How to Broker Business for a Profit

Do you need to make good money but don't have the resources and/or can not physically do the work yourself. Learn how to broker deals to make good money without much risk.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Telephone
• Computer / Internet
• Fax Machine
• Desire to Succeed

1. This is not a get rich quick scheme or MLM. This is real work that can be done from a spare bedroom at your house. I have done it. I still do it. After twisting my knee this week it looks like I am going be down for about a month with no income but no fear this technique will make me about $2500 to $5000 this month until I can get back on my feet.

2. Select a business that you are familiar with and know people or companies that would be glad to have extra work. I have been a Network Engineer and Have run an Industrial Painting/Pressure washing company. So I will be OUTSOURCING my work to other companies and individuals.

3. A lot of people would right off the bat be thinking that this sounds like a 100% commission deal. It is not..

4. Start your own company (simple to do)
   There is plenty of resources to help you do this

5. Now that you are a business entity create a list of quality individuals and companies that you can sub-contract work to.
   
   by getting your own jobs under your own name and sub contracting them out rather than working straight commission you get the tax benefits, a larger % of the profits, and do not have to answer to some sales manager that just hounds you and takes part of the profit that could be going into your pocket (He/She usually takes the credit for your hard work as well)

6. Trust but Verify....
   
   YOU MUST: Verify that all of your subs do quality work by calling and going by and seeing some past and current work that they have done.
   
   You Must make sure they carry a minimum liability insurance with you on the insurance binder. It is also advisable that they have a surety bond. Talk to an insurance agent if you don't understand the terms.
   
   VERIFY that the insurance is legit contractors can not be judged by the cover alone read the entire book before you pass judgement if you are going to use them.
   
   Depending on what business sector you are in will depend on how much risk you are subject to.

7. CONTRACTS CONTRACTS CONTRACTS
   
   Do not sub work to anyone without a contract
   Do not do any work for any customer without a contract or agreement.

8. Your Job is to market your business, receive the calls, Quote, Close Deals. You will want your 3 top sub contractors give you a quote on that a job (In your contracts with your subs you should state that they represent your company and will be sued if they go directly to your customer marketing their business)

9. Once you have won the business and selected the sub... Your sub should give you a written schedule of when they are going to complete the job and should not be paid until the job is 100% completed and approved by your customer in writing. NOTE.. Your Subs should always wear shirts or something letting everyone know that they are representing your company.

10. Bill your customer
    Collect the money
    Deposit the money
    Pay all bills associated with the job
    Pay yourself
    pay your sub (Don't pay your sub in the middle of a job if possible as this will take away the incentive to complete the job.)
    
    **** When Quoting always take in account over budget items and time delays and have provisions for those in your contracts with your customers ****

Tips & Warnings

• Verify Everything
• Trust But Verify
• Everything should have a paper trail so you can point to later in need be.
• hold a 10% retainage on work done by sub contractor for 1 month.
• Do Not go with the cheapest unless you KNOW they can and will do the job.
• As nice as someone seems customer or Sub-contractor. Don't believe a word they say. Back it up with paper and a signature.
• Always remember to take a portion of profit out for taxes, operation cost, and retainage in case you are asked to redo some work.

[starlet67]

on 5/7/2009 Great tips and warnings to broker business for profit!5*

[smallone]

on 4/28/2009 Great article! I have my own small business which is growing and I could really use additional help so thanks for the article. Gonna give it a try. 5 stars and of course recommended! Thanks again.

[gaylord]

on 2/14/2009 Great article. Any artisan with business interests can do this!

[whatsthatuc]

on 2/14/2009 Great idea 5 Stars!.

[amylaine]

on 5/6/2008 I was thinking about doing an article about this but I think your article was great and will just refer people to yours for the info. Very informative, 5 stars.