Foreword
What makes these training materials different?
This training program and these materials are promoted as a comprehensive, step-by-step guide, showing you everything you need to get properly set-up and organized to conduct a successful freight broker business. And so it is. But it is more than this – much more.
Many handouts and website resources
First, included in these materials are various “handouts”. Some of these will serve as templates which you can modify and use in your own business. You do not need to reinvent the wheel as you set up your various forms that you will need in order to conduct and manage your business.
Second, there are a good number of websites that supplement the materials in this training program. These websites are meant to be used to facilitate understanding and are not necessarily recommendations to be followed to the T.
Running a business
These materials also address some of the financial, credit, legal and business issues that impact freight brokers. It is only correct to view your freight broker venture truly as a BUSINESS. As such, you will need to know more than just how to broker freight. You will need to know how to “run a business” in its entirety – marketing, cash management, planning, operations and perhaps personnel.
You will need to know how to work proactively instead of reactively in order to avoid or minimize some of the unexpected incidents that might, and probably will, arise.
You may encounter incidents such as a delivered load that has either damaged or missing pieces. Or, you may need to know how to protect yourself when you extend credit to various shippers. The bottom line is – you are doing more than brokering freight, you are running a business.
So, think of yourself as a “business owner” as well as a “freight broker”.
Growing your business
As your business grows you may want to find one or several others who can work on the day-to-day operations. This will give you the opportunity to work “ON” the business as well as “IN” the business.
Many businesses fail because the owner does not know when and how to rely upon others. It’s true, working as a freight broker offers an excellent opportunity for successful growth with just one person. But it also provides opportunities to grow much larger if this should be your desire.
The most valuable handouts
Lastly, there are several handouts in particular that, together, are almost worth the value of this entire program. One is the Broker-Carrier agreement. The second is the load confirmation (rate con) that the broker gives to motor carriers for each load that will be moved. Then, there are the Load Manager spreadsheets, the database templates and the sample business plan.
In regard to the Broker-Carrier agreement, read it several times. Understand how you are protected and never begin any business relationship without having this document returned after proper completion.
The load confirmations that go to the motor carrier spell out IN DETAIL what is to be done with each load. Once signed and returned, the broker is ready to dispatch the driver.
The Load Manager spreadsheets give you tools to analyze your load activity. You won’t find these analytic tools anywhere else – not even with expensive freight broker software.
After you order and install the only software package recommended (MyDatabase – $39.99), you may load the two database templates from the Handouts. Having these templates already prepared will save you 4-6 hours of work.
The sample business plan, if you modify it for your own business, will separate you from the others. Most small business owners don’t make the effort to prepare this. Many erroneously think, “I know in my head what needs to be done”.
The written business plan can be a blueprint for your business, it can be a plan of action and it can be a beacon and a roadmap.
I can’t emphasize enough how important these items are – yet, I know from experience that some will gloss over the materials without really integrating them into the business process.
I am convinced – and I believe you too will be – that these materials and the additional handouts are indeed comprehensive and provide step-by-step instruction on how to set-up your business and how to work successfully.
These materials are powerful, they are effective and they are the reason why this training program is different.
John D. Thomas, Founder, Owner, President, CPA Atex Freight Broker Training, Inc. El Paso, Texas November 2023
Note: it may be important to know that this training program has expanded into freight hotshot and freight dispatcher training. Bookkeeping services are also being offered.
You may run across drivers that need a dispatcher to find loads for them. Or you may even branch out into your own hotshot business. My website offers more detail on these options.
Careful consideration needs to be done, however, especially in regard to avoiding double-brokering.
