You want to pick a business broker that cares about you personally
It is no secret that a good business broker will be worth their weight in gold; assisting you to get more money for your business when it sells and in a shorter amount of time.
A top quality broker will work hard to stay engaged throughout the entire process, from the moment that you sign up with all the way through the closing. There are a lot of steps that must be completed throughout a successful transaction, and many places where things can go horribly wrong. The broker will need to find the right buyer for the business; someone that has the necessary funds and well established and cultured desire to get into the industry. A proper valuation needs to be put on the business, otherwise no one will even want to look at the listing in the first place, let alone take the seller seriously. The paperwork can be tedious and every page needs to be double and then triple checked for accuracy. It helps if your broker has a strong academic education and an attention to detail, the former you can verify by checking out their credentials online and the latter is easy enough to discern when you meet them in person.
The business broker should be able to present you with an ideal buyer profile. Using psychological profiling techniques, one can discern the perfect customer for each and every business or product sold. This will help the broker to market the business in the right places; certain mediums may be easier to use but are just not appropriate anymore. In the past, one could just place an ad in the newspaper and get all sorts of leads calling in off it. In this day and age, those times are long gone and one needs to be a little more sharp witted and hard working to succeed. Make sure that your broker is well versed in current technology and digital marketing strategies as these are going to be crucial to getting your listing in front as many qualified buyers as possible.
When a business broker does their job well, the fee that they charge will effectively take care of itself. There are many clients that will shop around until they find someone that has the absolute lowest charge in the local market. When a broker’s fee is substantially lower than everyone else’s, there is probably a good reason for it. Although it is common practice to at least get some money from a seller up front, this is not always going to be mandatory. Leave it up to the broker to decided how badly they want the business; if yours is a listing that they are confident they can sell quickly they may decide to take it on with no upfront fees.
Most small business owners simply do not have the time it takes to properly service potential buyers. Buyers have a lot of questions that need answered in a timely fashion and they expect you to drop everything that you are doing so that you can focus on them 100%. This is just not possible when you have a million other things going on, from employees not showing up to work to the bills that need to get paid by the end of the day. Consider the fact that this is going to be one of the biggest decisions in the buyer’s life, and that they are going to have countless hesitations before pulling the trigger. With that in mind, can you honestly say that you are going to be the best one to handle that kind of responsibility? Even if you are a great salesperson, do you think you are going to be any more credible as the business owner then a third party professional would be?
Competition between business brokers is fierce within Michigan, but we have been able to benchmark other states and countries in order to put together some best practices to follow. From our research, clients typically do not spend enough time looking for the absolute best representation that they can get. They are in such a rush, or so distracted, that it can just be good timing or aggressive tactics that get the broker the listing. There are many great resources online that can teacher potential buyers and sellers all about the industry, such as this ebook here. No one enjoys reading long and dry material, but it is even less enjoyable to lose a bunch of money, so please just give it a look.