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Becoming a Freight Broker

Freight Broker continued

Rating: 1 votes, 1.00 average.
by , 01.07.2009 at 03.42 PM (2064 Views)
Well, I decided not to go on as an agent for another broker. I couldn't find one that had the same ideas and principles that I have. I have been researching the things necessary to start my own brokerage from scratch, putting together figures, writing a business plan. It's been interesting to say the least, and I think it would be easier to buy a truck and go owner-operator than it is to start a brokerage!

The nice thing is I won't have to pay someone to design forms, create a website, or do any of the graphics related stuff for me.

I have been researching transportation software, insurance and bonds, lawyers, and several other things. I already have an accountant that is a good friend and very knowledgeable. What an asset! He was my accountant for my cleaning business years ago, so I am familiar with his work. He is also familiar with the trucking industry.

The lawyer I found has pretty much specialized in the transportation industry, which is really cool. That will be very helpful when it comes to creating contracts.

It's been an interesting journey so far, and is nowhere near done yet! I forget the hassles of starting a business at times, but this process has brought them all back.
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  1. luvtheroad's Avatar
    being the curious person that i am, i have to ask... why do you want to become a broker?
  2. Lilbit's Avatar
    To answer your question luvtheroad, there are several reasons.

    1. Most of the brokers out there are crooks to put it simply. Search the forum for threads on brokers, and you'll find plenty to support that.

    2. I cannot go back to driving because of physical health issues (bad right shoulder and back), and I honestly love the trucking industry. It's in my blood.

    3. Starting my own brokerage is a business I can start without needing office space, employees, and a lot of the other headaches that normally go along with owning a business. That said, there are always headaches that go with owning a business, no matter what.

    Those are the three basic reasons behind wanting to do this. Did I satisfy your curiosity enough? If not, please feel free to ask me other questions . . . except what I'm going to be calling the biz. I will not be promoting it on here because I play by the rules!
  3. luvtheroad's Avatar
    Please dont think I'm attacking you but asking these questions. What do you mean when you say most brokers are crooks? The way they do business or what? Could you better explain how they are crooks?
    I understand completely about staying in the industry, you are coming out of the truck and my wish is to drive after being involved in transportation for over 30 yrs.
    Do you have a shipper who is going to let you broker their freight or are you going to make sales calls to get business? Have you ever worked for a brokerage before? I have to give you all the credit in the world for going into this. I have brokerage experience and if there is anything I can do to help you, I sure will. Best of luck.
  4. Lilbit's Avatar
    I didn't figure you were attacking me. Your questions didn't come across that way at all.

    As far as the crooks comment, it refers to the way some of them work their commission, keep part of the fuel surcharge, etc. I actually started a thread when I first joined here to find out some of the things that would make a good broker in the eyes of the o/o's on here. I got some great feedback and input.

    Don't have any shippers lined up. Will be doing sales calls and mailers. Since I have some graphic design experience, I can put together my own stuff and just have to pay printing costs. I've also done website design, so I can take care of that aspect as well. I'll work in some other advertising and marketing ideas along the way.

    Haven't worked for a brokerage before. I did start and run my own cleaning biz years ago, and was able to hook some good, difficult clients including the woman who runs one of the top women owned businesses in my state!

    When I lived in Florida, I worked for a national home builder doing building permit applications. I worked almost daily with two county building departments, and had great relationships developed with all the people there.
  5. 535790's Avatar
    Hi lilbit, wondering how the brokering thing is going. I have some info you could use if you are still considering getting in that field.
  6. RandyNose's Avatar
    Hey there. I was wondering if you did get your business off the ground? - Just Curious.
  7. mamakintyler69's Avatar
    Glad to hear there are SOME honest brokers out there !! My husband just left a so called company working for a Broker. Hubby got hosed !! Hubby left because the broker was not deducting taxes nor offering any health insurance and we all know what that is nowadays ! Plus he got a REAL job driving ! This whole Broker situation was new to him (and me) he needed a job between jobs if ya know what I mean. Pay was decent but I have had to contact the man who does our taxes and arrange now to have a prepared tax done in order to pay withholdings that weren't deducted. To top it off the Broker has not paid hubby his last wages/pay for 1 1/2 weeks worth of delivieries ! THAT is how he got hosed. Needless to say we are in the process of filing with the State's Dept of Labor they say we can file !!! which can take up to a year or longer to settled case and also filing a complaint with the good ole BBB ! Any other suggestions fellow drivers ? Thanks to EVERYONE for any advise !
  8. Lilbit's Avatar
    RandyNose, no, ended up not getting that going. To do things the way I wanted, which would have been something that most brokers don't do, it would have taken too much money to get things rolling. Just couldn't swing it.
  9. Lilbit's Avatar
    mama, I didn't get the broker thing going, but I sure wish I'd have had the $$$ to get it going! Most brokers just see it as a way to make big bucks, and don't give a rat's backside about the ones who really make the money . . . the drivers!
  10. mamakintyler69's Avatar
    Lilbit: Yes I have ALWAYS said that the truck driver is the BACKBONE to ANY trucking company. If they aren't driving then NO ONE in the company is getting their paycheck and companies NEED to remember that! This broker has NOT paid my hubby we are waiting to see if they TRY to put anything on his DAC!! Good news though he started his new job today and they like him he likes what he's good at... auto hauling...he is in 2 weeks orientation w/new company and the instructor already has him answering questions from other drivers being trained in as much as he has 7 yrs experience in auto hauling 18 yrs over the road total ! HEE HEE ;0))) Made me feel good talking to him tonight and HEARING the difference in his voice of contentment again. This has been a whole learning experience my heart goes out to the trucker...there is so much that the JOHN Q. CITIZEN doesn't know or understand about this industry.
  11. CLASSIC1's Avatar
    Happy Friday !!!
    Do you know of any QUALITY Freight Brokers in Wisconsin,I got out of the construction trucking business after last year and now i'm looking to move some freight in the midwest, in 04/05 i was leased on to a local co. in SE Wi and they used a broker at that time and the guy sent the agreement to sign to those people and we seen what the load really paid he got $700 I got $500 so after that they jumped on the JB Hunt OTR wagon and i went the other direction, i just recently got screwed by a Co. for thousands and it ate up my bank account, so i'm below rock bottom. i do have my own authority but can't compete with the low rate's people are doing work for these day's i'm only one truck after all, you seem like you know the broker field very good thats why i'm asking,if you can help or direct me that would be great.
    Thank's and have a GREAT DAY.....
    Bob
  12. i'msugarbear's Avatar
    i am looking into freight brokering, also. i am still researching and trying to get educated on the subject. it sounds like you know what you're doing. I have a business/accounting background, but got a cdl learners and went on the road for a few weeks. love to drive, but don't have the nuts to do it by myself. i think a mixture of these things would be a great fit.

    Good luck in your new business!
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