How to Start a Business Brokerage Firm: A Step By Step Guide

Starting a business brokerage firm involves developing a business plan, meeting applicable licensing requirements, establishing operational systems, learning the business sale process, and building relationships with prospective clients and professional referral partners. You can start an independent brokerage or explore a business brokerage franchise that provides an established brand, training, and ongoing support.

For experienced executives, business owners, financial professionals, and consultants, owning a business brokerage can offer an opportunity to put years of business knowledge to work in a different way.

Business brokers help entrepreneurs navigate some of the most significant financial and personal decisions of their lives, from preparing a business for sale to finding qualified buyers and facilitating transactions.

But helping clients buy and sell businesses is only part of the equation. Starting a brokerage also means building and operating a professional services business.

Here’s what to consider before getting started.

What Is a Business Brokerage Firm?

A business brokerage firm is a professional services business that helps owners sell privately held companies and assists prospective buyers in acquiring businesses.

Business brokers guide clients through valuation, confidential marketing, buyer qualification, negotiations, due diligence, and closing.

Some firms focus on smaller privately held businesses, while others also provide mergers and acquisitions (M&A) advisory services for larger or more complex transactions.

Business brokerages commonly generate revenue through commissions earned when transactions successfully close. Some firms may also charge retainers or other fees, depending on their business model and client agreements.

Because business sales can take months to complete, operating a brokerage requires consistent business development, financial planning, and transaction management.

Eight Steps to Starting a Business Brokerage Firm

Step 1: Evaluate Your Experience and Professional Goals

Before starting a brokerage, consider how your existing skills and experience align with the profession.

Business brokerage combines financial analysis, relationship management, negotiation, and business development.

Professionals often enter the field from backgrounds such as:

Executive leadership and general management
Business ownership and entrepreneurship
Finance, banking, and accounting
Sales and business development
Consulting and professional advisory services
Operations and strategic planning

While previous business brokerage experience is not always necessary, running a brokerage requires both technical transaction knowledge and the ability to develop a client base.

Consider whether you enjoy building relationships, analyzing businesses, working independently, and managing complex projects.

Step 2: Research Licensing and Regulatory Requirements

Business broker licensing requirements vary by state and the activities performed.

Some states require a real estate license for certain business brokerage transactions. Others have specific registration or permit requirements.

Additional regulatory considerations may apply when transactions involve real estate, leases, securities, or other regulated interests.

Before establishing your brokerage, determine:

Whether you need a real estate salesperson or broker license
Whether a separate business broker permit or registration is required
Whether your firm must obtain a business entity license
Whether you need to operate under a supervising broker
What continuing education and compliance requirements apply

Consult the appropriate state licensing authority and qualified legal counsel to verify the requirements for your intended business activities.

Related reading: Do You Need a Business Broker License?

Step 3: Decide Whether to Start Independently or Join a Franchise

One of the most important decisions is how you want to establish your brokerage.

You can build an independent firm, developing your own brand, systems, marketing, and operational processes.

Alternatively, you can explore business brokerage franchise ownership, which provides access to an established brand, training, business processes, and ongoing resources.

Both approaches involve business ownership, financial investment, and responsibility for developing a successful practice.

The right choice depends on your experience, financial resources, goals, and preferred level of support.

We’ll explore these differences in more detail below.

Step 4: Develop a Business Plan and Financial Strategy

A business brokerage needs a clear business plan, just like any other professional services firm.

Your plan should identify the market you intend to serve, the services you will provide, and how you will develop relationships with prospective clients.

Key considerations include:

Target market: Will you focus on Main Street businesses, larger privately held companies, or particular industries?
Services: Will you primarily represent sellers, assist buyers, or provide additional advisory services?
Business development: How will you reach business owners and generate qualified opportunities?
Operating expenses: What will you spend on technology, marketing, insurance, licensing, and professional services?
Revenue model: How will commissions and other fees be structured?
Working capital: How will you cover expenses while building your client pipeline and waiting for transactions to close?

Unlike businesses with predictable monthly sales, business brokerage revenue can fluctuate based on transaction activity and closing timelines.

Financial planning should account for the possibility of extended periods between completed transactions.

Step 5: Obtain Business Broker Training

Business brokerage requires specialized knowledge of how privately held businesses are valued, marketed, negotiated, and sold.

Even professionals with extensive business experience need to understand the processes and documentation involved in brokerage transactions.

Training should cover:

Business valuation and financial statement analysis
Seller consultations and listing agreements
Confidential marketing and buyer qualification
Negotiation and deal structures
Due diligence and transaction management
Professional ethics and confidentiality
Business development and referral relationships

Practical coaching and mentorship can be especially valuable as new brokers move from learning concepts to applying them in client conversations and transactions.

