My Life as a Business Broker & Why I Left the Industry | David C. Barnett

David C Barnett Small Business and Deal Making SME

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What's it like to be a business broker? Why did I leave the industry?
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Learn how to buy an already-successful and profitable business in a risk-reduced way: www.BusinessBuyerAdvantage.com
My guide to sell your own business: www.HowToSellMyOwnBusiness.com
Learn more at www.DavidCBarnett.com
Follow me on Twitter, Instagram, Facebook, & LinkedIn: @DBarnettMoncton (If you share this video, please tag me!)
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Thanks for stopping by and checking out my video.
I love hearing from you so please leave a comment or question below. I might even use your question in my next video!
Stop missing my new videos. Join my email list here: www.DavidCBarnettList.com
Learn more about how to organize your small business so that it can run better and sell more easily at www.EasySmallBizSystems.com
About ME: My name is David C. Barnett. I am a consultant and I work with entrepreneurs around the world to buy, sell, and organize their small to medium sized businesses. As a former business broker, I have seen many people do bad deals and lose their life savings as a result. So, I made it my mission to start this channel to help educate people on ways to invest smarter and to ask questions, so they don’t get trapped into doing bad deals.
I am also an author and written books such as Invest Local: A guide to superior investments returns in your own community. My most recent book is Smarter than a Startup: The Risk-Reduced way to get the business of your dreams up and running. Other titles include, How To Sell My Own Business and Franchise Warnings: What you really need to know before you buy. All titles are available here: www.investlocalbook.com/p/buy...
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#businessbroker #smallbusiness #mergersandacquisitions #smallbiz #entrepreneurship #acquisition #entrepreneur #investing #investors #business #SMB

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Опубликовано:

19 мар 2016

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Комментарии : 142

@jdjewellpa 5 лет назад

Been there almost the exact same situation as a small business owner you have my utmost respect David for putting that out there. And more importantly for turning things around thank you for all your videos

@DavidCBarnett 5 лет назад

Thanks so much for the kind words!

@fineboyads7622 4 месяца назад

I was trained by Ed Pendarvis in a two-day conference in Chicago through Sunbelt back in 2005. The things I can tell you is worth getting together to share. I am about to sign up for your email list right now because you are genuine and full of REAL value.

@Blakpepa 7 лет назад

Thank you so much for your honesty. I was in a similar field and had to get out of it full time for the same reason. You can go several months with no income and your bills cannot wait so many months so get paid! It's a nice secondary revenue stream but when you work months to get a deal going and you have multiple ready to close in your pipeline and they all fall apart at the same time...it is killer.

@mbbroker79 5 лет назад

I really appreciate your honest story. A lot of people in the brokerage industry are going or went through the same thing. Thank you.

@DavidCBarnett 5 лет назад

Yes, I hear from people regularly who are having the same experience.

@shark615 8 лет назад

Thanks for the video, Dave. I am a new BB associate and enjoyed both the good things you had to say about the position as well as the reality as to why it doesn't fit a lot of people due to the financial ups and downs. Great story. Thank you.

@alexshteriev3453 8 лет назад

Great life/business story, Dave!

@dhoussen 8 лет назад

I was wondering what happened , Thanks for sharing Dave...

@miriambrown6229 6 лет назад

An honest account of one's life. Thank you for your sincerity. Very rare

@DavidCBarnett 6 лет назад

Thanks Miriam. I've seen too many people come and go in the industry and wanted to give a truthful account of what it can be like.

@PUTheHUEinHUMAN 4 года назад

So appreciate this video and candid feedback. Not enough honest reviews without the PR hype on the web. Thank you and God bless.

@DavidCBarnett 4 года назад

I'm happy to help Hue.

@civilgod 8 лет назад

What a honest testimony..... Thank you for sharing

@vitoracacio1 5 лет назад

Thanks a lot for sharing that, David! Those issues are definetely worth considering when assessing these types of carreer options. I appreciate the honesty!

@DavidCBarnett 5 лет назад

No problem Victor. It can be a good business but I think people need to know what it can really be like.

