Business broker with an established firm

Owners of small local businesses such as restaurants, service companies, shops and small firms who want to sell or retire. The seller usually pays the fee at closing.

A success fee, typically a percentage of the sale price, paid only when a deal closes. The brokerage usually takes a share, and income can be uneven from month to month.

• Building trust with owners
• Reading basic financial statements
• Negotiating and keeping deals on track
• Discretion with confidential information

• Licensing: some states require a real estate or other broker license for business sales, check your state's licensing board; pre-licensing courses, exam and license fees add to startup cost
• Upfront costs: affiliation or franchise fees, training, software and marketing can run into the thousands of dollars, so ask for a full cost breakdown
• Long sales cycles: deals can take months to close, so plan living costs without commission income
• Fee splits, desk fees and exclusivity terms in the brokerage agreement
• Errors and omissions and general liability insurance, check whether the firm covers you
• Overpricing promises: be careful about valuations you cannot support

Startup costs are typically around $5,000 to $30,000, depending on licensing, affiliation or franchise fees, training, software and marketing. These are estimates, so ask the firm for a full cost breakdown.

Monthly revenue is typically estimated at around $1,500 to $7,500, depending on how many deals you close. Deals can take months to close, so plan your living costs without commission income.

Things to check: some states require a real estate or other broker license for business sales, so check your state's licensing board. Also check fee splits, desk fees and exclusivity terms, and whether the firm covers errors and omissions insurance.