A business brokerage practice is one of the more approachable ways to work in the business-for-sale market if you already have a sales or financial background.
Business brokerage involves identifying established businesses for sale, creating profiles of these opportunities, and connecting them with interested buyers. The field suits individuals with sales or financial backgrounds, including accountants, financial planners, and consultants.
Certain U.S. states mandate real estate licenses for brokers handling transactions involving property. These include Arizona, California, Colorado, Florida, Georgia, Idaho, Minnesota, Nebraska, Nevada, Rhode Island, South Dakota, Utah, Wisconsin, Wyoming, Oregon (when real estate is involved), and Illinois.
The NAIBB system emphasizes two fundamental activities:
Research: Finding referral sources among accounting and legal professionals, plus identifying potential business owners interested in buying or selling. The internet has simplified locating this information within your region and beyond.
Proposals: After establishing broker relationships, develop compelling business profiles. These describe what’s being sold, assets involved, business history, employment details, and equipment—presenting the opportunity attractively to prospective purchasers.
The framework recommends naming your organization and consistently marketing to your network: “I have clients seeking business purchases. Do you know anyone wanting to buy or sell?” Direct mail represents an accessible starting point.
Notably, “most every person who I ever worked with has made their start-up cost back in profile fees alone.”
Building your business brokerage practice step by step
A business brokerage practice rests on three activities: finding established businesses that may be for sale, writing a clear profile of each one, and introducing those profiles to qualified buyers. Because the work is relationship driven, people who already speak with business owners every day, such as accountants, financial planners, and consultants, often have a head start. A practice built on trust and clear communication tends to grow through referrals.
Licensing deserves attention before you take on your first client. As the article points out, a number of states require a real estate license when a transaction includes property, so check your own state rules and speak with a licensed professional if you are unsure. Decide early on a name for your practice and share it consistently with your network, so people know exactly who to call when they or a client are considering a sale or purchase.
Whether you are starting a business brokerage practice full time or adding it to an existing advisory business, write down the types of businesses you want to represent, the price ranges you will handle, and how you will confirm that a buyer is serious. Those choices will shape every conversation that follows.
Related reading
- Buying an Existing Franchise Location (Resale): Pros, Cons, and Costs
- Franchise vs. Independent Business Opportunity: Which Fits?
- SBA local assistance and free counseling
Helpful outside resources: Wikipedia: Financial planner and University of Wisconsin-Madison.
Keep reading
If this topic is useful to you, these related guides on SmartBizOpps are a good next step.
