Most businesses don’t give their owners the opportunity to start generating substantial profits straight out of the gate. But that’s fortunately not so with auto transport brokerages. These are one of the few niche business opportunities that will net a reasonable profit as soon as you start the company. If you’ve already started your auto brokerage business, congratulations. Build your customer base with qualified leads from Auto Transport Broker Leads today. Order your first set of hot leads online now.
Haven’t started your auto transport brokerage yet? There is no time like the present. Get your auto transport brokerage up and running with our top 14 tips for starting an auto transport brokerage.
1. Pick your business name.
It might seem like a no-brainer that you’ll want to pick your business name first. But picking a name does require some thought. You don’t want to choose a name that looks and sounds like every other auto transport brokerage. But at the same time, you don’t want to choose a name that is so off the wall that customers may have a tough time remembering it. Using a weird name for your business can also make it harder for your company to rank on Google. Keep these tips in mind when choosing your business name:
- Keep it simple.
- Make it memorable.
- Make it relevant to the industry.
- Use a keyword in the name.
On that last point, our name is Auto Transport Broker Leads. It’s extremely keyword heavy. Google likes that, and it will make it easier for you to start building your online presence for your business.
2. Incorporate the business name.
Once you pick your name, you’ll need to incorporate it. Incorporating a business means you are giving it a legal structure, i.e., an LLC, INC, or Sole Proprietorship. You’ll want to speak to an attorney and an accountant for this step. Incorporation determines:
- How you file business taxes
- What you ultimately pay in taxes
- What your liability issues are
- How your business is protected if you get sued
3. Get an EIN for your auto brokerage business.
An EIN stands for an employee identification number. It’s also called a “tax id.” EINs are given once you incorporate your business. Just like you have a social security number, your business will too, called an EIN. Instead of giving our your personal social security number, you’ll be able to use your business EIN when you start contracting with and working with other companies.
4. File for a DOT authority.
You’ll need the FMCSA to approve your authority. It takes about 21 days for this approval to happen. You’ll want to file as soon as you finish steps one through three.
5. Get USR registration.
Auto brokers and carriers are legally required to have both DOT authority and UCR registration. Make sure to file for yours as soon as you register for DOT authority.
6. Signup for BOC-3 process agents.
Every state in the U.S. has designated BOC-3 process agents. Brokers are required to list process agents on their contracts. These agents are representatives for your business that will get court papers served to them if a legal issue is brought against you. You’re legally required to sign up for BOC-3 process agent representation.
7. Meet surety bond requirements.
Auto transport brokers are legally obligated to fulfill a $75,000 surety bond requirement within the 21 days while your DOT authority application is processing. If you don’t get the bond, your DOT authority will be denied. Shop around and make sure you’re getting a good deal for financing this auto brokerage business requirement.
8. Open a business bank account.
Work and play need to be separate. After you get DOT authority and the surety bond, you’ll want to open a bank account specifically for your business next. Do not use your personal bank account for this. Using a personal account can cause a ton of accounting headaches once tax season begins.
9. Choose a merchant service for processing payments.
How do you want customers to pay you? The next step in starting your auto brokerage is to choose how you want to be paid. Some businesses may use their bank’s merchant service for this step or go with a third party for payment processing. Make sure you understand the terms and rates. Please bear in mind that auto brokerage is considered a “high-risk” business and will often have higher rates than other types of services. Newer companies tend to get charged higher rates, too.
10. Choose a CRM.
A CRM is a customer relationship management system, and it’s critical for streamlining the sales process and making your sales strategies more efficient. For auto brokerages, JTracker, Carriersoft Megabee, and Auto Broker Dispatch are some of the more popular CRM platforms.
11. Determine when you want to be paid.
How much you get paid is equally important as when you get paid. You do not want to be caught chasing down an invoice. Some auto brokerages operate by getting paid upfront, while others will get paid on pickup or dispatch. Figure out which is best for your business and hold your customers to it.
12. Make an email template.
Email is a critical channel for finding and converting leads and keeping in touch with past customers and business associates. Your CRM should have an option for creating and saving email templates. You won’t have to create a brand new email from scratch each time you want to contact a lead. You can create templates for follow up, welcoming a new customer, or reaching out to a new lead. Copy and paste your email templates, and plug-in your personalized message for an efficient and streamlined sales process.
13. Create airtight contracts.
Contracts are crucial to making sure both you and the client understand the terms of your agreement. Contracts are legally binding and enforceable. Consider getting a lawyer to draft and go over them with you. For your business, you’ll need a broker/client contract and broker/carrier contract.
14. Order leads to grow your business.
Auto brokerages are one of the few businesses that allow you to earn money straight away. Once your business is set up, you’ll be ready to start contacting leads and closing the deal. With qualified leads, the benefits are multifold. For one thing, you’ll be able to reach these potential customers immediately. Once you close the deal and meet the customer’s needs, you’ve got a chance to generate even more qualified referrals from those past happy customers. Getting a list of hot leads is the first step to growing your new auto brokerage business.
At Auto Transport Broker Leads, we’ve been in business for more than 40 years, and we’ve seen both sides of this industry. As an ex-auto carrier and broker, we know what customers are looking for with their auto transportation needs. All leads order from our sales team are qualified and need a vehicle transported immediately.
Start making money in your auto brokerage business today. Order leads from Auto Transport Broker Leads conveniently online.