Do you have a knack for business brokerage? Have you been wondering how to make money as a business broker? Well, a lot of people have that same question. It’s a good one to have if you want to know how to earn a living from being a business broker. And you’re about to find out just that in this post.
A business broker is an independent professional who helps people buy and sell all types of businesses. They are neutral mediators who help facilitate deals based on their deep industry expertise.
Making money as a business broker is much easier than you think. If you’re still wondering where to start from, here are the high-paying ways you can make money helping people to buy and sell businesses.
1. Your Own Businesses
The number one way to make money as a business broker is through selling your own businesses. You’ve tried everything. The cost of employees, keeping up with technology, insurance, taxes, and other expenses are just too much.
As a business broker, you have access to hundreds of businesses for sale at any one time. If you have a profitable business that you no longer want to run, then selling the business may suit your needs.
What’s more, you might simply want to sell your business so it can continue to operate under new ownership—something that is common when an entrepreneur wants to move on while ensuring that an employee or other associate will take over the day-to-day operations.
With your skills and experience, you can increase your asking price by 25%–50%. Meaning if you sell the business for $500,000 without any charges of a commission since you’re closing the by yourself, you’ll walk away with a cool extra $50,000 in your pocket.
2. Others Sell and Buy Businesses
As a business broker, there are three ways to earn money by helping people sell and buy businesses. The three ways are:
- Working with buyers on the sale of businesses
- Working with sellers on the purchase of businesses.
- You can also work on both sides of the transaction at the same time
As a business broker, you can make money by selling other people’s businesses. You may work with potential buyers looking to buy small businesses, franchises, or other types of businesses that are not traded publicly on the stock market.
The most profitable way is working on both sides of the transaction at the same time. This is because you will make money from both the buyer and the seller for your service. However, in this situation, ensure you’re transparent as possible and don’t be sentimental.
As a business broker, It’s your sole responsibility to ensure the two parties are happy with the deal. That’s the joy of being a successful business broker and the best way to get more clients.
3. Work For a Big Brokerage or a Boutique Firm
You can find businesses for sale either by working for a large brokerage or by working for a small boutique firm. Large brokerages typically hire people based on their sales skills and press them to reach quotas, while small boutique firms rely on finding great deals and convincing your clients to make an offer.
If you’re just starting, think about working for a brokerage that specializes in the type of business that interests you or a boutique firm. But note, working for a big brokerage may pay more, but you will likely find yourself continuously repeating the same tasks with no room to grow.
Therefore, instead, you might want to head to one of the many boutique firms that are looking for eager, hard workers with sales experience. And some of these boutiques pay brokers well, making it easier to earn a commission.
The key idea here is to know your options and what suits your career goals as a business broker. Whether you chose to work for a brokerage or boutique firm, you can make a lot of money. The more deals you’re able to close, the more money you will make.
4. Write About Business Brokerage on Your Blog or Website
As a business broker, I want to believe you already own a professional appealing website and if you not, I will strongly advise you to create one today. Here are the best website builders you can use.
It doesn’t matter if you’re a beginner or seasoned professional, writing about the business of business brokering can help position you as an expert in your field.
Blogging is the best way to share information about your industry and how it works. You can educate others on the road to being a successful business broker. And you can write blog posts about the process of buying and selling businesses.
To optimize your blog for search, make sure you include keywords that potential clients might be using when searching for a business broker. Also, outline what sets you apart from other businesses brokers.
5. Work With Corporate Buyers
If you choose to work with corporate buyers, this means you will represent the corporation when buying a business. Many corporations such as Coca-Cola, Berkshire Hathaway, and Levi Strauss employ business brokers. It’s often easier for them to find one source who specializes in their industry versus having employees try to find businesses.
Corporations have enough money to throw around that they’re paying more to buy businesses than the brokers are charging because they’re making their offer to buy the business first. Therefore, it’s a smart thing to work for such corporations.
If you are interested in working with corporate buyers, contact the corporate legal counsel for their company or facilities department. You can also connect with corporate buyers by attending industry trade shows and conferences.
6. Serve As a Consultant For Small Entrepreneurs
There are a lot of small business owners searching for a “business broker near” every day. If you enjoy working with entrepreneurs and business owners and want to make money as a business broker, you can serve as a consultant for these business owners.
Most small business owners don’t have the time or expertise to negotiate deals, so they hire professionals like you to look out for their best interests.
