01 Oct Famous Business Broker Quotes from Len Krick
The following quotes are from industry veteran Len Krick, a successful business broker. He told us that the final quote of the article is really what keeps him going through the rough times and explains why he does the things he does. These are quotes worth remembering. Thanks to Len for the legacy he is creating and that it involves sharing his wisdom with others in the profession.
Advice to other business brokers:
On the importance of developing good prospecting attitude and coping with rejection:
“A day without cold calling is like a day without sunshine.”
On not getting emotionally involved with A Buyer:
“When it comes to Buyers, a good business broker needs to develop an SWSWSWN attitude… some will; some won’t, so what, next.”
On becoming immersed in the profession:
“You know you are a real business broker when you drive down the street, and everything you see is for sale, it’s just a matter of time… and I am going to sell them all.”
On the fact that business brokers need to figure out how they are going to deal with whether they are going to take listings with unreported income:
“I didn’t say I wouldn’t take a listing where the Seller has unreported income. I’ll take the listing, but I am not going to try to get them paid for the unreported income.”
“When it comes to getting paid for unreported income, I always tell me Seller prospects ‘You can’t steal it twice.’ ”
On the challenge of persevering when the going gets tough:
“Figure it takes an average of three times up the hill before you get over the top. You are going to wear out a lot of track shoes, but, in the end, it’s all worth it.”
On the importance of being selective on what you take on as a client:
“Listings are not a business broker’s ‘inventory.’ Your time is your ‘inventory.’ When you ‘invest’ or ‘spend’ your precious time on low probability listings, then you get what you deserve and deserve what you get — a low probability of getting a commission.”
“I think of my listing inventory as my ‘Dance card;’ once it is punched, I can’t take any more. So, I need to be selective on using my precious dance card spots. A prettier girl might come along, and I might need a spot to grab her.”
“When you run out of spots on your ‘Dance Card,’ you either need to ‘thin the herd’ or increase your capacity by hiring some help.”
On brokerage fees:
“Keep your eyes on the goal… getting your client to their goal … and your commission will come.”
On achieving success:
“You know you did a good job when 4 or 5 years later, the Buyer of one of you businesses comes to you to sell it for them.”
Dealing with Listing Prospects
On explaining to Seller Prospects the importance of acting as a team:
“I’m not your business broker; I’m your Siamese twin. For a short, mutually-beneficial time, we are going to walk in lock-step… what’s good for you is good for me, and vice versa. I don’t get paid until you get paid.”
On the roles of the Broker and the Seller:
“We both have jobs to do. Mine is to bring as many written offers from pre-screened buys with money as I can. Yours is to keep you hands on the wheel, foot on the accelerator, and this business buffed up until it is sold.”
On educating a Seller on what a Buyer needs before they will buy their business:
“There are three things a Buyer has to get out the deal, or they won’t buy your business: (1) enough money to service the debt they incur in buying the business, (2) enough left over to live, and (3) a decent return on the cash they invest in the business.”
On educating the Seller Prospect about what Buyer’s think is important:
“There are four basis questions that every Buyer asks: (1) if this business is so good, then how come they are selling it? (2) How much money does it make? (3) What’s the upside potential, or is it going to lose market share, when I own it? (4) Where the heck did you get that price? Everything else is secondary.”
On what makes Buyer purchase a business:
“At the end of the day, the secret to selling a business is the Buyer’s cash-on-cash return on investment. That, is, how fast the Buyer can get the cash they invest in the business back.”
On getting a Seller’s business ready to sell:
“Your business is like a pretty girl. I know what Buyers think a pretty girl looks like. We need to work on your legs, your face, and your butt. Then we enter the beauty contest.”
On the importance of being able to verify all add-backs:
“Just remember, it’s only going to be a short time… shorter than you think… until we have a written offer from a prescreened Buyer. Then it’s Showtime, and I’ll be on the side playing the music, clapping, and throwing sand on the floor. You will be out there tap dancing and doing the soft shoe. So we need to get you ready.”
What makes Len “tick?”
On not being scared to share the secrets of business brokerage success:
“I really don’t mind sharing my systems and forms with my local competitors. There is a big difference between knowing what you should do and doing it.”
On why Len works all the time:
“I can’t go very long without my fix; I’m a deal junky.”
On what drives Len:
“Sure I need the fees, after all I need to live and retire someday (fat chance that I’ll ever really stop doing business brokerage), but it is the constant challenge of getting these deals done that I live for. It’s like a constantly changing puzzle and I need to solve it.”
“When I am in the middle of a deal, I think of it as a military battle. It’s me, the General, and my troops (my client, his accountant, his attorney, etc.) against them. All my strategies and tactics are designed to win: Attaining the maximum after-tax proceeds for my client as possible without losing the deal.”
On the reason why he constantly invents and refines systems, and methods, and shares them with other business brokers:
“My goal is to leave the business brokerage profession in better shape than I found it in 2000.”
“My legacy is to be thought of someone who left his mark on business brokerage by making it more professional and who was always willing to share.”
