How to Start a Small Business Brokerage Company

Business Overview:

If you’re an entrepreneur looking for an untapped market to help you start your own business, you should learn how to start a small business brokerage company. These days more and more people are starting their own businesses to experience the freedom of being their own bosses. Eventually, many of these small business owners look to sell their companies for large profits. But since their businesses are still small, they don’t have the time to review buyers, decide on selling prices or set up contracts and other legalities. This is where a small business brokerage firm comes in. As the owner of such a firm, your business does the legwork in matching sellers with buyers. And the sellers, the small business owners, will pay a hefty sum to not have to do any of the middleman work. And believe it or not, you don’t have to have a lot of startup capital to open a brokerage business. However, as you get more comfortable with the process and know where to find the best business bargains, you may start to buy businesses yourself and then turn them around and sell them. This is a business idea that can easily be run in your spare time out of your home office. There is virtually no overhead; however, as you become more successful, you may choose to hire a staff to help you manage more brokerage deals. This market is ripe for broker businesses to jump into the gap between sellers and buyers and make a profit on both ends of the sale.

A Day in the Life of a Small Business Brokerage Company Owner:

Your day will begin with a review of any deals you are currently working on. Contact your buyers and sellers to iron out any questions and continue to work on the contracts. Go over your listings of small businesses wanting to sell and contact those business owners to see if you can represent them in their sale. Check on any small businesses you might be interested in buying yourself, if you choose to go that route with your business. If you have a staff of brokers working for you, check in with them to see how their projects are coming along; offer assistance as necessary. Finally, review your finances to make sure you’re operating comfortably in the black.

About Your Customers:

Your customers will be small business owners looking to sell their businesses.

What You Need to Start:

• Knowledge of where and how to find small businesses wanting to sell
• Comfort with legalities involved in buying and selling businesses
• Computer with finance software
• Real estate licenses (in some states)

The Good:

• Demand for this type of business is huge.
• The overhead is very low.
• Small businesses will pay top dollar for your company’s services.
• You can run this business from your home and in your spare time.
• You can easily scale up the business, hire a staff and buy and sell small businesses yourself.

The Bad:

• Learning how to find small businesses interested in selling can take some time until the referrals start to pour in.
• Dealing with contracts and legal paperwork can be difficult.

Resources:

• International Business Brokers Association
• American Business Brokers Association
• Wikipedia on Business Brokers

About The Author

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