In this section of your Business Plan, you need to convince a potential investor that you understand critical details regarding the industry
in which your business will compete. Understanding the characteristics of your industry
allow you to make intelligent decisions regarding all future sections of the Business Plan, including marketing, operations, and finance. Examples of vital industry
analysis details include the
? size of the industry
in units and dollars;
? grow rate of the industry
? future prospects for the industry
? average gross and net margins on sales in the industry
? major companies in the industry
? government regulations that apply to the industry
This is the "heavy lifting" of the Business Plan with regards to research. For this part of the plan, conduct secondary research to identify the metrics that give your concept credibility. Most likely, you will use secondary information from such business publications as Standard & Poor's, U.S. Industry
Trade Outlook, or Hoover's Online to gain an understanding of the marketplace. Your goal in this section is finding information that gives you and your investors the picture of the size and scope of the industry
SIC and NAICS Codes:
You should know your Standard Industrial Classification (SIC) Code and/or NAICS Code for your industry
. This code was created by the government to classify business for accounting purposes. In order to find data about your industry
, you will have to determine your industry
code. Search for these terms on the Internet and you will find valuable information associated with specific industries
In this section, you will research and report on various aspects of the industry
as identified in the introduction. You should start off with a brief history of the marketplace and identify any factors that affect growth. Are there any new entrants in the marketplace? Is this industry
heavily regulated? What are the various leading companies in the industry
? How long have they been in the market? What is the competition and how much of the market do they own?
In addition to the brief overview, you should give hard facts?the size of the industry
in dollars, to be exact. You should list the total products or services sold in the past few years and look at the forecasts for the industry
Be sure to start with the large picture and move into the specifics for your company. For example, let's say you are developing a pizza restaurant in New York. You start with the overall restaurant industry
data, which is $1.3 billion dollars. Of that, $430 million dollars is in the pizza industry
, and of that $430 million, $46 million is located in New York City. In other words, you start out very large and move into the specific area (as low as you can go). In some cases, you could get into the local neighborhood industry
by drawing a three- or five-mile circle around your store location and defining the market in that area.
All businesses are subject to various regulations at the local, state, or national level. These regulations would include what is required to register your business. The type of business your create?proprietorship, partnership, LLC, or corporation (and there are others)?will impact your business taxes and liabilities for various claims against the company. Depending on your type of business, you might need specific licenses to offer products or services for sale. It is important to note that these licensing requirements can differ from state to state; for example, barbers need a license in most states, but not all. For any kind of storefront location, you must ensure that the location is properly zoned to offer the products or services you provide from that location. In addition to meeting the basic requirements of business registration and licenses, you should consider regulations unique to local ordinances. These might include the limit to the number of patrons per square foot, or the amount of parking space required per square foot for retail locations. To make sure you meet these requirements for your Business Plan, research laws and regulations that are specific to the industry
in which your business will compete. Briefly describe laws and regulations that apply and explain how your business will meet those conditions.
Demonstrate that you have completed your research. Do not say, "We will obtain all of the appropriate permits." Instead, you must list the regulations by name and how they apply to your business
This section is a look at the competitors in the marketplace. You need to list the major businesses in the industry
. Who are these companies? Are they growing or declining? How long have they been in business? You also need to discuss where these industries
are located and discuss their market share.
This is a pretty straightforward section where you profile your competition to understand how you will compete; in your marketing section, you will use this information to craft a marketing plan. Note that you might want to repeat some of your Competitive Analysis in the Marketing Plan portion of your Business Plan.
SWOT Analysis (no less than 5 pages, no more than 7 pages).
Once you have described the key characteristics of your industry
, complete a SWOT analysis to briefly describe how your company will compete with regards to strengths, weaknesses, opportunities, and threats.
Overview of each requirement:
averages for profitability in your marketplace. Use this information to determine the validity of your own projections and make changes if necessary.
Regulation review and legal concerns
Determine your location and business environment. Address all legal, zoning, and licensing concerns your business will face. What form of business will you set up? Why? The level of detail required for this section will depend on your type of location (virtual, retail, warehouse, office, restaurant, etc.) and on your idea. Demonstrate that you have completed your research. DON'T say "We will obtain all of the appropriate permits"; instead, summarize them. When you explain your form of business?remember your audience. For example, if you select an S corporation, explain your reasoning for that selection in the context of your potential business, rather than providing the definition of an S corporation. Address any pending regulations which may have an impact on your business.
