Five Questions to Ask Before Listing With a Broker!

Charlotte County Sell my Business | Florida Management Consultant

There are two mistakes you can make when it is time to sell your business; selling it on your own, and using an unqualified or inexperienced business broker. If you decide you should use a business broker, here are five questions you should ask of any prospective broker before you give them your business.

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  1. How long have you been selling businesses, and how long have you been with your company? — Okay, this may be two questions, but they are critical to understanding the experience of your broker. Your business is important, and you don’t want to use your business sale as a training exercise for an inexperienced broker. It will also help your business sale if your broker has owned their company or been with an agency for some time, as they will have created networks and relationships to help you sell your business.
  2. Does your prospective broker work from an office or at home? — Self-employment is commendable, but not necessarily what you want from your broker. A business office offers advantages to you as a seller; your business listing will be available to more people, and prospective buyers will be meeting with you and your broker in a professional office setting rather than a restaurant or coffee shop.
  3. How many businesses like yours has the broker sold? — Brokers may tell you they have sold a number of businesses in your category, such as restaurants or a retail store as an example. There is a big difference between selling a small cafe restaurant and a major fine dining establishment like yours. You need specifics about businesses they have sold which compare to yours, not just by category. If they don’t have that experience, keep looking for another broker.
  4. How many businesses does the broker sell each year on average? — On average, an established broker sells 8-10 businesses. If you prospective broker averages much less than that, they may only be working part-time or aren’t established yet. Keep looking.
  5. How many listings does the broker have at the moment? — Can a broker have too many listings? Some people think so, but if a broker is well established, has a good administrative staff, and sells businesses regularly, the number of listings they have should not be an issue. Unless that number is very small. A small number of listings can mean a number of things; the broker is not good at selling themselves, they aren’t well established, they aren’t working full-time as a broker, or the broker sells listings quickly. Regardless of the reason, you need to understand why a broker has few listings and make your decision based on all the information.

Hallmark Business Brokers are invested full-time in getting your business sold for a good price. We handle purchases or sales of commercial businesses in the southwest Florida area. Every business sale transaction is different, and we have the experience to help our clients navigate through the sales process. Contact Hallmark Business Brokers today and let us help you with your business sale, or help you find the business you want.