online business agent

Frequently Asked Questions

Here are some of the questions most frequently asked by real estate agents who are considering becoming an approved Online Business Agent licensee.

WHAT DO I GET WITH ONLINE BUSINESS AGENT?

We provide you with virtually everything you need.

The designers of Online Business Agent have more than 50 years of business sales knowledge and as a licensee you will receive, captured in one total system, the following:

  1. Automated web based computer software specifically designed for business sales.
  2. Built in Risk Management – the system is designed so you are the conduit of information from seller to buyer
  3. Cost Effective – you can potentially re-coup total training and annual rental fee cost from the first sale
  4. Online training and software support
  5. Business report writing services where reports are written by expert technical writers and graphics that enhance the overall presentation of the profile.
  6. Extensive library of field proven and legally written agreements, contracts, letters and templates.
    • Market appraisal worksheet and letter
    • Business listing forms
    • Listing confirmation letters to buyer and seller
    • Report questionnaire, request, authority and clearance documents.
    • Listing file checklist.
    • Tax invoice templates for upfront fees.
    • Advertising templates.
    • Internal and external conjunctional confirmation letters.
    • Confidentiality agreements for buyers.
    • Agreement to purchase document.
    • Special conditions of sale
    • Special condition clearance forms.
    • Sales file checklist.
    • Sale confirmation letters to buyer and seller.
    • Letters to settlement agents.
    • Commission invoices and summaries
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WHAT ARE THE KEY FEATURES OF ONLINE BUSINESS AGENT?

  • It is specifically designed to provide real estate agents and business brokers with a clear point of difference over competitors not using our system
  • The system negates the need for additional support staff
  • There are no royalties to pay – you pay an annual license fee and you retain 100% of all commissions
  • There are no restrictive boundaries
  • The system incorporates an expert business report writing service and the report cost is paid for by the seller
  • The easy to use computer software is accessed via the web in real time
  • Comprehensive online training is provided
  • No additional licenses are required - only your existing real estate license
  • Low annual system licence fee
  • Adds another revenue stream to your business
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HOW WAS THE ONLINE BUSINESS AGENT SYSTEM DEVELOPED?

Online Business Agent has been designed and developed by Graham Nankivell & Russell Lyon. They are the owners of a very successful business sales company - Performance Business Sales. The system is the end result of over 50 years combined experience in the business sales industry.

Field tested by Performance Business Sales over hundreds of transactions and used on a daily basis by all its brokers, the system :

  • Enables you to list and sell businesses faster than competitors
  • Offers comprehensive monitoring/management of sales representatives
  • Saves costs – No extra support staff are required
  • Reduces advertising costs by cross matching buyers and sellers at the click of A button
  • Provides your agency with a key Point Of Difference – Sell businesses faster with full colour reports and superior documentation
  • Comes with built in risk management – You become a conduit of information between seller and buyer, with business report production provided by our report writing division
  • Compete on quality and service not selling fees
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WILL A REAL ESTATE AGENT SUCCEED IN BUSINESS SALES?

Who better to become an Online Business Agent approved Licensee than someone like you? After all you have the sales people, the required real estate license and, with our technologically advanced system, will have a tremendous advantage over other business brokers and real estate agents selling businesses. Not only will you have a potential buyer database (goodwill already established in your business ), but inside knowledge of the capital growth and current value of their properties, plus identified assets that can be used as security to buy businesses on no-cash deposit. And, when you sell a successful business, the buyer can offset increasing profits by purchasing additional real estate properties.

What an opportunity it is for you to build your brand name by offering your existing and new clients a professional business broking service while adding substantial income to your business. What's more, with Online Business Agent's clever in built risk management tools you have everything to gain and nothing to lose.

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WHAT EQUIPMENT DO I NEED?

The basics to start with: a computer, printer, phone, fax, stationery and office supplies.

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WHAT DOES THE TRAINING PROGRAM COVER?

The on-line audio visual training program is designed to get you started quickly and yet allows you to work at your own pace from home or office . During the training you will learn:

  • How to qualify both business buyers and sellers
  • How to use our automated web-based computer software
  • Our sales techniques
  • How to prospect for new listings
  • How to advertise a business for sale
  • How to qualify buyers
  • How to work with buyers
  • Financing the transaction
  • Negotiation skills
  • How to handle contracts
  • How to close deals

It all comes down to the effort you are prepared to put in, however from our own office we have individual brokers generating gross commissions well over $300,000 per annum. In addition to this, one of our brokers earned $134,000 in just 4 months – and this was after having been in the industry for only 12 months. He was fully trained in our office and had no business broking experience prior to joining Performance Business Sales.

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HOW MANY DAYS PER WEEK DO BUSINESSES BROKERS WORK?

We sometimes work outside of normal trading hours; however business broking is mainly a 5 day business week – Monday to Friday.

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IS THE POSSIBILITY OF LITIGATION A RISK FACTOR?

