1 00:00:00,001 --> 00:00:02,000 - Industry analysis. 2 00:00:02,000 --> 00:00:03,003 So now that you have prefaced 3 00:00:03,003 --> 00:00:05,000 the core focus of the company, 4 00:00:05,000 --> 00:00:08,008 it's time to educate potential investors on the industry. 5 00:00:08,008 --> 00:00:10,001 This part of your business plan 6 00:00:10,001 --> 00:00:11,005 will be full of detail, 7 00:00:11,005 --> 00:00:13,005 and you should include charts, graphs, 8 00:00:13,005 --> 00:00:15,007 and references to support your business 9 00:00:15,007 --> 00:00:18,003 and its penetration into the market. 10 00:00:18,003 --> 00:00:20,009 This will take some real time and research. 11 00:00:20,009 --> 00:00:23,001 Be prepared to truly outline the industry 12 00:00:23,001 --> 00:00:24,007 as if you were teaching a class 13 00:00:24,007 --> 00:00:26,008 on current trends within it. 14 00:00:26,008 --> 00:00:28,004 You and the investors want to make sure 15 00:00:28,004 --> 00:00:31,009 the industry is viable beyond social popularity. 16 00:00:31,009 --> 00:00:34,004 Begin with writing a brief industry description 17 00:00:34,004 --> 00:00:37,004 and then break down the segments within that industry. 18 00:00:37,004 --> 00:00:39,003 Take online shopping, for instance. 19 00:00:39,003 --> 00:00:41,004 You may talk about technology advancement 20 00:00:41,004 --> 00:00:42,007 compared to revenues 21 00:00:42,007 --> 00:00:45,004 or different types of online shopping experiences 22 00:00:45,004 --> 00:00:46,007 and how they have changed 23 00:00:46,007 --> 00:00:49,001 and how that may affect your customer. 24 00:00:49,001 --> 00:00:51,006 You may want to reference infographs or charts 25 00:00:51,006 --> 00:00:53,001 to show the buying process 26 00:00:53,001 --> 00:00:55,008 or timelines on closing a sale. 27 00:00:55,008 --> 00:00:57,006 You'll also want to show historical data 28 00:00:57,006 --> 00:01:00,008 and projections based on third-party research. 29 00:01:00,008 --> 00:01:02,004 You will also want to clarify 30 00:01:02,004 --> 00:01:05,008 if and how global markets could affect your industry. 31 00:01:05,008 --> 00:01:07,006 New versus used product sales 32 00:01:07,006 --> 00:01:10,003 and government research is also a very healthy way 33 00:01:10,003 --> 00:01:12,003 to show you are leveraging the research 34 00:01:12,003 --> 00:01:14,005 of well-funded resources. 35 00:01:14,005 --> 00:01:16,004 Adding year-over-year trends will give insight 36 00:01:16,004 --> 00:01:19,002 to viability or market fragmentation. 37 00:01:19,002 --> 00:01:21,003 If your industry has a different matrix 38 00:01:21,003 --> 00:01:23,000 for your geographic locations, 39 00:01:23,000 --> 00:01:25,008 you'll want to address that in this section, as well. 40 00:01:25,008 --> 00:01:28,000 Make sure to create subsections 41 00:01:28,000 --> 00:01:31,002 and then expand on them with the content we just discussed. 42 00:01:31,002 --> 00:01:34,007 For instance, you could include things like online sales, 43 00:01:34,007 --> 00:01:38,001 brick and mortar sales, year-over-year trends, 44 00:01:38,001 --> 00:01:40,005 and median cost versus price. 45 00:01:40,005 --> 00:01:42,001 These are just a few small examples 46 00:01:42,001 --> 00:01:43,007 you may need when writing a plan 47 00:01:43,007 --> 00:01:45,006 for a clothing retail business. 48 00:01:45,006 --> 00:01:48,005 The layout will follow the rest of the plan for congruency, 49 00:01:48,005 --> 00:01:52,002 but these bullet points might be one or two paragraphs. 50 00:01:52,002 --> 00:01:54,003 This segment could be several pages 51 00:01:54,003 --> 00:01:56,000 and should articulate your industry 52 00:01:56,000 --> 00:01:58,000 in a way that is easy to understand.