Training Manual Structure
The contents of this training program can be categorized into six basic types of information:
1. Getting Organized & Getting Your Broker Authority – Getting your business set-up either as a sole proprietor, LLC, corporation or other. Then preparing and submitting your applications for getting your broker authority, surety bond, BOC-3 and UCR. These four items are required. If you desire to purchase contingent cargo insurance, we also provide information on this as well. But this insurance is not required. (These topics are covered in Session 1.0)
2. Essential Tools of the Trade – You also need to learn some essential tools such as how to use the load boards to post loads and search for trucks, and how to create databases for your shippers and motor carriers. You will learn about calculating mileage with mapping resources as well as calculating rates. Also, learning to monitor your loads for maximum profit is essential for your success. (These topics are covered in Session 2.0)
3. Finding & Working with Shippers – You will also need to learn how to search for shippers (customers) after preparing your set-up package. There are some good techniques for your searches – but, really, no magic formulas. This will be an important effort especially in getting your business established. You will also want to prepare yourself to “take the order” from shippers. Perhaps most importantly, learning how to market your business and retaining customers will be ongoing functions for months if not longer. (These topics are covered in Session 3.0)
4. Pre-Qualifying Carriers and Booking the Load – You will learn how to pre-qualify motor carriers (there’s a lot of confusion here), how to “book the load”, how to monitor loads, and how to prepare confirmations. You will want to learn how and where you can uncover “hot spots” to guarantee a constant flow of business. You will also be introduced to some potential problems that may arise. (These topics are covered in Session 4.0)
5. Business, Credit, Financial & Legal Issues – Here you will learn about the pros and cons of using factors. You will learn how to establish good creditworthiness, how to do credit checks and manage your cash as well as being introduced to some of the potential legal issues that may impact your company. You will learn how to use and apply your Broker-Carrier Agreement. Lastly, you will learn some different options for accounting, recordkeeping and paper processing as they relate to freight brokers. (These topics are covered in Session 5.0)
6. Legislation and Other Related Legal Issues – There seems to be more and more legislation directed at trucking companies and truck drivers. All of this legislation affects brokers to some degree. We’ll discuss some previous and current issues here in Session 6.0. In the Resources session, you’ll be given some links where you can go to keep abreast of these ever-changing legal topics.
Consequently, the essence of this training is practical, comprehensive step-by-step instruction with the purpose of helping you create your very own freight brokerage in the shortest time with the least expense and effort.
Your Training Manual, Related Handouts & Website Resources
The training manual is provided to you with instructions on accessing it. To enter the training manual, you MAY NEED to enter a password to access it. The training materials may be protected to keep you from passing on access to others. Again, after purchasing the program, complete instructions will be available.
The handout materials are made available in MSWord, MSExcel, PDF or possibly video format. They are under copyright protection but you are free to use and modify them solely for the purpose of setting up and operating your freight broker business.
What to Expect From This Training Program
a. The initial part of these training materials will focus on getting your proper authority from the Dept. of Transportation after you establish your business name and form of doing business. A broker’s authority consists of a DOT number and you will also be assigned a motor carrier number (MC#). You need to show evidence of a surety bond or trust fund and the BOC-3. The UCR is a relatively recent requirement.
These are the only legal requirements. You may also get contingent cargo insurance if you choose; but this insurance is not required and may not even be all that helpful. Don’t worry for now if these items sound like greek. In time, these will become familiar to you.
b. You will know how to use tools such as the load boards where you will post your loads and search for trucks. Several particular videos show you how to search for trucks and post loads. Setting-up and using databases will help you in your searches as well as in the management of your shippers and carriers.
You will want to record each and every load and monitor your activity for the best performance. By monitoring and evaluating customers, motor carriers and lanes, you will learn to get the best out of your efforts.
c. You can expect to be properly prepared to work with shippers after studying these materials. Working the phones, using the Internet and talking with potential customers and carriers are all dealt with in detail. Learning specific search techniques will help you focus on where to go for more receptive customers.
d. After studying these materials, you will know how to select and work with carriers who most likely will complete their deliveries with little or no problems. It is impossible to know 100% for sure that each carrier that you work with will be entirely without problems. But you will know how to at least improve your chances immensely of getting good carriers. And you will do this by relying upon the FMCSA as well as any other methods that are included in these materials. You will learn some of the challenges that you will face as you speak with carriers who call in for more information or who run into problems.
e. After studying and reviewing the handouts, you will know how to modify the various templates for your own use. The 4-page broker-carrier agreement is set-up in MSWord format making it easy for you to modify for your own use. With the spreadsheets, you will know how to monitor your loads and analyze your profitability so you know which shippers to pursue for more business and which ones you just want to dump.
Included in the Handouts are two database templates for you to open after you purchase and install the database program from a third party.
One of the best benefits of these training materials is the fact that you don’t have to invest in expensive software. Most everything you need is provided for you in the handouts. Even the resources that we point you to are no cost or relatively inexpensive.
f. Lastly, every business is impacted by certain financial, credit, legal and business requirements. You will want to plan your cash flows to ensure that you improve your chances of getting others to work with you. You will want to work proactively as you establish yourself and build solid, long-lasting business relationships.
Some of the information in this manual may be repetitive; but it will only serve to help solidify what you need to know. There are many details and procedures. Master them but don’t expect to do it overnight.