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
Starting a Business Brokerage Practice with the NAIBB system
Business Brokerage Consulting is the science and art of building a practice whereby you find established businesses that are up for sale, profile these opportunities and then find people who or organizations that are interested in said business acquisition. It’s an ideal business career or side business for the person who is comfortable with doing research and talking with established professionals.
People with sales experience and people with financial experience are particularly suited to this endeavor, including accountants, financial planners and consultants of all types. These are just some of the types of people who have done well as business brokers. To build your own practice it also helps if you are creative and have basic computer skills. People who strive to help others also make great business broker consultants.
Note: As far as I know, the following U.S. states require that a person who is working as a business broker and transferring real estate when making deals must have a state real estate license to be a business broker and must register as such. They are:
Arizona, California, Colorado, Florida, Georgia, Idaho, Minnesota, Nebraska, Nevada, Rhode Island, South Dakota, Utah, Wisconsin, Wyoming, Oregon (only if real estate is part of the transaction) and Illinois.
When thinking about starting a (Business Transfer Consulting) business brokerage practice, keep your focus on two major activities:
- Being in the research business, and
- Being in the proposal business.
The NAIBB system sets the tone and structure for building a practice and has no strings attached. You build your practice with the system and your own creativity, and it becomes your platform for pursuing the accomplishment fees that result from the successful profiling and selling of established business offers.
Research refers to the process of finding people who can provide you with referrals, such as accounting and CPA professionals, as well as finding the names of potential business owners who want to buy and sell businesses through your own means. Because of the internet, we can now find this information very easily.
You can start researching in your region, but expand your horizons once you feel out a particular industry or business sector, expanding your geographic prospects in other regions.
The science and art of finding business owners who want to sell their established business is a never-ending process. My system points out how to do just that. In my system package there are example letters and scripts for approaching financial accounting and legal professionals, all of whom are very good sources for references. I offer the master copies of scripts for handouts and consulting tools.
Every contact that you make in the framework of “when it’s time to sell your business” can lead you to a potential client. I have had business brokers receive new business listings from people who saved a letter they received as long ago as five years prior, when the business owner decided to sell or his or her business accountant said, “Hey, take a look at this resource for selling your business.” The business owner’s accountant offered the letter held in their desk, and the business owner contacted the broker who sent it. That’s how it works sometimes.
Some letters resonate immediately while others are held until an owner reaches that point that every owner gets to eventually, when it’s time to sell their business. Most business owners talk with their accounting people constantly, and if they have your message in their hands when the time is right and the subject of selling the business is discussed, this simple message can be your ticket to a nice business to market and sell. A business with a valuation and sale price of $2 million dollars can offer a business broker a 10% ($200,000) accomplishment fee for finding a buyer and closing the sale.
Proposals come into play after you locate and develop a business broker relationship and agreement with a client. NAIBB business brokers learn to excel in offering reasonable business for sale profile proposals to business sellers. The important proposal will state what the business being sold is, what the assets are, the story of the business, messages about the employment situation, as well as its equipment, computers, etc. All of this in combination comprises the profile that helps the broker present the business in it best light to prospective buyers.
A business for sale profile is critically important to have in hand when presenting a business for sale. This is what we do. NAIBB Brokers offer listing proposals and profiling proposals. Once you have the presentation down pat, it becomes a guide to talking with people who want to sell or buy a business.
It is very possible for you to start your business brokerage practice a today.
Starting Your New Practice.
I suggest that you name your new business organization.
Something like Spectrum Business Acquisitionsfor instance.
Every contact that you have in the business world today as well as contacts you will make in the future could be a finder or referral source for business for sale and business buyer prospects. Therefore, it’s important that you market your services by keeping the following top of mind: I have clients who are looking to purchase a business. Do you know anyone who wants to sell or purchase a business?
I offer to my business broker startup clients that some of the best prospective business buyers are business owners who are actively seeking “growth through acquisition.”
Lastly, most every person who I ever worked with has made their start-up cost back in profile fees alone.
This is a potentially very lucrative business opportunity for you, and I look forward to helping you get started.
If you think business brokerage is for you, the next step is to register and purchase the NAIBB business brokerage nine segments. But you don’t need to read everything right away. Just review the first few segments, and then we can talk about how to structure your new business startup. Research is your new business focus, and direct mail is one great easy way to begin.
You get a lot from the NAIBB start a Business Brokerage Opportunity:
- A structure to begin or expand into formal business brokerage
- All of the tools (scripts) to use in building your practice (all comes to your e-mail)
- No strings attached and no additional fees to the NAIBB Bebizbroker
- Freedom to build your business without any franchise rules or restrictions, and
- Contact with me to discuss startup and next steps.
Additionally, there are many other benefits to be discussed in person.
To consider my program for how you can learn the science and art of business brokerage, please contact me through the shopabizop.com portal. Get involved and remember how important your comparison research is in finding what new business is best for you. Kevin’s portal offers you a tremendous research platform.
I hope you will consider business brokerage with the NAIBB system. Visit www.bebizbroker.comfor more information. Start your practice fast,economically and with total confidence today!
All the best,