Freight Brokerage Business. The Staff of Entrepreneur Media, Inc.
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40
Pay Day: How to Pay Yourself
CHAPTER 41
Tax Talk: What You Need to Know About Your Taxes by Joan Szabo
APPENDIX
Business and Government Resources
Glossary
Index
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Do you understand the concept of being a middleman in business? Two companies or parties need to work together, but it takes a third, independent party to bring everyone together, to make the introductions, and then ensure the business transactions that need to happen transpire smoothly.
The role of a broker is to bring two separate parties together. In a social setting, a broker might serve as a matchmaker and introduce a single man to a single woman. When it comes to buying and selling real estate, for example, it’s a real estate broker who brings buyers and sellers together. A stockbroker, for example, brings investors and companies that are selling stock together.
Meanwhile, it’s the job of a freight broker to bring shippers and carriers together. This may seem like a simple and straight forward endeavor, but there’s a lot of problem solving and logistical work that goes into becoming a successful freight broker.
Of course, when your great aunt Agnes wants to introduce you to that “perfect” person, the only reward she’s hoping for is the satisfaction of being the catalyst behind a successful relationship—and perhaps some recognition at the wedding. But in business, brokers expect to be compensated for their matchmaking efforts, and justifiably so. Brokers perform an extremely valuable service, bringing together buyers and sellers who might not otherwise be able to find each other. Brokers assist in negotiating the terms of the transaction, and then often oversee the transaction from start to finish.
Brokers in passenger transportation are typically known as travel agents. Their function is to identify and arrange the most appropriate travel methods for their clients, whether it’s booking a single, one-way seat on an airplane, or putting together an elaborate tour package that includes surface and air passage, hotels, meals, and recreation.
On the freight side of the transportation industry, the primary role of a broker is to help companies that need to ship cargo find a trucking company that can deliver the shipment on time and in good condition, plus provide any extra services that may be required—all at a competitive price.
As you’ll discover, becoming a successful freight broker will require you to seek out shippers and carriers, manage these relationships, continuously overcome challenges that arise, and work under tight deadlines. Your ability to multitask, as well as tap into your communication, time