02 Dec Embracing the Right Strategies Will Yield Positive Results
In this article, we’ll cover some key pointers and advice for business brokers and M&A advisors from Glenn Cooper. Cooper is Founder and Managing Partner of Colorado Business Brokers. During our recent webinar, which can be accessed here, his goal was to impart to professionals what they need to know in order to build a successful long-term business broker practice.
If you are in the brokerage industry, psychology will play a major role in performing your job. In the past, we’ve discussed that brokers must wear many hats in order to successfully navigate the waters. Understanding client psychology and motivation is an essential component for successfully assisting any client.
However, the psychology of the business broker himself or herself also plays a vital role. As Cooper points out, many new business brokers don’t understand that they will be making a high-volume of calls and will experience ample rejection. Being a business broker isn’t for the thin skinned. Additionally, Cooper notes that being a broker translates into doing a lot of homework in the form of researching clients, digging through various professional databases, and even making trips to the library.
The rejection aspect of being a business broker shouldn’t be overlooked. Cooper states, “You have to call an average seller multiple times before they even understand who you are and why they should respond to you.” Like many endeavors in the business world, being a broker is, in part, a numbers game.
With that stated, however, there are different ways to approach the game. As Cooper points out, “It’s absolutely legitimate to sit down and make 50 calls a day, and in fact some of the top brokers in this country do exactly that…my strategy is a high touch system…because I spend time befriending my sellers, working with them and doing a really good job. In the past, 90% of my sellers have either referred me or still would even 20 years later.”
Cooper touches on another important aspect of establishing oneself as a business broker in a given region. That is not never overlook a client. For example, he notes that there is a shortage of specialty contractors. Specialty contractors, specialty trades, and essential working trades, such as plumbing and electrical, will find buyers. This is especially true if they have good employees. This point reflects back on our previous article, “How to Reach Prospective Clients,” where Cooper outlines the importance of knowing your region and understanding the businesses within that region.
Cooper points out that you should be willing to invest the time to understand not only what businesses are in a region, but also the key brokers. Further, over the decades, you should be willing to do the work to find and cultivate relationships with the right clients. The simple fact is that you should never overlook your strategy. Those looking to enjoy the kind of career longevity that Cooper has enjoyed will be well served to incorporate his advice.