Related reading: What Training Do You Need to Become a Business Broker?

Step 6: Establish Your Business Operations and Technology

A brokerage requires systems to manage client relationships, business listings, confidential information, and active transactions.

Depending on the size and structure of the firm, these may include:

A customer relationship management (CRM) system
Business valuation and financial analysis tools
Confidential document-sharing systems
Business listing and marketing platforms
Transaction tracking and workflow processes
Accounting and financial management systems
A professional website and digital presence

You will also need appropriate business registration, insurance, professional agreements, recordkeeping procedures, and other operational resources.

Establishing these systems early can help create consistency as your brokerage develops.

Step 7: Build Your Brand and Professional Referral Network

Business brokerage is a relationship-driven profession.

Business owners need to trust that the person representing them understands their business, respects confidentiality, and can guide them through a complex transaction.

Building credibility within your market is therefore essential.

A business development strategy may include:

Developing relationships with CPAs, attorneys, financial advisors, and commercial lenders
Participating in local business organizations and professional associations
Building relationships with business owners and entrepreneurs
Sharing educational content about business valuation and selling a business
Establishing a professional website and LinkedIn presence
Maintaining consistent outreach and follow-up activities

Referral relationships can be particularly valuable because professional advisors are often involved when business owners begin considering an ownership transition.

However, building these relationships takes time and consistent effort.

Step 8: Develop Your Client Pipeline and Begin Serving Clients

Once your brokerage is established and you have satisfied applicable requirements, the focus shifts to developing opportunities and managing transactions.

Early activities may include meeting prospective sellers, evaluating businesses, preparing valuations, and developing listing opportunities.

As your pipeline grows, you may be managing several activities simultaneously, including:

Initial seller consultations
Business valuation and listing preparation
Confidential marketing
Buyer inquiries and qualification
Negotiations
Due diligence
Closing coordination

Maintaining a consistent business development routine is important, even while working on active transactions.

The long-term health of a brokerage depends on developing new opportunities while serving existing clients.

Independent Business Brokerage vs. Business Brokerage Franchise: What’s the Difference?

Both options allow you to own and operate a brokerage, but the structure, resources, and responsibilities differ.

Both options allow you to own and operate a brokerage,
but the structure, resources, and responsibilities differ.

Consideration	Independent Brokerage	Business Brokerage Franchise
Brand	Develop your own brand and reputation	Operate under an established franchise brand
Training	Source training and mentorship independently	Access training provided through the franchise system
Technology	Select, implement, and maintain your own tools	Access designated systems and resources
Marketing	Develop your own strategy, materials, and campaigns	Use available brand and marketing resources
Business Processes	Create your own workflows and procedures	Work within an established operational framework
Professional Network	Build relationships and peer connections independently	Access a network of franchise owners and professionals
Financial Obligations	Responsible for startup and operating costs	Responsible for startup costs, franchise fees, royalties, and other applicable expenses
Independence	Greater control over branding and operations	Local business ownership within franchise standards

Neither model eliminates the responsibilities or risks
associated with business ownership.

The difference is whether you want to develop the business infrastructure independently or operate within an established franchise system.

What Are the Advantages of Starting an Independent Business Brokerage?

Independent ownership provides control over how you develop and operate your business.

You can establish your own brand, select technology, determine marketing strategies, and design operational processes.

You also control the firm’s business model and financial structure, subject to applicable regulations and contractual obligations.

However, independence means taking responsibility for developing these resources yourself.

For professionals with previous brokerage experience, an established referral network, and the resources to build a business infrastructure, independent ownership may be a suitable path.

For those entering the profession from another industry, the learning curve can be more significant.

What Are the Advantages of Owning a Business Brokerage Franchise?

A business brokerage franchise offers an alternative to developing every aspect of the business independently.

Franchise owners operate their own businesses while accessing resources provided through an established franchise system.

Depending on the franchise, these may include:

Established brand recognition. Operating under an existing brand can provide a foundation for building visibility and credibility in a local market.

Structured training. Initial education introduces new owners to business valuation, marketing, negotiations, and transaction management.

Ongoing coaching and support. Access to experienced professionals can help owners apply their training and navigate unfamiliar situations.

Technology and operational resources. Established systems can reduce the need to research and develop every tool and process independently.

Marketing resources. Brand materials, educational content, and marketing guidance can support local business development.

Professional collaboration. A franchise network can provide opportunities to exchange knowledge and collaborate with other brokers.

Franchise ownership also involves fees, ongoing financial obligations, and adherence to brand and operating standards.

Prospective owners should review the Franchise Disclosure Document (FDD) and carefully evaluate the business model before making an investment decision.

How Much Does It Cost to Start a Business Brokerage Firm?

