How to start a freight forwarder business
If you’re tired of working for someone else, you can join the millions of Americans who have become self-employed. If you are interested in starting your own brokerage business, the first step is to obtain a freight broker license. If you are just starting out or considering this line of work, you must register as a broker with the Federal Motor Carrier Safety Administration (FMCSA).
There is also a $300 registration fee. Once you receive your Carrier Number (MCN), you can complete the rest of the application process. A broker is required to have an insurance policy. Some areas will also require you to have a bond. Your local bank can help you set up a bond, if needed.
Once you obtain an insurance policy and/or a bond, you will need to file proof of insurance with the FMCSA. After meeting all the appropriate requirements, it may take 4-6 weeks before you are granted an FMCSA authorization. You can now work with your valid license and start your own business.
If you have already decided that you want to start a freight brokerage business, you probably already know the important role that freight brokers play in trucking freight. To start a freight forwarder business, there are several pieces of equipment that you may need.
computer
You will need a computer with accounting software and freight forwarder software. Freight broker software is available as a browser or software download.
Fax, printer, postal machine
You will also need a copier and a fax machine. An all-in-one printer works great. It gives you everything you need to run a business and leaves less of a footprint than having multiple machines. It also doesn’t hurt to have a postage scale and postage meter to speed up the process of sending invoices etc.
Although a typewriter may sound old-fashioned, you may be required to fill out multi-part, pre-printed forms. Operating your business will go much better with a well-equipped and organized office space. The freight broker work on commission earned from each transaction, so the better organized the freight broker is, the more money they will make at the end of the day.
One of the challenges many face when starting a brokerage business is building a customer base. As a broker, you will be in contact with many carriers and shippers. The owner of a successful brokerage business will want to make a professional first impression.
Carriers and shippers remember professional brokers who serve their needs quickly and professionally. Brokerage software was mentioned earlier as something you should have. The software is an excellent management tool. It will provide accounting, customer contacts, and several other programs in one that makes the job much easier.
Because it is made specifically for brokers, any business that uses it will run much more efficiently and professionally. To successfully operate your business, you must constantly try to make new contacts by introducing yourself to the thousands of carriers and shippers.
