Wednesday, April 18, 2007

Home-Based Business - Business Broker

Business Broker
  • Start-up cost: RM2,500- RM7,000
  • Potential earnings: RM100,000 (based on one sale a month for ten months of the year)
  • Typical fees: Standard 10 to 12 percent of the selling price of the business
  • Advertising: Direct mail, telemarketing, networking, referrals, ads in Yellow Pages and business publications
  • Qualifications: Ability to understand financial reports, solid business background, considerable legal knowledge, good sales and "people" skills
  • Equipment needed: Computer and office equipment, telephone, answering machine or voice mail
  • Staff required: No
  • Handicapped opportunity: Yes
  • Hidden costs: Some states require a real estate broker’s license
  • Lowdown: Business brokers match clients interested in selling a business with others who want to buy—and many are home-based. This 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 empathy and an ability to listen carefully. Strong sales skills, coupled with the essential legal knowledge and business background, will help you establish what may be a most lucrative business.
  • Start-Up: Computer, printer, and software (some specialized) will cost an average of RM3,500. Add to this at least RM700 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.
  • Bottom-Line Advice: Network, network, network! Talk to people who own businesses, figure out what associations they belong to, and join them. Take some adult education courses, if necessary, to help you learn more about the unfamiliar aspects of your new business. Get referrals from lawyers, accountants, and bankers. Getting businesses to sell is hard work (although specialization helps) and you don’t get paid until you sell something, but it’s fun to act as matchmaker and satisfying to help your clients succeed. Your expenses and start-up 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.

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