1. Industry Analysis

2. How do I know if our idea is feasible?
Summarize the industry in which proposed business will operate.
Give relevant SIC / NAICS for the industry.
How is the industry constructed/segmented?
Discuss briefly industry size (in dollars) and annual growth rate (%);
Where is the industry in its life cycle---emerging, early growth,
rapid growth, early maturity, maturity, decline?
How concentrated or fragmented is the industry?
How many players are there, and how many are large versus small?
Who are the largest and most important players in the industry?
Highlight key trends in the industry.
Are costs going down or up? What about prices?
Discuss any new products or developments, and any other national
or economic trends and factors that could affect the venture.
Determine the key success factors for the industry.
What are the winners able to do consistently that the losers or
also-rans to not do?
Any barriers to entry? 2

3. Sources On line websites Free or for fee Trade publications
Library resources
Current business owners 3

4. Hoovers Size Revenue Major Players Level of Fragmentation
Size
Revenue
Major Players
Level of Fragmentation
Industry Segments
What drives demand
What are the factors for success
Level of automation required
Product / service categories
How product/ service is created and/or delivered
Type, location and level of technology
Issues
Fragmentation levels: highly fragmented to consolidated
More fragmented the more companies
Industry Segmentation: how is the competition defined 4

5. SBDC Net
Provides links to national and international industry websites and publications
Restaurants
National Restaurant Association
Pets
National Association of Professional Pet Sitters
PetGroomer.com 5

6. Census Bureau Determine NAICS Economic Census Data
Determine NAICS
Economic Census Data
Table 1: Summary of Stats
Table 2: Comparative Stats (1997 to 2002)
Table 3: Product lines by Kinds of Businesses
Table 4: Largest Firms
Data:
Number of establishments
Revenue
Payroll
Number of Employees
Metrics:
Avg annual sales
Avg employee cost
Market trend
Market segmentation
Level of fragmentation 6

7. Zapdata Free statistical industry data Requires registration
Free statistical industry data
Requires registration 7

8. Assignment
Develop a National Industry Analysis for your proposed industry.
Answer the questions above based on available information
Minimum info:
SIC/NAICS
Market Segmentation
Industry Size
Industry growth rate
Key trends 8