Do you have the desire to become a freight broker but wonder if it’s possible since you have no experience.
If this defines your situation, we’ll be glad to show you how to achieve your dreams even without prior experience.
Surprising right? You need not be. There are lots of successful freight brokers today who started the same way. You too can join this group of successful professionals if you read through till the end.
Who’s A Freight Broker?
You might have searched for this article or stumbled upon it. In any case, you might have had prior knowledge of who a freight broker is. However, if you don’t, we’ll try to make it as clear as possible for easy understanding. A freight broker deals mainly in logistics and transport.
In other words, a freight broker will act as an intermediary between shippers and carriers. By brokering shipment deals between shippers and carriers, shipments can move to their intended destinations with little no problems at all. Without the presence of a broker, the transport of shipments will at best be chaotic.
There’s so much potential for freight brokers. If you decide to pursue a carrier in this area, you can decide to work with a freight brokerage firm or float your own business. Not only do freight brokers broker deals between truckers and shippers, but they also provide tracking services. There are several responsibilities you’re saddled with if you decide to become one but that’s a discussion for another day.
Becoming A Freight Broker With No Prior Experience
This is the crux of the matter. We have been able to establish the fact that you can indeed become a freight broker.
This section will go further to show you just what you need to do to achieve your desire. The steps involved aren’t difficult but require commitment and determination in seeing to its eventual realization.
Get Some Insight
The only way to do this is through studying. There are tons of materials, videos, DVDs, and books that will help you have a deeper understanding of how the freight industry works. You need a clear understanding of how freight business works. This knowledge must be obtained if you wish to be a successful freight broker.
To make things much easier for you, we’ve included the following books and materials. These would enable you immediately kick-start your freight broker training. They include “Start Your Own Freight Brokerage Business” written by the Entrepreneur Magazine.
Others include “The Freight Broker Training Guide” by The Freight Movers School, “The Freight Broker Training Manual” published by TALTOA Freight Broker. The LoadTraining website has a wealth of useful materials to fast-track your educational process.
Studying is an important part of the whole process as it helps you stick to guidelines and applicable regulations.
The expenses can vary from zero cost to $3,000. There are free as well as paid materials you can use. These are only a few resources that enable you to launch your career on the right footing.
Pick a Name, Business Structure And Proceed To Register
This next phase involves picking a suitable name for your business. If you have some difficulty coming up with a name, search for freight brokerage name ideas. An internet search will be the best place to begin. Finding a name you like isn’t enough. A name search will need to be done to avoid duplication.
Next, you’re required to have a business structure in place. There are sole proprietorships, partnerships, LLCs, and corporations. You should seek legal advice when choosing one. This is because each structure has its advantages as well as disadvantages. Proceed to obtain your Employer Identification Number (EIN) issued by the IRS.
Register your business with your state’s department of commerce. You’ll need to obtain a freight brokerage license too. These are vital to starting your operations.
Write Your Plan
Now that you’ve qualified as a freight broker, you’ll need to write a plan for your business. Not everyone knows how to do this. If you have problems writing a plan, consult with a professional. There are professionals skilled in the provision of this service. You’ll need to pay for their services while supplying them with all the information they require.
Only Work With Reliable Trucking Companies
Your reputation as a freight broker is tied to the performance of the trucking companies or carriers you work with.
Hence, you may want to take the time to choose only those who have demonstrated to be reliable. You don’t want to frequently encounter problems with delivery.
Apply For A USDOT Number
The U.S Department of Transportation requires all freight brokers to be issued a number. This is an essential part of doing business. From the time of application, to when the number is issued lasts roughly a month. This comes at a cost too. Though not much.
Obtain A Freight Broker Bond
Before you are issued a license or can renew one, you’ll need a freight broker bond.
This is also known as the BMC-84 or the ICC broker bond. This is a $75,000 bond that acts as a form of reassurance to trucking companies about your ability to pay if contract terms aren’t complied with. The BMC-84 has a yearly renewal requirement.
You’ll Need Some Office Equipment
As a freight broker, you’ll need to have some basic office equipment to work with. This is irrespective of where you operate (that is, from home or rented office space).
Basic requirements such as brokering software, computer, printer, scanner, business line, and a good internet connection are necessary.
Have Some Startup Capital
Startup capital is essential to the smooth running of your freight brokerage business. This has to be sourced before the business is launched. There are several reasons and advantages to having sufficient startup capital set aside.
At this point, you’ll need to get the word out about your freight brokerage business. You can begin by marketing your business to haulage or trucking companies. Also, join related associations to further network with other participants.
These are ways to become a freight broker with little to no prior experience. It is a business that doesn’t demand massive investments either. Anyone with the desire to start a career as a freight broker can achieve their goals.