15 Aug What New Business Broker Need to do to Find and Retain Clients
In our previous article, we examined some of business broker legend Doug Robbins’s thoughts on what intermediaries and business brokers need to know so they can survive and thrive in the industry. This article is based on our last webinar “How to Manage the Cascading Challenge!”, which can be found at this link. The cascading challenge refers to the fact that intermediaries/business brokers have a life expectancy of only 18 to 30 months.
In this article, we will explore some of Robbins’s advice on what you need to manage this significant challenge. Finding and retaining new clients is a big part of the equation. As Robbins points out, it is vital to network and interact with business owners in a variety of ways. It’s also important to have a team of highly trained people who can effectively work together.
Showing the Value You Add
Any new business broker that will transverse the 18-to-30-month survival window, in which most business brokers fail and leave the business, needs to never lose sight of the following – always show clients that you can add value.
As Robbins notes, “You have to add value to the process of selling through value enhancement or taking away an obstacle that would prevent the sale from occurring or increase sales or improve margins…If we can’t add value, then why would they hire us?” He continues to point out that if a business broker/intermediary can’t show a client that they can add tremendous value to the process, then what is to keep a businessowner from simply taking out an advertisement in a newspaper and hoping for the best?
The Power of Communication
At the core of Robbins’s statement is communication. Any new business broker that survives the test of time and makes it past the 18-to-30-month threshold will have to learn how to effectively communicate their worth to a client.
You must be prepared to effectively highlight what you bring to the table. You also should be able to clearly showcase how you can make life easier for clients while helping them achieve top dollar for their businesses. Simply stated, this is a fact that business brokers should never lose sight of under any circumstances.
Building Client Confidence
Part of the process of gaining clients and creating a pipeline of future clients is done through building up their confidence. Once you have effectively communicated to clients that you can add value, your prospects must have full confidence in your ability to follow through on your claims.
Building confidence first and foremost is done by demonstrating a knowledge of the profession. You’ll want to outline in clear terms how you are a significant asset to a business. Many businessowners will feel that they don’t need a business broker. One of the first jobs that you must perform when dealing with a prospect is to overcome this mindset.