How to Write a Business Plan for Business Brokerage
Follow 7 practical steps to create a Business Brokerage business plan in 10–15 pages, with a 5-year forecast (2026–2030), showing breakeven in 22 months (Oct 2027), and minimum funding needs of $405,000
How to Write a Business Plan for Business Brokerage in 7 Steps
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Step Name
Plan Section
Key Focus
Main Output/Deliverable
1
Define Service Offerings and Pricing
Concept
Set 2026 hourly rates for three services.
5-year rate schedule defined.
2
Analyze Target Market and Acquisition
Market
Map ideal client and $3k CAC.
Target client profile set.
3
Determine Organizational Structure and Capacity
Operations
Staffing plan and $305k payroll defined.
Billable hour targets set.
4
Calculate Startup Capital Needs (CAPEX)
Financials
Fund $85k CAPEX plus runway.
Total funding ask finalized.
5
Map Operating Expenses and Cost of Goods Sold (COGS)
Financials
Detail $6.9k fixed costs.
2026 variable cost baseline.
6
Project Revenue and Profitability Timeline
Financials
Model path to $363k EBITDA.
22-month breakeven confirmed.
7
Identify Key Risks and Mitigation Strategies
Risks
Address high CAC and volume risk.
Mitigation plan drafted.
Which specific business size or industry niche will our Business Brokerage serve?
The Business Brokerage should initially target established small to mid-sized businesses, generally those generating $1 million to $5 million in annual revenue, where retiring owners need specialized exit planning; this focus aligns with current trends discussed in What Is The Current Growth Trajectory Of Business Brokerage? The immediate action is mapping local competition density to find underserved geographic or vertical pockets, ensuring you defintely capture maximum transaction volume.
Define The Seller Profile
Focus on owners aged 55+ actively planning exits within 24 months.
Buyers are typically entrepreneurs or small investment firms seeking EBITDA between $200k and $800k.
Establish a minimum required cash flow threshold to filter out low-value listings early.
Spotting Market Gaps
Analyze regional competition density; avoid saturated metro areas initially.
Identify underserved verticals like specialized B2B maintenance or niche manufacturing.
Look for industries where the average transaction cycle is 12+ months due to complexity.
Assess demand for fee-based valuation services in areas lacking certified appraisers.
How quickly can we scale high-margin Transaction Advisory services to drive profitability?
Scaling high-margin Transaction Advisory services is the fastest path to profitability, as this revenue stream quickly covers fixed costs once the service mix shifts away from lower-margin Valuation Reports. Have You Considered The Best Strategies To Launch Your Business Brokerage Successfully?
Cost Structure and Revenue Mix
Variable costs are projected to stabilize at 29% of revenue by 2026.
This means your contribution margin (revenue minus variable costs) should reach 71%.
The focus must shift revenue mix from Valuation Reports (currently 20%) to Transaction Advisory.
By 2030, Transaction Advisory should account for 85% of total revenue.
Covering Overhead with Transactions
You must cover $6,900 monthly in fixed overhead plus wages before seeing profit.
Here’s the quick math: To cover $6,900 with a 71% margin, you need $9,719 in gross revenue monthly.
If your average transaction success fee is 10%, you need $97,190 in total deal volume monthly to break even.
If onboarding takes longer than 14 days, churn risk rises defintely.
What is the optimal staffing level to manage pipeline growth without exceeding capacity?
The optimal staffing level for your Business Brokerage hinges on maximizing high-value advisory time per employee, starting lean, and timing specialized hires like a Senior Business Advisor to match projected deal volume, not just pipeline growth; you can read more about the resulting owner compensation structure here: How Much Does The Owner Of Business Brokerage Typically Earn?
Staff Capacity & Initial Spend
Assume 1,200 to 1,400 billable hours per Full-Time Equivalent (FTE) annually for advisory work; the rest is admin and business development.
The $85,000 initial CAPEX for tools is justified if it automates data aggregation and document flow, defintely boosting that billable ratio.
With high-touch advisory, one FTE can effectively manage 2 to 3 active transactions simultaneously before quality drops.
This initial investment ensures you have the data-driven market analysis capability promised in your value proposition right away.
Scaling the Advisory Team
Hire based on closed deals, not just leads in the pipeline; one closing advisor supports about 15 deals per year comfortably.
If Year 1 projects 15 closed deals, start with one senior advisor and necessary operational support staff.
Plan the Senior Business Advisor addition for 2028 only when your projected deal flow reliably exceeds 25 transactions annually.
Hiring too early means paying a high salary against uncertain success fees, which eats operating cash flow fast.
Can we sustainably lower the high Customer Acquisition Cost while scaling deal flow?
