What is the freight broker process? 

So, you have decided to become a freight broker and start your own business...congratulations to you on making this life changing and freeing decision! Now, the next question on your mind is where on earth do I begin...here you are an individual with a great idea in Melbourne (or wherever you happen to be) and not really sure of the next step. Please join us as we take a short overview of what the freight broker process is but please remember this process may vary slightly depending upon where you reside, where your business will be and other factors.

• Make the decision to become a freight broker – the first and most obvious step in the process. If you are made the decision to become a freight broker you have probably already looked into the profession a little bit so you have an idea what is involved. If you know nothing about being a freight broker now is the time to take a few classes, talk to other brokers, or just do some research online to gain as much knowledge about the field as possible.

• Choose a company name and register your new business – this is one of the most important steps, pick a name that you will like for years to come. After you choose a name you need to register it in order to legally operate a freight business. The registration process will vary from country to country so look into your country’s process.

• Make a business plan – this will help your business get off the ground by providing a good layout for when you go to the bank to ask for a loan and it is also a great idea to help with targeting your audience. Think of your business plan as your go-to strategy that will help get your business booming. 

• Choose the right carriers – do some research and find the best and most reputable carriers, this will help keep your business running and the reputable work will bring more customers and trust from potential customers.

• Freight broker bonds – the surety bond is a requirement for all freight brokers and this bond is typically in the amount of $75,000 and is used to ensure your client's shipments get to where they need to go or this covers the cost. Think of this as a form of insurance.

• Insurance and general liability coverage – the amount and types of insurance and liability coverage will vary depending upon the minimum requirements for your area and your personal preferences.

• Get your equipment – purchase or rent any equipment you will need to smoothly run your business. This is where you would want to find the building to run your business from (if you are not running it from your home).

Hopefully, this list has given a little insight as to how to get started in the freight broker business and as always do some research on your own and gain information on your specific area’s rules and regulations and we wish you the best of luck.