Describe the competitive landscape. Who are the key competitors? What are their strengths and weaknesses? Approximate their market shares. How will you take share from them? How will they most likely try to stop you if you are successful? Who are your indirect competitors? What do they offer your prospects?
Identify your company's major strengths, weaknesses, opportunities, and threats. Describe how you plan to maximize your strengths and opportunities and minimize or mitigate your weaknesses and threats.
Location of the Adult Day Care Industry
is up to you. Meaning, based of your research, please pick a location; Region, State, City.
Please use the source material I supplied as a reference.
Here is the APA:
IBISWorld. (2013, January). Adult Day Care in the US Industry
Retrieved Month Day, 2013, from IBISWorld database
SWOT Analysis Portion of Paper needs to be no less than 5 pages, no more than 8 pages; 5 of the 15 sources need to be for the SWOT. Here is the specific guidelines to the SWOT:
Strengths are clearly articulated and relevant. They are supported by both information from this specific business concept as well as industry
Weaknesses are clearly articulated and relevant. They are supported by both information from this specific business concept as well as industry
Opportunities are clearly articulated and relevant. They are supported by both information from this specific business concept as well as industry
Threats are clearly articulated and relevant. They are supported by both information from this specific business concept as well as industry
In addition to the narrative, a summary chart depicting the key elements of this business' SWOT analysis using bullet points is provided.
Risk Management Plan
The risk analysis quantitatively and qualitatively defines both positive risks (opportunities) and negative risks (threats).
Risks are prioritized and the most likely and relevant risks are identified (a chart or table may help you communicate this information).
Risk strategies are created for the most likely and relevant risks (contingency planning, avoidance strategies, optimation strategies, transference such as insurance, etc.).
All of the elements of the SWOT are based upon industry
Details are researched and assertions are supported.
Earn points for using at least five academic or business sources
[ Order Custom Essay ]
[ View Full Essay ]
Bryan, C.J., & Rudd, M.D. (2011). Managing suicide risk in primary care. New York: Springer Pub. Co.
Cooper, P.D. (2010). Health care marketing: A foundation for managed quality. Gaithersburg, Md: Aspen Publishers.
Davis, C. & Lynn, J. (2010). Start your own senior services business: Adult day-care, relocation service, home-care, transportation service, concierge, travel service and more. Irvine, Calif.: Entrepreneur Press.
Fitzpatrick, J.J., Glasgow, A., & Young, J.N. (2013). Managing your practice: A guide for advanced practice nurses. New York: Springer Pub. Co.
Giacalone, J.A. (2011). The U.S. nursing home industry. Armonk, NY [u.a.: Sharpe.
Glassman, R.M. & Denison, B.J. (2011). Social problems in global perspective. Lanham, Md. [u.a.: Univ. Press of America.
Goldstein, D.E. (2010). Alliances: Strategies for building integrated delivery systems. Gaithersburg, Md: Aspen Publishers.
Hagg, L.A. (2008). Adult day care-- a business plan. Armonk, NY [u.a.: Sharpe.
Hernandez, S.R., & O'Connor, S.J. (2010). Strategic human resources management in health services organizations. Clifton Park, NY: Delmar Cengage Learning.
IBIS World Report (2013). In good hands: An aging population and greater healthcare coverage will support growth. A journal on Adult Day Care in the U.S. January 2013.
Kornblum, W., & Smith, C.D. (2011). Sociology in a changing world. Belmont, CA: Wadsworth Cengage Learning.
Plunkett, J.W. (2008). Plunkett's health care industry almanac. Houston, Tex: Plunkett Research.
Prieto, E. (2008). Home health care provider: A guide to essential skills. New York: Springer Pub. Co.
Rapoport, N.L. (2013). Strategic management in hostile environments: Case studies of organization-environment relations in the hospital industry. Houston, Tex: Plunkett Research.
Singh, D.A. (2010). Effective management of long-term care facilities. Sudbury, Mass: Jones and Bartlett Publishers.