Freight Brokerage Business. The Staff of Entrepreneur Media, Inc.
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Название: Freight Brokerage Business
Автор: The Staff of Entrepreneur Media, Inc.
Издательство: Ingram
Жанр: Малый бизнес
Серия: Startup Guide
isbn: 9781613083611
isbn:
Early in his interview, Roach stressed that someone interested in becoming a broker or agent should enter this field with realistic expectations. The best way to develop these expectations is to work with a trainer or coach, or to spend some time working for another company. “Listen and learn from someone with experience and who wants you to become successful. My whole goal is to teach people how to go down this road with realistic expectations. I will present information and answer every question that’s posed to me, but I will never sell this career path on anyone,” said Roach.
He added, “The biggest mistake people make going into this field is that they initially spend a lot of money that they don’t need to spend. For example, they go out and acquire a license and a bond for their business before they’ve even decided to establish a freight brokerage business. Depending on the path someone chooses to take, these expenses might not be necessary. I recommend that someone invest in the proper training or coaching first. Then, based on the information you obtain, decide what else you want or need to invest in.
“Keep in mind, the premium in this business is not finding trucks. The premium and challenge is finding shippers. People come to me wanting to become a broker, because they already know several people who own trucks, or have contacts in the ground transportation industry. That’s great, but what you need as a broker are shippers to work with. Training will teach you how to find potential shippers, make sales calls like a pro, and how to build lasting business relationships. I truly believe that Brooke Transportation Training Solutions is the very best in the business when it comes to training our students on how to make successful sales calls to shippers,” said Roach.
Developing core business skills, having an outgoing personality, and learning the ins and outs of working as a freight broker are all essential. According to Roach, what’s equally important is that someone entering this field also has integrity and character. “It’s all about building trust and doing what you say you’re going to do, when you say you’re going to do it. Without trust and relationships, you have nothing in this business.”
stat fact
Trucking accounts for 81 percent of the nation’s freight bill, and trucks move approximately 67 percent (by weight) of the nation’s freight.
The online-based training program from Brooke Transportation Training Solutions is priced at $1,695 (as of early 2017). The live, five-day (40-hour) Freight Brokerage Basic course, offered in a wide range of cities, is priced at $2,495, while the Freight Broker Advanced Course (an additional 40 hours) is priced at $3,995. Financing is available for the online course, and 100 percent financial aid is available for qualified vets through the VA Chapter 31 Program (www.brooketraining.com/veterans).
In addition to the Brooke Transportation Training Solutions website, which offers information about the company’s training programs, Roach publishes the free Freight Broker Training Information Blog (http://freight-broker-info.blogspot.com), which he continuously updates with articles, advice, and information about useful resources. Plus, the company is active on Facebook (www.facebook.com/BrookeTransportationTrainingSolutionsLLC) and LinkedIn (www.linkedin.com/in/jeffery-roach-9a427153).
“Between the website, our blog, Facebook, and LinkedIn, we do everything we can to get the best information and resources out there for people who are already in the industry and for people who want to get into this industry,” concluded Roach.
He recommends the TIA (Transportation Intermediaries Association, www.tianet.org) as another excellent resource for someone interested in learning more about this field. However, he suggests waiting to join this organization until after you’ve opened your own freight brokerage business, because the annual membership fees for this industry association are expensive.
What Does the Business Require?
The dissolution of the Interstate Commerce Commission, and other aspects of transportation deregulation, has left many industry players confused about what is regulated and what is not. This chapter addresses the regulatory and practical requirements of starting and running a freight brokerage, although state and federal laws and regulations are continuously changing.
Freight brokers must register with the Federal Motor Carrier Safety Administration (FMCSA). This is not a complicated process. Essentially, you must file an application (Form OP-1) and pay a filing fee, obtain a $75,000 surety bond or establish a trust fund, and designate agents for service of legal process. The registration will remain valid as long as these requirements continue to be met. Keep in mind, this is something that must be done by the freight brokerage business, not an individual freight broker or agent.
The surety bond or trust fund is evidence of financial responsibility. This means you must demonstrate that you have access to that amount of liquid assets to meet your obligations and pay any potential claims. You can either use your own resources or contract with a bonding company. Evidence of a surety bond must be filed using Form BMC 84; evidence of a trust fund with a financial institution must be filed using Form BMC 85.
Designation of process agents means that for each state in which you have offices or in which you write contracts, you must file a designation of person on whom court process may be served.
When your application is approved, you’ll receive a permit with a Motor Carrier (MC) number from the FMCSA that is your authority to operate as a freight broker within the United States. Beyond the regulations that govern your particular operation, when you act on behalf of a person bound by law or FMCSA regulations as to the transmittal of bills or payments, you must also abide by the laws or regulations that apply to that person.
In addition to federal requirements, you’ll need whatever business licenses and/or operational permits that are required by your local and state governments.
Check with your local planning and zoning department or city/county business license department to find out what you need and what is involved in obtaining these licenses and/or permits. For example, you may need an occupational license or permit issued by your city or county, a fire department permit if you are in a commercial location and/or open to the public, and/or a sign permit.