Jacquelyn Lynn - Start Your Own Freight Brokerage Business: Your Step-By-Step Guide to Success

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

Construction and Contracting Business

Consulting Business

Day Spa and More

e-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 Service

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

Net Services Business

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

Travel Business and More

Tutoring and Test Prep Business

Vending Business

Wedding Consultant Business

Wholesale Distribution Business

Entrepreneur Press, Publisher

Cover Design: Beth Hansen-Winter

Production and Composition: Eliot House Productions

2014 by Entrepreneur Media, Inc.

All rights reserved.

Reproduction or translation of any part of this work beyond that permitted by Section 107 or 108 of the 1976 United States Copyright Act without permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Business Products Division, Entrepreneur Media Inc.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

ebook ISBN: 978-1-61308-282-9

Contents

E ver been set up on a blind date by a friend? If you havewhether it was a success or a disasteryouve essentially seen a broker in operation.

The role of a broker is to bring two parties together. That might be in a social setting, such as the matchmaker who introduces a single man to a single woman. Or it might be in a business setting, such as a real estate broker who brings buyers and sellers together, a stock broker who brings investors and companies together, or a freight broker who brings shippers and carriers together.

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. They perform an extremely valuable service, bringing together buyers and sellers who might not otherwise be able to find each other and assisting in negotiating the terms of the transaction.

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 and provide any extra services that may be requiredall at a competitive price.

Why cant shippers just do this for themselves? Simply put, because it isnt practical or realistic for them to be 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 money and receive better service by using a freight broker rather than shopping around for freight services on their own. Its similar to using a travel agent; although many people think it costs more to use one, its often cheaper to go through a middleman (travel agent, broker, or otherwise) than it is to make transactions directly.

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. Carriers respect and appreciate the role brokers play in keeping the transportation industry moving.

Of course, theres much more to the process than making an introduction and collecting a commission. Brokers work hard in a fast-paced, demanding environment. They thrive on stress, enjoy challenges, and are consummate people people. If your ideal business includes a predictable routine and a limited amount of human contact, stop reading right now, because a freight brokerage isnt for you. But if you want minute-by-minute change, unexpected crises, and daily opportunities to stretch your creativity and problem-solving abilities to the maximum, youll make a great freight broker.

This book will take you through the process of starting a freight brokerage, beginning with a general overview of the freight industry and the role brokers play. It will explain basic requirements and startup costs. Youll learn about day-to-day operations when things are going welland when theyre going wrong. Well discuss how to find, hire and keep good employeesas well as what to do when you lose them. Youll gain a solid understanding of the sales and marketing process, as well as how to track and manage the financial side of your business. Throughout the book, youll hear from freight brokers who have built successful companies and are eager to share what they learned.

Ready? Then turn the page to take the next step of your journey into one of the most fundamentally necessary and exciting businesses in the world: the freight brokerage.

T he transportation industry in general, and the trucking industry specifically, are critical to the economic and social survival of local communities, the country, and, indeed, the entire world. Think about the times major transportation systems have failed because of mechanical problems, natural disasters, or labor conflicts. When cargo cant move, the repercussions are serious and widespread. Store shelves are emptied, perishable goods spoil, factories are shut down, workers are idledthe list goes on.

The United States may be shifting from a manufacturing to an information-based economy, and technology is certainly impacting every business, but there will never be a time when goods do not have to move.