Starting your own Logistics, Expedite, or Brokerage business started might seem like a very expensive venture. Like any business it takes hard work and time. Knowing the pitfalls to avoid and using cost savings steps can save you not only time but thousands of dollars.
First things first, having a game plan. Deciding what type of business you what to run. Do you want to become an expeditor, do you want to broker loads or start a logistics company, there are many options. Setting a plan in place will help you with expenses and not paying for various authorities and licensing that are unnecessary.
One of the most important things you need to know about starting these kinds of businesses is what type of insurance you need to protect your company. With all of the options that are available, it can get quite confusing. There are three main types of insurance with which you should become familiar: vehicle insurance, brokers insurance, and cargo liability. Before a Canadian Commercial Vehicle Operator Registration (CVOR) certificate can be issued, the applicant must provide information of valid insurance coverage (Canada ONLY) which meets minimum requirements as described in the Motor Vehicle Transport Act. This can seem like a waste of money for a business that is in its start up faze. With the right tips you can make this as inexpensive as possible.
Depending on the type of business you start, you will need different types of licensing, known authorities or running rights. To become a broker, carrier, logistics, or expedite company the authorities will vary from obtaining a CVOR, DOT#, MC#, IFTA, single state and various others depending on the areas you decide to run your business in. Broker and expedite companies need some authorities just to be able to border cross.
Knowing what you want and where you want to go will save you time, money and headaches. Getting started doesn’t have to be difficult. Once you have your business plan there are many different consulting firms and agencies that can process all your paperwork. This can sometime be very costly and somewhat of a slower process. You can also buy kits that contain your business bundle. Buying a kit can be a very helpful process; you are in charge and know exactly what is happening. They are step by step and usual include the materials you need once your business is started and they also save you thousands of dollars. That always helps when you are starting a business.
Once you have your companies authorities/running rights/licensing you will need contacts, load boards, contracts, equipment and all the essentials to run a business. There are many things you need to start but don’t be discouraged, it isn’t as difficult as it looks. There are many different resources out there that will help you and many of them offer free information, trial periods, bundles at a low cost.