Start and Build a Successful Business Brokerage Career
The Business Brokerage Industry has been around for more than 100 years. However, many people have never met a Business Broker or considered it as a possible career. The Business Brokerage Industry is not very large. For the last ten years, there have been approximately 3,000 Business Brokerage firms in the United States. Some quick math tells us that the average would be about 50 to 60 Business Brokerage firms per state. So, not a very large industry.
So, what is a Business Broker? Simply put, a Business Broker facilitates business owners and business buyers in the transfer of ownership of businesses. Many of the services of a Business Broker are similar to those of a Real Estate Broker. But, a Business Broker is selling the tangible and intangible assets of an on-going business. The knowledge and skill of a Business Broker can make the experience much less complex and rewarding for both the buyer and the seller.
General Business Brokerage Activities
- Presenting Business Brokerage Services to Business Owners
- Assisting the business Owner with the Decision to Sell their Business
- Listing the Business for Sale
- Preparing a Professional Offering Package to Market the Business
- Implementing Marketing Plan
- Interviewing Qualifying Potential Buyers
- Presenting the Business to Potential Buyers
- Assisting with Offers to Purchase or Letters of Intent
- Helping the Business Owner Evaluate the Offers(s)
- Organizing the Due Diligence Activities
- Following Through to a Successful Closing and Transfer
How Many Businesses Are There?
The total number of businesses in the US is About 28 million. 50% or 14 million, are real businesses. By real, we mean actual operating businesses, not hobbies, governmental agencies, nonprofit organizations, etc. The 14 million businesses are the ones that Business Brokers make a living selling.
How Many Businesses Sale Each Year?
The percentage of business that may be for sale at any given time is about 10 to 20%. Of the 2.8 to 5.6 million businesses for sale, only one out of every five or six business are sold each year. The average Business Brokers will sell five to six businesses a year. Considering there are only about 3,000 (or less) Business Brokers and each selling five to six businesses a year, Business Brokers are assisting with a small percent of the transfers each year. The remaining businesses are sold by the business owner, a real estate agent, CPA, attorney, or someone else that does not specialize in Business Brokerage. As you can quickly see, there is a tremendous need for more professionals to choose Business Brokerage as a career.
Description of a Typical Business Broker
Business Brokers are a diverse group of individuals but they share some common characteristics. Entrepreneurs at Heart, Hardworking, Dedicated to Doing the Best Job Possible for their Client, and not afraid to take calculated risks. The average Business Broker is male, in his mid-fifties, and has been a Business Broker for about 12 years.
Interesting Business Brokerage Notes and Stats
Business Broker Start Up Coaching
For students completing either our in class or online training program, we offer Business Brokerage Start-Up Coaching. Our business brokerage start-up coaching is designed to help our former students start and a build successful business brokerage firm.