The cost of starting a business brokerage depends on whether you establish an independent firm or purchase a franchise, the market you serve, and your operating model.

Potential startup expenses include:

Business registration and licensing
Professional training and education
Insurance and legal services
Website development and branding
Marketing and business development
CRM, valuation, and transaction software
Office space and equipment, if needed
Working capital and ongoing operating expenses

Franchise ownership may also involve an initial franchise fee, royalties, technology fees, and other obligations.

Prospective owners should evaluate both the initial investment and the resources needed to operate the business while developing a pipeline of transactions.

For a specific franchise opportunity, the current FDD provides important information about initial investment estimates and applicable fees.

Why Consider a Murphy Business Sales Franchise?

Murphy Business Sales offers a business brokerage franchise opportunity for experienced professionals interested in building their own practice.

With a network of independently owned and operated offices across the United States and Canada, Murphy Business Sales combines local business ownership with the resources of an established franchise organization.

Franchise owners have access to:

Structured initial training and ongoing professional development
Established valuation and transaction processes
Business development and marketing resources
Technology and operational tools
Coaching and guidance from experienced professionals
A collaborative network of business brokers
Opportunities for professional collaboration and co-brokerage, where appropriate

Murphy Business Sales emphasizes a collaborative approach to brokerage, with franchise owners able to draw on the knowledge and experience of professionals throughout the network.

For individuals transitioning from executive leadership, finance, operations, consulting, or business ownership, this model provides an opportunity to build on existing skills while learning the specialized practices of business brokerage.

Previous business brokerage experience is not required to explore the franchise opportunity.

What Should You Look for in a Business Brokerage Franchise?

Not all franchise systems offer the same training, resources, or operating model.

Before investing, consider the following questions:

What initial training is provided, and how is it delivered?
What coaching and professional support are available after training?
What marketing resources and technology systems are included?
What are the initial investment and ongoing financial obligations?
What are the franchise’s operating standards and requirements?
Can franchise owners collaborate with others in the network?
What do current and former franchise owners say about their experiences?
Does the organization’s culture align with your professional values and goals?

Speaking with existing franchise owners and reviewing the FDD can provide valuable insight into the business model and ownership experience.

Frequently Asked Questions About Starting a Business Brokerage

Can I start a business brokerage without previous brokerage experience?

Yes. Previous business brokerage experience is not always required, although specialized training is important. Professionals from business ownership, finance, executive leadership, sales, and consulting may bring transferable skills to the profession.

Do I need a license to open a business brokerage firm?

Requirements vary by state and the activities performed. Some jurisdictions require real estate licensing, business broker registration, or other regulatory authorization. Business entities and supervising brokers may also have separate requirements.

How do business brokerage firms make money?

Business brokerages commonly earn commissions when business transactions close. Some may also charge retainers or other fees. Revenue depends on transaction activity and individual client agreements.

Can I operate a business brokerage from home?

Some brokerage business models may allow remote or home-based operations, depending on applicable regulations, client needs, and business requirements. Franchise owners must also comply with their franchise agreement and operating standards.

How long does it take to start a business brokerage?

The timeline varies based on licensing, training, business registration, technology setup, and other preparations. Developing a client pipeline and completing initial transactions may take additional time.

What is the difference between starting an independent brokerage and buying a franchise?

An independent brokerage develops its own brand, systems, and business processes. A franchise provides access to an established brand, training, and resources in exchange for the applicable investment, fees, and contractual obligations.

Is business brokerage a good second career?

Business brokerage may appeal to experienced professionals who enjoy financial analysis, relationship-building, problem-solving, and working with entrepreneurs. However, it requires business development, persistence, and the ability to manage variable transaction timelines and income.

Explore Business Brokerage Ownership With Murphy Business Sales

Starting a business brokerage is an opportunity to build a professional services business centered on helping entrepreneurs navigate important ownership decisions.

Whether you establish an independent firm or explore franchise ownership, success requires specialized knowledge, consistent business development, sound financial planning, and strong professional relationships.

For experienced professionals interested in owning a brokerage, Murphy Business Sales offers a franchise model supported by training, established processes, marketing resources, and a collaborative professional network.

Could business brokerage ownership be your next chapter?

Explore Your Next Chapter to learn how your professional experience may translate to business brokerage and what owning a Murphy Business Sales franchise could look like.

You can also explore our franchise resources or attend a virtual information session.

This article is for general informational purposes and does not constitute legal, financial, or investment advice. Business brokerage activities may be subject to licensing and regulatory requirements that vary by jurisdiction.

Franchise information does not constitute an offer to sell or solicitation to buy a franchise. Franchise offerings are made only through the appropriate Franchise Disclosure Document (FDD) in accordance with applicable law. No earnings, income, or business success guarantees are made. Individual results vary.

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