Become a Business Broker - Agent in California
As compared to selling homes, there are many advantages to representing sellers and buyers of businesses. The first advantage is the ability to earn substantial commissions. While commissions are always negotiable and broker fees vary from company to company, the average commission in California for selling a home is 5%. The average commission for selling a business is 10%. Also, most importantly, more than 90% of residential agents represent either the seller or the buyer but not both. Therefore, only one half of the commission goes to each office. In the case business brokerage, nearly 100% of the agents represent both the seller and the buyer, so the commission is rarely divided between two offices. You do the math on a $1,000,000 sale. Another advantage is that business brokers and agents do not have nearly the amount of competition that residential brokers and agents face every day. There are very few business brokerage firms in Southern California and most of them are small companies. This makes marketing and acquiring listings easier, if you work hard and consistently follow our strategy. Business brokerage does require more knowledge. To become a successful agent, you must learn to read and understand basic financial statements and tax returns. You also have to select and make a study of a small group of industries, because your farm will not be a neighborhood, it will be a group of companies. If you have, or if you obtain, the necessary license, and have, or are willing to acquire the necessary knowledge, business brokerage can be very rewarding financially and otherwise. If you have a sincere desire and you’re willing to work hard, and you’re in a position to work on a commission basis, call me, Michael Chulak at 818-991-5200 or by email.