Freight Brokerage Business Plan

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I.- Freight Brokerage Executive Summary

Business Overview

[Company Name] is a trusted freight company in [Location]. We proudly transport shipments of all types across any distance within the United States, from across town to across the country. Our freight brokerage business plan highlights our commitment to providing fast and cost-efficient transportation services to our clients while ensuring all shipments are safely and securely delivered.

Services

[Company Name] has created a freight brokerage business plan that includes various services our company will offer including local and statewide shipping, shipping within the continental US, international shipping, and bulk shipments.

Customer Focus

[Company Name]’s freight brokerage business plan seeks to primarily serve manufacturers and distributors operating within a 100-mile radius of [Location], as well as local households. Our target market includes 61,347 residents with an average household income of $87,100, and 150,000 or more businesses and companies.

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. With 10 years of experience as a freight broker and a degree in Business Administration from the University of ABC, he is uniquely qualified to lead the company to success.

Success Factors

[Company Name] is well-positioned to succeed in the launch of its freight brokerage business plan as the will be one of the few freight brokerage companies in the area. Furthermore, we have performed a freight brokerage feasibility study and surveyed the local population where we identified the pain points left by other shipping companies. Additionally, our location is populated with a large contingent of regional transplants who have relatives living outside the area and our management team has a track record of success in the industry allowing us to better meet the needs of our target market. Finally, the freight brokerage business has proven to be a successful business in the United States.

Financial Highlights

[Company Name]’s freight brokerage financial model has determined total funding of $260,000 of debt capital to launch is necessary. $100,000 will be used for store design while $160,000 will be used to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive.

II.- Freight Brokerage Business Overview

Who is [Company Name]?

[Company Name] is a trusted freight company with strong capability in moving goods both locally and throughout the world. [Company Name]s’ freight brokerage business plans advanced technology and commitment to customer service make it potentially the most ideal choice for fast, cost-efficient transportation services. What’s more, [Company Name] has a reputation for ensuring that all its shipments are safely and securely delivered.

[Company Name]’s History

[Company Name] has been [City]’s leading freight broker for 10 years. It was in [year] when [Founder’s name] established the company’s first office in [Location]. Having worked in progressively responsible positions in the industry throughout his early career, [Founder] is well-versed in how to operate a successful transportation company; this has further assisted [Founder] in creating a realistic and profit-driven freight brokerage business plan.

The idea came to him to launch a freight brokerage company as he recognized the potential for improvement within existing companies. [Company name]’s success has led to steady growth, and it now operates [x] offices in [Location].
Since incorporation, [Founder] has developed the company’s name, logo, and website, determined transport companies for both local and international shipments, determined supply requirements, began recruiting key employees with experience and surveyed other possible locations for expansion.

[Company Name]’s Products/Services

The following are the services that [Company Name] provides:

• Local and statewide shipping


• Shipping within the continental US


• International shipping


• Bulk shipments

III.- Freight Brokerage Industry Analysis

The Freight Brokerage industry has increased over the past five years, as rising economic activity led to bolstered consumer spending. E-commerce sales and industrial output levels have each increased, boosting domestic freight volumes as a result and generating demand for freight brokerage services from manufacturers and online retailers. Further, as total US trade volumes increased, demand for international freight services that require brokerage has risen.
The popularity of next-day delivery services and other online shopping services has also positively affected the industry. It has become increasingly important to ship individual orders and warehouse stocks across the country with relatively little notice. This has resulted in greater demand for industry services, because brokerages offer a solution to excess demand for transportation services, facilitating a range of services from long-distance freight and international trade to last-mile delivery.

Over the next five years, industry revenue is anticipated to grow as well. Economic growth, increased consumer spending, and e-commerce sales, are expected to cause freight volumes to rise. Furthermore, total trade value is forecast to continue to grow in the United States, which will generate revenue from importers and exporters. Based on the findings mentioned previously, [Company Name] has created a freight brokerage business plan and financial model that considers these key points to ensure a successful launch and a business that is sure to see growth and success throughout the years.

What you Get in Your Freight Brokerage Business Plan Package

IV.- Freight Brokerage Customer Analysis

Profile of Target Market

[Company Name]’s freight brokerage business plan seeks to primarily serve businesses operating within a 100-mile radius of [Location], that may need local and international shipping services for their products or supplies. Additionally, the area we serve is populated with a large contingent of regional transplants who have relatives living outside the area.

Demographics

The precise demographics of the city in which our location resides is as follows:

Customer Segmentation

[Company Name] will primarily target local businesses and manufacturers and distributors.
The area that [Company Name] operates has a significant population of families with relatives outside the city, state, or country. The area is also home to a large number of businesses. Additionally, there are many local businesses that import and export goods to and from all over the US.

V.- Freight Brokerage Competitive Analysis

Direct & Indirect Competitors

Based on [Company Name]’s freight brokerage feasibility study, our main competitors will be Freight Solutions, Quality Logistics, and Logistics Express.
Freight Solutions provides broker logistics software solutions. Its transportation management software enables intermediaries ranging from start-ups to enterprise-class businesses to run operations and accounting from a single system. The company serves freight brokers and 3PLs.

