How To Deal With Your Broker – Secrets To Success For Prospective Purchasers
Buying a business is an exciting time. Once you’ve made the decision that you want to buy, you want help – fast! We get a lot of calls from prospective purchasers saying that they want to switch to us because they haven’t been happy with their past brokerage firm. We want you to have the best chances of success when you choose First Choice. So what is the key secret when using a business broker?
What most prospective purchasers don’t realise is that they are in competition with other buyers for their broker’s time. Think about it: your business broker is going to hold telephone discussions with you, and meet with you to determine your needs and to discuss multiple possible business opportunities. Once you settle on likely candidates to purchase, then the broker will organise with the vendors for you to attend a site visit (or a number of visits), and they might drive to multiple sites for you. They do all of this without payment. They get nothing unless there’s a sale.
Your broker will work hard for you. They will invest significant time in matching you with the right business for sale. But brokers are time-poor. They spend a lot of time in their cars, driving across the city, and the state, inspecting new business listings, and attending site visits with clients. You need to win their time and effort.
This might seem implausible to some readers: “But I’m a genuine buyer. Don’t they want my money!?” Of course! Brokers want to help you, but you need to look serious. Many businesses attract a great deal of online attention from prospective purchasers and sell quickly. If you want to be the buyer who snaps up one of these, you need to look like you mean business. Remember: you are actually in competition now from other purchasers!
So how do you make sure you look serious? Here’s some tips:
• Consider writing up a resume to present to your broker. I’ve seen a lot of potential purchasers do this, and it can really help your broker. It shows that you’ve invested time presenting yourself, and is a great indicator of your seriousness in the purchase. In your resume you should show your past industry experience, or your transferrable skills (from past employment or study), or your past experience as a business owner.
• Have your finance in place. This is the number one way to indicate to a broker that you are serious. If you don’t have finance, you are not in a position to buy. It’s as simple as that. So invest time in setting your budget, and knowing the sales prices for similar businesses. Ensure that your budget is realistic. Ensure that any loan is approved and finalised.
• Present as though you’re serious: dress in smart clothing when attending meetings, and make sure you’re on time. Ensure that you deliver a clear message on what opportunities you are looking for. For example, one of my first questions when a prospective purchaser calls is “What industry are you looking to move into?” If the answer is along the lines of “Well, um, I was thinking of either a bottle shop or a childcare centre” then I know that the caller hasn’t invested much time in determining what they want. Your broker doesn’t want to be led on a wild goose-chase while you work out what you want to do with your life. So, spend some time working this out before you start your business search. Then, once you engage a broker you will be able to speak with authority, and reach success.
A blog is the appropriate place for us to discuss difficult topics, and to deliver useful tips to clients. And these are the most useful tips for purchasers. Take yourself seriously, and others will follow.
So, now you’re armed with the secrets for success! We look forward to a great partnership with you, in which we work together to find the right opportunity for you.