What Does It Take To Be A Good Business Broker?

Do you like being around people? Do you like meeting new people? Do you enjoy helping others achieve their goals?  Many businesses require people skills, but few require the level of skill required to be successful as our industry does.

In our profession there is no Multiple Listing Service (MLS) as there is in real estate. Therefore the advertising that is placed on the various websites advertising your listings shows the listing broker as the contact person. Therefore buyers end up contacting the listing broker directly instead of through their own broker. With 80-90% of transactions the listing broker ends up representing the buyer as well as the seller thru a dual agency arrangement. This takes extra skill to represent and protect the interests of both parties at the same time. How do you do it – great people skills!

To be a good Business Broker you must have a good dose of "empathy" and at the same time a good dose of "tenacity". While these might not be attributes that you commonly find describing the qualities of the same person, a Business Broker needs great skills in both areas to be successful in helping his or her clients, and in creating a successful practice for themselves.

You need empathy to understand the needs of your clients. You need empathy to really understand the goals they are trying to accomplish through the sale or acquisition of a business. If you can’t truly show your comprehension of their situation and why you have the ability to help them get from where they are at to where they want to be, you will not be able to gain their trust. If you can’t gain their trust, your clients will not allow you to lead them though the steps of business transition.

Buyers and sellers alike are scared to make the wrong decision. They need a coach they can trust to give them proper guidance. A good Business Broker with the right dose of empathy will earn the respect of his clients and gently move the business transfer process forward to a successful conclusion.

You must have tenacity to get to the finish line. There are a lot of moving parts that all come together to create a successful transaction. From initially working with sellers, qualifying buyers, successfully negotiating a purchase contract, to working though various due diligence items such as financing, lease transfers, licensing requirements, financial reviews by accountants, and many, many more. If you get worn down easily, or get distracted by obstacles instead of finding ways to overcome them, you will have a difficult time being successful in this industry.

During most transactions, there will be periods that the buyer or seller will feel you are pushing them to accomplish certain things. The truth is that’s because you are! You are the quarterback calling the plays, knowing what needs to be done at what time. Many times buyers and sellers get worn out themselves as buying or selling a business is an emotional event, as are all events involving major change in someone’s life. These types of events can be taxing. The Business Broker must be strong, organized, and always keep the goals their clients are trying to accomplish in mind to help them reach the finish line. This takes tenacity!

So do the qualities above describe you? Are you really a good “people person”. Or better yet are you an excellent people person! Do you have the ability to display empathy for others and gain their trust? Do you have the tenacity and the inner strength to help others get to the finish line and accomplish there goals? If you answered “yes” to these questions and have a good dose of all the qualities mentioned, then you might be a good candidate to consider a career in our exciting profession.

About The Author:  Greg Roquet, CBB, CBI is one of two Regional Directors for Murphy Business and Financial Corporation of Northern California. We have both franchise and agent opportunities available. Greg is a recognized expert in our profession and is a Certified Business Broker. To discuss career opportunities in the business brokerage industry please give him a call. You can reach Greg at 530-753-1919 or toll free 800-796-1140.

Posted on January 26, 2010  |   Email This Blog Post   |   Print This Blog Post   |  All Contributions From Greg Roquet, CBI, CBB