Stage 1: Industry Overview
This Industry Overview serves two purposes. First, it provides senior management with a framework within which the business will operate. Second, it provides outside readers such as investors, who have no detailed knowledge of the industry with all the pertinent information they require to properly asses where this individual business fits within the industry. It is unreasonable, and potentially dangerous, to assume the reader of your business plan has any knowledge of the Industry.
This section will provide an overview of the external environment and includes a assessment of the following factors:
If your new product is a technology product you will want to assess the following factors.
- Government policy with respect to the industry
- A list of the major competitors. Where they are located and their market share
- Major production and processing facilities (categorized as to type)
- Marketing and product distribution channels
The checklists that are provided are intended to provide a starting point for your review. As such, they are not intended to be a comprehensive list. Also, many of the questions may not be applicable to your specific business. You should be prepared to add or to remove those questions that are not relevant to your business. As you answer each question, decide whether this aspect of the industry is an opportunity (O) or threat (T). Check the appropriate box to keep score of your decisions.