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What is the hardest part of being a broker? Getting a listing or finding a genuine buyer?

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Answers (3)
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Freedom Business Brokers
Orange County, CA

Both, if you don't know what are you doing. But if you take an example of egg and chicken who was born first, I go in favor of Listing. If you have listing you have something to sell otherwise you have nothing. But to get right listing at right price and right commission is an art for which you need a good teacher.Unfortunately nobody teaches that part and that is why lot of agents get disappointed and leave the profession.
In the nutshell try to get the listing for a reasonable selling price , otherwise you will loose lot of time and effort in selling. Because in this market of recession if the price is not attractive you can't sell.
Secondly if the price is attractive but the product is not in demand then this is another waste of time.
If both these factors are allright then the commission must be appropriate. I observe that sometimes even the lowest commission signed does not sell the product. Because there is not enough incentive to cooperating broker to push the sale. So the product stays standstill even if the price is attractive.
Thje other factor is to find a right buyer. Most of the agents keep waiting for buyers to call them
for the very specific product they are advertising. And nobody calls for that. So you should see from your list of buyers who else can be a prospect. But keep in mind if a buyer has called on a service business don't try to switch him or her to a retail sales or viceversa. But exceptions are everywhere.
So keep trying you will be amazed . Because the buyer sometimes doesn't know himself what he wants. This is your job to narrow down the search for him and give him few options but give them one at a time otherwise you will add to his confusion to a already confused buyer. Let him respond for one then give another option.
Practice makes a man perfect. With every deal there is something to learn. Try to control your deal
from begining to end even if you have collected your commission. Still you owe a fiduciary duty to buyer or seller to guide them. A satisfied customer will come back someday or refer your name to another buyer or seller.
Good luck!!

Nov 26, 2009
Andrew Rogerson
Rogerson Business Services
Certified Business Broker
Sacramento County, CA
Premium Broker

Don has given you an answer with great depth. Your question sounds as though you may be a busines broker. If that is the case, consider joining the International Business Brokers Association so you can build your skills and broaden your education. Alternatively, find a local association in your state.

Helping entrepreneurs buy and sell businesses includes providing a vast knowledge and skill set and building the relationships to offer referrals where you don't have the expertise or not licensed to give advice in areas such as legal or accounting.

And from my perspective, bringing together a qualified and motivated buyer and seller is the hardest part of being a broker - you can generally find one but finding both is how you get paid.

Nov 26, 2009
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The BAF Group LLC
MD

I am uncertain there is a good answer to that. The issue in getting a listing is getting a valuable listing. One that is not experiencing eroding Revenue and/or Profits; one that has good books and available Tax Returns; one that does not have an owner who thinks his sweat is equity, and should be part of the Price; a business that is not threatened by some competitive giant, like Walmart or McDonalds; one that was not poorly thought out from the beginning, does not have a horrible location, should not have been opened to begin with and whose owner feels the Price should be wholly a function of "potential". In this economy, those are the ones that come to you as a Broker, uninvited.

As for Buyers, you need someone that is reasonable in his expectations. Someone who does not resent the Seller's asking Price, no matter how reasonably priced it might be. You don't want a person that has less than eight bucks in his pocket and wants to buy a multi-million dollar business. Ideally, you want someone who realizes that owning a business is not a ticket to sit on one's butt and just count money. (Those are the ones you hate to deal with, if the Seller is going to have to take any kind of note!) Sometimes, these are terribly difficult to find, in combination.

The majority of Business Brokers fail before their third year. After that, if you can last that long, it becomes just a bit easier because you can build up a "rolodex" of prospective Sellers and potential Buyers. But many experienced Brokers are failing right now, even though they may have a ton of both Buyers and Sellers, because financing is the killer! THAT is the hardest part, in my book. It does you no good to get a contract to which everyone is in agreement, and not be able to get it funded.

Nov 25, 2009

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