The business brokerage industry offers rewarding, exciting, and potentially lucrative careers. But like many other professions, being a business broker is not for everyone. You need to possess the right educational background, skill set, and attitude to succeed in this field.
Many people dream to become business brokers because of the perks that go along with the profession. After all, not many positions give you the liberty to control your work environment and time. Plus, there’s no limit on your earning potential. The more businesses you sell, the higher the commission. You’re paid for the amount of work you put in, which makes it a very attractive career path.
However, starting a career as a business broker doesn’t come easy. You need to learn the ropes to succeed in this field.
What does a business broker do?
Basically, a business broker acts as an intermediary between business sellers and buyers bringing the two parties together to close the deal. These professionals manage the entire sales process from looking for a business on sale and prospective buyers to evaluating the right value of the business down to advertising and negotiating the final price.
Business brokers are very much like real estate brokers except that they sell business instead of real estate properties. These brokers are paid on a commission-basis although some receive a monthly paycheck. Some brokerage firms charge additional fees for posting or listing businesses.
How to become a business broker?
As mentioned above, not everyone may have the skillset to become a business broker. If you want to be one, you need to have sales, financial analysis, accounting, and communication skills. It would help if you have a marketing background and great interpersonal skills to help build rapport with sellers, buyers, colleagues, and other connections.
If you think you have what it takes to become a business broker, an exciting career awaits you. But before you that, there are few steps you need to take.
1. Gain some business background
An Orlando Business Broker noted that although a formal business degree is not required; having a solid background in business proves helpful. Since business brokers will analyze and evaluate businesses, a strong understanding of business operations is crucial. If you have previously managed a business, it can give a good foundation.
2. Enroll in a business broker training program
To gain a deeper understanding of how the industry works, you should enroll in a business broker training program. The training course will equip you with necessary skills, such as: proper business appraisal, evaluating financial statements, building marketing plans, mediating and negotiating terms and prices, and completing proper legal documentation.
Usually, these are short-course programs (less than a week) offered by reputable training centers. But before you enroll in any course, make sure to research the program and the provider. Some online courses are not accredited by the American Business Brokers Association (ABBA).
3. Get licensed and certified
Some states require business brokers to get licensed. Each state and jurisdiction has a unique set of requirements that a prospective business broker needs to possess. Typically, broker licensure requires formal education and training, work experience, and passing an exam. Check your state’s requirements on how to get licensed.
Certifications are also important in building a successful career. By earning certifications, you become more credible. These certification programs are administered by accredited organizations, such as the American Business Brokers Association (ABBA) and the International Business Brokers Association (IBBA).
4. Get ready to sell
Once you’re all set, you’ll need to start looking for businesses to sell and prospective buyers. You’ll need to promote the businesses you’re selling. Although there are many selling points, don’t expect that you’ll start earning on the first day. As such, it is best to save up so you’ll be able to shore up until you have a stable income.
Although a business brokerage career has many benefits, it also comes with some drawbacks. Aside from not having a regular paycheck, usually, you’ll have to learn the rope by yourself. Some brokers give up or fail because they don’t get the rewards soon enough. It’s vital to learn the basics and continuously improve your trade. Focus on key areas particularly customers, listings, and professionalism to help you succeed in the industry.