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5 Things to Do to Become a Business Broker
Are you looking for a career change? Maybe something a little more challenging than what you’ve been doing? Read this list of 5 things you have to do to become a business broker. Maybe it’s just the thing you need to take the next step in your life.
Be prepared to fail.
As with many types of sales, getting started in business brokerage is extremely difficult. Make sure you have enough financial security to go without a paycheck for an extended period of time before you make your first sale.
Work on your people skills.
If you want to be a business broker, making a sale requires personality, as well as business savvy and technical abilities. Business brokers must do a lot of counseling either to manage expectations or to coach a buyer or seller.
Hone your technical/business skills.
To be a broker, you need to be able to figure out what a business is worth and what it could potentially sell for on the market. Learn how to read and understand all types of financial statements.
Make friends. Knowing people like CPAs, attorneys and financial advisors that can refer sellers to you is invaluable as a broker. You need to build relationships with people who will help you generate business, all the while generating business for them.
Be realistic about the main street market.
Most business brokers deal with businesses that generate less than $2 million each year. It’s a much easier market to get into, but the rewards are smaller and the competition is much greater. Work your way up to selling businesses in the lower mid market.