2025-03-10
How Do I Buy A Business? A Guide For Business Buyers: Step 2 - Call A Business Broker
If you've always wanted to buy your own business, it might seem like a lofty task and you might not be sure where to start.
Here's how:
The second step is to call an experienced and qualified business broker.
(If you’re looking for Step 1 first, click here!)
What is a business broker?
In the same way a real estate agent helps you find a house and helps you with the purchase contract a business broker is the intermediary that gets a business from listing to closing. Your business broker will help you find a business to buy, help you put together a purchase contract, help you negotiate with the seller, help you with licensing and permitting needs and help you through the due diligence phase.
Why did you say “experienced and qualified” business broker?
A business broker needs to be properly qualified and licensed with the state where they work. They also should be experienced as the business transaction process is complex - and the best way to avoid pitfalls is to know they’re coming. They also need to actually be a business broker. You want to vet your broker for these qualifications as there are many professionals (like real estate agents, doctors, accountants and even dentists) who think they can help people buy and sell businesses as a side hustle. These fly-by-night “business brokers” have no idea what they’re doing, have no knowledge of how the process works, don’t have the know-how to keep essential elements like confidentiality in place, have no idea how to market a business properly - the list goes on and on. You wouldn’t get plastic surgery from an attorney, so don’t try to navigate the process of buying a business with the wrong help. You need a business broker (like us!).
Once you have a handle on your goals for business ownership (from Step 1) talk to a business broker. They'll be able to help you narrow your focus to certain industries and types of businesses based on the combination of your goals for business ownership, your practical experience and the capital you have available to buy a business. This first conversation is very important. It helps you get to know your broker, and will help you see if the two of you would be able to work together successfully. It also helps your broker get to know you and what you need in order to succeed in business ownership - so don’t just email. A one-on-one conversation is best.
After this initial conversation your broker will send you business listings to consider. Look at every listing and then give your broker feedback. Tell them what you did (and didn't) like about each listing so they can refine the search parameters and send you more businesses to consider. You can also do some cursory searching yourself using our business search tool (click here).
Stay tuned for Step 3 (or click here for Step 1)!
Would you like to know more about the experience and qualifications of our business brokers? Are you curious about what types of businesses would work for you? Ask us! Leave any questions or comments and we would be happy to help.