Business brokerage is a growing industry thanks to the baby boomer generation getting ready for retirement. A large number of small businesses owned by baby boomers are expected to become available for sale in the next few years. The need for business brokerage services is expected to increase. Furthermore, statistics have proved that the average business broker in North America earns above average income. So, what do you need to do in order to join this promising profession and become a business broker?
- Assess your own personality. Do you handle uncertainty well? Are you a people person? Do you handle rejection well? Are you self motivated? Are you persistent? do you know how set goals and do you have the discipline to achieve them?
- Do you have the Skills? Business brokers need advanced skills in Accounting, Finance, Sales, Psychology and Deal Making.
- Do you have enough financial resources? Can you wait for months before closing your first transaction? The process of listing and selling a business can take up to 3 years depending on the size of the transaction. Most business brokers get paid a commission only when the transaction is consummated.
If your answered yes to all of these questions then business brokerage could be for you. Folow these steps to increase your chances of success:
- Check if you need a license. Some states in the US and some provinces in canada need either a business broker license or a real estate license. Ontario for example is a Canadian province that requires a Real Estate License to business brokers as per The Real Estate and Business Brokers Act (REBBA).
- Spend the necessary time to plan before starting. What is your strategy? How will you be different from other brokers? Why should business sellers list with you? how are you going to market your services? How are you going to market your listings to business buyers?
- Get as much education as you can in business brokerage. Deal making skills need training. Join professional associations like the International Business Brokers Association (IBBA) and other similar local associations.
- Join a Business Brokerage or Real Estate Company. Check the company's culture to see if you share the same values.
- Focus on prospecting. Business brokerage is a sales profession. you need to constantly sell your services to business sellers. In the early years as a business broker, you simply cannot avoid cold calling prospects.
- Be selective. Most business buyers never buy any business in their lives, so qualify your buyers and only spend time with the ones that are ready, willing and able. Moreover, a large percentage of businesses never sell either because they are overpriced or because the sellers are unmotivated. Time is your key asset. Spend it wisely.
- Join Business Brokers Associations. In Canada, IBBA Canada is the authority association. They are organizing a conference in Toronto in Sept 13-15th 2011. Details about courses, seminars and registration available in this website.