With Online Business Agent, the possibility of litigation is significantly diminished. The system has been designed to position the Business Broker (Sales Rep) as simply the conduit of information between the seller and buyer. The system has a built-in “firewall” whereby the seller provides answers via an emailed questionnaire to Performance Business Reports who produce the report. Then, at the time of listing the business, the seller signs a contract agreeing to the following:

  1. That they will read the completed report and sign a separate agreement confirming the report is a true and accurate representation of their business.
  2. That the listing period (No. of days) does not commence until the report has been read and signed for by seller
  3. That they hold no copyright in the final report, or any documents produced as part of the process, and will only get a copy at settlement
  4. Approves the agent to provide special conditions to the buyer
  5. Will pay for any changes made to the report through the selling process

To further reinforce the fact that the seller is taking responsibility for the accuracy of the information contained in the report, when the business is placed under offer, one of the special conditions of the agreement requires that the seller sign each page confirming accuracy. This is also signed by the buyer, confirming that both parties to the transaction accept that the information is correct.

By following our system you will always simply be the conduit of information between the seller and the buyer.

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WHY DO SELLERS SELL?

Businesses are for sale for many reasons, for example:

  • With multipliers of up to 4 times the profit, sellers have good reason to sell and move on to the next business to build up their portfolio .
  • The owner sees a more desirable business for sale
  • Retirement – The industry is seeing many Baby Boomers now want to sell their business and retire on the fruits of their labour
  • Divorce
  • Relocation
  • Poor health
  • Buy a larger business
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WHO BUYS A BUSINESS?

People from all walks of life are looking to buy a business. These include:

  • Repeat experience business buyers - second or third time
  • Business migrants
  • First-time buyers
  • Entrepreneurs
  • Retirees
  • People who have been made redundant from ‘downsizing'
  • People who are unemployable
  • Corporate executives tired of the rat race and want to do it for themselves
  • Baby-boomers who are made redundant and cannot get a job due to their age
  • Middle aged people who looking to increase their retirement investments. By working in their own business, not only do they benefit from the naturally increasing value of their investment but also from the work they put in to growing it.

There are literally thousands of people looking to buy a business in Australia right now.

Fortunately the business sales market is not volatile and does not have the highs and lows of the real estate, building industry and share market therefore no matter what the economic climate business sales are a consistent source of revenue.

As the property market begins to cool and interest rates to rise, many investors start finding that they have over-committed themselves to mortgage payments on negatively-geared investment properties. Buying a business – whether or not they sell some investment properties to do so – provides such people with a positive cashflow which can be used to meet their mortgage commitments.

This offers a real estate agent a ready-made market for businesses – everyone who's bought an investment property from you is a potential business buyer. And if some choose to switch part of their equity from negatively geared property to positively geared businesses, that's going to net you house sales commissions as well.

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WHAT DO BUSINESS BROKERS CHARGE?

Although brokers are free to negotiate fees, it is usual for sellers to pay selling commissions of around 5% to 8% of the gross selling price. Unlike the real estate industry who often have to negotiate their fees, most business brokers rarely have cause to reduce the selling fee because it is a total tax deduction for the seller. For example if you sell a business for $500,000 your company's gross commission would be approximately $32,120 including GST. Click here

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WHAT'S IT LIKE BEING A BUSINESS BROKER

Business brokerage is very exciting. Every day we deal with different businesses, different people, different situations, different needs and expectations. It's an excellent business and career choice if you'd like to avoid the same old routine day-in and day-out. What's more, the longer you have been established, the more repetitive sales and automatic income you generate. Also generally there is no weekend work, as most business owners prefer to do business Monday to Friday.

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DO BUSINESS BROKERS SUFFER IN A DOWN ECONOMY?

Unlike the real estate industry, business broking is not as affected by downturns in the economy. When the economy slows or falls into recession, many people find themselves laid off and the job market is far too tight to absorb them all. Many of these people received a severance package that, combined with their real estate equity, savings and some financing, will enable them to buy a business. These people need to provide for their families and they are highly motivated to buy the right business in order to maintain their lifestyle.

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BESIDES MY CURRENT REAL ESTATE LICENSE, DO I NEED ANY ADDITIONAL REAL ESTATE LICENSES?

No. This is because the Online Business Agent license is not a franchise, it's purely the rental of a business broking system.

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DOES THIS MEAN I’LL HAVE TO CHANGE THE NAME OF MY BUSINESS, OR ESTABLISH A SEPARATE BUSINESS BROKING AGENCY TO OPERATE?

No. You will be selling businesses under the name of your established real estate office. Our license agreement will give you the right to use our intellectual property, systems and services whilst retaining your own name and identity.

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ARE THERE ANY SALES TERRITORY RESTRICTIONS?

No, because of the abundance of businesses, there are no area restrictions. You can decide which lucrative businesses you would like to sell.

When you become an approved licensee, you can access your own (not other users) buyers and sellers database from anywhere in Australia via the Internet. Cross matching buyers with sellers, updating records, completing appraisals and contracts and going on to close the deal is quick, easy and rewarding when you use Online Business Agent sales system. And, as the manager or business owner you can see at a glance all sales representatives' progress on each business transaction.

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WHEN CAN I START?

Right now.

There's no better time to take advantage of current trends.

As an Online Business Agent licensee you will be provided with a complete software package ready to start business broking, with training able to be commenced as soon as you are ready - no prior experience is necessary.

For further information or a copy of the License Agreement please telephone us on 61 8 938203077. or complete the form and someone will be in touch shortly.