Business Information for Entrepreneurs by an Entrepreneur

Avid gamers lined up for days — yes days — in order to pay $600 for a brand new PlayStation 3 (which was released in a limited shipment to North America earlier this month).

http://www.msnbc.msn.com/id/15854413/

In an interesting move by PlayStation's creator, Sony, they released the product in various stages around the world: November 17th in North America… not until spring next year for release in Europe!

As a result, ambitious entrepreneurs waited in line, alongside the gamers, to pay $600 and then resell them on eBay to European gamers for much, much more. Although rumors were flying around that the most paid was $15,000, I've only been able to see about $3000 as the standard resale price.

Not being a gamer myself, I would have a hard time standing in line for several days just to buy a $600 game system. However, as an entrepreneur, a $2400 profit for standing around for a couple days sounds pretty good to me.

I was asked to review someone's marketing before it was going to be published. I looked at it for a while and brought it back to the person with some suggested changes. What I saw in their marketing is something I see frequently in a lot of marketing… including marketing that has already made its way into print or online:

Talking about the business.

I see it a lot: “We do this” or “I do that” or “We can provide these services.” While those may be true and valuable information, they do not sell products.

A better idea is to change it to the customer's perspective and talk about the benefits they receive. One way to start reviewing your marketing for this is to look for anything that says “We do…” or “We will…” or “We can…” and change it to “You receive…”

Dear Buzz,

I'm looking to buy a business from someone else. They have a business plan that looks comprehensive but I don't like what they've spelled out as the future of the business: how they plan to grow and what changes they expect in the target market. Should I rewrite the business plan? Should I do that before I buy the business? Should I even buy the business at all?

Beth

Thank you for the question, Beth.

Even if you don't like the direction of the business, are you happy with it right now? A business is really two separate components: the business now and the business in the future. You'll need plans for both. I do recommend that you create a future business plan for the company before you buy it to make sure your future vision for the company is viable. If you decide that it is, feel free to buy the company. If the business has a profitable model right now and you're happy with where it is, feel free to buy the company. As long as you are prepared for the future and happy with it right now, you should be okay. If either of those two things concern you, stay away from the business!

Buzz