THE MINDSET OF BUSINESS BROKERS IS BROKEN: Boss Talk Sn1Ep1

Boss Talk: Selling & Buying Businesses with Jim & Carey

LINK TO YOUTUBE: http://www.youtube.com/@JimParkerBusinessBroker

WEBSITES: https://www.BossGI.com

RELEASE DATE: February 1st 2024

SHOW NOTES:

Boss Talk Ep 1: The Mindset of BUSINESS Brokers is Broken

Boss Talk's introductory episode brings a discussion between hosts Jim Parker and Carey Sobel, two experienced business brokers who delve into the realities of their industry. They challenge traditional broker ideologies, suggesting the mindset of brokers may be flawed or outdated. The hosts touch on the evolution of professionalism, the necessity of relationship building, the higher focus on quality over quantity, the importance of saying no, the need for comprehensive preparation before market listing and utilizing technology to streamline processes.

00:10 Introduction

00:16 Changing Landscape of the Broker Industry

07:30 From Quantity to Quality

50:09 Conclusion - A New Age for Brokering

BLOG:

If you’ve tuned into the first episode of Boss Talk, you’ll gather important insights concerning the mindset of business brokers and how the industry is evolving. Hosted by Jim Parker and Carey Sobel, the deep dive into the mindset of business brokers has sparked an essential conversation on how brokers can improve their approach, optimize investments and enhance their client relationship.

Parker and Sobel believe the mindset of business brokers is broken, and for a good reason. While they acknowledge this might sound a bit confusing, they explain it saying they're not criticizing predecessors in the business brokerage industry, but merely acknowledging that times have changed. Rather, they’re addressing the need for change in an industry that is lagging due to outdated methods and perspectives. For them, it's all about adapting to advancements in technology, evolving market dynamics and changes in buyer and seller expectations.

Over the years, the business brokerage industry has evolved drastically. Jim Parker reminisces about his early professional years, where business meetings were often casual, involving Hawaiian shirts and flip flops. Meanwhile, Sobel recognizes the transformation in the industry, praising the professionalism exuded by brokers today. The pair also highlight an increase in opportunities for business brokers, which has made the industry more attractive and accessible for a younger and more diverse bubble of talent.

The most significant mentality shift in the industry lies in the principle of preferring quality over quantity. The mindset used to be: list as many businesses as you can to increase the likelihood of making a sale. Now the pair suggest the contrary: being selective on the businesses you represent results in more focused attention to the quality businesses, thereby serving clients better and increasing their chances of success. Protecting brokers’ time by being highly strategic about the businesses they choose to list is paramount.

Selling businesses isn’t just about listing them for sale anymore. It requires a strategic approach that involves building relationships with potential sellers, developing an in-depth understanding of the business, and subsequently showcasing its value to potential buyers in the best light. Pricing a business right from the get-go, rather than testing the market with a higher price, is recommended due to the crucial importance of the first 30 days after listing a business.

Technology unquestionably plays a significant role in transforming the business brokerage industry. The hosts discuss how much easier it has become to get real-time statistics, research NAICS (North American Industry Classification System) codes, and communicate with other parties involved in a transaction thanks to the internet. The benefit of this increased access to information and streamlined communication processes is the optimization of time, which is probably a business broker’s most valuable asset.

The hosts also explore the power of saying 'No' and the flexibility behind it. You can say 'No, your business may not be ready to sell because of...” or “No, I'm not the right broker for your business.” This honesty not only aligns with Jim and Carey’s ethical standpoint, but also strengthens trust with clients. Their willingness to be truthful about these realities demonstrates the pair's client-centered approach and practice of integrity in their dealings.

Looking at the industry as a whole, the hosts reinforce the idea that the mindset of business brokers should continue to evolve. Maintaining successful transactions in the future will require a shift from traditional ways to more modern, efficient, client-oriented methods. The need for brokers to infuse technology into their operations, focus on building relationships, prioritize quality over quantity, and be frank with their clients' situations were highlighted as key factors moving forward. This all shapes an exciting and dynamic future for the business brokerage industry as it continues to break and remodel former mindsets.

PODCAST TOPIC KEYWORDS:

Boss Talk, business broker, Jim Parker, Carey Sobel, business partner, industry, Business brokerage, transaction