@FB-wb3vs 3 года назад

Thank you David for the insight. I really appreciate it.

@DavidCBarnett 3 года назад

Glad it was helpful Felipe!

@JoeBlindtesteur_7 5 лет назад

I am very impressed by your sincerety

@DavidCBarnett 5 лет назад

Thanks Joe. Appreciated.

@rigopinedagarcia 4 года назад

Thank you David for sharing your honest testimony about this industry.

@DavidCBarnett 4 года назад

No problem. I want people to be informed. Cheers.

@rigopinedagarcia 4 года назад

If only half of the people who make videos in RU-vid were as honest as you David Barnett, there wouldn't be so much naive entrepreneurs falling in the trap of the quick get rich scheme that shameless RU-vidrs sell for such high fees.

@TheBenjaminUlrichShow 3 года назад

Super personal story David. Very touching.

@DavidCBarnett 3 года назад

Thanks Ben

@markpegues757 5 лет назад

David, your story is very interesting. Thank you for sharing.

@DavidCBarnett 5 лет назад

Thanks. You're welcome.

@altondelane7798 4 года назад

Amazing story. Incredible honesty and transparency, not just in this video but others as well. Would certainly consider working with you on a buy-side transaction. Thanks and keep up the great work.

@DavidCBarnett 4 года назад

Alton, thanks for the kind words. I'd love to meet you one day.

@polarisschool8629 7 лет назад

David - thanks for sharing. I have bought and sold a couple of my own businesses and wondered about doing it full-time. It's easy to be swayed by the big dollar amounts but like you, the uncertainty and uncontrollable aspects to BB is not a great foundation for me. It would be a case of "I'm passionate about being in business, but not passionate about the business I'm in"

@DavidCBarnett 7 лет назад

Many people get into business brokerage after exiting their own business. If you don't need a regular income, it might be a good career choice, it's just got no certainty. Cheers.

@mbaguy627 4 года назад

Thank you for sharing. Thinking about jumping into the fire.

@DavidCBarnett 4 года назад

A recession is normally when half the people leave the industry. If you're going to get in now, be sure to have some kind of consulting offering to create cash flow on a regular basis. In the Business Broker community groups I'm in, the talk is all about non-contingent service offerings to keep money flowing as dealflow grinds to a halt.

@alijavahery3832 4 года назад

Thank you for your honesty and not trying to just put out a video. I wish more people would post about their failure or trials so others can learn rather the constant annoying nonesense of self promotion and gathering more subscribers. Keep it up.

@DavidCBarnett 4 года назад

Thanks A.J. There is so much hype out there that tries to make the case that anyone can do anything if they simply believe enough and have confidence. The truth is that everything to do with business entails risks. Famous investors like Warren Buffet will often say that their success comes from... avoiding losses. Trials and failures are what we need to learn from. Going through the stress of the brokerage business taught me how to build the foundation for the business I have today which is much less stressful and less risky.

@gregkells8315 6 лет назад

Hi David. Thanks for sharing. Having worked with you through your years as a business broker I can confirm that you were excited and thoroughly enjoyed helping business buyers and sellers to achieve their goals and you were very good at it. Unfortunately marriage breakdown makes it very difficult to maintain the optimism, enthusiasm, and self confidence required to be successful and the inconsistency in earnings does not help. Over the past 17 years with Sunbelt Business Brokers I have witnessed 4 marital breakdowns of Business Brokers (with the number of Sunbelt Business Brokers in Canada this is in fact well below the norm) and only one of these has continued their career as a business broker. The others have had to withdraw from such a demanding occupation to something less stressful that provided a more consistent income however every one of them still misses the excitement and the sense of satisfaction that the got through helping business owners to sell and helping now entrepreneurs to acquire a business that was right for them on the right terms.

@jayu9642 5 лет назад

Hi Greg, can I ask for your help with something. I posted a comment as well but maybe you can help. I just started as an assistant to a business broker. We are struggling to find sellers. we are literarly cold calling 40-50 people daily which is very draining and can be discouraging. We also do drop letters door-to-door 1-2 times a week. How do you build a bigger pipelines? how do you have a life in this business where you can never have saftey or reliable income?

