business development services 1 what’s your industry? session 2

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What’s your industry?

Session 2

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Explore your industry and market and how these relate to your business

Learn about industry classification codes and what they mean for your business

Find sources for industry information Write an industry analysis for your business

and to support your feasibility plan

Session 2 objectives

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Industry:A group of businesses in a specific field that is often named after its main product

E.g. automobile, educational services, retail, food services, health care, etc.

Industry - definition

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The construction industry

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How many dog food manufacturers are there be in Canada? How many in each province? How about each city?

How does the dog food business work? Is it expensive to start this type of business? What kind of dog food do these businesses make? Is there room for another business to be

successful? All of these questions relate to industry

Maria is thinking about her business

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North American Industry Classification System Codes used to classify business and

government in Canada, Mexico and the U.S.A. Statistics Canada collects information from

businesses across the countries You can use your code to get a lot of useful

information about your industry

NAICS

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http://www.statcan.gc.ca/subjects-sujets/standard-norme/naics-scian/2012/index-indexe-eng.htm

NAICS Codes

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S = StrengthsW = WeaknessesO = OpportunitiesT = Threats

SWOT

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SWOT analysis helps you look inside your business, at your strengths and weaknesses.

You’ll also look outside your business for any opportunities that can help you be successful, and for threats your business may face in your industry.

SWOT

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Think about your strengths both from yours and your customers’ perspectives. Ask yourself the following… What advantages does your business have? What do you do better than anyone else? What do others see as your strengths (you,

your team, or your product/service)?

Strengths

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Think about your weaknesses both from yours and your customers’ perspectives. Ask yourself the following… What could you improve? What don’t you have that may make it

difficult to compete? What might your potential customers see as

weaknesses?

Weaknesses

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Look at your industry information and try to spot opportunities that can help you be successful. Are there any trends in your industry? Have government regulations changed? Are

there new opportunities? Have there been changes in technology? Have there been changes in customer tastes?

Lifestyle changes?

Opportunities

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Look where there may be “danger” for your business What barriers will you face in this industry? What’s your competition doing? Do any rules or regulations exist that could

threaten your business? Could any of your personal weaknesses be a

threat? What else could threaten your business?

Threats

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When looking at opportunities, look to your strengths. Could any of your strengths become opportunities?

When looking at your weaknesses, ask yourself if you could open up opportunities by getting rid of them.

Tips

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Imagine that you’ve done your industry research, completed a SWOT.

Now that you have all this research, how do you write your industry analysis?

Writing the industry analysis

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You will never have perfect information.

You may not find enough information.

And you will need to make a decision.

This is the life of the entrepreneur.

The reality of an entrepreneur

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Step 1: Write a short description of your industry:

Industry codes/description Size of industry Short description of competitors Life cycle stage:

Emergent Growth Mature Decline

Your industry analysis

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Step 2: Identify opportunities or barriers:

Trends New innovations, inventions or ways of doing

business Rules or regulations Pricing Entry or exit barriers

Your industry analysis

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Step 3: What does the future look like for this industry?

In 5 years? 10 years? Will sales increase?

Include projections if you can find them

Your industry analysis

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Step 4: Explain why YOUR business will succeed in this industry:

Pull all the information together

What will your business need to do to be successful?

What are the keys to success?

Your industry analysis