The trucking industry is experiencing a real boom. This sphere is difficult to work in, but it is possible to earn good money. Therefore, lots of people want to become cargo brokers in the United States. A person can work in this direction independently or join a transport company.
What do you need to do to master the prestigious and highly paid profession of a cargo broker? Consider in this article all the details of preparation for work, working moments and requirements of the authorities to conduct business.
What is this profession
Cargo broker provides intermediary services between the shipper and the carrier. This is an important figure for delivering of goods to the final destination. The cargo broker solves the following tasks:
- concludes transactions between companies, determines the size of rates;
- conducts full logistical control over the delivery of goods from beginning to end;
- resolves issues with customs authorities.
The specialist is responsible to the companies and on other issues. To successfully perform its duties, the broker needs to become a real professional. How to achieve this, we will tell further.
How to get the first experience
You can find such a job even after school. You can take special courses. But it’s impossible to go far on one theory. You need to get practical skills. For this purpose, it is not necessary to take up the work of a broker first. It will be difficult to cope with it at once. Take a closer look at other professions in this industry, namely:
- get a job as a truck driver;
- work as a dispatcher;
- join a logistics company.
The work of transport and logistics companies is constantly being improved. There are new ways of delivery. Those who master new approaches faster will achieve greater success.
Develop a business plan
Serious business is impossible without a detailed plan. It reflects the immediate and future tasks of the entrepreneur. The business plan must include:
- legal basis;
- goals and objectives;
- start-up costs;
- analysis of current and upcoming financial indicators;
- potential companies with whom you intend to work;
- sources of income;
- ways to attract customers.
You should definitely stick to this plan for the first years of work.
To work legally, you need a structure for your business. You can choose from several. Structures differ from each other primarily in the degree of responsibility and the procedure for paying taxes. The government offers you the following types of business structures:
- Limited Liability Corporation or LLC for short. Business owners do not have to pay corporate taxes.
- A partnership is created by two or more people who want to conduct a joint business.
- Individual entrepreneurship assumes the responsibility of the entrepreneur for all debts and taxes.
Most freight brokers prefer to work remotely now. But it is advisable to have at least a small office for meetings with clients.
Work with customers
Establishing relationships with carriers and companies is one of the most important tasks for the successful conduct of a cargo broker’s business. You can use different ways to find customers:
- word of mouth;
- online services;
- visits to industrial enterprises.
Obtain the identification number and authority of the cargo broker
Get a free USDOT number. After that, write an application for registration in the FMCSA. Without these documents, your business is considered illegal. To register in FMCSA you need to pay $ 300.
There is another important duty to work as a cargo broker: you must have $75,000 to cover unforeseen shipping costs.