The Staff of Entrepreneur Media - Freight brokerage business: step-by-step startup guide: everything you need to start a successful business

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Freight Brokerage Business: Entrepreneurs Step-by-Step Startup Guide, 5th Edition, ISBN: 978-1-61308-361-1

Previously published as

Start Your Own Freight Brokerage Business, 5th Edition , ISBN: 978-1-61308-360-4 2017 by Entrepreneur Media, Inc., All rights reserved.

Start Your Own Business, 6th Edition, ISBN: 978-1-61308-300-0, 2009 Entrepreneur Media, Inc., All rights reserved.

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Contents

Additional titles in Entrepreneurs Startup Series

Start Your Own

Arts and Crafts Business

Automobile Detailing Business

Bar and Club

Bed and Breakfast

Blogging Business

Business on eBay

Car Wash

Child-Care Service

Cleaning Service

Clothing Store and More

Coaching Business

Coin-Operated Laundry

College Planning Consultant Business

Construction and Contracting Business

Consulting Business

Day Spa and More

eBusiness

eLearning or Training Business

Event Planning Business

Executive Recruiting Business

Fashion Accessories Business

Florist Shop and Other Floral Businesses

Food Truck Business

Freelance Writing Business and More

Freight Brokerage Business

Gift Basket Business and More

Grant-Writing Business

Graphic Design Business

Green Business

Hair Salon and Day Spa

Home Inspection Service

Import/Export Business

Information Marketing Business

Kid-Focused Business

Lawn Care or Landscaping Business

Mail Order Business

Medical Claims Billing Service

Microbrewery, Distillery, or Cidery

Net Services Business

Nonprofit Organization

Online Coupon or Daily Deal Business

Online Education Business

Personal Concierge Service

Personal Training Business

Pet Business and More

Pet-Sitting Business and More

Photography Business

Public Relations Business

Restaurant and More

Retail Business and More

Self-Publishing Business

Seminar Production Business

Senior Services Business

Specialty Food Businesses

Staffing Service

Transportation Service

Travel Business and More

Tutoring and Test Prep Business

Vending Business

Wedding Consultant Business

Wholesale Distribution Business

Table of Contents

D o you understand the concept of being a middleman in business? Two companies or parties need to work together, but it takes a third, independent party to bring everyone together, to make the introductions, and then ensure the business transactions that need to happen transpire smoothly.

The role of a broker is to bring two separate parties together. In a social setting, a broker might serve as a matchmaker and introduce a single man to a single woman. When it comes to buying and selling real estate, for example, its a real estate broker who brings buyers and sellers together. A stockbroker, for example, brings investors and companies that are selling stock together.

Meanwhile, its the job of a freight broker to bring shippers and carriers together. This may seem like a simple and straight forward endeavor, but theres a lot of problem solving and logistical work that goes into becoming a successful freight broker.

Of course, when your great aunt Agnes wants to introduce you to that perfect person, the only reward shes hoping for is the satisfaction of being the catalyst behind a successful relationshipand perhaps some recognition at the wedding. But in business, brokers expect to be compensated for their matchmaking efforts, and justifiably so. Brokers perform an extremely valuable service, bringing together buyers and sellers who might not otherwise be able to find each other. Brokers assist in negotiating the terms of the transaction, and then often oversee the transaction from start to finish.

Brokers in passenger transportation are typically known as travel agents. Their function is to identify and arrange the most appropriate travel methods for their clients, whether its booking a single, one-way seat on an airplane, or putting together an elaborate tour package that includes surface and air passage, hotels, meals, and recreation.

On the freight side of the transportation industry, the primary role of a broker is to help companies that need to ship cargo find a trucking company that can deliver the shipment on time and in good condition, plus provide any extra services that may be requiredall at a competitive price.

As youll discover, becoming a successful freight broker will require you to seek out shippers and carriers, manage these relationships, continuously overcome challenges that arise, and work under tight deadlines. Your ability to multitask, as well as tap into your communication, time management, problem solving, and organizational skills will all come into play every day.

Why cant shippers simply find and hire their own carriers in order to transport their cargo? The simple answer is because it isnt practical or realistic for them to become intimately familiar with the service and rate structures of hundreds of different motor freight companies.

Even if they build in the cost of the brokers commissionwhich the carrier, not the shipper, often paysmost shippers save time and money, plus receive better service by using a freight broker rather than shopping around for freight services on their own.

From the carriers perspective, the broker brings in business that the carrier might not have been able to find on its own. Unlike an in-house salesperson, the broker is only paid when the carrier hauls a load. In todays business world, carriers have come to respect, appreciate, and heavily rely on the role brokers play in keeping the transportation industry moving. What this potentially means for you is opportunity!