lease postage meters; your local post office can provide you with contact information. An alternative to a postage meter that will allow you to avoid buying stamps and making regular trips to the post office is to print your postage yourself through an online account.
• Several options are available for generating postage directly from your computer. For example, there’s Pitney Bowes (www.pitneybowes.com), Stamps.com (www.stamps.com), Endicia (www.endicia.com), and ShipStation (www.shipstation.com/features). In addition to paying for the actual postage you need, a low monthly fee applies to use these services, and in most cases, a special printer is needed in order to create the postage from your computer.
• Paper Shredder. A response to both a growing concern for privacy and the need to recycle and conserve space in landfills, shredders are becoming increasingly common in both homes and offices. They allow you to efficiently destroy incoming unsolicited direct mail, as well as sensitive internal documents, before they are discarded. Shredded paper can be compacted much more tightly than paper tossed in a wastebasket, which conserves landfill space. Light-duty shredders start at about $25, and heavier-capacity shredders run $100 to $500.
The ability to communicate quickly with your customers, carriers, and suppliers is essential. Also, being able to reach your employees when they are out of the office is important. Advancing technology gives you a wide range of telecommunications options. Most telephone companies have created departments dedicated to small and home-based businesses. Contact your local service provider and ask to speak with someone who can review your needs and help you put together a service and equipment package that will work for you.
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Listen to your customers and carriers. If they complain that you’re hard to reach or aren’t returning calls promptly, it’s time to reevaluate your communications system. Lost calls mean lost revenue.
You’ll need reliable voice communication that is answered 24/7 by a human or an electronic system. Even if most of your shippers are local, it’s highly unlikely that all of their customers will be, too. You’ll want to provide a toll-free number so nonlocal shippers, consignees, and trucking companies and their drivers, who don’t have free or flat-rate long distance, can reach you without having to make a toll call. Most long-distance service providers offer toll-free numbers, and they have a wide range of service and price packages. Shop around to find the best deal for you.
Many small business office phone systems can forward calls to a smartphone, making it easier for someone to reach you during or after business hours, when you’re not sitting at your desk. In fact, if you’re the only employee at your freight brokerage business, there are mobile apps available for the iPhone and Android smartphones that provide the advanced features of a business phone system. For example, there’s Sideline, iPlum, eVoice, WiCall Business, and Business Line, which are available from the App Store (iOS) or Google Play App Store (Android).
Keep Your Customers Out of Voice Mail Jail
Voice mail is one of the most popular modern business conveniences and can be an efficient communication tool. But keep in mind that the pace of the freight industry is so rapid that there isn’t always time to return calls, so whenever possible, answer your phone yourself—and insist that your employees do likewise—and handle calls as quickly and smoothly as possible.
If you use an automated answering system, be sure to tell callers how to reach a live person. Ideally, that information should come very early in your announcement. For example, your greeting might sound something like this:
Thank you for calling ABC Freight Brokers. If you know the extension of the person you are calling, you may enter it now. To reach an operator, dial zero at any time during this message. For dispatch, press one. For tracing, press two. For billing, press three. For a company directory, press four.
Transportation Brokerage Software
Technology has made starting a freight brokerage easier than ever, and there are several software packages on the market designed specifically for brokers. See the Appendix for a partial list of resources. In addition, you can get off-the-shelf word processors, spreadsheets, accounting programs, and other software functions to help you run your business. Instead of purchasing the Microsoft Office suite of applications outright and then needing to upgrade the software each time a new version is released, Microsoft offers the Office 365 option. For a monthly fee (around $10.00 per user), you have full access to all Office applications (Word, Excel, PowerPoint, Outlook, OneNote, etc.), and all software updates are included.
“By spending money upfront on computer and communication technology, you are saving money in the long run,” says Cherry Hill, New Jersey-based freight broker Bill Tucker. “You’ll also have a lot more sales appeal with the ability to provide information to customers.”
Websites are no longer optional for businesses, and your email address should include your company domain name, which should lead to your company’s website. It’s fine to use an email service such as AOL, Gmail, Hotmail, or Yahoo! for your personal email, but it detracts from your professional image when you use it for business.
Your website is one of the primary ways prospective customers will find you, and it’s a key way for you to communicate with your existing customers. A well-designed, easy-to-navigate, optimized website is essential.
Study the websites of successful freight brokers, and make