Business Brokers: Who They Are And What They Do

Since business brokers operate under the radar, many people don’t know who they are and what they do. If you are curious to know, business brokers are intermediaries who work with both buyers and sellers in order to facilitate the sale of small and medium size privately owned businesses.

For you to be a business broker you need to have the right level of education. For example, you must have a business background. You must also have attained business brokerage training from a recognized professional body such as the American Business Brokers Association.

Functions of business brokers

The brokers perform many duties such as:

  • Valuing a business
  • Marketing a business that needs to be sold. While they advertise the business, they maintain strict confidentiality. For example, they don’t mention the exact business that is being sold. They also don’t mention the owner of the business.
  • They introduce prospective buyers to the business
  • Facilitate meetings between buyers and sellers
  • Handle negotiations between the buyer and the seller after an offer has been made
  • Schedule and facilitate the closing of a transaction
  • Draft a confidential business review. The document is very important and is provided to prospects after they have signed a confidentiality agreement.

How brokers work

The professionals usually work with commissions. This means that they get a commission after selling a business. In most of the cases, the commission ranges from 8 to 12%. Most of the brokers charge a 10% commission; however, when the business being sold is small, the commission is usually higher.

How to work with a business broker

The first thing you need to do is to ensure that you hire the right broker. This calls for you to do a lot of research in order to identify a reputable one. Some of the things that you should look for when hiring include: experience, professionalism and specialization.

Once you have found the right professional you should give him/her all the details that he/she needs to work. For example, if you are interested in buying a business, you should give the broker a list of all the types of businesses that you are interested in. You should also mention the amount of money that you are ready to invest.

Conclusion

From the above information, it’s evident that business brokers have a role to play in the buying and selling of businesses. To ensure that you are on the same page with the broker, you should regularly communicate with him/her.

How to Be Successful in the Service Industry

Wondering how to make your splash in the sea of service providers in the market today? It’s true what they say-it really is all about customer service. Here are some tips to keeping your customers happy and returning for more of the service you provide:

Be friendly.

Remember that when a customer hires your company, they are not just paying for the service; they’re paying for you. Of course, they expect the job to be done right, but they also expect you and your employees to be friendly, courteous, and respectful in each and every correspondence and point of contact you make with them. From the secretary who answers the phone when they call to make an appointment to the person who shows up at their door to provide the service, they expect smiles, greetings, and common courtesy. Think of this as an integral part of the service you’re providing, and you’ll be giving yourself and your business a leg-up on the competition.

Be professional.

No matter what service you are providing to your customer whether it be a manicure, a house cleaning, or a septic tank service, you and your employees should conduct themselves with professionalism at all times. This means dressing appropriately and professionally, managing communication with the customer politely and effectively, and handling the customer’s possessions with care and respect. If you are good at what you do, but fail to exude professionalism, your business will suffer as a result.

Be dependable.

Make sure your customers can depend on you to provide services when you say you will. For instance, if you state that your office hours are from 10-5 everyday, don’t leave at 4:45 because if and when the phone rings, you will likely have lost a customer. If you promise to provide a specific service, no matter how small, make sure that it is done and done right every time. Keep your appointments, and never be late. If you’re reliable and dependable, your customers won’t have the need to call your competitors.

Guarantee your services.

Give your customers confidence in their decision to hire you by guaranteeing your services. You can either offer them a money-back guarantee if they’re dissatisfied for any reason, or at the very least, assure them that you will make right on any mistake or less-than-quality service. If they know you stand by your work, then they’ll feel much more comfortable paying you for your service.

Offer a competitive price.

Even if you offer impeccable service in a dependable and professional way, your business may still find itself gasping for air if you don’t offer a competitive price. Do your homework and find out what other service providers in your area and in your niche are charging, and then match or beat their price. Starting out, you should offer the lowest price you can while still turning a profit-at least until you build your brand, your reputation, and your customer base.

Follow-up.

To maintain your customer base, you need to be sure to provide service even after the sale. Don’t assume that a one-time customer will return to you for future business, even if you did a great job. Make the effort to keep your brand in the back of their mind. For instance, you could call a few weeks after the service to see if your customer is completely satisfied. Or, perhaps you could send monthly reminders for follow-up services or “Thank You” cards to communicate your appreciation for their business. These seemingly small efforts, when performed consistently could potentially result in a hefty return on future business.

The most important thing to remember when working in the service industry is that the service itself is only half of your business. What’s the other half? You and your employees. If the customer likes your work but finds your customer service lacking, they may look elsewhere and even pay a higher price for a company who acts as if they appreciate their business. Slap on a smile, shake hands, and bite your tongue if you have to-whatever it takes to keep the customer happy. The happier your customers are, the more likely they will spread the word about your business, and return to you for future service calls. And what does that mean for you? A healthier-and happier-bottom line.

Some Resources For Finding a Business Broker

Before we talk about resources for finding a business broker, let us first understand who is a business broker. Business broker resembles very much to the real estate agent. The job of the business broker is to bridge the gap between the buyer of the business and the seller of the business. If you wisely choose the right business broker, you can save a lot of money in the business transactions taking place through him. Here are some resources for finding a business broker for you.

Ask the People Whom You Already Know For Referrals:
Whenever we look for something that is new to us and we are not familiar with it, we try to gather information from the people we already know, and have faith in them that they would not misguide us. Same procedure we can apply when we look for the resources for finding a business broker. Take the advice of your business associates, accountants, lawyer and other associations of the industry to get the names of business brokers. If a reliable person gives the reference of any business broker then there is no harm in considering him for hiring his services.

IBBA:
Another very good resource for finding a business broker is the International Business Brokers Association or IBBA. This is an institute of business brokers working on non-profit basis. There are approximately one thousand three hundred members of this association.

Go Through the Advertisements in Newspapers:
One very good resource for finding a business broker is newspaper. Look for the advertisements under the business opportunities. You should check local, regional and national all types of newspapers for this purpose. You will observe several businesses for sell in these advertisements. Although, these advertisements are intended to attract prospective buyers yet you can check them to find out the names of the people who are managing these deals.

Yellow Pages:
Another resource for finding a business broker is to look in the yellow pages. However, do not get confused with the real estate agents and look specifically for the brokers who have experience in the selling of businesses. Any broker who just lists the name of your business on the multiple listing services is of no use to you. These kinds of brokers do not give required time to make such business deals.

Sign an Agreement After You Have Selected the Business Broker:
After your search for finding a business broker ends and you succeed in finding the right business broker, sign an agreement with him. State clearly in the agreement that what type of marketing strategy the business broker will adopt to sell your business. Do not forget to mention that any such advertisement must not carry the name of your business.