Good Business Brokers need to be EXPERTS in communication. If misunderstandings cannot be clarified they can be the worst deal killer.
A business broker needs to be a good "juggler" ... keeping all the plates spinning, all the balls in the air, while still handling all the technical, finance, contract, due diligence, and escrow issues. This is a part of the profession that not too many people talk about.
I just recently had a deal that was on the verge of failing apart because of a buyer’s unexpected EGO. (Sometimes in can come from the seller also)
Meaning of EGO:
- Eliminating
- Growth
- Opportunity.
A hurdle I often have to jump over in order to sell a business.
I often run into people that have big ego problems. Having a few success gives some people a sense of superiority that causes people to think they know how to do “everything perfect”. Most of the time I am still am able to work with them but they have to be handled differently. Psychology is important, the process of selling businesses has to be explained in a simple and easy to understand way. Then we have to explain the role of a broker and the role of a buyer. I have had people try to not follow the process of how we sell businesses and it always causes difficulties. The process is not easy to begin with. Additionally, to have to deal with these unneeded obstacles is not good. I recently had a client submit his own LOI instead of purchase agreement (something I am sure his attorneys helped put together). I examined it and explained all the deficiencies. I told him it would not work. He was adamant so I submitted it with a couple of changes. Sure enough it was declined by the seller immediately.
Everything can be agreed upon but if seller and buyer do not communicate correctly and the broker does not help clarify things then everything will be ruined before the transaction starts.
This makes it very difficult to sell a business.
A good business broker will convey messages in a way that is easy to understand and is explained in a manner that is perfectly clear. Most of the time when disagreements arise it is because something was not clear from the very beginning.
One of the top producing agents in our office does an excellent job at explaining things which makes him very successful. He once worked as a college professor which undoubtedly helped his communication skills.
Do not let bad communication KILL A GREAT DEAL
Practice the following:
- Get personal
Most of the time, people don’t care about what you’re saying unless you’re saying something they find valuable on a personal level. That personal level doesn’t have to be deep, it just has to exist.
- Represent facts
Sharing information is what communicating is all about. Inaccurate information is worthless. Offering inaccurate information not only leads people to believe things that aren’t true, it discredits a good opportunity.
- Ask questions
Whether the conversation is with one person or many it is always important to ask many questions and to make sure that your point has been understood.
- Ask for clarification
While it’s necessary to make sure others understand your own points, it also requires you to understand their points. The same way you think the information you share is important, your conversation partner likely believes the same.
- Listen
Understanding what someone is saying is vital to responding appropriately.
This requires knowing how to actively listen and making every effort to understand what they’re telling you. If you don’t listen and respond inappropriately that can make people feel unimportant.
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