Can you become a freight broker with no experience? This is a common question for those coming into the industry but the answer isn’t so clear. While of course you can become a freight broker with no experience, it doesn’t necessarily mean that you should. Before you make the decision of becoming a freight broker with no experience there are certain things you need to consider and the risks you need to take into account before you take this big step in your career.
As a freight broker of 15 years now, I have helped agents come through my brokerage with no experience and I have seen both success and failure for those who have tried. At the same time I have seen the same failures with some who have plenty of experience so in this article we are going to go over some of the qualities of successful brokers who don’t have experience, and other options you have to succeed as a freight broker in today’s competitive market.
Can you become a Freight Broker With No Experience?
There is no mandated requirements to become a freight broker. The opportunity is open to anyone with the ability to register with the appropriate government agencies and to be compliant with DOT regulations.
WIth that said, the relative success of freight broker’s is quite low. Thousands of freight brokers shut their doors every year due to a number of factors like a volatile economy, truck driver shortages, changing regulations and more. It is a highly regulated industry and while the barrier to entry is low, it is not an easy business to start or maintain.
With that being said, just because you can be a freight broker with no experience does not mean that you should before you consider some of these factors:
Risks of being a broker with no experience:
Freight Brokering Has a High Cost to Start Up
There are a number of costs associated with starting a freight brokerage. There are licensing costs, technology costs and operating costs that you have to absorb as a startup broker. Of course, this is all standard costs of doing business however if you don’t have a plan for profitability, then the odds are you will run out of money before you run out of will power. Before you get into brokering on your own, without help, make sure you have financial reserves to both operate the business and sustain your lifestyle for at least a few months to a year.
Freight Brokering Is Highly Regulated
Freight brokering is regulated by the FMCSA and the department of transportation. It is important to stay on top of all of these regulations that are constantly changing in order to be compliant and stay out of trouble with the law. If you are unfamiliar with how these agencies work, then you may find yourself fined, or shut down due to non compliance.
It is important if you are a freight broker with little or no experience that you find a reputable freight broker training program to help you understand these regulations and stay off the radar of big brother!
Building a Freight Brokerage Takes Time
In order to become a successful freight broker, you need to have a lot of time to dedicate to the business. If you are trying to raise a family or holding multiple jobs it might be really hard for you to find the time you need to make something out of this career. Make sure you have at least 40-60 hours per week to dedicate to growing your brokerage, especially if you are doing it with no experience.
Experience might be the best teacher but it is also the slowest, and that is why I created my training program the Freight skills academy, to help shortcut your success in the industry even if you don’t have any experience.
How to Get Started in Freight Brokering Without Experience
There are a few ways you can get started in freight brokering without any experience and with little personal risk to your time, and finances.
The Best Way to Get Started Freight Brokering With No Experience
The best way to get started as a freight broker with no experience is to become a freight agent working under an existing brokerage. We explore the difference between a freight broker and freight agent in this video and article which you should check out once you are done here.
In general though, becoming a freight agent will allow you to take advantage of another brokerages, financial stability, risk management, reputation and resources to act as your own broker without taking on significant risk. You’ll still have all of the same independence, job functions and responsibilities of a freight broker with the same opportunity to make a lot of money for yourself.
So, becoming a freight agent is one of the best ways to get started as a freight broker with no experience.
If you are still not convinced and you are confident enough to take on the endeavor of becoming a freight broker with no experience, I highly recommend you check out our free training. It is appropriately titled “The Six Figure Freight Broker” and it will give you insight into everything you need to know to grow your brokerage from 0 to six figures in record time.
