Page 68 - Business Plans that Work A Guide for Small Business

Industry: Zoom Lens on Opportunity • 59

of actions that investors or other stakeholders might take mirror actions that
you as an entrepreneur should take before the investor ever reads your plan.
Thus entrepreneurs can often guide stakeholders in their due diligence by
connecting them with customers and others who the entrepreneur has al-
ready spoken with. Let’s take a look at the Lazybones industry section.

Lazybones Industry Analysis Section

SECTION 1: INDUSTRY

Lazybones operates in the non-coin-operated laundry
industry but will compete in the franchise industry and
operate on university college campuses. To successfully Note how they are laying out
the context in which they com-
grasp the Lazybones opportunity we must first understand pete. It isn’t solely confined to the
each of these industries. laundry industry, but they will also
compete for franchisees and for
college student services. It should
be noted, however, that franchising
1.1 Non-Coin-Operated Laundry and isn’t technically an industry, it is a
distribution channel.
Dry Cleaning Industry
The non-coin-operated laundry and dry cleaning industry is a $10 billion industry
annually, of which laundry services make up about 23 percent (Exhibit 1.1).

Exhibit 1.1 Industry Segments 1

Linen supply — cleaning Coin-operation laundry and
Personal garment and rental, 0.7% dry cleaning services, 0.5%
alteration and repair, 2.0%
Other, 0.7% Rug, carpet, and upholstery
Laundry work for resellers, cleaning, 0.5%
1.2% Merchandise sales, 0.1%
Dry cleaning for resellers, A picture is worth a thousand
2.8% words. This pie chart captures the
entire industry. Note how Lazybones
Commercial laundry,
21.5% separates the pie piece (commercial
laundry) where it competes from the
overall industry. By showing the entire
chart the company leaves room for fu-
ture opportunities in adjacent or related
markets. Also note that all stats and
facts are footnoted, which adds validity
to the analysis.
Dry cleaning for direct
consumers, 69.5%
1 IBISWorld, “IBISWorld Industry Report: Non Coin-Operated Laundromats and Dry
Cleaners in the US,” October 14 2008. http://www.ibisworld.com.ezproxy.babson.edu/
industryus/default.aspx?indid=1730.