Why Should I Use A Business Broker?

You’ve come to the decision that buying a business or selling your business is the path that you want to take. The best piece of advice, although biased, I can offer is to retain the services of a business broker or business transfer adviser. Although business brokers usually work on behalf of the seller, there are sell-side business brokers and buy-side advisers. Even if you’re a buyer and you decide not to retain the services of a business broker or transfer adviser, you’ll receive the benefits because a business broker is working with the seller.

The broker is sort of like a clamp that holds things together as the business buyer and seller progress through the business transaction. Below I’m going to explain to you how both business seller and business buyer can and will benefit from the services of a business broker:

Let’s meet-

The good thing about the business broker is, the profession requires face to face meetings. Even though the broker is getting paid by the business seller, the buyer has to meet with the broker in order to view the business as well as so the broker can determine if the buyer is a compatible buyer for the business.

The meeting will be an interview style meeting. Some of the questions that will be asked by the broker are:

1- Can you go into detail about your background?

2- Have you ever purchased a business

3- Do you have easy access to the cash to buy a business?

4- Can you show proof of proceeds on a recent bank statement?

5- How soon are you willing to make a purchase?

In addition to the question and answer portion, you’ll also be given a personal financial statement to fill out and return. Be sure you return this information as soon as possible.

What usually takes place after this meeting is, the business broker will than present compatible business to the buyer. So come prepared with a recent bank statement showing the cash. Time is of great importance. Strike while the fire is hot and move with swiftness.

Expect for the broker to ask you to sign a non-disclosure agreement. The business seller wants to ensure that the word about the business being for sale is kept quite.

As the buyer, you’ll get to see very general financial information about the business of interest and others in the business broker has other businesses available. If you decide that you have serious interest in any of the businesses that are presented, the broker will provide you with more in-depth financial date and also arrange for you to see the business in person.

The broker will act of the best point of contact for the buyer. Any questions or concerns that the buyer may have, the broker can answer all questions concerning the business.

How the business broker helps the seller-

If you’re the owner of a business and you’ve decided to sell, one of the best services that you can retain are the services of a business broker. The broker will oversee the entire process while you continue to run your business.

The business broker will interview all of the buyers. This service by itself is worth the broker fee. Business brokers usually have access to a database of buyers that they’ve acquired over the years. These are buyers that have identified themselves are compatible and financially capable of buying a business. Having access to a list of buyers will speed up the process and help get the business sold while it’s still “hot.”

The business broker will especially prepare a marketing plan for the business in question. A sales prospectus will take time to prepare but your broker will provide you with this required document. In addition, the broker will structure the deal as well as assist the completion of the paper work.

Many owners don’t know how much their business is worth, therefore the broker can assist you with pricing your business. Te pricing of the business is just a starting point. The buyer will get an official appraisal. Between the 2 numbers, the negotiations will start there. Also, you want to ensure that your business is properly priced. You don’t want it to be overpriced not under priced A business that is priced right WILL SELL. The ultimate price of the business will be determined by what it sells for or as brokers like to say-the marketplace.

The business broker is one of the most important advisers that a seller can have on their transaction team. This broker will bring their years of experience to the table. This will help both buyer and seller and ensure both parties walk away happy.

Seven Tips for Building Your Business With Business Cards

October 10-16 is Build Your Business with Business Cards Week. Business cards are one the most inexpensive ways to promote your business. But, if you go cheap it can also hurt your business. Let’s take this time to review what is on your business card and the quality of the card. Go ahead pull out your business card and let’s take a look at it. My seven tips below will help you maximize your business card so you get the biggest bang for your buck and present you and your business in a positive manner.

Seven Tips to Building Your Business with Your Business Card

1. Use quality card stock. Do NOT ever attempt to print your cards at home. Cheaply made cards will destroy your reputation. They look cheap and you do not want your business to be regarded as cheap or substandard. There are many resources available to you online and offline that will print your cards for next to nothing. Do not accept the free version. Prepare to upgrade to heavy card stock.

2. Glossy or Matte. Glossy business cards are pretty but the recipient cannot write on the card. Matte cards can be purchased in regular or heavy card stock and allow for writing a note or appointment on the card. You will need to consider how you or the recipient will be using your card.

3. Use the back of the card. Do not let the back of the card remain empty. Think of it as prime real estate. Use the back of the card to promote your services, offer a customer loyalty program, or include details for the next appointment. It does not cost a great deal of money to use the back of the card. Many places will print the back in black ink for free. Think of the back of the card as free advertising space.

4. Font. Make sure everyone can read your card. Cutesy fonts are often hard for people to read. Use a font that is large enough for everyone to read. I have several cards sitting on my desk that I can’t read. Before printing your cards have the proof evaluated by people of all ages to include those that do and do not wear glasses.

5. Color. You will want to use your brand colors on your card. Do not use one color for your website and another for marketing materials and then another color for your business card. People want to see consistency. People respond to consistency. When they know your brand and can easily identify with it they are more apt to see you as a real business owner and not a fly by night contractor. When choosing a color make sure others can read it. Black business cards seem to be the rage but I for one have a hard time reading them. I can actually feel my eyes trying to focus. When a black card is combined with a cutesy font it is a nightmare to read. You may think it is easy to read because you know what it says. Solicit feedback from others before having thousands of cards printed.

6. Logo or Photo. Are you your brand? It is OK to use a photo on your business card. Again, make sure it is appropriate and can be seen. If you have a logo you will want to use it on your card. I have seen people put their logo on one side of the card and their picture on the other. People resonate with people. Look at various business cards for examples.

