Do you have strong business skills, communicate effectively with others, and the ability to mediate between groups? Then you may want to look into becoming a business broker.
What is a Business Broker?
When it comes down to the very core, a business broker is an intermediary that helps people to either buy or sell their private businesses. However, they usually handle the entire sales process, which means that they have a large number of responsibilities, including the following:
- Finding owners that are looking to sell their business
- Determining the value of the business
- Advertising the sale of the business
- Finding and researching potential buyers
- Negotiating the final price with the buyer or seller
What’s Required to Become a Business Broker?
A business broker typically has accounting, sales and financial analysis skills, as well as the ability to communicate clearly and build relationships with both buyers and sellers. However, a Transworld Business Advisor’s broker has the benefit of state-of-the-art training and support behind them at all times. Transworld brokers help take the clutter and confusion out of complex business deals.
How Can You Get Started?
The following are the steps that you’ll most likely need to take in order to become a business broker.
- Obtain some business background — Although it’s not always necessary to have a background in business to become a business broker, it can be very helpful, especially since business brokers need to have a strong understanding of how a business operates and what it takes for a business to grow. Any kind of experience with managing a business or working in sales can give you a leg up.
- Look for training options — There are a number of business broker training programs out there in which you can take part. One of the most respected is the two-day program offered by the American Business Brokers Association (ABBA). Be careful about joining third-party programs online — always do your research to make sure that they are reputable.
Even if you have some business experience, you’ll want to take a training course so that you can learn some of the required skills of a business broker, such as:
- Recasting financial statements for discretionary cash flows
- Using an appropriate business appraisal methodology
- Building unique marketing packages
- Maintaining strict confidentiality when marketing a business nationally
- Mediating buyer and seller meetings while avoiding conflict
- Negotiating prices and terms
- Completing proper transaction documentation
- Get licensed — Depending on where you are planning to work, you may be required to become licensed as a real estate broker. There are 17 states that require anyone that is dealing with the sale with any type of real estate to get licensed.
Getting licensed is simple; you’ll need to take the required classes and pass the license exam for your state. A background check is also standard for licensure.
- Become certified — The more certifications you earn, the more reputable you’ll become. For example, the ABBA offers Accredited Business Intermediary (ABI) certification to brokers that are qualified, and the International Business Brokers Association (IBBA) can provide you with the Certified Business Intermediary (CBI) certification.
- Save money — You’re going to need to have some money saved up in order to invest in a business broker franchise. By investing in a franchise, you’ll have support and a path to real growth that you may not have had otherwise.
There are many benefits to becoming a business broker, especially if you want to be your own boss, make your own hours and work in a business-like capacity without actually running your own business.
Are you interested in learning more about how you can become a business broker with Transworld? Then visit our website today!