Considering a Business Broker Career?
If
you
are considering a business broker career and want to weigh the
pro's and con's, read-on.
When considering a business broker career, or any career, its important to ask yourself certain questions about skills, experience, desires, lifestyle, and money.
Be honest with yourself about what kind of work you have aptitude for and what kind of work gives you satisfaction.
A variety of strengths and skills make up what a business broker needs to be effective, every broker is unique and have various strengths and weaknesses and draw on different backgrounds and experience.
It helps to have the following core competencies: Communication skills, marketing, ability to read and comprehend financial statements, problem solving, and patience. It often takes several months to list and close a deal from beginning to end.
As a business broker you will spend a lot of time on the phone qualifying buyers and sellers. So you should be comfortable and personable on the phone.
You should also be adept at using a computer to file and track all of your leads, especially if you start as an independent broker.
You will need to be organized and good at following through with buyer and seller leads. Often when a buyer or seller is contacting you for service, he is also contacting other brokers. Without a system for follow-up, prospects will forget you if you don't follow up with them.
Brokers are frequently coordinating meetings to screen buyers and sellers and having confidentiality agreements authorized and listing agreements signed.
Brokers work on commission. This could be considered good or bad. Some people prefer to work on commission, but not everyone shares that feeling.
Unfortunately some businesses sell and some don't. Sometimes you will work months on selling a business and invest money in marketing and have it never sell and expire.
Business Brokers in the US typically earn around 8 - 12% of the sale price of the actual business. So you can see the potential is great if you can list desirable businesses and find a qualified buyer and then see it through.
Brokers typically earn 5 - 6% on any real estate, just as real estate brokers do. I highly recommend that you get your Real Estate license as well as a Business Brokers license. In some states it is mandatory. In Illinois, it is not. I, however, do hold a business brokers license in addition to being a real estate licensee.
As a self employed broker you have the option to work with a large firm or work as an independent broker. You can work inside an office or work from home.
This type of work lends heavily to telecommuting which is a huge plus to me. I used to work in corporate America and disliked the endless distractions from people stopping by my desk to chat and various meetings I was expected to attend. Add on top of all that the dreaded commute to and from the same place every day.
As an entrepreneur, a business broker career helps to develop an important skill set that relates to many business ventures.
You will begin to develop a unique perspective on the industries you come into contact with. This perspective will become relied upon by many business owners since you have intimate knowledge and experience relating to which companies sell and which ones don't.
From the frequent analysis of many different types of businesses and situations will continually sharpen your eye for what makes a good business and bad business and everything in between.
Additionally, as a broker, additional opportunities appear that might not have existed otherwise. You get to see most of the deals before they hit the market and may end up acquiring a great business for yourself or family.
Every client is a potential source for investment and a potential partner. The opportunities are endless.
When considering a business broker career, or any career, its important to ask yourself certain questions about skills, experience, desires, lifestyle, and money.
Be honest with yourself about what kind of work you have aptitude for and what kind of work gives you satisfaction.
A variety of strengths and skills make up what a business broker needs to be effective, every broker is unique and have various strengths and weaknesses and draw on different backgrounds and experience.
It helps to have the following core competencies: Communication skills, marketing, ability to read and comprehend financial statements, problem solving, and patience. It often takes several months to list and close a deal from beginning to end.
As a business broker you will spend a lot of time on the phone qualifying buyers and sellers. So you should be comfortable and personable on the phone.
You should also be adept at using a computer to file and track all of your leads, especially if you start as an independent broker.
You will need to be organized and good at following through with buyer and seller leads. Often when a buyer or seller is contacting you for service, he is also contacting other brokers. Without a system for follow-up, prospects will forget you if you don't follow up with them.
Brokers are frequently coordinating meetings to screen buyers and sellers and having confidentiality agreements authorized and listing agreements signed.
Brokers work on commission. This could be considered good or bad. Some people prefer to work on commission, but not everyone shares that feeling.
Unfortunately some businesses sell and some don't. Sometimes you will work months on selling a business and invest money in marketing and have it never sell and expire.
Business Brokers in the US typically earn around 8 - 12% of the sale price of the actual business. So you can see the potential is great if you can list desirable businesses and find a qualified buyer and then see it through.
Brokers typically earn 5 - 6% on any real estate, just as real estate brokers do. I highly recommend that you get your Real Estate license as well as a Business Brokers license. In some states it is mandatory. In Illinois, it is not. I, however, do hold a business brokers license in addition to being a real estate licensee.
As a self employed broker you have the option to work with a large firm or work as an independent broker. You can work inside an office or work from home.
This type of work lends heavily to telecommuting which is a huge plus to me. I used to work in corporate America and disliked the endless distractions from people stopping by my desk to chat and various meetings I was expected to attend. Add on top of all that the dreaded commute to and from the same place every day.
As an entrepreneur, a business broker career helps to develop an important skill set that relates to many business ventures.
You will begin to develop a unique perspective on the industries you come into contact with. This perspective will become relied upon by many business owners since you have intimate knowledge and experience relating to which companies sell and which ones don't.
From the frequent analysis of many different types of businesses and situations will continually sharpen your eye for what makes a good business and bad business and everything in between.
Additionally, as a broker, additional opportunities appear that might not have existed otherwise. You get to see most of the deals before they hit the market and may end up acquiring a great business for yourself or family.
Every client is a potential source for investment and a potential partner. The opportunities are endless.
