Finding & Engaging Salable Businesses!

Glen Cooper, Business Broker / Business CoachPresident, Colorado Association of Business Intermediaries (CABI)

Managing Partner, Colorado Business BrokersGlen@ColoradoBusinessBrokers.co / 303-919-2694

Glen Cooper on PROSPECTING

What I Recommend:1) Buy a clean & highly selective list

of 10,000 (?) prospective sellers.2) Use paid telemarketer to call list &

make initial phone app’ts. only.3) Make all follow-up calls yourself.4) Initial lists cost 5 cents/name?5) $1,000/mo. = 30 phone app’ts./mo.?6) That gets you 10 solid leads/mo.?7) Result can be 3 quality listings/mo.

that you wouldn’t otherwise have!Qui

ck S

umm

ary:

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Prospecting Is the HardestThing To Start for Most of Us.

1. Research shows that action changes attitude!

2. Do it and we’ll learn to like it.3. Secret of Success: Learn to

Love What We Need To Do!4. Fear of not having the listings is

the best motivator.5. Prospecting is the BEST thing

to start for most of us!Wha

t’s th

e P

oint

?S

urve

y W

arni

ng: Why Surveys Are Misleading

Business Broker Surveys Show That “Prospecting” Is Only a Minor Source of Listings.

Usually Comes In At <10% or Less. Why? I KNOW the Answer! It’s Be Because <10% of Business

Brokers Prospect?! Prospecting Can Be/Should Be

the Center of Our Efforts. It Feeds All Other Touchpoints!

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How

’s It

Don

e?Lots of Ways to Prospect Yes, I’m An Expert. But we all need to revise our

methods as we go through time. We must keep listing inventory

high. Meet the ratios we need. Old Knowledge + New Currency

is the key formula. Always Keep Learning.

Wha

t’s th

e W

ork? Find, List & Sell Businesses

Let’s Look at the Big Picture:

Prospecting & Listing (25%) Research, CBR Prep & Ads (25%) Handling Buyer Inquiries (10%) Showings & LOI’s (10%) LOI to Closing Details (10%) Overall Management (Website,

CRM, Forms, Training & Marketing Materials) (20%)

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Wha

t’s th

e W

ork? Find, List & Sell Businesses

Let’s Look at Just Prospecting:

1) Low Touch, High Volume Automation & Social Networking,Emails, Newsletters, etc.

2) High Touch, Low Volume Direct Contact (Cold Calling), or

3) Both? Some of Both?

4) What’s Our Client Prospect Want?

Start Selective Prospecting: Choose our market before

just any market chooses us! Five Steps in Choosing:

1. Types and Sizes of Businesses in OurMarket that We Know and Like Best.

2. Competitors’ Listings – Who’s SellingWhat?

3. Gaps in the Market – What Are They?4. Quantify & Measure Our Potential

Markets.5. Start Small to Guaranty Ourselves

“Quick Wins.”

Wha

t to

Do

Now

?

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What Types of BusinessesMight We Want?

1. Any Health & High Tech2. B2B Services, Mfg., Distribution3. Specialty Contractors / Trades4. Auto Repair, Services & Parts5. Home-Based Businesses6. Annual Sales $500K - $10MM7. Owner CEO w/$100K+ SDE8. Close to Our Office9. Has Key Value Drivers W

hat’s

Hot

?Li

st&

Info

Sou

rces

: Sources of Information SalesGenie, D&B Hoovers or

Reference USA at Library Google Search (Websites, Names,

Emails & Other Info) LinkedIn Sales Navigator? Association & Other Directories

like ThomasNet.com List Brokers. Simplest Way to

Start! Get References. Spend the Money!

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Let’s Build An Income Model:

1. 300 leads/yr. nets 100 good leads (33%)2. 2/3rds of 100 good leads receive a

listing presentation (67%)3. 67 listing presentations result

in 22 listings (33% success rate)4. 22 listings lead to 8 sales/year (36%)5. Average net commission is $25,000?6. 8 sales/year yields net of $200,000/yr.?7. Cascading effect increases future yield

if you keep up this effort. Con

tact

Rat

ios?

Our Messages & Materials Know Our Purpose, Promise,

Offer & Difference! Collateral Materials Needed:

1. Outlines (Scripts?) for IndividualEmails, Phone Calls and Messages.

2. Some Blog/Newsletter Sharing Platform.3. Personal Stationery.4. Brochures & Articles to Enclose / Attach.5. Ability to Create Videos on Interesting

Topics for Seller Prospects.6. ZOOM Call Presentation Skills for

Initial Appointments.Get

ting

Rea

dy:

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Success Recipe Ingredients -Purpose, Promise,

Offer & Difference: Purpose: I am a business broker.

Promise: We have “systems, teamwork & a track record” that we bring to your service.

Offer: Happy tomeetwithyou confidentially.

Difference: One way I'm different is that I called YOU! Who else has done that? If your business was for sale, who’s going to be better able to succeed in selling it - me, or the broker who can’t make phone calls?!" S

tay

on M

essa

ge:

Phone Appointments are Easy! It’s usually not a script that we need; not a

message we should memorize as an openingsalvo in the battle to get a prospect’s attention.After introducing ourselves, it’s actually a set ofquestions that we need to be prepared to ask. Andit’s an asking and listening journey we need to beprepared to take.

