Entrepreneurship Class Assignment

It’s not as easy as Ridgeline said in being a real broker. (Although I did like his trucking responses for what that’s worth) You do actually need a business plan just like any business. That’s sort of like saying owning a trucking company means you get your authority then sign up to load boards and make lots of money. lol. So much more has to happen. There are good threads in the brokering section about getting insurance, surety bonds, authority, factoring, customers, carriers, load boards, etc.

It really just depends how in depth you want to go with this assignment. Do you want to just complete the assignment because it was assigned, or do you want to do a deep dive because your passionate and want to learn.

 

What does having capital for A/P mean

 

Just go look at all the threads made by owners who never were paid by a broker, that's why.

 

A/P Accounts Payable. Still Brokers can factor just like owners. I guess the surety bond is tough to come up with --- is it 75K? Can't they take a loan on that too? If so, starting a broker business with a little of own capital but plentiful of contacts could make sense. I can see an experienced ex CH Robinson or TQL broker who can pull off something like that successfully. Business from a home office sounds like a dream come true to me.

 

You don't pay $75k for the bond, it is a form of insurance so it is a small percentage of the 75k.

I wish it was $250k.

 

I've known more than a few truckers that went broker after medicaly disqualified, it a great way to get in shape, but if your a heavy sleeper don't do it, late night early morning phonecalls happen every night

 

Brokers have 30 days to pay the carrier.
How long do shippers have to pay brokers.

 

Depends on the Shipper. Most products are sold on 30 days due. Some are collect, upon delivery.Usually once credit worthiness is established, 30 days due plus additional interest afterwards for late payments. The examples I’m reffering to are for wholesale food to restaurants and grocers. I imagine it’s a standard. I’ve heard auto companies pay at 21 days , And Government always pays on time. Making them very desirable Customers.