From Past to Present: The New Challenges and Opportunities for a Business Broker

by Arnold Pierce Kelsey 5th of August, 2024

From Past to Present: The New Challenges and Opportunities for a Business Broker

Being a business broker has undergone significant changes over the past 30-40 years. While some aspects of the role remain the same, there are several factors that have changed, making it more challenging for a business broker from yesteryear to operate successfully in today's market.

Here are some key points to consider:

Technology

The advancement of technology has revolutionised the business brokerage industry. Today, brokers have access to online platforms, databases, and various digital tools that streamline the process of listing businesses for sale, conducting market research, and connecting with potential buyers and sellers.

A business broker from 40 years ago may not be familiar with or equipped to leverage these technological advancements, putting them at a disadvantage in terms of efficiency and reach.

Market Dynamics

The business landscape has evolved significantly over the past 30-40 years. Globalisation, technological advancements, and changing consumer preferences have led to shifting market dynamics. Business brokers today need to understand and adapt to these changes in order to effectively advise clients and facilitate successful transactions.

A broker from yesteryear may not have the necessary knowledge or experience to navigate these new market dynamics.

Marketing and Advertising

Traditional marketing methods such as newspaper ads, direct mail, and industry publications were commonly used by business brokers in the past. Today, digital marketing channels such as social media, search engine optimisation, and online advertising have become essential for reaching a wider audience and targeting specific buyer segments.

A business broker from 30-40 years ago may struggle to effectively market their services and connect with potential clients using these modern marketing techniques.

Communication and Collaboration

The advancement of communication technology has greatly improved the efficiency and speed of communication between brokers, buyers, and sellers. Email, video conferencing, and collaboration tools have become integral to the business brokerage process.

A business broker from yesteryear may not be familiar with or comfortable using these tools, which could hinder their ability to effectively communicate and collaborate with clients.

Industry Knowledge and Specialisation

With the increasing complexity of businesses and industries, brokers today often specialise in specific sectors or niches. They develop in-depth knowledge and expertise in their chosen areas, allowing them to better serve clients and provide valuable insights.

A business broker from 30-40 years ago may not have the same level of specialisation or industry knowledge that is expected and valued in today's market.

“We have always done it this way”

While a business broker from yesteryear may have experience and a solid understanding of the fundamentals of the industry, the changing landscape and technological advancements make it challenging for them to operate successfully in today's market.

However, it is not impossible for them to adapt and learn the new tools and strategies if they are willing to invest time and effort in upgrading their skills and knowledge. With the right training and willingness to embrace change, a business broker from yesteryear could potentially operate successfully in today's market.

Sadly, the statement "We have always done it this way" is a sentiment often expressed by some business brokers. My advice is to steer clear of this mindset, as those who cling to outdated practices will ultimately fall behind, if they haven’t already done so.

Therefore, when selecting a business broker to facilitate the sale of your business, it is imperative not to rely solely on the number of years they have been in the field. Given the significant changes that have transpired, it is crucial to consider that an individual with 30-40 years of experience may lack the necessary technological proficiency to effectively navigate a prosperous sale in this era of advanced technology.

Tags: business broker tips selling