It’s never a time to deliver a sales pitch (ourmessage) until we’re asked to do so. In all otherprospecting contacts, after the obvious introductionof who we are, it’s time to show our humility, askgenuine questions and demonstrate our ability tolisten! It is in listening that we show we care.D

on’t

Use

a S

crip

t:

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Here’s What To Do:

1) Ask Questions & Just Listen2) Develop Our Questions

Ahead of Time3) Get “Elevator Pitch” Ready

Just In Case They Ask4) Always Answer Their Questions

in a Helpful Way – Prepare Market Information to Share.

Mes

sage

Str

ateg

y:

Adding Information to Our Questions Encourages Interest1) Ican send an email with an article you

might want to read. Shall I send it?

2) I’d be happy to offer you a value opinion. If I sent you a signed confidentiality agreement, could I get you to send me your financials?

3) We recently sold a business like yours. I’d be happy to show you what we did for that client.

4) Right now, there are 10 businesses in our area that are for sale that are similar to yours. I’d be happy to share that information with you.Q

uest

ions

Plu

s!

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Who’s Going to Do This Work?

Firm or individual? Should be firm, but might be individual by default.

Where do we put our energies?1. Do whatever we can to automate. It won’t hurt.

2. I think 99% of social networking and repeat contact effort is ignored by our seller prospects.

3. The key has always been direct contact. It still is.

Who should do prospecting?It’s you. Not the telemarketer you can hire, except for that initial call to make the phone appointment for you.T

hree

Que

stio

ns:

Prospects Want Only Us!1)Our prospective sellers want

to talk to an experienced broker.

2) Sellers want to skip the B.S.

3) Sellers want their front-end questions answered quickly.

4) He/she wants priority treatment.

5) Our potential clients want to hear from someone who cares!

Who

Can

Do

It?

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Amateurs Can’t Do It!Who Has Survived as a Business Broker Service Provider? Business Brokerage Press (35+ yrs.) ValueSource (35+ yrs.) (Formerly IBA Data)

D&B Hoovers (30+ yrs.) InfoUSA (30+ yrs.) (Axle Sales Genie Today)

BizComps (30+ yrs.) DealStats (25+ yrs.) (Formerly Pratt’s Stats)

BizBuySell (20+ yrs.)

Where is a Telemarketer in this List?

Who

Can

’t D

o It?

Telemarketers Can’t Do It!1) Our market is too small.2) Good owner information on

privately-held small businesses is very hard to obtain.

3) Business brokerage is confusing tomost people, especially youraverage telemarketer.

4) Business owners just don’t want tohear from a telemarketer, except to make that first appointment. W

ho C

an’t

Do

It?

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Adapting: When Things Go Terribly Wrong!

How

to A

dapt

:

MajorThingsThat Go Wrong1) You Never Get Started Fear of Failure Don’t Understand Business Brokerage Don’t Know Your Purpose, Promise, Offer & Difference

2) You Succeed Too Quickly You Get New Listings Right Away You Stop Campaigning You Get Into A Listing/Selling Cycle

3) A Disruptor Comes Along! Pandemic Recession Personal TragedyW

hatC

anG

oW

rong

?

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Fear & Lack of Awareness1) You’re Frightened Who in Hell Wouldn’t Be!? Enjoy What You Have To Do As Your Art. See Yourself as a Facilitator, Not the Expert

2) You Didn’t Learn Basics Prospecting, Listing, Packaging & Selling IBBA & Business Brokerage Press + Reading

3) You Didn’t Read My Book! Success Recipe 4 Ingredients:

Purpose, Promise, Offer & Difference 7 Steps: Discover, Dream, Create, Share,

Plan, Act & Adapt to Put Recipe TogetherYou

Nev

er S

tart

Success & Overconfidence1) Prospecting Works Right Away! You Get Immediate Results! Get New Listings; Have No More Time That Month!

2) You Stop Prospecting! Who Needs Prospects When You Have Listings? I’ll Start Again When I Have Time.

3) Welcome to Listings/No Listings!

You

Win

Too

Soo

n

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Pandemic, Recession, & Tragedy1) Welcome to the Pandemic! Make Lemonade! (ZOOM, BBP, My Book!) Your Future Will Be What You Believe.

2) Welcome to the Recession! Necessity is the Mother of Invention. Convert Immediately to Re-Invent Yourself!

3) Welcome to Business Brokerage! Know Who You Are & What You Want Create A Unique Market Promise & Offer Invest in Yourself As You Would in a Business YOU are THE BUSINESS BROKER people need!

You

Are

Dis

rupt

ed

MajorThingsThat Go Right!1) You Get Started & Like It! You Overcome Your Fear of Failure Having to Answer Questions Makes You The Expert You Get Really Smooth at Talking the Talk!

2) You Succeed! You Get New Listings Right Away You Get Really Pumped! You Avoid the Listing/Selling Cycle

3) You Are The Disruptor! You Have the Best Listings in Your Market Your Success at Getting Listings is Noticed! You Become the “Business Broker of Choice!”W

hatC

anG

oR

ight

?

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