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What It Takes to Be a Business Broker | Spirit In Business

Want to Be a Business Broker? Here’s How

Buying or selling a business is a very challenging activity. You have to spend a great amount of time preparing documents, finding prospective buyers or looking for the right seller, and, of course, waiting for some good news. But what would business brokers feel doing the job of selling or buying a business? Definitely, they would be less stressed and more invested because it is their job. They are trained for it. In case you are wondering if you could be a business broker, keep reading.

Buying or selling a business is in a relatively good place, market-wise. After the housing bubble and its business spillover effects in 2009, the market has recovered significantly. Again, bring a business broker is as lucrative a job as it has been.

The Job

Business brokers normally get a commission between 5 to 10 percent of a business’ purchase price. As a buffer between a buyer and a seller, they help in determining a fair price. They make sure that a negotiation will run smoothly. Normally, they:

1. Prescreen businesses by checking every bit of a seller’s financials, including the price being asked for;

2. Assist buyers in determining which industry fits them best by looking at their skills, interests, and experience;

3. Negotiate efficiently by making both parties find some common ground, where each can agree without any issues; and

4. Help with securing and filling out documents faster, from licenses to permits.

The Requirements

Woman business broker writing

To be a business broker, one does not need to have a specific degree or long experience in the business world. The art of buying and selling demands dedication and a can-do attitude. However, having some business background does help greatly. To pass as a business broker, you must have:

1. A business, or you previously owned one since it helps with understanding the goals and interests of the owner selling a business;

2. A business degree, ideally an MBA, or anything related with strong finance and accounting background;

3. A considerable knowledge of the law, especially with business law, as you will have to be filing legal documents pertaining to the transfer of ownership, etc.;

3. An effective communication style that suits well with the intricacies of the business part and negotiation part of the job;

4. An honest and fair approach in dealing with both parties and producing the right price and other deliverables; and

5. A never-say-die attitude, especially when one party is losing interest or both parties are disagreeing on some terms during the negotiating process.

A successful job of helping people buy or sell businesses really goes down to one’s skill in the negotiating table. It is here where you can share your experience with your own business or somebody else’s and share your skills and knowledge of the trade. It is also worthy to note that a business broker’s job is not like any other jobs. While luck and any opportunity can go by every now and then, especially in marketing or sales, yours as a broker has to be gained through hard work.