- February 28, 2017
- Posted by: admin
- Category: Buying a Business, Exit Planning
Finding a qualified business broker in Las Vegas who can meet your needs should start with an honest conversation. Business brokers must be able to handle blunt questions and answer them frankly. If they waffle, or you suspect they are telling you what you want to hear, then that can be a red flag that the business broker in question is not the right one for you.
To help you choose a business broker, ask the following four questions every Las Vegas business broker should be able to answer:
1. “Why should I choose you over another broker?”
Every good business broker should be able to sell their own services, so ask them this question and then give them the spotlight while they make a case for their services. If a business broker cannot convince you that they are somehow exceptional, how can they sell someone on your business or convince them to accept your offer?
2. “In which industries do you have a high amount of knowledge and experience, and in which industries do you lack both?”
More pointed than a generic “what are your strengths and weaknesses?” question, this question gets to the heart of which situations a broker could benefit you. While being part of many business transactions imparts skills regardless of the industry, certain industries undeniably require familiarity to benefit a business buyer or seller.
For instance, someone interested in buying a pharmaceutical startup would wonder about the long-term prospects of any available company. Someone with a shallow knowledge of the industry could buy into hype surrounding a certain drug potentially entering the market, but someone who has bought and sold many pharmaceutical businesses may be able to tell you about possible shortcomings others overlooked. If a drug isn’t likely to make it to market or it is likely to see competitors in the near future, then the company’s moment in the sun will be too brief to guarantee any solid market advantage.
3. “What are my biggest strengths and weaknesses as a buyer/seller?”
An insightful answer to this question can help you already begin to form your strategy for any upcoming transaction. A good business broker should be able to inherently recognize the unique selling points and value propositions a business listing can offer. At the same time, they should be able to identify things that others overlooked.
For instance, Entrepreneur highlights a situation where someone was eager to buy a business until they learned that the currently low leasing agreement only existed because the business owner and landlord were friends. Since the new buyer was not as likely to get a favorable leasing rate, they became wary of the deal.
4. “Can you name a transaction where you had major regrets?”
No one has a 100%-win rate, but the ability to learn from our mistakes makes failure a teaching moment. The mark of a good broker is someone who values these experiences, even if they still sting a bit in their memory. When answering this question, they should not only be able to provide an honest example, but they should also be able to tell you how that experience will ensure they won’t make a certain mistake twice.
Finding a Quality Business Broker in Las Vegas
You can talk to an experienced, professional business broker who doesn’t flinch at the tough questions when you make an appointment with Jamie Schwartz. She is a well-regarded business broker in Las Vegas. You can look at her stellar credentials and then request a callback today!