1. Working Capital (Minimum of eight months working capital until you complete your first deal)
* Working capital means money you require to cover monthly expenses until you start closing deals and earning commissions.
* You will need working capital to cover personal and business operating expenses
* The types of working capital you can get are from debt or equity.
* You can get working capital from savings, equity from your home, you can sell something of value and use the cash as working capital, credit cards, lines of credit, convert investments into cash and use as working capital.
* I personally have used all of the above sources for working capital.
2. Education (Broker Training through an Association such as International Business Brokerage Association and or; training with a Business Brokerage Franchise.
* The specific training that’s necessary to be a successful business broker include how to list a business, how to price a business for sale, negotiation, marketing, and customer relationship management.
3. Systems developed
The systems you need to develop include:
* Marketing. Marketing includes
– Email campaigns
– Direct-Mail Campaigns
* CRM. CRM stands for “Customer Relationship Management” and involves an online tool that manages your leads and allows you to communicate with on an ongoing basis and to eventually convert into a sale.
4. Skills and Licenses required
* You should know that in some states it is required to have a real estate license to be a business broker.
* In Canada, it is a requirement to have a real estate license in each and every province.
* You should also know How To Read Financial Statements
* Essential skills that are needed by a business broker include interpersonal skills, sales skills, and a balance of empathy and ego drive
5. Networking and Relationships
* It is important to network in your local community. You can do that by becoming a Member of your local Chamber of Commerce, Rotary Club, etc.
* It’s important to make to-do lists and attack each item on the to-do until all activities are complete, moving toward accomplishing your goals.
7. Have a Passion for Deal-Making
* What I mean by this is that you must be driven to close deals, make a sale because in this business “You Eat What You Kill”.