Business Development Services 1 What’s your industry? Session 2

Business Development Services 2  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

Business Development Services 3 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

Business Development Services 4 The construction industry

Business Development Services 5  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

Business Development Services 6  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

Business Development Services 7 sujets/standard-norme/naics- scian/2012/index-indexe-eng.htm NAICS Codes

Business Development Services 8 S = Strengths W = Weaknesses O = Opportunities T = Threats SWOT

Business Development Services 9  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

Business Development Services 10  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

Business Development Services 11  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

Business Development Services 12  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

Business Development Services 13  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

Business Development Services 14  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

Business Development Services 15  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

Business Development Services 16  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

Business Development Services 17 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

Business Development Services 18 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

Business Development Services 19 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

Business Development Services 20 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