2nd Best Small Business Opportunities

Small Business Opportunity: The World of Business Brokers

Business brokers are the matchmakers of the business world bringing together buyers and sellers of small and mid-sized companies. "The majority of business brokerage firms handle the sale of everything from the corner dry cleaner to the local quick print to the local liquor store – and every thing in between." says Tom West, founder and former president of The International Business Brokers Association (IBBA).

IBBA estimates there are approximately 3500 business brokerage firms in America with surveys indicating that 35 percent are sole practitioners.

The field of business brokerage continues to match buyers and sellers each year. Sunbelt Business Advisors began franchising in 1993. Since 2000 the company has grown from 232 franchises throughout the United States and internationally to over 397 in 2004. VR Business Brokers of Ft. Lauderdale have also experienced rapid growth, adding 72 franchisees over 5 years.

According to Mr. West, earnings in the business broker field are "well above average and a six figure income is certainly attainable for many. Commissions range from 10 to 12 percent of the purchase price with firms charging a minimum fee of at least $10,000 to $15,000, for smaller businesses. The average price of a business that sells today goes for about $250,000 not including inventory or real estate."

Driving Force: Corporate downsizing and aging baby boomers wanting to cash out of their business for retirement provides optimism for the business broker industry.

Risks: Turning potential buyers into real buyers is the challenge of the business. Much like the real estate business, brokers need people skills and the ability to overcome rejection to be successful says Tom West.

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