How to become a freight broker with no experience

You must study and learn about the industry, create a business plan, and market your freight broker business in order to become a freight broker with no experience. For more details on these steps and others you can take to become a freight broker with no experience, use this guide:

• Study and learn about the freight brokerage industry. You need to understand how the freight brokerage industry works before taking any other steps to start a career in the field.

There are many books and online resources you can reference to gain knowledge on how the industry operates. These sources can teach you about the characteristics of the industry, and how to find shippers, carriers, and agents.

They can also inform you on how to transport freight at a price that is profitable for you as the broker and as well as the carrier. In addition, you need to also learn about the laws and regulations of the industry.

Doing research will also give you keen insights into strategies you can employ to make your freight brokerage business successful. Depending on the sources, you may learn all this information for free or spend as much as $3000.

• Determine a company name and register your freight brokerage firm. You then need to pick a name for your company. To do this properly and endure its uniqueness, you should register it with the US Patent and Trademark Office.

During this step, you also need to select the appropriate type of entity for your business. It is strongly recommended that you register your company as a corporation (Inc.).

The registration process can be completed at your local business license department. Once you do this, you then need to get your Tax Identification Number from the Internal Revenue Service (IRS).

It takes around a month to complete everything mentioned in this step and will cost you anywhere from $300 to $1000.

• Create a business plan. To do this step effectively, you need to do some market research. Once you have done enough, craft a business plan that utilizes the information you have gleaned.

The most effective way to create a business plan is to find a market niche and exploit it. You then need to form an effective marketing strategy. You might consider hiring a business consultant during this phase, someone who is well versed in crafting business plans.

This entire step can also take up to a month and can cost you $0 or up to $1000 if you hire a business consultant.

• Seek out appropriate trucking carriers. This is a really important step. Your business reputation depends on the quality of service you provide, so you need to find trucking carriers that fit your niche and offer the best services. They should be reliable and appropriate for your customer base.

To find trusted partners, you are going to have to search through online repositories. Here you need to employ some networking skills to gain the right contacts that you may then go on to partner with.

Keep in mind that this will be an ongoing process that you will have to perform throughout your career as a freight broker.

If they approve your application, the FMCSA will then give you a USDOT number. This step takes close to a month in time and typically costs around $300.

• Secure a $75,000 Freight Broker Bond (BMC-84). This bond is proof of your financial holdings and exhibits your responsibility as a freight broker.

It means that your business guarantees payment to trucking companies and shippers in the event that you fail to meet contractual agreements. This bond is required to be renewed annually.

• Obtain General Liability and Contingent Cargo Insurance. Shipping companies tend to only do business with professional freight brokers and to become a professional freight broker, you need to have insurance.

Purchasing Contingent Cargo Insurance gives you all the necessary protection you need as a freight broker. To get these types of insurance, you must fill out and submit Form BMC-34 for loss and damage.

In addition, you need to fill out and submit Form BMC-91 or BMC-91X for property damage, personal injury, and restoration of the environment. This step can take up to as long as two weeks.

• Search for agents for Service of Progress. You have to take this step in each state you plan to do business in.

To do this, you need to fill out and submit Form BOC-3 to FMCSA. This step can take up to seven days.

• Purchase some appropriate equipment. To work from home as a freight broker, you are going to need a computer, printer, fax machine, and photocopy machine.

You also need a smartphone, a landline telephone, office supplies, and a strong internet connection. Since you don't have experience, it is also recommended that you purchase some freight brokering software, as it will make your initial launch a lot easier.

• Gather some startup capital. You are going to need some capital to launch your freight brokerage business. This is necessary because you will need to pay truckers for shipments that they deliver before you receive payment from the shipping company.

You have two options to secure some startup capital. If you have enough cash on hand already, then you are set. If not, you need to open up a line of credit with a bank. Opening up a line of credit is also encouraged because it is useful as an emergency fund.

• Market your business. This is the very last step in becoming a freight broker with no experience. You need a solid marketing strategy, a unique and appealing logo for your company, and some additional branding as well.

One critical part of this step is to set up a website for your company. Here you can go on to list the professional experiences you will gain and reviews from satisfied customers. You can also print out marketing materials to hand out to the proper people and construct marketing emails to be sent to prospective clients.