When you enter the business brokerage business,
you probably want to focus on number related
topics such as financials, valuation, and pricing.
Yes, these areas of knowledge are fundamental and
important, however, knowing numbers alone is
not enough to be a good business broker. To make
a good living or become a top producer, there are
more important things you need to know to level up
your business brokerage skills.
Reflecting on my own experience as a Business
Broker, I have identified three fundamental
concepts that are essential for achieving
exceptional results. Tese three concepts are
PEOPLE, EDUCATE, and LEAD. Understanding and
embodying these principles can truly elevate your
efectiveness as a business broker.
PEOPLE
Business brokerage is a people game, not a numbers
game. The most challenging part in this game is not
understanding the numbers, but instead dealing
with the people. Sellers, buyers, CPAs, a�orneys,
landlords, lenders, you yourself, and all the third-
party service providers are all real human beings.
Therefore, people skills play a more important
role than number skills in the business brokerage
business.
Different people, being human, each have specific
needs in the process which are not always
rational, but o�en emotional. All these factors
coming together frequently make transactions
difficult. A successful deal maker must understand
these characteristics of human beings and have
people skills such as communication skills and
interpersonal skills to deal with different people at
different stages in the process.
• Building Relationships and Trust with
Clients (People): Trust is crucial in any
business transaction, and as a broker,
establishing trust with your clients is
paramount. Your understanding of people
allows you to connect with clients on a
deeper level, empathize with their needs and
concerns, and build rapport more effectively.
• Understanding Sellers and Buyers: As a
business broker, you deal with both sellers
who want to exit their businesses and buyers
who are looking for opportunities. Having
insight into their motivations, goals, and
concerns allows you to tailor your approach
to each party to be�er facilitate smooth
transactions.
• Negotiation Skills: Negotiation is a
central aspect of business brokerage,
and understanding people is essential
for successful negotiation outcomes. By
understanding the perspectives and priorities
of both parties involved in a transaction,
you can identify common ground, negotiate
effectively, and reach mutually beneficial
agreements.