If you are thinking about getting into becoming a broker for trucking, there is no time like the present. Right now, freight brokering is a booming business, and you will be doing yourself a favor if you started your brokerage anytime soon. Since the economy in the US has begun to improve, the demand for freight brokers is now on the rise. As long as you are willing to invest some time and effort into learning this new business, you should be able to accomplish plenty of success. So, how to become a freight broker with no experience in California? You can Becoming a broker for trucking with no experience by following these steps such as –
. Creating a business plan
Although some people may contend that the creation of a business plan is not essential to becoming a freight broker. A business plan will acquiesce you to be able to make an intelligent estimate of how much you will require to startup your brokerage business and set a road map that can be tracked to bring the business to life. A business plan is quite significant if you want to seek startup funds from lenders such as banks. Your business plan should contain a summary of your business goals, an overview of the freight brokerage industry, an overview of your potential customer base, potential competitors, a marketing plan, potential costs involved in the setting up of the business, etc.
. Getting the essential training
Legally, freight brokers are not required to get any formal training in other to engage. Many freight brokers today have been truckers or agents that have worked for various other brokerages in the past. If you can get hands-on experience, then you should go for it. However, if you do not have the time to spend on entrepreneurship. Then you can go for freight brokers training programs. These programs are however not certified and so it is difficult to gauge the potential quality they can give you.
. Picking up the name and a business form
Next, you need to choose a unique and eye-catching name for your business and also need to decide on what type of business form you will like your business to assume. The main types of business forms that are available are Sole Proprietorship, Corporation, and a Limited Liability Company (i.e. LLC).
. Registering your business with the Secretary of State’s Office and filing for an employer’s identification number (EIN)
When you have selected a company name and the form that you wish your businesses to take. Then you will need to register with the Secretary of State’s Office. They will go through it to safeguard that you are not using a name that has already been used by another business and they will also check through your articles of incorporation among other things. Next, you need to apply for an Employers identification number.
. Finding a decisive carrier and trying to network with them
Before you start your business properly. It is advisable to seek out stable carriers whom you will do business with and try to network with them. If you are already accomplished in the trucking business. This will not be much bickering for you, but if you are inexperienced, you will find this a lot more demanding. One of the ways newbies can structure with carriers is to join the Transportation Intermediaries Association (TIA). As a member, you will be able to approach a directory that has the list of carriers and their rates as well.
. Applying for a USDOT number
Registering with the Department of Transportation is the first step of getting the freight broker license. All you will require is your EIN, the names and addresses of the company’s officers, and your DUN and Bradstreet (DUNS) number if you have any.
. Paying for a broker bond
A broker bond is a type of surety bond, which is essentially a financial agreement that functions as insurance for job completion. For instance, if one of your carrier trucks breaks down and cannot deliver a shipper’s goods. This is where the bond comes in because the good still has to be expressed. The bonding company will step in to pay for another carrier to deliver the shippers goods to complete the job. To set up shop, you will need a broker bond that is valued at not less than $75,000 which will cost between $1,500 and $4,000 yearly reliant on your credit.
. Getting your business insured
To act as a mortgage broker for a lot of large carriers, you will need to have an insurance policy.
. Applying for a freight broker’s license
Finally, you will have to apply for a freight broker license or the MC authority to become a freight broker.
What does a freight broker do?
A freight broker is someone who benefits shippers with freight ready to haul by searching for carriers who are qualified to haul the load. Now the question arises what does a freight broker do? They are liable for brokering deals with shippers and then aid the movement of a shipper’s freight. Freight brokers are authoritative for keeping a line of communication open with the carrier to update the status of the shipper’s load. They are authoritative for arranging the transportation and tracking of a load hauled by a freight carrier. They make it easier for shippers to search for quality carriers that are proven to be reliable in hauling a load.
Wrapping Up for Becoming a broker for trucking
These are the ways that one needs to follow for becoming a broker for trucking. Freight brokering is a business that does not demand massive investments either. Anyone with the desire to start a career as a freight broker can attain their goals.