Venturing into a new business concerns always arise, in this article I would like to answer some of the most frequently asked questions about becoming a freight broker. Most people that initially research this business are usually looking to start a home business, work remote or gain part time income. Before you make any investment, whether it be time or money, there are always major questions out there that need to be answered before one dives into a new venture.
First of all what is a Freight Broker?
A Freight Broker is a liaison between companies that needs a product shipped; in the industry this is called a “shipper”, and a trucking company. Their job is to assess the “shippers” needs and find the right equipment to get the job done. It is also their job to see the shipment from start to finish, from planning the pick up time and date to delivery.
How do I become a freight broker?
To become a freight broker you first need to obtain your Freight Broker Authority from the Federal Motor Carrier Safety Administration. This will run you $300, and is also called your OP-1 form. Then you’ll need to get your surety bond of $10,000 through a bond company. Don’t worry you can pay for this bond in monthly installments until its paid off, which should keep your initial startup costs low. You may also need some sort of business license or permit to operate a home based business in your city or county, the best place to start is to call your city department and ask about small business licenses and or permits.
How much can I make as a freight broker?
Freight broker’s salaries can really depend on how much you as an entrepreneur put into your newly formed brokerage. As you first start out, you won’t have many customers so your salary will be low. The road to financial freedom is never a cakewalk, if you stick with it and start to gain more and more customers you’ll start to generate more revenue. Once you get to the point of earning salary that you are comfortable with, most brokers will then hire freight agents to work under their MC number, also commonly known as your license. With agents operating under your control you can then take a percentage of off the freight they move as well. Freight Brokers that are making over $100,000 are usually employing multiple agents within their company.
What will I need in my home office to start out with?
Starting a home based freight brokerage doesn’t require a whole lot. In fact, you may already have everything you need in your house already. Briefly here is list of the essentials you will need:
- Fax (These can now be sent online just like emails, makes it easy and cheap.)
- Load board software
- Dispatch software.
This business doesn’t require a whole lot get you going, realistically you could be up and running for under $1500 depending on what resources you may already have. The freight industry is a great business for people who are looking to start a home based business or someone looking for part time income. Now with some of the biggest questions asked and answered about freight brokers, how will you begin your journey of starting a home based business?