What is a Business Broker?
“A person who acts as an agent or intermediary in a sale or other business transaction between two parties.” – Dictionary of Business Terms by Wilbur Cross, Prentice Hall
However, a business broker is much more than the brief definition above. He or she is the catalyst that makes the sale of a business happen. A business broker helps people when it’s time to sell their business. Their business usually represents their biggest asset; one that they have worked hard to build.
The business broker identifies those sellers who have decided that the time is right for them to sell their business and move on to the next phase of their life. The reasons may be varied: retirement, health, partnership dissolution, divorce, a desire to make a change – or just plain “burn-out.” The more serious the reason, the more they need our services. Business brokers help the seller prepare the business for sale and price it properly. Then the business broker prepares a marketing plan or strategy.
With the use of the Internet, target advertising and knowledge of who might be the best buyer, the search for the appropriate buyer is begun. The business broker usually handles all of the marketing, working with buyers and handling all of the negotiations and details in cooperation with the sellers’ and buyers’ professional advisors.
Why Business Brokerage?
Many people can go thorough their entire working life and not know what a business broker is or even what they do. Most jobs are just that – “jobs.” They generally require one to work and report to someone, maintain regular hours, ask for the occasional day off, the pay is just that – the same amount every payday, work hard for the hoped-for promotion, receive a week or two of vacation time and schedule it way ahead of time – the list is endless. And, then to top it off, no job is a sure thing, not in today’s workplace.
Business brokerage offers you the opportunity to be independent. No office politics, no gossip around the water cooler. If you want to take a day or week off, you can do it when you want, as long as the needs of your customers and clients are met. If you want to see your child’s soccer game, dance recital or school play – you can. You make your own hours.
And, no worries about being transferred or being a part of the next down-sizing. Earnings are open-ended. There are very few opportunities that can provide independence, top income potential and a great quality of life. There is also one other major factor – it is an exciting business and it is a lot of fun.
If it is so good, what are the requirements? Business brokerage requires a lot of hard work, especially in the beginning. One must like people and want to help them. Since, in most cases, the income is commission based so one must have the resources to support oneself and one’s family, if there is one, for a minimum of six months. Unless you are planning to be a sole practitioner and opening your own business, your expenses are generally limited to your own personal technology items like a phone and computer, your vehicle expenses, and your personal office supplies.
In the State of Colorado, a real estate license is required in order to broker the sale of a business, even if a business occupies leased space. In addition to the education that is required to obtain a real estate license, most professionals obtain education in special topics related to business brokerage.
Being a business broker offers an unlimited income potential coupled with an independent life style in a profession that provides a valuable service – and also happens to be a lot of fun.
How Can I Become A Business Broker?
To get your business brokerage career off to a great start, JOIN CABI and network with fellow Business Brokers who are dedicated to success in the profession!
