Business Broker

Business brokers match clients who are interested in selling their businesses with others who want to buy. Many such businesses are home-based. Th is field is growing. Many people think it’s less risky to buy an existing business than to start a new one. Nearly all brokers represent the client who is selling a business, but a few choose to represent the buyer. Specializing in a particular size or type of business, or in a particular geographic area, brings success to many home-based brokers. Excellent communication skills are vital, particularly the ability to express empathy and to listen carefully. Strong sales skills, coupled with the essential legal knowledge and business background, will help you establish what could be a most lucrative business.


A computer, printer, and software (some specialized) will cost an average of $3,500. Add to this at least $700 for office furniture, phone, letterhead, and supplies. Your earnings will hinge on whether you’re able to strike a deal; if so, take a 10 to 12 percent cut on the selling price.


Network, network, network! Talk to people who own businesses, figure out what associations they belong to, and join them. Get referrals from lawyers, accountants, and bankers. Take some adult education courses, if necessary, to help you learn more about the unfamiliar aspects of your new business. Getting businesses to sell is hard work, but remember that it helps to specialize. It’s fun to act as matchmaker and satisfying to help your clients succeed. Your expenses and startup costs are low, and the opportunity to make a great living is excellent. Nothing succeeds like success, so once you make a great match, you’ll have a basis on which to build future business.


Approx. cost of start-up: $2,500 to $7,000


Approx. potential earnings: $100,000 (based on one sale a month for 10 months of the year)


Typical fees: Standard 10 to 12 percent of the selling price of the business


Where to promote: Direct mail, telemarketing, networking, ads in Yellow Pages and business publications, banner ads on entrepreneurial Web sites with a link to your own informative Web site


Qualifications: A real estate broker’s license in some states, ability to understand financial reports, solid business background, considerable legal knowledge, good sales and communication skills


Things needed: Cell phone, computer with Internet access, office equipment, business cards


Required staff: No


Hidden costs: Travel, phone costs of arranging long, drawn-out deals, liability insurance