There seems to be an abundance of misinformation online as it pertains to the price of starting up a Freight Brokerage. For instance, potential entrepreneurs tend to be switched off by the thought of putting up $10,000 to secure a surety bond, when in fact in most cases, whereas the owner/partners have positive credit scores, a surety bond requires less than one thousand dollars to secure and post.
In this article, we will address the actual cost of starting-up your Freight Brokerage. From conception to the first day of operations, we will exam the actual cost of start-up, including initial capital requirements, 1st quarter operational cost, and the high cost of failure.
At first there clearly was the conception of a small company idea. Maybe you have a history with the industry, why not a friend makes a comfortable salary as a freight broker, or maybe you’ve read that the industry is booming and holding steady even yet in the absolute most difficult of economical times. In any event, undoubtedly that is a thrilling time in your life: What are BMC 84 freight broker bonds? You’re considering a new venture as a small company owner and you deserve a minute to daydream… there, now that that’s all settled, let’s get down to brass tax.
Local Fees and Requirements – Although fees vary between municipalities, it’s common in the United States for your county to require fee-based license and permit requirements to operate a business within the limits of the county. The total amount of these fees will be different and may require an investment of between $50.00 and $1,000.00. Typical fees for licensing and permit requirements are $500.00 or less.
The Cost of Authority – The price of authority in the United States is surprisingly low. By Jan 1, 2012 the price of acquiring a Motor Carrier’s Authority is $300.00. Because of this fee you’ll receive a six-digit authority number, for example, MC# 000000. This authority allows you to use interstate transport. Your authority can last for as long as you stay static in compliance with the F.M.C.S.A.
Surety Bond – A $10,000 surety bond is needed by the F.M.C.S.A. to lawfully operate a freight brokerage in the United States. However this doesn’t mean you are required to put up $10,000; there are lots of services that will happily put this bond up in your term for a fee of $1000.00 or less. This service resembles a loan and requires a confident credit score by the main one who seeks to obtain it. If your credit score is not favorable you may decide to invite a business partner in in your plans otherwise you may be required to put up the whole $10,000 bond yourself.
Operational Cost – The price of starting-up operations will needless to say vary between brokerages, budget, and location. However, operational cost in most cases is greatly within the control of the Brokerage Owner. Take this opportunity to create a restrictive budget that only allows just for the upmost necessary expenses.
In lots of scenarios a new freight brokerage opens within the familiar confines of the home. If this example seems familiar, your starts up cost tend relatively low.
You will be needing:
• Telephone Line
• Fax Machine or
If you never already own these materials, a thrifty minded entrepreneur could acquire all four of these materials at under $500.00.
Office Equipment & Supplies – It’s rather possible for a new business owner to get rid of his / her way and overspend with excitement as it pertains to creating a new home office. Remember, you will be needing every dime of operational income available for your requirements in the near future. Simplify your dwellings now and focus in your earnings. Do this and there will be time for spending and upgrades in the near future.
Website, Hosting, Email Services – When most people hear website, they believe of the high cost associated with production. Well, fortunately this isn’t true anymore. You can find websites focused on freelancer services that enable you to post a job and pay the lowest bidder a touch to complete your project. For a thrifty eye, these services can be found at under $500.00. Note: Your brochure, business card, and logo services can all also be obtained through the freelancer services sites mentioned above.