7. Information. Include the basic information on your card i.e. Business name, your name, credentials, physical address, phone number, website and if possible your email address. Do not make people hunt for your information so that they can send you a thank you note or follow up letter or email. Make it easy for the person to contact you or do business with you. When there is no physical address people question the legitimacy of your business.

My seven tips for business card success will help you in growing your business. When people can read your business card and resonate with you and your brand you will begin building long lasting client relationships.

Business-To-Business Direct Marketing Action Now

Among the many forms of marketing, you’ll find a branch that has a specialty all of it’s own. Business to business direct marketing should be designed to sell your products or services to another business, not individuals.

Advertisement that appears in trade publications and journals is one form of direct marketing. Fliers, mailings and catalogs are another. People tend to think that business to business direct marketing is, in it’s core, a technical advertising. They cannot be further away from the truth. Sending office supplies catalog, like the big chains do, to offices and businesses, is a form of a direct marketing technique and is not technical at all. Business advertising is the kind of marketing that looks for a reaction from the reader. The goal is to elicit immediate action.

The strategy is different because the target client is different. Instead of selling to many customers one product at the time, This type of marketing aims at selling many products to one customer. The buyer in the campaign is different because it is part of his job description. He has the company’s money to spend and he needs to make a good impression. This creates a difference in relationship that needs to be cultivated.

Some of the same principals of business to person marketing still apply; focusing on the target clients, compiling an accurate mailing list, creating the advertising and making sure it is a call to action on the part of the recipient. A coding system in the mailer or catalog is very useful in determining what worked where. A test of the campaign should be performed, and so on.

The aim of marketing is to create a community with the customers and maintain it by offering incentives and bonuses. Customer satisfaction is very important. Developing added venues of communication with the customer, building retention and loyalty and enlarging the pool of customers by good word of mouth are essential in any business to business direct marketing campaign.

How Important Is a Business Broker to Buyers and Sellers?

Establishments and companies change ownership at some point. As such, the services of business brokers prove to be highly valuable for both the seller and the buyer. An aspiring entrepreneur needs to evaluate a target business establishment, and this is where a professional business broker can offer valuable assistance. The seller also will find it rewarding to seek the assistance of a business for sale broker for the advertising and the negotiation facilitation with prospect buyers.

Benefits of Hiring Business Brokers

Selling a business can be a demanding and tiresome process. This can take up a lot of time and can even affect the value of the business, as you spend more time on its sale process rather than on the daily operations of the business. This is where the services of business brokers come in handy.

First off, a professional broker can give you confidentiality, and can assure you that only the prospective buyers you approve will be contacted. A trustworthy and experienced broker can save you time in screening prospective buyers in advance. Brokers can already check if a prospect buyer has good financial resources to buy your business. They will also ask buyers to sign a confidentiality and non-disclosure contracts. If you attempt to sell your business openly or independently, you would most likely damage your staff’s morale. You would also give your competitors the opportunity to spread damaging rumors about you and steal your valued customers. When you hire a business for sale broker, he can work anonymously, ensuring the protection of your business.

Moreover, selling your business all by yourself can be inefficient, especially if you lack the experience. A business broker generally has more experience, resources, and tools to effectively reach potential buyers faster and easier. However, reaching target buyers is just one part of a broker’s job; getting the best price for your business is his other important job. A professional broker should have the capacity to advertise your company in such a way that it can attract serious and financially stable buyers. This would definitely increase your benefits and advantages in selling your business.

Finally, business brokers can name the value of your business. This process involves more than just revenue or profit, thus, you may undervalue or overvalue your company, and these mistakes bear indicative consequences. For an experienced business broker, there is a rare chance to commit such mistakes.

From a business buyer’s perspective, a business for sale broker brings a lot of advantages as well. If you are a buyer and asked the assistance of a broker, you will be able to have access to opportunities that you won’t likely find on your own. If you do not have enough knowledge regarding the industry you chose, you can get helpful advice and useful insights from a good business broker. Your broker can also facilitate other essential tasks such as researching recent market conditions, current prices, and reasonable financing.

Trusting only Certified Business Brokers

With the increasing number of sale brokers out there, you may face challenges identifying which ones are trustworthy and which ones are bogus. To resolve this dilemma, all you need to do is check their certifications and experiences. The main organization that provides business broker certification opportunities is the International Association of Business Brokers (IBBA). A certified business broker should have at least one of these designations:

– Accredited in Business Valuation (ABV)

– Certified Business Appraiser (CBA)

– Accredited Senior Appraiser in Business Valuation (ASA-BV)

– Certified Valuation Analyst (CVA)

Although a certification may be a good sign that a business broker is legitimate and trustworthy, it does not fully guarantee his competence in the field. The broker’s practical experience is also an important aspect to consider in choosing which one to trust. Do some research or ask around for the number of transactions that your prospect broker has successfully closed, as well as some positive feedback regarding his experience in the industry. An insightful business broker can benefit a lot from his or her experiences, such as building significant relationships within the industry and learning from past mistakes. Certification cannot match such benefits and advantages.

While certification is a vital requirement in establishing a broker’s credibility, you should always take into account the experience of a business for sale broker before making a decision. Choose one who has the knowledge and experience that you will not get anywhere else. Don’t you agree that the role and importance of business brokers is essential to both business sellers and buyers?