How To Write A Business Plan: Researching Industry &

Regional Economic Information

Betty Garrison Elon University

What are the major reasons for

small business failure?

Poor Location

Lack of Experience

Unexpected Growth

Unexpected Growth

• Hint: Penny Blossoms

Poor Credit Arrangement Management

Poor Inventory Management

Insufficient Capital

Personal use of business funds

Over Investment in Fixed Assets

Fear of haunted houses

Industry Information: Key Factors

• Industry

• Geographic Area

• Leading Businesses

• Product/Service

• Buyers

• Regulatory Environment

• Trends, News, Forecasts

Industry Codes

NAICS - North American Industrial Classification System the standard for gathering data on establishments

based on the activities in which they are primarily engaged

Example: 451110: Sporting Goods Stores

SIC – Standard Industrial Classification Older system for classifying industries by a four-digit code

Example: 5941: Sporting goods and bicycle shops

Industry Information for the Business Plan

• Step 1: Identify the Industry

• Step 2: Locate Industry Surveys, Overviews & Reports

• Step 3: Make a List of Leading Companies (Rankings)

• Step 4: Find Current News, Articles About the Industry

• Step 5: Visit Industry Web sites & Leading Industry and Trade Associations

• Step 6: Find Market Share Data and Other Industry Statistics

• Step 7: Compare Company/Industry Norms and Financial Ratios

Sources of Industry Research

• Industry Profiles – Hoovers

– Business Source Complete

• Industry Trade Associations – National Sporting Goods Association

– National Grocers Association

– The Craft and Hobby Association

• Industry Trade Publications – Bicycle Retailer & Industry News

– Supermarket News

– Giftware News

• Industry-Related Websites

• Government Websites – Export.Gov

– Bureau of Labor Statistics

– Small Business Administration

Industry Profiles

• Business Source Complete (MarketLine) (NCLive)

• Hoover’s (NCLive)

• IBISWorld (paid)

• S&P NetAdvantage (paid)

• Passport (paid)

• Mintel Oxygen (paid)

• ABI/Inform Complete (paid)

• MarketResearch.Com (paid)

• Plunkett Research (paid)

• Bizminer (paid)

• Sport Business Research Network (paid)

Economic Indicators

Economic Indicators

Leading Indicators Future trends

Lagging Indicators Long-term trends

Economic Indicators

Leading Indicators Examples:

• Stock Market

• Manufacturing Activity

• Inventory Levels

• Retail Sales

• Building Permits

• Housing Market

• Level of New Business Startups

Lagging Indicators Examples:

• GDP

• Income & Wages

• Unemployment

• Consumer Price Index (Inflation)

• Interest Rates

• Currency Strength

• Corporate Profits

• Balance of Trade

Economic Indicators for Small Business

• GDP

• Unemployment

• Inflation (CPI)

• Household Income

• Productivity

• Vehicle Sales

• Housing Starts

• Bank Loans

• Interest Rates

• Population

Economic Indicators For Sporting Goods Sales

US consumer spending on nondurable goods, an indicator of sporting good sales, rose 0.9 percent in June 2013 compared to the same month in 2012.

US personal income, which drives how much consumers might spend on sporting goods, rose 3.1 percent in June 2013 compared to the same month in 2012.

Beige Book

Beige Book

Beige Book

Consumer Price Index (CPI)

FRED – Federal Reserve Economic Data

Housing Starts - FRED

GDP - FRED

Alamance County - FRED

SBA Quarterly Bulletin (National)

Access NC

Local Resources