When choosing a suitable career, many people consider becoming a business broker. Business brokers are highly demanded specialists who can help business owners buy and sell their companies. The average annual salary of a business broker is about $130,000.
While it’s possible to earn large amounts of money as a business broker, the career takes considerable investment. In order to earn a stellar reputation, business brokers need to work for many years, studying the market, learning how to respond to market fluctuations, and creating a buyer database.
If you are considering a career as a business broker, you need to go over a few pros and cons of this decision.
Advantages of Becoming a Business Broker
Let’s take a look at why many people choose the career as a business broker and enjoy it immensely.
- Flexibility – when you start a business broker company, you become your own boss. You don’t need to worry about fixed business hours or someone else’s opinion about your decisions. A business broker is an independent professional with a flexible schedule.
- Working at home – to become a business broker, you don’t need to rent office space. Your entire work can be done remotely. From studying the market to interacting with sellers and buyers, you can do everything from the comfort of your own home. This option adds flexibility to your workday, making the job even more appealing.
- Low startup costs – you don’t need significant starting capital to become a business broker. The majority of investments you make when choosing this career are time-related. According to Business Broker from Orlando, if you are starting from scratch, you need to invest in business broker training. That’s the biggest time and money investment you will face for some time.
- Rewarding experience – negotiating a top-notch deal is a highly rewarding experience. You help both parties get what they need the most. The large fees you get for each deal are also highly enjoyable.
- Scalability – as a business broker solopreneur, you don’t need to be responsible for other employees. However, if you decide to grow, this business is easy to scale.
- Control – as a self-employed business broker you can decide whom to work with. You can choose your clients to minimize stress and maximize your profits.
Overall, becoming a business broker is a rewarding, exciting, and educational experience. This flexible and highly demanded career can help many people unlock their potential.
Disadvantages of Becoming a Business Broker
While a business broker career can be highly suitable for some people, others are worried about certain disadvantages. Let’s take a look at what they might be.
- Lack of experience – for a business broker, experience matters the most. Before you gain significant experience, it can be hard to land big clients. That’s why you need to be ready to work for an insignificant salary until you gain sufficient experience.
- High competition – the high salaries associated with becoming a business broker makes the career appealing to many people. That’s why you have to be ready to work in a highly competitive environment.
- Long sales process – while it may be fairly easy to find a client if you already have a good reputation, driving a sale through can be time-consuming. That’s why you need to be ready for cash flow disruptions. While some deals can take days to complete, others demand months of your time.
- No benefits – business brokers are usually self-employed. So you have to worry about paying for health insurance and other benefits on your own. While that’s easy when you are an established business broker, it could be tough when you are just starting out.
- Stress – each transaction related to selling a business can be highly stressful for you and your client. Business workers need to learn to work in a stressful environment 24/7.
Overall, just like with any self-employment, becoming a business broker comes with some nuances. However, many people are ready to overlook them due to the overwhelming benefits.
A business broker career can be highly rewarding, especially for individuals who already have some experience with owning and running a business. The pay is high. The work is flexible. The opportunities are virtually endless.
However, just like any career, this one comes with certain downsides. The major issue with becoming a successful business broker is fierce competition. If you are ready to work through that then it’s definitely worth a try.