Broker Tips: How to Attract the Right Clients
May 31 2017
Finding the right clients can be difficult. Depending on where they and their business stands, it may not always be the right fit for brokers looking to increase their list of clientele.
So, to help in the decision-making process, we’ve compiled some essential tips on how to vet potential businesses for sale, and build a portfolio of high-quality clients.
Nix the Upfront Fee
Nowadays, it’s common knowledge that brokers usually receive somewhere between 10 and 15% commission on the final sale price of a company. Requesting a large “upfront fee” to start the business valuation process will undoubtedly leave a sour taste in a business owner’s mouth, especially if it’s for a valuation that ends up not yielding the best results for the client.
Join Credible Networks
Trade associations, like the International Business Brokers Association, are a great way to get service offerings in front of the eyes of potential clients. Aside from that, most associations hold conferences, seminars and other educational opportunities to build the skills needed to go after larger, more lucrative businesses looking to sell.
Commit to Full-Time Service
Any broker worth their salt is going to get into a routine of selling businesses regularly. A full-time broker adds far more value to any business transaction than a part-time agent could. Not only is a full-time broker more likely to have a wider network of contacts, but they’ll also have a wider understanding of sales principles and best practices.
Focus on the Seller First
Although this sentiment can extend well beyond the brokerage realm, adjusting your focus to suit the seller’s needs and interests is a sure-fire way to create trust, credibility and set up a professional relationship that’s more likely to lead to referrals for future work. Putting the client first goes a long way in creating an ideal business transaction for all parties involved.
Lay a Foundation Early
When a potential seller is shopping around for a trusted broker, he or she will gravitate toward those who come to the table with a plan already in place. From prescreening buyers, to managing the first steps of the sale process, it shows the broker actually cares about the outcome of the sale as it relates to the business owner’s interests.
There are several approaches one can take when trying to form new business relationships with potential sellers, including securing an online business valuation for the company in question. Contact PeerComps today to learn more about our business valuation services, or start a free trial to see our software in action.