Become a Business Broker - Opportunities Explained
Business Broker - Branding Solutions
If you want to become a business broker, then we have developed an exciting and unique “BRANDOLOGY” solution for you and for an industry that has historically been way behind the curve in effectively establishing and leveraging a brand and utilizing technology.
What is this thing we call a “BRANDOLOGY” solution?
Brandology is a marriage of the proven power of brand marketing with state-of-the-art technology;
BRAND marketing + state-of-the-art technOLOGY” = “BRANDOLOGY”
The King & King Branding Solutions Group isn't just about creating flash, sizzle, hype and websites. We partner with our business brokers and affiliates to maximize the value of all of their marketing and technology assets to realize their full economic potential.
Business buyers and sellers have not completely rejected the 3 or 4 companies that have franchise business brokerage opportunities, however, none of them seem to be able to overcome the perception held by most business people that a local person/firm is more likely to be able to help them sell their business or find a business for them to buy. None of the franchisors have developed a brand that connects with a wide cross section of the business community from coast to coast, but mostly just small business niches. King & King’s “Branding Solutions” mission is to overcome all of these franchisors' shortcomings and help you succeed with legitimate local business broker opportunities. We are not a franchisor, we are not a peddler of BizOPs, we are developing a network of local broker affiliates utilizing internet technology and geographic-specific brands to bring world class “Business Ownership/Mergers & Acquisitions (M&A)” services to entrepreneurs all over the country. Unlike the franchisors that exact their royalty fees from their franchisee without any regard for their success, K&K’s major value driver is that our income in the "Branding Solutions” group is derived from licensing our locally branded websites (i.e. real estate on the internet) to the broker affiliates, selling business consulting and training services and national listing lead generation programs. Working with many of America’s franchisors we will negotiate master brokerage programs designed to position King & King affiliates first in line when an existing franchisee decides to hire a business broker to sell his/her business.
There are not many businesses that you can incubate from your home that have the potential of providing you with a significant income like this business can. Please read on, I will tell you a little about my story:
After spending many years on my own buying and selling companies and working in public accounting for nearly 15 years I had the opportunity to become the CFO of one of the largest brokerage companies’ on the east coast. It was there that I developed the passion for this business and the desire to build this company. My first year as a business broker I earned $110,000 in brokerage fees working part time.
I made good money in that first year and I learned three of the most important lessons of my business career; 1.) in order to be really successful as a business broker you have to be able to act local, 2.) you must be able to think globally, and 3.) you must never pre-judge whether or not a business is saleable.
- Acting local relates to how you get your business listings.
- Thinking globally relates to how to find buyers for your listings.
- Not pre-judging relates to the types of businesses you list.
Specializing has many great benefits however; I have met many general business brokers selling main street businesses that make six figure incomes year in and year out.
Generally speaking, small business people are very provincial and will respond more favorably to another small business person from their own area, or their own industry, than they will to a representative of a large multi-location or nationwide company with little to no local identity and/or no relatable business experience. When it comes to selling businesses, our listing prospects want to know that we are connected with the businesses and the communities we serve and have relationships already in place with buyers that might be interested in buying their business. This is where acting local scores major points and allows you to edge out the competition.
Once the business broker has established credibility with the seller he/she must then switch gears and be able to talk about launching a global marketing plan designed to identify a buyer for their business. This is where the thinking globally comes to play.
How does all of this come together?
Example: A few years ago we received a call from the owner of a business just outside of Baltimore, Maryland. The business owner had found one of our brokers’ drop notes when he was opening up for the day so he called to find out why he had left the note. The broker explained to him that he was just out working in his area and had left the note just in case the owner would entertain selling the business now or in the future. The owner went on to share with the broker that he has had a local broker trying to sell the business for quite some time to no avail. He went on to say that he was concerned that there was no way anyone would be able to sell the business considering the difficulty he had experienced trying to find a buyer. Our broker explained that our local business sales experience and our database of business buyers gives us the ability to identify more qualified buyers, quicker. We get the deals done and our clients get the best price possible for their businesses. The broker convinced the owner that the business should be saleable and gets his permission to list the business.
Within 30 days from the date we listed the business we had a signed purchase agreement in hand for well over a million dollars. The buyer found the advertisement on the internet. This transaction was settled within 120 days and the brokerage fee ended up being over $100,000.
The average sale price of small businesses sold by business brokers is reported to be around $250,000. In most cases, businesses brokerage commissions range from 8%-12% of the sale price of the business. Many new full-time business brokers earn approximately $75,000 in their first year. After that, yearly earnings are usually between $75,000 and $150,000.
The Department of Commerce reports there are approximately fifteen million businesses in the U.S. and that up to three million of those businesses change ownership in any given year. About 75% of these have annual sales from $100,000 to $3,000,000 which is exactly where business brokers have the most effect and make the most money.
According to the International Business Brokers Association, the definitive trade association for brokers all over the world, 40 percent of their members are one-person brokerage businesses.
By the way, if you visit the IBBA website, www.ibba.org you can get a good understanding of the professional level of this industry. The IBBA issues the only professional designation that means anything in this business the “CBI”, Certified Business Intermediary; I have earned the CBI designation and have developed a number of training programs to help you get started as soon as possible towards a truly rewarding career in this business.
There are very few truly legitimate businesses that you can start from your home with such a small initial investment and make real money. Most people that promote opportunities do not believe in their own programs enough to provide the people that invest in their programs with any financial assistance. That’s where we differ from the rest.
If your dealer application to join our program is accepted and approved we will finance 50% of your initial setup and membership fees. On top of that, we will defer your payments for up to 12 months so that you can make your payments from profits rather than out of your pocket.
James M. King, CBI
President, King & King, LLC