@Wealthbuildingcoach Год назад

Thank you for sharing❤

@DavidCBarnett Год назад

Thanks for watching!

@maleksa7493 4 года назад

Thank you I was thinking to do it and I have never thought about what u just said. I was thinking there is just money and money. 👍

@DavidCBarnett 4 года назад

I'm glad you enjoyed it Malek. My goal was to give people things to consider so they can make informed decisions about the industry. Cheers.

@ThatBeachDude 8 месяцев назад

I’m literally laughing during this video. It is unfortunately very relatable. Unfortunately in my business (real estate) everything you are talking about is literally something I could say is precisely identical. Another thing people don’t realize is that many people don’t see that jumping into a new profession from these jobs is as difficult as saying that you have been unemployed for well over a decade. The marriage and fatherhood stress between paychecks becomes very stressful as well. Some of these details are so far beyond our control.

@DavidCBarnett 8 месяцев назад

Yes, totally. I remember when I was offered my job after the brokerage career. The hiring manager made me promise I'd stay with her for at least two years or until she moved on. People who will do this kind of thing are very entrepreneurial and people in corporate know it.

@asudchiman 6 лет назад

Great stuff. I would like to learn more about your current business model.

@DavidCBarnett 6 лет назад

Thanks Kern, I now work as an advisor to buyers and sellers but I work more like an attorney or accountant would. I have a menu of services and I charge clients for the different things I do for them. Essentially they buy or sell on their own with my help. See how I work with buyers at www.BusinessBuyerAdvantage.com or with sellers at www.HowToSellMyOwnBusiness.com

@abrahamzekios2666 Год назад

Good thanks. From lowa USA.

@DavidCBarnett Год назад

Thank you too!

@JoeBlindtesteur_7 5 лет назад

Sincerity

@lexm1904 8 лет назад

Should've built a bigger pipeline. You wouldn't have had any ups and downs during your sales cycles. Also, most Sunbelts don't co broker limiting your ability to get deals done. Being an Elite Business Broker is one of the most rewarding careers in existence and one where you can do a lot of good for the entrepreneurial community. Your story illustrates lack of a pipeline and experience, spending money on deals before they're done. Your experience was horrible but with proper training you probably would've done well. You weren't getting landlords and franchisors and other entities involved early enough.

@DavidCBarnett 8 лет назад

+Lex Meredith Hi Lex. Thanks for the comments. Franchisors don't want to speak to buyers generally until there is a deal on the table. Same goes for landlords and government agencies. As for the listing book, I had well over 30. Co-brokering was not an issue as I was isolated geographically from other Sunbelts. On average, I had one deal close per month while I owned the office, the problem was the deals weren't distributed that evenly. As I said in the video, I had several droughts. You're right about expenses though, my overhead was too high. Also, there are many differences between this industry in Canada and the US, mostly relating to taxes. In the US you can sell a business and roll the proceeds into an acquisition and defer taxes. You can't do this in Canada. As a result, many of the 'frequent clients' that my US counterparts told me about never surfaced here. Each buyer and seller had to be won one at a time. Also, I totally agree that helping people buy and sell businesses is very rewarding. That's why I still do it, although as a consultant and not a broker.

@lexm1904 8 лет назад

+David Barnett Hey look, I'm with you on a lot of those points. I tell my people they aren't allowed to go on vacation until their deals close AND they've loaded an additional 10-15 listings in to replace the ones that sold so their listings can work for them gathering buyers while they're gone. Just sounds like you got caught working the cycle backwards, it happens here too to other business brokers without solid guidance. When you get a few hundred thousand dollar check on a deal it looks like a good idea to go to Florida for awhile. lol Connect with me on Facebook, I'd be happy to have you.

@redkofarmsadventures407 6 лет назад

Lex M “I tell my people they can’t go on vacation until they close”- How well does this work out when having a solid pipeline means that deals will be closing regularly throughout the year.

