Small Business Opportunity, The World of Business Brokers

Business brokers (bisnis internet) are the matchmakers of the business world bringing together buyers and sellers of small and mid-sized companies. "The majority of business brokerage firms handle the sale of everything from the corner dry cleaner to the local quick print to the local liquor store – and every thing in between." says Tom West, founder and former president of The International Business Brokers Association (IBBA).IBBA estimates there are approximately 3500 business brokerage firms in America with surveys indicating that 35 percent are sole practitioners.
The field of business brokerage continues to match buyers and sellers each year. Sunbelt Business Advisors began franchising in 1993. Since 2000 the company has grown from 232 franchises throughout the United States and internationally to over 397 in 2004. VR Business Brokers of Ft. Lauderdale have also experienced rapid growth, adding 72 franchisees over 5 years.According to Mr. West, earnings in the business broker field are "well above average and a six figure income is certainly attainable for many. Commissions range from 10 to 12 percent of the purchase price with firms charging a minimum fee of at least $10,000 to $15,000, for smaller businesses. The average price of a business that sells today goes for about $250,000 not including inventory or real estate."
Driving Force: Corporate downsizing and aging baby boomers wanting to cash out of their business for retirement provides optimism for the business broker industry.Risks: Turning potential buyers into real buyers is the challenge of the business. Much like the real estate business, brokers need people skills and the ability to overcome rejection to be successful says Tom West.Small Business Opportunity: Garage Organizer Services the Last FrontierThroughout homes in North America, the impact of the home improvement boom has covered every square foot of the house except the most neglected and cluttered space, the garage. While large companies like Whirlpool Corporation have entered the high-end do-it-yourself garage organization market with its Gladiator™ GarageWorks line, the market is open for companies providing complete service including installation.GarageTek is the industry pioneer with over 67 franchises in the business since 2000. GarageTek uses patented PVC wall panels providing durability and flexibility in design. With garage organizer installations costing from $1000 to $10,000, the primary market is upscale. Targeting the garage organization market means catering to the affluent male market.Driving Force: According to Harvard Joint Center for Housing Studies, the Remodeling Activity Indicator (RAI) saw homeowner improvement expenditures increasing again to an estimated $129.3 billion dollars on home improvements and repairs. Driven by low interest rates and a solid housing market, home improvements continue to grow, making the new home improvement category of garage organization poised for more growth.Risks: This business opportunity is driven by the booming real estate market and the low-interest rate environment. Can this housing boom continue? "Increasingly Americans view houses not primarily as places to live but as foolproof, can't-lose investments. The passionate faith that money poured into real estate will magically multiply is creating a self-fulfilling speculative frenzy that's bound to end badly," says Shawn Tully in Fortune magazine's feature "Is the Housing Boom Over?" Whether or not the boom is a bust, any smart business owner will run some worst-case scenarios to have a contingency plan in place.