Yes, lowering the Customer Acquisition Cost (CAC) for the Business Brokerage from $3,000 in 2026 to $2,000 by 2030 is achievable, but it requires shifting lead sources away from expensive initial digital advertising toward established referral networks and managing state-specific licensing complexity as deal size increases.
CAC Reduction and 2026 Spend Allocation
The planned CAC reduction assumes conversion efficiency improves as the brand builds trust, moving the average cost from $3,000 down to $2,000 over four years.
The initial $30,000 annual marketing budget in 2026 must be heavily weighted toward referral sources, like CPAs and M&A attorneys, who provide warmer leads.
We estimate that direct digital advertising will consume 60% of the initial budget but only generate 35% of closed deals in year one.
The goal is to defintely shift that ratio so that relationship-driven channels account for over 50% of deal flow by 2028.
Regulatory Risks and Transaction Size
Regulatory risk spikes when transaction values exceed $1.5 million, often triggering mandatory real estate licensing requirements in several states.
Licensing compliance acts as a fixed overhead cost that must be factored into the break-even analysis for each new market entered.
If initial client onboarding, including valuation and compliance checks, takes longer than 14 days, the risk of client attrition increases significantly.
Have You Considered The Best Strategies To Launch Your Business Brokerage Successfully? These licensing requirements mean that scaling deal flow requires upfront investment in legal expertise, not just marketing spend.
Key Takeaways
The required business brokerage plan must be a detailed 10–15 page document anchored by a comprehensive 5-year financial forecast spanning 2026 through 2030.
Achieving sustainability requires securing a minimum of $405,000 in initial capital to bridge operational gaps before reaching the targeted cash flow breakeven point in 22 months (October 2027).
The core strategy for profitability involves aggressively scaling high-margin Transaction Advisory services, aiming for this segment to constitute 85% of total revenue by 2030.
Managing the initial high Customer Acquisition Cost, projected at $3,000 in 2026, is a primary risk that must be mitigated by focusing on high-value client profiles.
Step 1
: Define Service Offerings and Pricing
Base Service Rates Defined
Setting firm service rates drives profitability projections. We define three core offerings for 2026: Transaction Advisory at $300/hour, Valuation Reports at $250/hour, and Exit Strategy Consulting at $200/hour. These base rates mustt support the $305,000 projected payroll for 2026. Accurate initial pricing is key to hitting the projected break-even point in 22 months.
Pricing Escalation Plan
Projecting rate increases is vital for margin protection. We must model a consistent annual escalator, starting in 2027, to capture experitse gains and inflation over the five-year window. This ensures our rates align with market expectations for premium advisory services by the end of 2030.
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Step 2
: Analyze Target Market and Acquisition
Client Profile & Cost Mapping
You need sharp focus on who buys and sells. The initial Customer Acquisition Cost (CAC) is set at $3,000. That’s steep for a service relying on large success fees. If you chase small deals, you won't cover that cost defintely. We must define the ideal client profile—retiring owners of established US businesses—to justify that acquisition spend. This step dictates your initial marketing budget allocation.
The ideal client profile centers on retiring baby boomers selling established small to mid-sized businesses, or acquisition-focused entrepreneurs and investment firms. This focus ensures the eventual success fee covers the high upfront $3,000 acquisition investment.
Revenue Shift Strategy
The main goal is shifting the revenue mix. We must drive 85% of total revenue from Transaction Advisory services by 2030. This means reducing reliance on the lower-margin Valuation Report and Exit Strategy Consulting.
Focus partnership efforts on investment firms and established M&A networks to lower the effective CAC over time. If onboarding takes 14+ days, churn risk rises for those high-value sellers. You want quick deal flow, not drawn-out consultations.
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Step 3
: Determine Organizational Structure and Capacity
2026 Team Capacity
Your 2026 structure requires 30 total FTEs: 20 FTE Advisors and 10 FTE support staff. This capacity defines your maximum annual service volume and locks in a significant fixed cost base. Getting this sizing wrong means either burning cash on idle staff or failing to capture available transactions. This headcount plan is defintely the foundation for your revenue projections.
The total annual payroll budgeted for this team size is $305,000. This figure represents a fixed operating cost that must be covered monthly, regardless of transaction volume. You must ensure the revenue generated by the 20 advisors significantly outpaces this payroll expense to maintain a healthy contribution margin.
Assigning Billable Load
You must immediately define the required billable hours for each of the 20 advisors, segmented by service type. Since you offer Transaction Advisory, Valuation Reports, and Exit Strategy Consulting, each service carries a different revenue rate and time commitment. This breakdown translates your $305,000 payroll into a required revenue per hour.
