Words of Wisdom and Inspiration for the Aspiring Entrepreneur from Frank Covich, Founder of the National Association of Independent Business Brokers (NAIBB)
by Frank Covich
With the holiday season and end of the year approaching, I would like to offer some thoughts on why, for the past 35 years during this time of each year, my client registrations take a leap.
I think it’s because some people become energized around the holidays, enough so that they’re inspired to break out, break free and focus on new business opportunities.
As for the business brokerage industry in particular, the timing couldn’t be better because every business owner is checking in with their accounting and tax people during the months before the New Year and well into April. What this means to us is that business owners are taking stock of where they are and where they are headed. Some will carry on. Some might be faced with life-changing issues, such as their health, marriage, etc. Some might start thinking about retirement, and some may have no one to pass their business to after they do so. All business owners will be assessing their past year and their hopes for the one to come, and a number of them will be talking with their financial people about selling.
For organized business brokers, this time of year presents tremendous opportunity. By making contact with tax and accounting professionals, you can establish a direct link to a potential pipeline of business-for-sale candidates. Ensuring your contact information is in the hands of the right people can be very rewarding. Our experience has been that developing a friendly rapport with tax and accounting professionals results in great referrals. And it can lead to a strong barter relationship as well. After all, at some point you’ll likely want to refer a good accountant to one or more of your clients.
I like to tell the story of Fred Roa, one of my most successful broker clients (TELLESIS). Fred had great success with the accounting and tax contacts he developed. One such contact sent him 27 business-for-sale deals, and Fred did a great job finding buyers. That same accountant was so impressed that he helped Fred make contact with one of his major clients, and Fred spent four years doing acquisitions in the home health care industry as a result. Together, they built this giant organization through acquisition, and then Fred sold the new organization to a public company.
My message for today is that the holidays are a great time to reorganize and get yourself focused on a business that might change your life. Business brokerage is a business of contacts, and the best contacts can come from established tax and financial professionals, all of whom are engaged in in-depth annual conversations with their clients. Tis’ the season to get started!
For more information about my program for expanding into the science and art of business brokerage and how to do so both economically and with total confidence, please visit www.bebizbroker.com.
Get involved, be proactive and remember how important it is to do your comparison research.
All the best,