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Hiring A Business Broker? 4 Red Flags

If you need to sell your business, a business broker can provide a high level of assistance to reach a successful sale, says the Entrepreneur. Be wary, though, if the broker:

Doesn’t have a website
Anyone in business these days has a site. The lack of one says your broker is sadly out of touch with the times. That’s not a good quality to find in a broker. On the other hand, if there’s a site, check it for errors. Is the content of quality and on point? Does it say the right things? That’s another way for you to know if you’re getting a competent broker or not.

Wants a lot of money upfront
Some people are so happy to have finally found a broker that they provide a check to the first one they meet. In some cases, a broker will ask for an upfront fee and commission, the latter paid upon the sale of your business. So if your broker is asking for a huge upfront fee, be skeptical. Most brokers will work on a “success fee basis,” meaning the broker will be paid when the business sells. Carefully review a written agreement about the broker’s sales process, all fees, and when payments are due.

Can’t show you references from old clients
If the broker’s been in business for a while and can’t show you references or feedback from past clients, then that’s a definite red flag. Reliable brokers have records and feedback from past clients, most if not all of them good ones.

Can’t explain the business clearly
Your broker should know enough of your business so they would be in a better position to sell your business to prospective clients. If they can’t even explain the business to you when you ask, how do they plan to explain and sell your business to others? Your broker should ask questions and be familiar enough to provide clients with the answers they need. They should also be able to share with you “how” they will determine the value of your business and how they will market your business to find quality buyers. Visit Evobizsales.com for more information. You can connect with them on Facebook for further news and updates!

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