In Florida an agent who assists buyers or sellers in the sale of a business is referred to as a “Business Intermediary”. While we are often colloquially referred to as Business Brokers – in fact it is only the principal licensed Broker in the agency who is a Business Broker. Agents working under the Broker are properly referred to as Business Intermediaries. Here I will use the terms interchangeably as I discuss the profession. This is what you need to know when entering this career.
Financially secure
Business Intermediaries typically work as Independent Contractors and are paid a percentage of the Brokers commission. So don’t expect a weekly paycheck. In fact you may not make your first paycheck for a year or so. Statistics show that the average business that sells in the state of Florida has been on the market for 277 days. So if you start today as a business broker. List your first business within 30 days and are lucky enough to sell this business you can expect that your first paycheck may come at the 10 month mark. And that’s if you are lucky. Most Brokers do not experience a steady income until year two or three. So unless you are financially independent or have another source of income this profession may not be right for you.
Licensing
Some states do not require a business broker be licensed. For a list of these States see here. However Florida requires Business Brokers have a Real Estate Sales Associates license. It is illegal for anyone to act as a Business Intermediary in Florida unless they have a Florida Real Estate license.
Skills
You should have a good knowledge of financial matters. That is being able to read a tax return, balance sheet and profit & loss statement. Business Brokers analyze businesses to determine their true cash flow. If you don’t already have these talents then you will need to acquire them.
Patience
As stated before this is not a get rich quick profession. It takes patience to be successful. If you are looking for a quick payout this may not be the profession for you.
Employer
Make sure you hang your license with a Broker who is a member of the Business Brokers of Florida. This association sets minimum ethical and educational standards for business brokers in this State. As a member you will have access to a multiple listing service that currently has almost 4,000 businesses for sale listings.
A willingness to learn
Our profession is constantly changing. Each business is as different as its owner. You must never stop expanding your knowledge.
If you think you have what it takes to be a Business Intermediary Quorum Business Advisors, LLC is currently looking for suitable applicants.
To explore a career as Business Broker/Intermediary contact Anthony Rigney at 904-725-7677.