@jayu9642 5 лет назад

I just started as an assistant to a business broker. We are struggling to find sellers. we are literarly cold calling 40-50 people daily which is very draining and can be discouraging. We also do drop letters door-to-door 1-2 times a week. How do you build a bigger pipelines? how do you have a life in this business where you can never have saftey or reliable income?

@Kyle_P2022 5 лет назад

U J Linkedin work the rest out

@DefirmanGulo 5 лет назад

Hello mr.... Merry christmas

@DavidCBarnett 5 лет назад

Thanks DMan! You as well. Hope you have a great Holiday with people you love.

@riderbikers4242 4 года назад

Hello David, Enjoyed the flow of truth in your account being broker. I have developed name brand business in motorcycles industry.It has tremendous growth potential and growing, I need to sell 50% equity in it to "Some one who is from this side of the business" ( with no exception). I need to spare myself for the R&D, production and designing side of it, where I love to be. Please advise the best route to find some one. I do not want to list my business for obvious reasons.

@DavidCBarnett 4 года назад

If it has 'potential' and not actual cash flow then you're looking for a specualtor who either believes in you personally or is interested in the sector. You're going to find these people via networking and you need to have a plan so that you don't violate any securities rules where you live.

@lexm1904 8 лет назад

Carry 30+ listings at any given point. Don't chase buyers let them chase you and get landlords, franchisors, attorneys, accountants and other entities like the government that's going to need to approve the deal early and often.

@JolitaBrilliant 29 дней назад

You go to have stable back up income such as real estate investments to be able to work commissions

@DavidCBarnett 28 дней назад

Totally agree.

@jayu9642 5 лет назад

I just started as an assistant to a business broker. We are struggling to find sellers. we are literally cold calling 40-50 people daily which is very draining and can be discouraging. We also do drop letters door-to-door 1-2 times a week. How do you build a bigger pipelines? how do you have a life in this business where you can never have saftey or reliable income?

@DavidCBarnett 5 лет назад

Well, it's really, really hard which is why I eventually stopped doing it. The 'sales cycle' of securing listings can sometimes be years. I remember many people who I met to discuss selling their business and only signed them up 12, 18 or 24 months after first meeting them. Then it can take 3-36 months to sell the business if it sells at all. This is why so many people in this industry are retired from something else. Their pension income is a huge advantage to wait out success in brokerage. For me, the fact that I owned 10 apartments at the time was important in delivering some degree of income stability. I also bought a business with my wife at the time to try to create steady cash flow. Watch the video I made about it here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-JEUCHjSFvBo.html I know several brokers who eventually end up buying businesses and turn brokerage into a part-time gig. The guy who took over my office kept a part time job so he could have a reliable income. It's a tough, tough business. Good luck. Getting out and making connections is what you have to do. Also, create relationships with influencers in your community. dave

@wisdomandlove1661 2 года назад

@@DavidCBarnett I appreciate your honesty and hope you get an eternal reward for it. Many people enter an industry without the right information and they and their families suffer severely for it.

@mdsumonmahamud7951 2 года назад

Nice video

@DavidCBarnett 2 года назад

Thanks

@Mentalsamurai28 2 года назад

I am thinking of starting a business broker business. I have my real estate license which is required in my state. I also have my mom who will be assisting me since she’s also a licensed real estate agent and has been a small biz owner for 30 years. My question is since I have a full time job with regular income is that a better way to start a business brokerage business since I have that income coming in. My job is on cruise control and I only work 2-3 hours per day. Love your videos and energy by the way!

@DavidCBarnett 2 года назад

Many people in the industry have another more stable form of income. You'll definitely be at an advantage. I recommend you get training and education. It's not something easy to learn independently.

@ankitm514 Год назад

Great video. What are the most viable exit options for business brokers?

@DavidCBarnett Год назад

I've seen many buy businesses, actually... unless they go broke in the career. Then they just usually get jobs.

