If you are tired of working for someone else, you can join millions of other Americans that have become self-employed. If you are interested in starting your own brokering business, the first step is to obtain a freight broker's license. If you are just beginning or considering this line of work you need to register as a broker with the Federal Motor Carrier Safety Administration (FMCSA).
There is also a $300 dollar registration fee. Once you receive your Motor Carrier Number (MCN), you can then complete the rest of the application process. A broker is required to hold an insurance policy. Some areas will also require you to hold a bond. Your local bank can assist you in setting up a bond, if it is required.
Once you obtain an insurance policy and/or a bond, you will need to file proof of insurance with the FMCSA. After all of the appropriate requirements are met, it can take between 4 and 6 weeks before you are granted a FMCSA Authority. Now you can work your valid license and start your own business.
If you have already decided that you want to start a freight broker business, then chances are you already know what an important role freight brokers play in trucking freight. To start a freight broker business, there are a several pieces of equipment that you may need.
Computer
You'll need a computer with accounting software and freight broker software. Freight broker software is available as browser based or a software download.
Fax, printer, postage machine
You will also need a copy and fax machine. An All-In-One printer works great. It gives you everything that is needed for a business and leaves less of a footprint than having multiple machines. It also doesn't hurt to have a postage scale and postage meter to speed up the process of mailing out invoices, etc.
Though a typewriter may sound old-fashioned, it may be required to fill out multi-part and pre-printed forms. Operating your business will run much more smoothly with a well equipped and organized office space. Freight broker's work on earned commission from each transaction, so the better organized the freight broker is, the more money they will make at the end of the day.
One of the challenges that many face when starting a broker business is building a client base. As a broker you will be in contact with many carriers and shippers. A successful brokering business owner will want to leave a professional first impression.
Carriers and shippers remember the professional brokers that quickly and professionally met their needs. Brokering software was mentioned earlier as something you should have. The software is an excellent management tool. It will provide accounting, client contacts, and several other programs in one that makes the job much easier.
Because it is made for brokers specifically, any business that uses it will operate much more efficiently and professionally. To successfully operate your business, you should constantly try to make new contacts by introducing yourself to the thousands of freight carriers and shippers.
