You worked hard all your life, You have a business that has value and its time to sell and go play golf. So now comes one more big decision. You need to find a business broker who can sell it for the highest price possible. How do you pick that person? What skills do they need to possess to successfully navigate and close the deal?
It is amazing to me how disconnected both Business Brokers and Entrepreneurs are from what matters in the world of small business sales. You see we are at a tipping point. Brokers today are a product of an education system that functionalized business into bi-nary disciplines. You learned to account, you got your MBA…..you leaned a business model of operation that was predicated on the lessons of the 70’s and 80’s from educators and institutions that grew from the old way of doing things.
Take a look at the vast number of business brokers today….if you had to draw a picture they would be Older White Males with business backgrounds making their second run at a profession till they hit retirement. They lack core competencies in technology, e-commerce, digital marketing, and an economy that flows globally more so than locally. And that my friends is the root of the delta that exists between the need of the marketplace and the customer. The entrepreneur who is looking to retire. Further complicating that is that very same entrepreneur. The baby boomer looks much the same….but the buyers…they are different from age and world. Brought up in the age of e-commerce and bitcoin.
So when selling your business you need a professional that lives in both worlds…..one who respects the old but understand the new and what it means. One who can sell upside potential to the 30 something entrepreneur on a business that was managed by the 55-year-old baby boomer. This is sales…..in essence where the rubber meets the road.
So for the skills:
- Organization: the world of business today moves quick. If your broker uses a flip phone and doesn’t use apps to manage remote while on the move you may have a problem. Gage their skills to access data, communicate, and respond promptly. Ask the question….how do you manage your time. It is relevant as to skills…..time management matters when deals start to flow.
- Sales or Accountant: Due to the business we are in one naturally thinks a heavy skill in accounting is warranted. I would tell you that is not the case….read a P&L yes….have a doctorate in accounting….no……Salesman is not a bad word and a good one is worth every penny. You want heavy sales skills….not someone who over analyzes a balance sheet.
- Social Media and Marketing: They better know it, use it, and be able to prove how. If they can’t walk….that person is on their way out.
- Results / Outcomes: Time in business means nothing….how many deals and what is the baseline performance of other pros in the market…..do you want someone who has been in business for 30 years but only closed 30 deals or someone in business 13 and closed 250. The answer better be obvious.
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