To Use A Business Broker Or To Not?

I've been asked many times by people who are looking at a franchise business if they should use a Business Broker and I've always stated that the best start is to decide what industry you want to work in first. The questions that should be answered first is; can I succeed in the long haul in this industry? Is it a high growth industry? How much market share will I have and how quickly can I grow my market share? Who is my competition and where is the competition coming from in the future? Can my franchisor adapt to industry changes and challenges in a timely manner so that I continue to grow my business? (reference Thomas L. Friedman's book 'The World is Flat' or click on my link to his MIT presentation found at the right side panel - 'My Favorite Videos Library') Will I enjoy working in this industry? Will my business afford me the lifestyle I'm accustom to and strive to achieve? For example; will my business provide me freedom to enjoy life or will it require me to be a slave to the business? Will it require travel?


Essentially a broker can help you identify these questions and then help you answer them by finding the franchise business that best meets your needs. Or, they could be helping themselves by matching you to a franchisor or selected few franchisors that meet their personal criteria which is; who pays the biggest and quickest commission.


I could go on and try and answer the question of 'To Use A Business Broker Or To not' or I can have you read an article from Entrepreneur.com written by Mark Siebert which will take you inside to the seldom seen world of the Business Broker. His insight will perhaps answer this question for you better than me. 'Should You Use Franchise Brokers?'

Here is also a great video discussion with franchise lawyers on the topic of; 'The Pros and Cons of Franchise Brokers' from the AllBusiness.com website.

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