Page 66 - Business Plans that Work A Guide for Small Business

4 INDUSTRY:

ZOOM LENS ON

OPPORTUNITY

he goal of this section is to illustrate the opportunity, the size of the
market, and why there is a significant market to capture. Figure
T4.1 provides the typical structure for this section. We start with the
industry definition. What is the broader industry in which your venture
will participate? We try to be expansive about our industry definition to
keep clear the vastness of the opportunity, even if we will attack a specific
niche. For instance, Lazybones operates in the laundry industry. We can
use the opportunity component from the Timmons Model described in
Chapter 1 to articulate the opportunity. Detail the industry size, growth
rate, and major industry players (sometimes called market structure).
Talk about the nature of the industry. Is market demand increasing with
no dominant player? We call this an emerging market. Are smaller play-
ers failing or being acquired by a few dominant players? We call that a
consolidating market. Are there clear market leaders who are stable and
dominant with slow growth? This is a mature market. Next, we suggest
you talk about major trends that are occurring in the industry. For exam-
ple, Lazybones points out that while dry cleaning, a major segment in the
laundry industry is declining, other segments focused on niche customers
such as college students are poised for growth. The plan also highlights
that franchising is experiencing rapid growth even during the recession.
Explaining the pertinent trends bolsters the opportunity and suggests
what white space there might be within the industry. Market growths,
channels of distribution, and new technologies or innovations are a few
trends that need to be examined closely. Your assessment of industry
trends is an important part of the articulation of your vision.
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