In the long run, I think the certified business brokers who adhere to the best principles of the profession, though difficult or inconvenient sometimes, are going to be the most successful.
Dublin, CA (Vocus) March 25, 2010
When subjected to pressures from the clock and competition, certified business brokers sometimes neglect to practice excellent customer service, even if they know better. But they are reminded, in an article just posted to the blog page at a popular business clearinghouse website about five important client care principles.
The posting on BizBen.com--online marketplace for businesses offerings and resources, stresses the importance of being available, 24/7, to respond to client needs when matching buyers and sellers of small and mid-sized businesses.
“It’s not enough to carry a mobile phone in your pocket, you have to be able to receive and to respond to Tweets and text messages,” said Peter Siegel, Founder and CEO of BizBen.com.
“And using social media to establish a presence is critical for certified business brokers.
“When there’s an offer coming in, or in the middle of negotiations, you need to be accessible to all the players in a deal. Being able to respond quickly can make all the difference between successfully closing a transaction and seeing it fall apart,” Siegel added.
Other advice in the blog concerns the importance of staying well informed about what is happening in an ever-changing marketplace.
“Who’s making loans on business transactions and what do they need to know about the buyer before they’ll consider a loan application?
“What are prevailing loan rates and terms? And how do you structure seller financing?”
Siegel said “brokers who just keep up their continuing education and certification requirements and that’s all, are not doing a good service for their clients.
“You have to know what is happening today, in the marketplace and use this knowledge to benefit your clients,” Siegel explained.
In his posting on the website Siegel urges certified business brokers to “Tell it like it is” to both selling and buying clients.
“It might seem like a good idea to take a listing, even though the business is not really ready to market. There’s always that hope of a buyer coming by who wants exactly what’s offered.
“Besides,” Siegel said, “When you turn down a listing, there’s the fear that someone else will agree to represent the seller and you will have blown a chance at a deal.
“In the long run, I think the certified business brokers who adhere to the best principles of the profession, though difficult or inconvenient sometimes, are going to be the most successful.”
The controversial topic of broker cooperation also is addressed in the blog. Siegel acknowledges there may be legitimate reasons why some brokers don’t want to expose a client’s listing to a buyer prospect brought by another broker.
“It’s not just a matter of being greedy. There is a risk that you’re seller’s confidentiality and legal protections will be violated if an inexperienced broker gets involved.
“At the same time, it’s not in the seller’s best interests if the business is seen only by the buyers you know.”
One solution offered by Siegel is that the experienced certified business broker take responsibility for a showing, negotiations and management of a transaction with another broker’s client.
“And the understanding would be that the intermediary most involved in the deal will get most of the commission. Perhaps a finder’s fee or an 80/20 commission split will fairly compensate the licensee who first identified a suitable buyer.”
The BizBen.com executive noted “It’s easy for my colleagues in the industry to get overwhelmed with too much work and then cut a few corners in their client relations practices to save time.
“These ideas are simple reminders of some principles of excellent customer service.
Founder of BizBen.com in 1994, Peter Siegel, MBA, is a business broker, and a consultant who works with buyers, sellers, certified business brokers and the other specialists who serve the market for small and mid-sized businesses.
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