As another year comes to a close, it’s time for freight brokers to take a look in the rearview mirror and analyze their financial situation. The freight markets of 2023 have been unforgiving, with spot load rates and volumes plummeting by nearly 50% compared to 2022. This ongoing drastic downturn has had a significant impact on many brokerage’s finances and cash flow.
With predictions for 2024 ranging from a miraculous rebound in Q2 to a long-term freight recession that could linger through 2025, it’s more important than ever for brokerages like yours to build a robust and resilient financial plan.
Without a solid plan, brokerages risk falling into common finance traps such as relying on receivables to sustain their operations, potentially jeopardizing relationships with carriers.
This guide will serve as a quick start to help your brokerage create sound financial structure and guardrails in your business, so you can endure next year’s volatility and come out on the other end more prepared than ever. Let’s dive in.
Freight Finance Planning Quickstart Guide
Growing your brokerage begins with a solid financial plan. This guide will show you how to write a financial plan that sets you up for success.
What is Financial Planning?
Financial planning for freight brokers is all about building a financial system that your business can depend on. Financial planning prepares your business for growth while mitigating potential risks posed by market volatility.
With a financial plan, you’ll know exactly where your money is coming and going every month, be able to forecast economic changes, plan for increases or losses in revenue, and more. Building your plan will involve analysis of historical data, research into market dynamics and trends, and a strategic approach to managing cash flow. Your plan will be used to mitigate risks and make appropriate decisions on hiring, firing, and expansion. It’s a flexible document that requires continual refinement and adaptation to ever-changing market conditions.
Financial planning equips freight brokers with the tools to adapt swiftly. Whether it's adjusting pricing models in response to market demand or creating contingency plans for adverse scenarios, proactive financial planning guides brokers through both the good times and the bad.
In this guide, we’ll cover the following core elements of financial planning to make sure your brokerage is set up for success:
- Information gathering
- Assessing the current financial state
- Goal setting
- Budgeting
- Cash flow management
- Cost analysis
- Pricing strategy
- Risk management
Ready to navigate the unpredictable tides of the freight market? Don't let 2025 catch you unprepared. Download our comprehensive guide now and equip your brokerage with the financial strategies and insights needed to thrive in any economic climate. Take the first step towards a more resilient and profitable future today!
Market Sizing Worksheet
Expand into a new industry with confidence. Run the numbers to determine profitability with our market sizing worksheet.
Profit & Loss Statement
Get started on your Profit & Loss Statement with our free template.
Schedule a Demo
Let's talk cash flow. Get started today!
Scale Your Brokerage Downloadable
In 8 steps, you can scale your brokerage and grow your revenue! Download our guide now.
Freight Technology Evaluation Guide
Do you know how many softwares your team uses? This guide will walk you through all the steps to audit and implement your freight technology stack stress-free.
How to Build Freight Broker Credit Download
Work with the best carriers and get access to better financial rates with our free guide to freight broker credit.
Boost Your Business Through Cold Calling
Implement these expert cold calling strategies and see your business opportunities multiply.
Freight Brokerage Growth Guide: Strategies for Success
Begin with a growth mindset and harness these expert strategies to elevate your freight brokerage.
Freight Finance Planning Quickstart Guide
Growing your brokerage begins with a solid financial plan. This guide will show you how to write a financial plan that sets you up for success.
Shipper Credit Evaluation: A Risk Assessment Checklist
Don’t get blindsided by inadequate credit limits. Collaborate with your factoring company to accurately assess your shippers' risk using our essential checklist.
How to Stop Working Off Shipper Lists Guide
Accessorial Charges Pricing Handout
Ensure you and your carriers are always on the same page. Share this accessorial charges pricing sheet with your carriers before moving a load to avoid any surprises.
Freight Factoring Scorecard: Making the Decision to Switch
Is your factoring provider the right fit? Use our scorecard to see if it's time for a change.
Contact us to learn more and get detailed pricing.
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