How Business Brokers Advertise Businesses For Sale

If you are thinking of selling a business and have decided to work with a business broker, you may have some questions on how business brokers (typically) market a business for sale.  Although there is no ‘cookie cutter’ approach to selling businesses, there are some usual tactics that a business brokerage can use to get the word out confidentially that there is a business for sale listing they are representing.

Their Own Network
A business broker should have a strong referral network and should have a relevant ‘sphere of influence’ that they can draw upon to let it be known that they are in the business of selling businesses. 

A professional business broker should constantly be in touch with the advisors small businesses and entrepreneurs – these are typically lawyers, accountants and other professionals.  This is one of the most important assets that a business broker has.

Database of Business Buyers
A good business broker will collect information from people who have expressed an interest in buying a business to them.  Deal with a professional who has a large database of potential investors he or she can present businesses for sale to.

Groups and Associations
A business broker should also be quite active in business networking groups.  Exposure in these organizations expands the intermediary’s reach into the business community and gets exposure to investors looking for businesses to buy.

Traditional Advertising
Magazines, newspapers and other traditional forms of getting business listings exposure is another method that may be used.  It’s important to note that traditional advertising is relatively less effective than it was compared to even a few years ago.

Internet
A business broker should harness the power of the Internet to get exposure to his or her business listings.

Word of Mouth
In addition to an existing personal network, this point refers to a business broker using intuition to see opportunities where they might not be observable to others.  For instance, striking up casual conversations in everyday life may lead to the spotting of interesting opportunities.

Real Estate Professionals
Selling a business is much different than selling real estate, but realtors are an excellent source of leads to a business brokerage professional. 

Speaking Engagements
A talented business broker may be sought after as a popular speaker to investor clubs or other small business organizations.  Speaking engagements are a great source to get the word out on business for sale listings.

Local Organizations
A business broker in Toronto, Ontario may be a member of organizations such as Big Brothers, Rotary or other community groups.  Membership is a great way of finding leads for businesses for sale.

Business Groups
A business broker may be a member of industry or business groups such as the chamber of commerce or other affinity groups. 

Past Business Experience
Most business brokers have had careers or businesses prior to starting in the business brokerage field.  A good resource to advertise business listings is from former colleagues.

Cold Calling
Sometimes the best approach is simply to pick up the phone and start dialing.  Of course, any cold calling approach should be targeted to a selected group of potential business buyers.

Letters to Prospects
Selling your business may require a direct mail campaign to advertise a (confidential) business for sale, followed up by a cold call.

The point of this article is that you should work with a professional you have a good feeling about and that you think will find you a buyer for your small business.  A business broker needs to have a pro-active mindset and be able to use some or all of the tactics listed above to develop a marketing plan that will be best suited to sell a business.