06 Apr How to Cultivate Great Listings with Glen Cooper
Glen Cooper’s continuing Business Brokerage Press series, “The 5 Hardest Things to Learn in Business Brokerage,” continues with “Part 6: Finding Great Listings Before Just Any Listing Finds You!” Cooper covers a great deal of important territory in this webinar and provides both new and veteran brokers with insights, tips and pointers that are sure to make a difference in their careers.
An Emphasis on Psychology
Throughout his numerous webinars, Cooper has repeatedly pointed to the importance of psychology. In quite a few cases, he has highlighted the fact that business brokers and M&A advisors need to be aware of both buyer and seller psychology and make appropriate adjustments. But it’s not all about your clients. Being successful involves reflecting on your own psychology as well.
In this webinar, he notes that many business brokers need to face certain realities about the profession if they are to achieve success. He concludes that many in the profession are often in “denial about two things, mainly listings and sellers. They’re not going to sell all the businesses that they list, and that is a painful thing to talk about.”
The Value of Prospecting
As for Cooper’s second point, he explains, “The other issue that most people are in denial about is the need to prospect. None of us want to prospect, it’s not very pleasant.” Yet, the bottom line is that clients do not magically appear. Prospecting is part of being a business broker or M&A advisor.
Of course, prospecting is made easier when you are able to demonstrate that you and your company represent quality and competence at every level. Investing the time to cultivate attractive, and appealing listings does make a difference.
The Benefits of Competitive Pricing
Businesses that seem hard to operate or require specialized skill or expertise represent a problem, as do businesses that are not making enough money or fail to have good future prospects. In Cooper’s view, a business must be priced correctly, and above all else, it must pass the laugh test. As he points out, if the price is simply not realistic, prospective buyers will immediately skip over what could be a fantastic business.
Cooper states, “A great listing represents attractive work. It looks like anybody can operate it. The business makes enough money and has room for future growth. The listing passes the laugh test and has a seller financing option. Finally, you’ve done a good job telling the story.”
It is essential for you to carefully think through what sellers want and need. If you remember to always place yourself in the buyer and/or the seller’s shoes, this will go a long way.