@javiermorat6084 5 месяцев назад

OMG, seems I'm following your path, but in Mexico, I've worked some years in the banking sector, so I've decided to get my own credit brokerage for businesses, and well you depend 1st on the client to want a loan, then you propose the client to the bank.. If the bank likes your prospect aprooves some conditions the the client has to agree and formalize and then and just then I can get the payment of my commission, the competition is ferocious, and I find myself struggling with cash flow and seeing some months without receiving significant money, so I'm searching for ideas of a product to sell to this clients that depends on my persuasion and not just on all the other factors and 3rd parties... I don't want to go back to a job 😢

@DavidCBarnett 5 месяцев назад

Yes, these are tough businesses. Read my book 'Invest Local' you may be able to start doing your own loans and create more passive cash flows if the right opportunities come along.

@javiermorat6084 5 месяцев назад

@@DavidCBarnett actually I've been about that, I own couple of houses in Mx and crossed my mind to sell at least one and start lending the money wich would mean a lot bigger percentage than renting the house to tenants. I'll check out your book 👍

@rightright6582 6 лет назад

I was interested in one particular business listing from businessbrokers, an Emergency Clinic in Houston. To my surprise, they sent me a contract stating exclusive rights if I aquire any business related to that industry for 2 years. Is this a common practice? I declined to sign it.

@DavidCBarnett 6 лет назад

I've honestly never heard of that one before. I would also decline to sign something like that. Good for you.

@deariscashbuyerhenry4005 8 лет назад

I guess because of real estate I'm more a assignor than a broker. I assign contracts. I would probably only broker loans.

@deariscashbuyerhenry4005 8 лет назад

I would just try to sell deals keeping a small royalty 2-5% (so small no one sees it ).

@DavidCBarnett 8 лет назад

Hi, thanks for the comment. You should read my book, 'How to Sell My Own Business.' You'll see the process and get insights from the perspective of a brokerage. You can't build a brokerage business on the level of commission your're suggesting. There's just too much work involved and the commission rates have nothing to do with the success rates. You can get a copy from Amazon or at www.HowToSellMyOwnBusiness.com

@Mav0585 Год назад

What if my main business is owning franchises and acquiring businesses myself, but I wanted to add business broker as another revenue stream?

@DavidCBarnett Год назад

There can be ramifications if your province/state has licensing. It may be VERY cumbersome to comply with regulations if you're trading in the businesses yourself. This is why many real estate flippers don't want to be licensed as realtors. Too many disclosure rules.

@derekf425 Год назад

@@DavidCBarnett I had this same question if I have a real estate license can I advertise businesses off market deals to attract buyers or is there strict advertising policies in place in regards to pocket listing for Business Brokers? Is it better to not be licensed and make referral/Finder fees similar to a real estate wholesaler and not be licensed? I do my own marketing to acquire my own businesses and I could activate my real estate licenses and become a business broker but I thought to myself maybe its better not to become a business broker and deal with all the regulations and just do referral/Finder fees by introducing buyers to the seller off market through finders fees. The only things is it's nice to have a license for education and resources. Say I want to buy a business for myself I will have access to all kinds of tools, contracts, and education or someone in the office who can offer input on any particular deal I am looking at.

@ChakraW 4 года назад

Thank you. This is a lesson on having multiple streams of income.

@DavidCBarnett 4 года назад

Yes, most of my colleagues had other jobs to pay the bills and/or were older and were collecting a pension of some kind.

@dawnyaj2197 5 лет назад

David thanks for sharing. I 'm interested in this business can you tell me how to get started in this industry?

@DavidCBarnett 5 лет назад

I would do research by speaking to local business brokers to see how they operate. You will definitely want to start under someone's 'wing.' Also, visit the website of Business Brokerage Press and the IBBA to learn how they can help you learn this business.

@ambitiousbeauty1013 2 года назад

So what do you do now? I was interested in getting my real estate license and possibly being a business broker.

@DavidCBarnett 2 года назад

It can still be a good career if you have other sources of income to support you. Today, I still help people buy and sell businesses but I do it under a consulting model. Visit www.BusinessBuyerAdvantage.com to learn more.

@ambitiousbeauty1013 2 года назад

@@DavidCBarnett ok thank you so much.