The company was founded on the premise that brokers need trucks, and carriers need loads. In 2016, the company combined networks with ABC Logistics to create one super-database, the industry’s largest and most diverse on-demand freight exchange for spot truckload freight.

Quality Logistics specializes in arranging freight transportation using reefers (refrigerated trucks), vans, and flatbeds — moving more than 500,000 loads each year. The trucking brokerage company serves more than 7,000 clients across the US, Canada, and Mexico, ranging from small businesses to Fortune 500 organizations. Founded in 1997, Quality Logistics has contracts with carriers that include single-owner operators and large fleets.

The company arranges for independent carrier companies and owner/operators to transport its customers’ freight and they manage the shipment while it is on the road.
Finally, founded in 1976, Logistics Express matches shippers’ loads with a network of truckload and less-than-truckload (LTL) carriers. The brokerage firm arranges the transport of dry, refrigerated (predominantly produce), and flatbed cargo. It operates from 30 offices throughout more than 20 US states. Logistics Express assists shippers in managing transportation costs, tracking and tracing shipments, managing appointments, and executing freight forward management services overseas. Customers have included Kroger, Dole Food, and Safeway.

What you Get in Your Freight Brokerage Business Plan Package

Competitive Pricing

Competitor pricing is highly variable and dependent on location, transportation distance and service and load type.

Competitive Advantage

[Company Name] has sought to create a freight brokerage business plan that will enjoy several advantages over its competitors, including safe and secured shipments, client-oriented service, management, and relationships.
[Company Name] ensures that all transactions and shipments are in good hands. Customer satisfaction is its number one priority. Our full-time staff on-site help customers with their needs and inquiries and in the case of troubled customers, our staff is trained to deescalate situations and ensure the customer's experience ends on good business terms.
[Founder’s Name] has been extremely successful working in the freight brokerage business and will be able to use his previous experience to assure clients that [Company Name] will do the job right. Also, having lived in the community for 35 years, [Founder’s Name] knows many of the local leaders, news personalities, and other influencers.

VI.- Freight Brokerage Marketing Plan

The [Company Name] Brand

The [Company name] has created a freight brokerage business plan that will focus on the Company’s unique value proposition. The value that we offer customers includes safe and secured local and international shipments of any package type, size, or weight, service built on long-term relationships and personal attention, and premium services at affordable prices.

Promotions Strategy

[Company Name] has created a freight brokerage financial model that supports a promotions strategy to reach its market. The promotion strategy will include billboards, referrals, customer loyalty programs, local publications, and direct mail.

[Company name] will secure a billboard in the area that captures the attention of residents and local businesses. The billboard will draw attention to the new business and its service offering. We will also seek to advertise toward our target market through referrals as [Company name] understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. To complement our referral strategy, we will also create a winning customer loyalty program to keep its best clients coming back again and again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

[Company name] will also run regular advertisements to maintain exposure to relevant markets. Community newspapers and publications, and similar channels will be a major promotion effort. Finally, [Company Name] will send out direct mail pieces to households and businesses within its target area. These pieces will provide general information on [Company Name] and offer discounts.

VII.- Freight Brokerage Operations Plan

To execute [Company Name]’s freight brokerage business plan, several functions need to be performed including hiring X employees divided into service and administrative functions. Service roles will include sales, dispatch, broker agents, and customer service and cash register functions. Administrative roles will include marketing, bookkeeping, sourcing transport companies, and performing general liaison duties.

What you Get in Your Freight Brokerage Business Plan Package

Milestones

[Company name]’s long-term goal is to become the most trusted freight brokerage company in the [state] area. The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

VIII.- Freight Brokerage Management Team

[Company Name]’s most valuable assets include the expertise and experience of its founder, [Founder’s Name]. Having been in the freight industry his entire career, he brings extensive knowledge and experience to the operation of the business including his ability to correctly determine what it takes to run a successful business and how to launch a freight brokerage business plan.
[Founder] graduated from the University of ABC with a degree in Business Administration, and [Other person’s name] will serve as the assistant. [Other person's name] has extensive experience in operations and marketing.

Hiring Plan

[Founder] will serve as the store manager and has created a freight brokerage business plan that has determined it will be necessary to hire freight brokers, a sales team, dispatch, customer service, and cash register representatives, administrative assistants, and marketing and PR managers.

IX.- Freight Brokerage Financial Plan

Highlighted in [Company Name]’s freight brokerage financial model, revenues will come primarily from the shipping deals the company closes. The major cost drivers for the company’s operation will come from salaries, leasing costs, shipment transportation fees, and marketing campaigns.

Capital Requirements and Use of Funds

[Company Name]’s freight brokerage financial model has determined total funding of $260,000 of debt capital to launch is necessary. $100,000 will be used for store design while $160,000 will be used to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive.

Freight Brokerage Financial Plan Sources And Uses Report

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Freight Brokerage Financial Plan Core Inputs

Freight Brokerage Financial Plan Top Revenues Report

Freight Brokerage Financial Plan Top Expenses Report

Freight Brokerage Financial Plan Income Statement

Freight Brokerage Financial Plan Cash Flow Statement

Freight Brokerage Financial Plan Balance Sheet Statement