What is a Business Broker?
A business broker is an impartial third party that works with the buyer, the seller, or with both sides of a business sale and helps seal the deal. As you might well imagine, it’s not an easy job and requires a lot of patience, savvy, and determination. But those who choose to become a business broker are rewarded with great career perspective — it is an exciting and rewarding profession to be in.
Many business brokers say that the excitement of getting a deal on the table and having both the buyer and seller sign off on it is an almost better feeling than collecting the fee they earn when the deal is done. You could be part of that thrilling moment!
Why Are Business Brokers Needed?
When a business is put up for sale, the owner of the business is looking to get top dollar for the company. At the same time, anyone likely to purchase the business is trying to get the best deal possible — meaning they want to spend as little as possible to acquire the company. Neither party is wrong for wanting what they want, but the situation does create an immediate disconnect.
It’s possible, even likely, that the business owner has built up the company over a long period of time with a lot of hard work and determination. It’s the “sweat equity” that no one else will ever see, but a business owner assigns value. There’s often an emotional connection between the owner and the business.
The buyer, on the other hand, doesn’t care about all of that hard work or sentimentality. They’re looking for a good deal that’s going to turn a quick (or ideally an immediate) profit. They just want to get the deal done and move forward.
So how do you get these two opposing sides to the bargaining table, and strike a deal that makes both happy? You bring in a business broker.
Demand for Business Brokers
Recent surveys indicate that in the U.S., there is one business brokerage firm for about every 1,850 businesses. There’s no question that the demand for business brokers is there. The question is this: How do you get started?
While some recommend getting expensive degrees in business and business administration, what it really boils down to is working with and understanding people. If you can do that, you’re halfway there.
Rather than starting a business broker career from scratch, a better idea to consider is buying a business broker franchise. That way, you have the backing, training and resources that only a franchisor can provide.
Transworld Business Advisors can get you started in a business brokerage franchise. For more information, visit us at tworld.com today!
Do you want to learn more about buying and selling your business? Check out this radio podcast for tips and tricks to business brokerage that can save you a lot of money!