Feb 6, 2009
You need to explain the type of business you are in. You will be expected to explain the state of your industry and the nature of the business, especially if the plan goes out of his business to banks or investors.

If you are a service business, manufacturer, distributor, or any other business, you must make an Industry Analysis, describing:

* Participants Industry.
* Patterns of distribution.
* Competition and buying patterns.

Analysis of the industry
Everything that happens in your industry outside of your business affect your business. The more you know about your industry and the advantage to take more protection.

A complete business plan discusses the economics of the industry in general, participants, distribution patterns, the factors of competition, and anything that describes the nature of this business to outsiders.

The Internet has had an enormous impact on the state of business information. Finding information is not really the problem, after the explosion of information and the enormous growth of the Internet from the 1990s and continues into the 21st century. Even 10 or 15 years ago, the processing of information was more a problem of sorting through it all to the search for raw data. Generality that is increasingly true. There are websites for business analysis, financial statistics, demographics, trade associations, and almost everything you need to complete a business plan.

Industry participants
You should know who else is sold in its market. You can not easily describe a type of business without describing the nature of the participants. There is a big difference between, for example, a service industry like broadband television, where only a few large firms in the same country and as a dry cleaning, in which there are tens of thousands of participants smaller.

This can make a big difference to a company and a business plan. The restaurant industry, for example, is what we call "spray", which, like the industry of dry cleaning, is composed of many smaller participants. The fast food business, on the other hand, consists of a few national brands participating in thousands of branded outlets, many of them franchised.

Economists talk of consolidation in an industry as a time when many of the participants tend to disappear and a few large players emerge. In accounting, for example, there are a few large international firms whose names are well known to tens of thousands of small businesses. The automotive business is composed of a few national brands participating in thousands of branded dealers. In computer manufacturing, for example, there are a few large international firms whose names are well known, and thousands of small businesses.

Distribution patterns
Products and services that can keep many roads between providers and users. Explain how the distribution in your industry. Is this an area where retailers are supported by regional distributors, such as products, magazines, or auto parts? Your industry is dependent on direct sales to large industrial customers? Support for manufacturers to make their own direct sales forces, or they work with representatives of the product?

Some products are usually sold through retail stores to consumers, and sometimes these are distributed by distribution companies that buy from manufacturers. In other cases, products are sold directly to stores from manufacturers. Some products are sold directly from manufacturer to final consumers through mail campaigns, national advertising, or other means of promotion.

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