The business broker profession can be a lucrative career. This field allows hardworking individuals to take control of their future. There is potential to become your own boss and stop grinding away at your 9-5 week after week. You can control your hours, and better yet, your income.
Becoming a business broker may sound too good to be true. And for some people, it is. You have to be willing to commit yourself to this field and deal with a learning curve. You will not reap the rewards of being a business broker overnight. You have to put in work to get results.
Luckily, if you are passionate and willing to learn, this can be an excellent field to enter. Keep reading to learn how to become a business broker.
What Are Business Brokers?
Before you can learn how to be a successful business broker, let’s first define what a business broker is. A business broker serves as an intermediary between a business seller and a business buyer. They assist their client with the transaction process to ensure everything goes well. A commission or pre-established amount serves as the payment for business broker services.
Business Broker Responsibilities
- Estimate business value
- Run buyer and seller searches
- Provide consultation services
- Market/advertise seller business to potential buyers
- Help keep client confidentiality
How To Begin
You need an entrepreneurial spirit to become a successful business broker. Not everyone takes the same steps to enter this industry, but here is a general list to get started.
1. Determine If You Have What It Takes
This field is not for everyone. If you shy away from sales jobs, then you may want to consider something else. If crunching numbers and looking over tax documents makes your eyes glaze over, then start to look in a different direction.
But if you are interested in these fields and are driven, you can adapt to this industry environment.
2. Gain The Necessary Background
You need to understand how businesses work. This is the crucial factor to success in this industry.
If you already have an MBA or another type of business degree, you are on the right track. It is even better if you have owned and operated your own business.
Alternatively, you can get business broker training from a credible institution. Do everything you can to increase your business, accounting, and marketing knowledge. It can only help you.
3. Explore Your Initial Job Opportunities
Most aspiring business brokers start by joining a firm. It is the best way to gain experience. Already established brokerage firms can provide you with actual clients. Getting hired at one allows you to explore what business broker opportunities are out there.
You will have a smaller commission when a firm employs you, but the extra training is worth it.
4. Get Licensed and Become a Certified Business Broker
Depending on the state you want to practice in, you may need a business broker license. You can obtain a license without any experience, but it is much easier if you have experience working for a firm.
Requirements vary state by state, so make sure to check the current conditions.
It is also important to get a business broker certification. Certifications increase your authority in the industry. The American Business Brokers Association (ABBA) and the International Business Brokers Association (IBBA) are the top certifying institutions.
Even though you can practice without a certification, you will be able to get more clients if you have it. Also, you will gain more confidence in your brokerage abilities.
5. Start A Franchise
Beginning a business brokerage franchise is a big step that can increase your income. You maintain autonomy, but keep the comfort of having a partnership with a larger firm.
Having an already established brand associated with your practice increases clients’ trust. You also get a proven business plan, so you don’t have to figure it out alone. It is very different than working for a firm, so the support is helpful during the transition.
Once you start looking, you will find endless business broker franchises. Loyalty Business Brokers is a great firm to go into business with. They offer a variety of services, including on-going training. This industry is continuously evolving. You have to keep up to date on a variety of topics. On-going training allows you to get ahead in the business brokerage industry.
6. Open An Independent Practice
For many people who want to break into this industry, the end goal is to be your own boss. Starting your practice can be profitable, but it is the most challenging option.
You need capital to begin. These essential funds are why most brokers start their own practice after they have years of experience. But, once you get up and running as a sole proprietor, your income has the potential to increase significantly.
Also, you have less overhead costs, especially if you choose to work from home. This makes independent practices even more attractive. Keep in mind that it can be hard to stay motivated when you are self-employed. You must self-reflect to determine if you have enough drive to succeed independently.
What You Need To Do Today!
You may be feeling overwhelmed by everything that goes into becoming a successful business broker. But don’t worry, if you are reading this, you are motivated enough to break into this field.
The best thing you can do right now to work towards a career as a broker is to start researching your options. Lay the groundwork, so you can begin to build a foundation to launch your career.
Our trusted brand, Loyalty Business Brokers, can help you get started. Look over the services they offer. They can help you buy or sell a business, as well as open a franchise.
You can also find out more information by clicking here. Our Loyalty Brand family wants you to succeed. Now is a better time than ever to launch your career as a business broker!