Here’s the quick math: If you know the target hours for high-value Transaction Advisory versus lower-rate Valuation Reports, you can calculate the minimum billable load needed per advisor to cover their share of the $305k cost. What this estimate hides is the ramp-up time; new hires won't be 100% productive on day one.
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Step 4
: Calculate Startup Capital Needs (CAPEX)
Total Funding Target
You need to fund both the initial setup costs and the required operating runway buffer. The $85,000 in initial Capital Expenditures (CAPEX) covers things like office setup and core IT systems. However, that doesn't cover operations until you hit profitability. We must include the $405,000 minimum cash balance set for January 2028 to ensure zero liquidity risk during those initial loss-making years. This sum defines your true ask.
This calculation is critical because investors fund runway, not just equipment purchases. If you only raise for CAPEX, you’ll run out of cash before your first major deal closes. You’re defintely raising capital to survive the negative EBITDA years projected for 2026 and 2027.
The Funding Sum
Here’s the quick math for your seed round target. Sum the upfront $85,000 CAPEX with the required $405,000 minimum operating cash reserve. This results in a total initial funding requirement of $490,000. This figure is the floor for your initial capital raise.
What this estimate hides is the payroll burden; remember, total annual payroll in 2026 is $305,000. That salary expense must be covered by this capital before revenue kicks in, so ensure your runway extends well past the projected breakeven point at 22 months.
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Step 5
: Map Operating Expenses and Cost of Goods Sold (COGS)
Mapping Costs
Understanding your fixed and variable costs defines your minimum viable scale. Fixed overhead sets the revenue floor you must clear monthly. For this brokerage, the baseline overhead is low at $6,900 per month. The challenge is ensuring transaction volume covers this base before variable costs eat into gross receipts. Honestly, keeping fixed costs this lean is a major early advantage.
Controlling Variable Spend
The 2026 variable cost rate is set at 29% of revenue. This includes advisor commissions and necessary due diligence tools. You must model efficiency gains post-2026; if volume scales, technology adoption should push that 29% down toward 20% by 2030. That efficiency improvement is where the real profit is made. We need to see that trend in the model.
5
Step 6
: Project Revenue and Profitability Timeline
Profit Timeline
Your 5-year financial model must clearly show the path through the initial investment period. For this brokerage model, we project negative EBITDA in Year 1 at -$321k, followed by a smaller loss in Year 2 of -$86k. Profitability doesn't arrive until Year 3, showing $363k EBITDA. This structure means you must secure enough funding to cover almost two full years of operational burn. If onboarding takes longer than expected, you’re defintely exposed.
The most crucial operational target derived from this timeline is achieving breakeven in 22 months. This date is fixed by the initial operating expense base and the projected revenue ramp from transaction success fees. Every month of delay in closing deals pushes your cash needs higher and increases investor risk perception.
Burn Management
Managing the initial negative cash flow hinges on controlling fixed overhead and accelerating deal volume. Your baseline fixed costs, including the $6,900 monthly overhead plus the $305,000 annual payroll for 30 FTEs, demand high early revenue. To hit that 22-month breakeven, you need deal flow to scale rapidly against the initial $3,000 Customer Acquisition Cost (CAC).
The lever here is optimizing service mix early. If you rely too heavily on lower-margin Valuation Reports initially, the breakeven point moves out. Focus on securing high-value Transaction Advisory mandates right away to drive the success fee revenue needed to cover costs.
6
Step 7
: Identify Key Risks and Mitigation Strategies
Watch Your Customer Cost
You're banking on big wins, but $3,000 Customer Acquisition Cost (CAC) is steep when revenue relies on closing deals. If market transaction volume drops, that CAC eats cash quickly. Remember, you project negative EBITDA in Year 1 (-$321k). This means you need quick wins to survive the first 22 months until breakeven. We need to watch the pipeline conversion rate defintely.
This reliance on market activity is your biggest structural weakness. If the pool of retiring baby boomers slows deal flow, your fixed costs—like the $305,000 annual payroll—will crush you before profitability hits in Year 3.
Cut CAC and Diversify Fees
To counter commission pressure, which starts at 20% Advisor Commissions, you must diversify revenue now. Push the fee-based Valuation Reports ($250/hour rate in 2026) harder early on. This buffers the variable success fee risk associated with market volatility.
Your mitigation plan needs two levers: first, aggressively lower CAC by formalizing strategic partnerships to drive qualified leads, cutting reliance on expensive online marketing. Second, structure advisory contracts so that a larger portion of the $85,000 initial CAPEX is covered by upfront, non-refundable consulting fees, not just the backend success fee.