@deariscashbuyerhenry4005 8 лет назад

That's not commission that's royalties. Royalties will keep money coming in when you are not selling or making a deal. like a franchise or how big investors do. Buy a company for a small amount, sell it but yet keep a 2 to 7% royalty from everything or stock or stake. What that will keep you with reoccurring money. Passivity!

@DavidCBarnett 8 лет назад

You mean have a buyer buy a business and agree to pay a broker a royalty of sales perpetually into the future? I've never heard of this. Can you share any examples? In a franchise system, the royalties cover 'head office functions' that serve all the members of the chain, so there is value being purchased. If I were a buyer looking at this kind of system, the result would be that I would want to pay much less for the business because I would be volunteering the future cash flow to an additional level of 'taxation.' The result being that the seller would still not be happy.

@iabuja 6 лет назад

Royalties make so much. How do you structure it? Assume you get group A(hotel owner/investor) to buy 50%shares in group B(Hotel owner) , How would you charge for brokering the deal? 5% comission from the seller and 5% royallties from the new venture for as long as it exists? Can Royalty also be seen as equity in the new venture?

@DavidCBarnett 6 лет назад

Usually brokers charge commission on what is sold. In this example, a commission on the value of the investment. If a broker wanted to be part of the new venture, then the broker could contribute to the purchase and receive equity in the buyers entity instead of being paid. This would be a variation on the tactic that I detail in my ‘how to borrow money from business brokers’ product that you can find on my blog at www.DavidCBarnett.com under the books tab.

@holycow3355 3 года назад

Selling a business : 100 people read the biz for sale ad, 10 bother to sign NDA, 3 request an inspection, 1 may have $$ & serious buying the business, but then he also considers 5 other businesses for sale ( # biz for sale far > # genuine buyers), as well as need to jump thru the hoop with finance, landlord etc.etc., that is if hes not getting cold feet or change his mind during the 2 months or so after signing the contract and make excuse to rescind !!! Good luck anyone thinking becoming a BB, the agency broker won't tell you its a shit sales job cause they need the newbies to replace for so many who didn't survive !!!!

@DavidCBarnett 3 года назад

What you describe is the experience of many people I've met over the years.

@barrywilkinson8571 7 лет назад

Awesome Testimony....I can tell that it was honest and true... I hope you find a better wife. Thank you for your courage to share..

@DavidCBarnett 7 лет назад

Thanks Barry, I'm working on the wife front ;)

@00lewie 8 лет назад

sounds to me ike there was not enough of a safety net. if you can profit even a couple hundred thousand (and I know brokers that make more) And you can budget your life around lets say 100k, and you had a couple years (YEARS) of a safety net then the feast or famine of business would not make a bit of a difference. ou could literally get paid once a year only and it wouldn't matter. just budget for less than you make annually and you are fine. Another good way of doing it if you don't have a nest egg is if you are married or have another income and can live off of it until you get a decent average and know what kind of broker you are or how many deals you do. I think this is the reason you see older biz brokers in the industry. I guess my point os if you can make a few hundred thousand a year there should be no reason as to why you cannot budget a lifestyle.

@DavidCBarnett 8 лет назад

Yes, everything you say is what I believed as well when I started out. The problem is that you can't depend on the deals closing on your schedule. Even with the droughts I had multiple closing a each year and incomes well over $100K after the first year. As I said in the video, the stress was the killer. Once I closed those last three deals I had a choice to get out and I did. Today I work on more deals and get paid for all my efforts. My clients bear the risk of whether deals close or not. I'm in the same boat as the lawyer or accountant. It's a lot less stressful as cash comes through the door every week.

@00lewie 8 лет назад

+David Barnett yeah, commission based careers definitely have stress attached to them. I've been fortunate enough to be the kind of guy who will take the higher pay (let's say I had a choice between 100k and 120k to keep math easy). the 120k income I'd pick every time even if the pay wasn't constant, because all that matters is the average at the end of the year. if you know that deep down, then you won't stress. but it's definitely the reason most people don't do commission based work. Most people would take a pay cut for the knowledge of what's coming in (not that you took one, I have no clue) but moving 10 or more deals a year that's easily 300-400k profit assuming they were your deals and not your sales reps.

