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No business is an island. Every business, including yours, operates as part of a larger overall industry. Forces affecting your industry as a whole will inevitably affect your business, as well.

QUICKTIP

Sniffing Out Industry Info

Researching industry trends enables you to provide facts supporting your claims for your company’s potential success. Let’s say you’re opening a doggie day spa. This idea might raise investor eyebrows. You’ll help overcome their skepticism by providing data showing the dramatic increase in spending on pets in recent years. Even more convincing are sales figures for pet clothing boutiques, doggie day care centers, and specialty pet-food stores.

Every industry changes. Some changes come about because the customers for the products or services change. For instance, aging baby boomers provide new opportunities for industries serving retirees or the elderly. Other industry changes occur because of new technology, outsourcing or offshoring, or corporate mergers.

Make sure you address the major changes occurring in your industry. The Internet in particular had an enormously disruptive impact on many industries. This is not a bad thing: with change comes opportunity. Indicate how you’re prepared to take advantage of these opportunities, and respond appropriately to any challenges you face.

Pay particular attention to your industry’s recent economic health and rate of growth. When looking for financing, potential funding sources ask tougher questions if you’re in a troubled or shrinking industry than if you’re in a healthy, expanding one.

SAMPLE PLAN:

Industry Developments and Trends

ComputerEase is well positioned to take advantage of the significant opportunities presented by the rapidly expanding market for computer-related business services. From 2010 to 2012, the industry grew in excess of 68 percent, compared to an overall GDP increase of approximately 9.3 percent during that period.

Healthy industry growth

The computer software training industry, despite being around for nearly 25 years, is still fragmented, with no clear market leader, creating the opportunity for newer, smaller companies to succeed.

The key to success in the industry is to develop a regionally recognized brand in conjunction with online services, as is currently the case with other business services, such as accounting or human resources. Regionally dominant training companies are able to earn revenues and build market share sufficient to sustain continued development of online courses and support the high overhead cost of equipment, skilled trainers and subject matter experts, and materials.

The current lack of industry leadership represents an opportunity for ComputerEase to develop a strong regional as well as online presence.

Strategic opportunity

In what industry (or industries) does your company operate? What types of businesses belong to this industry?

Is your industry growing? What’s the rate of growth?

What trends in the industry—paying special attention to those fueled by the Internet and ecommerce—have created opportunities for you?

What challenges, if any, is your industry facing?

How do you plan to capitalize on these opportunities and/or overcome these challenges?