You can help entrepreneurs evaluate businesses on everything from financial performance and potential expansion opportunities, to the quality of the employees and the owner’s willingness to train new ones.
Apart from negotiating deals with potential buyers, you could also help them grow their businesses by asking important questions about how the company is run and helping identify areas that need improvement.
It’s not a difficult job, and it offers an excellent opportunity to build strong relationships with like-minded business owners. You might find yourself becoming a trusted advisor over time.
7. Work With Investment Bankers
Working with investment bankers is one of the most efficient ways to generate higher fees as a business broker. And this translates directly into higher commissions for you. An investment banker’s job is simple- find sellers willing to sell their businesses, and find buyers willing to buy them.
A business broker can offer just as much value in this relationship as an investment banker. You just have to perform more background checks on the company being sold. This is part of the reason business brokers are so heavily relied upon when selling an entire company; they allow investors to rest assured that they are buying something worth it.
The key to success as a business broker is to form relationships with investment bankers who can use your expertise to place their borrowers’ businesses on buyers’ radar screens. The more investment bankers you have selling for you, the more money you can make.
8. Get Paid to Speak At Events
Do you have a lot of knowledge of the brokerage industry? This will be an easy and fun way to make some money. Get paid to speak at events and conferences and share your knowledge and expertise with others in the industry.
If you enjoy speaking to groups and spreading the word about the joys and benefits of business ownership and franchising, then you can get paid to speak at events. You can contact trade shows and other event organizers. And arrange to speak while they cover your travel expenses and fee.
There are dozens of worthy causes and groups that would love to have you speak to their organizations or at their events. You can use this to further establish yourself as an expert in the field.
Be sure to fully utilize your speaking platform by strengthening your online presence, promoting your talk through social media, and giving away useful content through your blog.
9. Host seminars For Business Owners
Are you an experienced business broker who enjoys the company of other business owners? Hosting seminars is a great way to make money.
Business brokers also have an understanding of their local business climate which can help attendees make more profitable decisions. You can host educational seminars that educate people about the business options they have or how to sell their business, to gain customers through referrals. Hosting these events is part of what can lead to new customers.
To find participants for your seminar, find owners of similar businesses and invite them to your seminar. Explain how you would like to facilitate finding buyers or renters for their business.
10. Offer Expert Advice to Investors
You can make money as a business broker by offering expert advice to investors. In this challenging market, retail investors can often feel lost and overwhelmed. That’s why many turn to a business broker for expert advice on finding the best possible investments and negotiating the sale.
In some cases, as a business broker, you will help people find the right space for a new business as well as provide guidance as to whether the venture will be profitable. You may also provide an overall package of services consisting of legal, accounting, and investment advisory guidance.
When your clients are working with you, they can rest easy knowing that their interests and concerns will be protected. Whether they want to make a quick flip or find a stable investment, it is your responsibility to advise and guide them with your expertise and experience.
How Much Do Business Brokers Make?
As a business broker, on average you may earn $10,744 in a month and $128,928 per year. But if you’re a well-experienced business broker with up to 10 years of experience, you can expect to be making $16,666 per month and $200,000 per year.
How much is business brokers’ salary in the united states?
Currently, the average annual salary of a business broker in the US is about $127,500 or $65.38 per hour if they chose to charge by the hour. While most entry-level workers make up to $100,000 per year, most experienced workers earn up to $200,000.
Can anyone become a business broker?
In a word, no. But the process of becoming a business broker is fairly simple for anyone to undertake, and once you’ve established a track record in the industry, it can be a rewarding and enjoyable career.
There is an ever-increasing number of individuals interested in becoming business brokers. The reasons are quite obvious. There is now more business for brokers than at any time in the past, and the industry is constantly growing. So, it’s very reasonable to want to know how to make money as a business broker.
Do you have a business you’re not comfortable running anymore? If yes, you may want to start your career as a business broker by selling it. Depending on your experience and skills, you can host seminars, work with corporate buyers, or work for big brokerage or boutique firms.
In addition to whatever method you choose, blogging is a good option. It can be leveraged to establish your credibility and draw in more clients while also making extra money by monetizing your blog.
Finally, it may interest you to know I have similar posts written for you on how to make money as an Insurance Broker and Investment Properties Broker.
I hope you found this post helpful. I wish you all the best in your business broker career.
Thank you for reading.