Steve Valentino

Small Business Brokers

This article provides useful, detailed information about Small Business Brokers.

Business brokers act as matchmakers in the world of business. They bring together small and medium-sized businesses. Small businesses have their own limitations owing to their limited presence in the market. Though most of the business brokerage firms help in selling all sizes of businesses, there are specialized business brokerage firms for selling small businesses also. Through their contacts with big corporations, they can get a good selling price for a small business.

For this they could charge a small fixed fee and then a commission. The commission is calculated with the sales price as the base. It is generally negotiable. Various surveys have indicated that as many as one-third of the business brokerage firms in the US fall into the \"small businesses\" category. The small business brokerage field can yield a lucrative income.

Even a sole proprietor in this business has an average income which runs into six figures. The smaller businesses can sell for around 200,000 dollars. That could mean revenue of around 10 to 15 thousand dollars from one single transaction, for a small business brokerage firm.

Many of the small business brokers operate in small towns and cities where big brokerage houses do not have branches. It only takes good networking, a small amount of capital and knowledge of the laws concerned to start this business.

You can take a franchisee of certain big business brokerage firms and start making matches in your hometown. The business has a low risk factor and can earn you good money. But remember: the margins are coming down increasingly, as competition is getting stiffer with the entry of several new businesses brokerage firms, which are keen to tap the small business sector also.

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