There comes a time as a business owner when you hit a roadblock, a challenge in your business that you don’t really know how to navigate and need help through. Whether this involves selling your business and getting it in order before you do it or working out what your business needs to change to increase its market value, hiring a broker will help you through it.
This article will look at some reasons why you may need to hire a business broker and how to go about choosing the right one for your business.
What Is A Business Broker, And What Do They Do?
Business brokers are individuals who assist businesses in the various aspects of selling. These professionals offer a comprehensive service, as they can be involved with everything from marketing a business to assessing its market value (and how to improve it), sourcing buyers, filtering potential buyers, negotiating on your behalf, and handling all the tedious paperwork that comes with a business sale. Essentially, they also help ensure that everything is done according to the law.
Why Would You Need To Hire A Business Broker?
Even the most driven business owner could benefit from the skills and services of an experienced business broker. You could probably take care of everything yourself, but the process of selling a business or organisation is exceptionally time-consuming and will steal time away from you actually running your business. When you hire a broker, you’re not just hiring someone to do your paperwork for you. While this is a major benefit, their real value lies in their experience and knowledge of the market.
With a good business broker on your team, you’ll have someone dedicated to staying on top of market trends, assessing how to improve the value of your business, and presenting your business to potential buyers. Business brokers should also have a network of reputable investors who are always looking for a new business venture to take on, so chances are that you might get a buyer sooner with a business broker than without one!
How To Choose A Business Broker
Now, choosing a business broker is a whole different ball game. There are many business brokers all over the world who have a good reputation in the industry, like Lloyd’s Corporate. However, there are also others who have a bad reputation for having high compensation fees or for not treating their clients well. If you want to look for the latter, here’s how to do it:
1. Look For A Broker With Experience In Your Industry
It’s pretty difficult for a broker to have extensive experience in the whole business market, so instead of going for someone who opts to sell any kind of business, look for someone or a team who specialises in certain industries. Finding a broker who has experience in your industry is invaluable, and they will generally get the sale done more quickly due to their expertise.
2. Preparation And Organisation
Never underestimate the power of customer testimonials and learning about the reputation of a business broker. While you won’t really know for yourself whether a broker is highly prepared and organised, you should be able to develop a good understanding of how they operate through reviews, previous clients’ successes and word of mouth.
A helpful habit to get into with brokers is to check in on them, ensuring that they aren’t cutting corners on important tasks like doing their due diligence, sorting out the necessary paperwork, or letting any of the legal tasks fall through the cracks. In some cases, they might just make an honest mistake. But, even then, either of these issues could cost you the sale or result in legal consequences, too.
3. Commitment To Your Business Sale
It’s understandable if a business broker has multiple clients or transactions in process at the same time. However, they shouldn’t be so overloaded that they’re unable to give their 110% for your sale. A good business broker will invest their time and resources into finding you the perfect buyer and ensuring that you get the ideal price for your business.
Some business brokers are in it to just make a quick sale with little care about the impact on the business or those involved in the sale. Thankfully, not all business brokers are like this. Researching the business brokers’ reputation in this case as well should help you identify how they do business. Whether they’re committed to helping you sell your business to the right buyer or they’re just looking for a quick commission.
4. Transparency And Guidance
Finally, any business broker you hire should be transparent about how the sale is going and provide you with the necessary guidance to complete any tasks that you need to do to see the sale go through correctly. While they don’t need to be on the phone with you for everything, being involved in the major decisions and having an understanding of what’s going on is essential for you as the business owner. A good business broker will make a clear effort to be transparent and guide you through the process.
Final Thoughts
There’s a lot you can do by yourself when it comes to dealing with the nitty-gritty of owning a business. But sometimes, you just need help. That’s where hiring a business broker comes in. From providing you with a decent sales strategy to assessing your business’s worth and giving you tips on how to improve it, a business broker will prove to be a valuable asset as you navigate challenges in the business world!
