How to Start a Freight Brokerage Business
Perhaps you want to start your own freight brokerage business but you don’t know how to start. Through this article, we will walk you through the requirements and the procedures as to how to start a freight brokerage business.
You will find a good freight brokerage business guide that you can use through this article.
The freight brokerage trade involves a lot of money. In fact, it can give you at least US$346 billion of gross profits annually. As a freight broker, you are arranging transportation for other companies who wish to ship their goods from one place to another. Thus, freight brokering is ideal for a home-based business because transportation is always in demand. Here are some things needed to start your own freight brokerage business.
Experience on the Field
According to experts, people who wish to start a freight brokerage business should have experience on the field itself. An experience on how the business actually works is a big help when it comes to managing your own business especially when the company runs across problems.
Working on the brokerage business before starting your own can also help you build up contacts, which will be necessary in order for you to accumulate a customer base when you establish your own brokerage business in the future. One way you can acquire experience on the brokerage field is to work as an agent for a broker. The agent acts as a representative for a broker in a specific area, so you work like a broker does but you do not have to deal with issues like paying carriers that do the job for you.
Freight Brokerage Business License
All freight brokers are licensed by the Office of Motor Carriers, and you are no exception. The OMC is a division of the Department of Transportation’s Federal Highway Administration. In order to get yourself licensed, check out if the Office requires you to pay a US$10,000 surety trust for the certification. This bond varies from state to state, so make sure you do your research so you can prepare the amount as soon as possible.
Office Equipment for Freight Brokerage Business
You would need basic office equipment in order to manage your business. These equipment would include a computer unit, a telephone or facsimile line, and a printer. All of these are necessary to engage in correspondence with both carriers and clients. Office space is necessary, but you can work as a broker or a broker agent from the comfort of your home. You just need the space big enough to substitute as a makeshift office.
Lastly, aside from clients, you would need to be able to build up a database of carriers. Carriers are fortunately easy to find. You can find contact information from the yellow pages of the directory, and through the World Wide Web.
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