@DavidCBarnett 8 лет назад

Well even if they were my deals, I had the office overhead. Average commission was nowhere near what you're describing. Most commissions were about $10K, 2 or 3 of them would be 10-50K and one might be over 50K. Really great businesses are sold quickly and easily by their owners. 80% of all businesses are sold privately. The ones that end up with brokers are usually not the best ones or the seller will find a way to squeeze your commission. Sellers balk at the idea of paying 12%. I had really awful competitors who didn't know what they were doing charging people 5%. Regardless of their poor service, they were getting price-sensitive sellers to sign on. This hurt my inventory. If you want more insight into how this works, you should read my book 'How to Sell My Own Business' it went to #1 in Entrepreneurship on Amazon.ca within a month of release. Guess who buys it: Business owners who don't want to pay brokers. Believe me, I've put a lot of thought into how this industry works and how I could use my knowledge to maximum benefit. What I'm doing now is working well for me. I'm earning more, working less and have less risk because my compensation isn't tied to the contingency of deals closing or not.

@ilyosjonnishanov4533 8 лет назад

Hello David. First of all thank you for sharing your experience but I have one objection. I highly doubt that 80% of businesses are sold privately. No matter how great the business is, the owner always wants higher price for it. To get the highest price, as is the case with everything, they need an expert's help. I have to say that, whatever sold quickly is underpriced. Regards.

@00lewie 8 лет назад

+ilyosjon nishanov let's not forget that the commissions are based on the businesses you CHOOSE to list. there are a lot of salesmen who go about their job incorrectly or at the very least have room for improvement. many brokers take all listing that come their way and only close a small portion. this mentality kills lots of precious time. it's counterintuitive, but if you are picky on the listing you take (meaning high net earnings AND good books/easily financed) then your commissions should never be 10-15k. those businesses are a waste of time. I thinks this is where many businesses brokers go wrong because that is so counterintuitive and the mentality of why not take any listing because any listing is more income than not taking it. it just is the wrong route to go. and as far as not being able to get these kinds of listings... then you are going about your marketing/sales wrong. you CAN land these over a million dollar deals and be pretty strict with not taking listings that are lower than 1m. and still sell 10-12 businesses a year. this is without having a staff of sales reps. only an office and a secretary maaaaaybe 2... then overhead is fairly low. there is a way because many do it. but... it isn't for everybody

@chipmarce4853 3 года назад

Wow. That sucks. Not a happy tale to be sure. I'm sorry you were on the receiving end of this. Personal and professional life. Speaking for myself, the whole blasted exit process looks broken. The sellers are waiting forever and getting less money for businesses when they sell. Potential buyers, those who don't get scared off, are spending months to consummate a sale. Brokers are working for an elusive payday. This doesn't look to be working for anyone.

@DavidCBarnett 3 года назад

I've heard similar observations from many people Chip.

@niisaiibusiness-investment 4 года назад

I was a business brokerage in Cambodia since 2016 till now and i work if for full time career. but i think i still have many more step to learn to become a professional brokerage and selling my franchise. Please recommend me a good advice and partner .

@DavidCBarnett 4 года назад

Hi, if you want to develop your brokerage skills, I recommend the CBI program from the IBBA. You can also get lots of great resources from a company called Business Brokerage Press.

@rrnrinvestments 6 лет назад

thanks for sharing sorry about the wife

@MrBubzee33 5 лет назад

Why is it always the wife who does the divorcing?

@FTKEPDTK 4 года назад

I think your mistake was taking that vacation, when you have deals about to close, I'm sure you no this by now, a picture say a 1,000 words the banks or companies may had PI'S follow ing you they do this Surveillance for a few reasons.

@DavidCBarnett 4 года назад

You think my vacation influenced a gov’t official to not issue a permit to someone? The deals fell apart after I was back and the buyers and sellers were not the cause. It was people totally outside my control.

@FTKEPDTK 4 года назад

@@DavidCBarnett I watched your video 2 times, I stand by it.

@filmaker256 3 года назад

I heard a joke once: why do they always call the person who handles my money a-- broker?"

