Business brokers are intermediaries. There are several key ingredients required to become a good business intermediary. Because there is so much to the job — so many different aspects — it is nearly impossible to learn everything you need in the classroom or on the job. You need an education and background that eliminates at least some of the learning and working as an associate with an existing business broker is invaluable. Even with education, a good background and personal guidance from a seasoned business broker; you must have patience because it can be a lengthy time before you get paid anything (the business broker model is entirely based on success fees).
The key ingredients for success:
- Business ownership experience helps you to understand a business and empathize with the owner
- A business degree is helpful, but at least some finance and accounting is needed to understand P&Ls, balance sheets and tax returns
- The ability to speak and communicate easily and comfortably with business owners
- The ability to multi-task: building spreadsheets one minute, negotiating the next
- A true self-starter who can manage his/her time
- Integrity and an intense sense of fairness
- Did I mention that business ownership experience helps greatly?
Given that you have the necessary qualifications, where do you begin? The best path is to link up with an existing business broker — someone who can show you the ropes and fill in the gaps in your own experience. Business brokers typically sell smaller businesses under around $1 million in earnings, while M&A firms and investment banks sell larger businesses, over $1 million in earnings.
Business brokers operate in the real-estate model, with a broker managing the office and sales associates. The good ones offer a training program, mentoring, or at least somewhere to turn when you are stuck. Be aware, that like the real estate office, you are expected to do most of your own marketing. Like any business, marketing is key and many business brokers don’t understand that.
Best Business Brokers offers you the opportunity to become an Associate Broker where you will receive invaluable guidance and training to help you be successful. Contact us today to learn more about this exciting and rewarding opportunity.