If you are presently a business broker or if you are considering entering the field then this information is for you. Allow me to share a bit of how my business brokerage office changed from the typical office selling 1 of 5 to 1 of 7 listings to essentially selling them all!
Business brokers generally accept a success rate of 14% to 25% in selling their listings as normal. Yet you don’t hear anyone bragging, “We sell 25% of our listings” even though that’s about as good as it gets. That is unless you are using our Business Selling System, then you will be successful 90+% of the time. Hard to believe but it’s true!
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Let me share with you the catalyst of our transition from a usual business brokerage office where businesses are listed with the expectation that the majority will not be sold to one where the assumption is essentially every listing will sell. My wife and I were at a party and someone asked what I did for a living. Quite a few people gathered around as I explained that I sold businesses. After answering all the usual questions such as “What’s the best business to be in today?” I still had an audience so I continued and pointed out that many entities sold businesses. In fact Century 21 sold more businesses than any other organization. I was quick to add that those numbers were purely a function of their size and not their effectiveness.
|For example if every other Century 21 office sold one business a year that might represent several thousand sales. But – they sell less than one of twenty of their listings for an effectiveness rate less than a five percent. Business brokers typically will sell one in five to seven of their listings. However, (drum roll please) my office was successful in selling one in four of our listings.
The adulation and praise was short lived as on the drive home my wife asked “Is it true that you sell one of four listings?” “Why yes indeed.” I replied – my chest expanding with pride. “Yes we do.”
|“Over the past seven years I have assisted scores of my business owner clients in first maximizing the value of their businesses and then selling them to the most appropriate acquirer by following Ted’s Methods and Principles.”
Mike Camerota, JD, CBI,
I was unprepared for her foundation shaking reply. “You mean to say you only satisfy twenty five percent of your customers?” Oh wow! I never looked at it that way. What other professional has a success rate that low? Perhaps a baseball pitcher’s batting average, but I couldn’t think of anything else. I was really troubled and decided that we would find a way to improve our effectiveness. It’s not easy being married to an intelligent woman.
It took over a year for us to come up with the solution to the low effectiveness problem. Our effectiveness rate went from twenty five percent over ninety and now I want to share with you just how we did it with this book and software package. Oh, by the way, we also changed from “Free Based” to Fee Based practice – yes, everyone of our clients now pays us a retainer. It was not our intention to change to charging fees but it turns out to be what our clients wanted, accept they didn’t know it until they heard our presentation
Business Owners, their attorneys and accountants love our three step approach. In fact, when we launched our “Take an Advisor to Lunch” campaign to familiarize attorneys, accountants and others in the “Deal Stream” with our new process. The most common reaction was “How else would you do it?” When we explained the usual business broker’s approach their typical response was “Not with my clients.”
A transcript of the presentation that has business owners asking “How much does this cost” is included in Chapter five. We never had to ask for a retainer to receive one and neither will you when you follow the instructions outlined in this chapter.
The Book: “Become the Best Business Broker in Town” – 232 pages of step by step instruction and examples to facilitate your becoming more effective selling businesses.
|Some of the topics covered in the book include:
||“I have known and worked with Ted for over 10 years now. His excellent reputation in the Business Brokerage and Mergers and Acquisitions Industries are second to none and very well deserved.
He possesses the rare blend of financial genius, marketing skills and personal integrity that are evident in everything he publishes. His vast experiences as a Business Broker and Business Valuator come through on every page.
Anyone interested in entering the business brokerage profession, or taking their practice to a higher level would benefit greatly from reading Ted’s books and applying his processes in their practice”.
Mark Wood, CBI,
We knew we were on the right track when business owners began asking how we got paid. Remember we did not start out wanting to collect fees. Later, we learned we had to charge in order to obtain the client and, later still, we had to develop a formula to use to determine the correct amount to charge. We noticed we often would loose clients interest by not charging or by charging too little – seldom because we charged too much!
The ratio of Presentation to Contract of my top people eventually leveled off at 2 to 1. Yes, for every two presentations they would land one fee paying client! The entire staff’s (averaged 20) closing ratio, including the rookies, averaged 3 to 1. In any event, our Fee Based closing ratio was better than was our Free Based one!