@DavidCBarnett 3 года назад

Because they're 'broker' than you!! LOL

@filmaker256 3 года назад

Lol !

@Essays4College 3 года назад

8:03 How surprising that the wife decides that when things get tough financially. Rarely do you hear a woman wanting out when a guy is riding high.

@DavidCBarnett 3 года назад

Hmm, how about Jeff Bezos' wife? ;)

@demetriussullivan6434 5 лет назад

so you can buy a business with no money. The buyer bought your business with no money

@DavidCBarnett 5 лет назад

I’ve never said that businesses can’t be bought without giving the seller your own money. I’ve commented on many deals where there was 100% financing. I’ve helped many clients do these deals. The buyer still needs to have money. In the case of my office, the buyer had to be able to fund the operations until the first revenues came in. That was several months of bills. To say he bought a business with no money would not be accurate. He had to have a lot of money, he just didn’t give any to me.

@deariscashbuyerhenry4005 8 лет назад

People build businesses and sell majority of the company all the time keeping a stake in the company for passivity. Receiving passive money eliminates the stress of not knowing when your next dollar will come in.

@DavidCBarnett 8 лет назад

Yes, there are arrangements like that but you're talking about sellers, not brokers.

@jamesyoung5615 6 лет назад

it sounds like you were terrible with money. 30 40 50 60 70 80,000...??? you cant live on 30,000 a year ?? even if i did go 12 months without closing i could live off the bare minimum comission you got paid. you could have been really successful with cut backs. there are people who live off less then 20k a year . really almost everybody i know do not make 30k a year

@DavidCBarnett 6 лет назад

Hmmm 2 answers.... A) About $250,000 in total brokerage revenues minus associate broker cuts, rent, receptionist salary, advertising, franchise fees, business income taxes, utilities, etc, etc. might get me an $80,000 paycheque. Less 39% in personal taxes = $48,800 (Canadian Dollars) = $37,148 USD So, yeah. I did live on close to $30,000/year. B)Absolutely not. My education, experience and skills command a six figure income. Why would I cut myself back like that? Just to hide the fact that the business had problems? Your comments sound like those of half the business owners who I met who would work for nothing in their "business" and expect a buyer to compensate them for all the effort they put into the 'business' which was just a fancy hobby. If my business cannot afford to pay its bills, my fair market salary included, then it has to change or go.

@jamesyoung5615 6 лет назад

David Barnett I think I confused your commission with walk away...

@jamesyoung5615 6 лет назад

David Barnett and as far as working for nothing ... if your a business owner sometimes that's what's called for cause anything can happen in business right? and the reason you have met so many people like that is your the exit strategy to business owners and more people try to sell there business when their numbers aren't making sense anymore more then people with a wildly successful business.

@prorecipient4004 6 лет назад

Selling isn't matter of knowing the product is matter of knowing what you want and being passionate about... you are a desk profile, surely good at counting numbers but making the numbers is another game. You probably picked up partners with who you felt comfortable with... = not hungry sells people but well educated (too much maybe) and politically correct people looking for external validations more than for money... and set the 2008 crises environment I'm sure that you guys did your best to develop trust and ensure that you was "the good guys" more than being focus selling and closing deals. And sorry to say that but what's wrong with you ? you have good deals under your hand and you take vacation going to Disneyland instead of doing all the necessary to close it asap or open new deals ? This is the good guy syndrome... you felt sorry not providing enough to your family that you felt in obligation to take them vacation... WRONG (in the business point of view but not on the good dad point of view). Man forget balance and being a good guy if you want to do business that require 1000% dedication, specially on post 2008 crises so ZERO holidays and ZERO distractions (if you want to succeed). Sorry Dav if I jump at but I simply think you need to read that. ENERGY AND DEDICATION are the only think that matter, buying is an emotional process not a brain process... even in finance. Hope that can help you to address the real reason of why you didn't achieve what you want to. Davide

@singhmaster4 2 года назад

I had the same opinion. You need to control your own balance sheet before you try to manage the others, in this case being a broker. You have to be be hungry to sell and network at all times.