For specialized assistance, please contact the Business Reference Librarian to set up a consultation appointment:
Every small business fits into an industry category.
For example, a car wash fits into:
7542 Car Washes: "Establishments primarily engaged in washing, waxing, and polishing motor vehicles, or in furnishing facilities for the self-service washing of motor vehicles."
The number 7542 is what the government uses to identify all the firms that provide car washes (known as the Standard Industrial Classification Code (SIC Code)). That way they can be compared as a group. This number is useful for researching information about your industry in databases and reference books. NAICS has replaced the SIC System and was implemented with the 2002 Economic Census. The North American Industry Classification System Code (NAICS Code) for the car wash industry is 811192.
Begin by locating the SIC Code or NAICS Code that identifies the industry your small business will fit into:
North American Industry Classification System (U.S. Census Bureau)
Standard Industrial Classification System Search (OSHA)
Once you find out what industry your small business will fit into, use the following databases and web sites to find out more about the value of the market, market size, forecasts, etc.:
Business and Company Resource Center
Brings together in a single database company profiles, company brand information, rankings, investment reports, company histories, chronologies, and periodicals. Search this database to find detailed company and industry news and information.
For industry information:
- Click on the 'Industry' graphic.
- Enter the SIC Code or NAICs Code or Industry Description and click on 'Search'.
- From the results list, click on specific industry overview sources.
- Review the tabs across the top of the screen for further information including news, investment reports, rankings, etc.
Economic Census
The Economic Census profiles American business every 5 years, from the national to the local level.
- Use the pull-down menu to select a 'Report by State' .
- Begin selecting data by clicking on the report indicated by the first two numbers of your NAICS code.
- Click on the 'More' links to fully open the parts of the report you need.
- When you are viewing the industry report you need, look to the top right of the page. Narrow the report by county, city, or metro area.
Business Source Premier
Full-text articles and images from over 7,000 periodicals and other sources covering business, marketing, and management, economics, finance, banking, accounting, and much more.
For industry articles:
- Click the ‘Advanced Search ’ tab at the top of the search page.
- Use the pull-down menu and select NAICS/Industry Code for your industry.
Note: The NAICS Code for your industry can be located from the Census Bureau
- Enter additional search terms as needed (demographics, trends, forecast, etc.)
For industry reports/overviews (not all industries will have these available):
- Click the ‘Advanced Search ’ tab at the top of the search page.
- Look at the ways to limit searches at the bottom of the search page. Find the search box for NAICS/Industry Code. Enter the NAICS Code for your industry.
- Next, find 'document type'. Choose 'industry overview'.
- Click the 'search' button at the top of the screen.
Trade Associations:
Many industry trade associations have a home page on the Internet. Data, news, and reports may be located on their site.
Business and Company Resource Center
Brings together in a single database company profiles, company brand information, rankings, investment reports, company histories, chronologies, and periodicals. Search this database to find detailed company and industry news and information.
To search the Encyclopedia of Associations :
- Click on the 'Advanced Search' graphic from the main screen.
- From the 'Content Area' pull-down menu, select 'Associations' .
- In the first search box, enter your keyword or industry description. Use the pull-down menu to select 'Full-text'.
- Click on the 'Green' search button at the bottom of the screen.
Yahoo! Trade Associations
Provides an annotated lising of a number of trade association links. Users can browse or search by topic.
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Competitive Analysis
A lot of small businesses are either family owned or owned by an individual or a couple or more partners.
They are usually private companies who do not sell stock. Only the companies that are traded on the stock market make information about their organizations available to the public. Private businesses do not share financial, personnel, or sales data information.
There are other ways to analyze your competition and get the information you need for your business plan proposal--or at least allow you to develop viable estimates.
How to find your competitors in a local market:
How many businesses are there in all that would be similar to the one your proposing in your business plan?
1. Search the yellow pages
Big Yellow
Enter the city and state and then click on the browse link next to Keyword.
Switchboard
Enter the city and state and then click on the link to Category List.
2. Search the membership directories of the local Chamber of Commerce website for your city/market area.
Mobile Chamber of Commerce
The membership directory can be searched by business name, business category or by keyword.
World Chamber of Commerce Directory
Estimating Sales & Market Share:
You may not be able to get exact sales and market share information for each business listed in the phone book or other business directory. Estimates will be easier to obtain.
Market Share = # of businesses/sales of the product/service category in that locale
Once you determine the number of businesses that would be similar to your business within a specific geographic location, then you will need to find retail sales for the product/service category for your city/county/town. Use the following sources to look for retail sales (value of the market)
Step I: Find the NAICS code for your specific industry:
North American Industry Classification System (U.S. Census Bureau)
Enter a keyword search to the left of the screen.
Step II: Find local/state data for your industry:
Economic Census
The Economic Census profiles American business every 5 years, from the national to the local level.
- Use the pull-down menu to select a 'Report by State' .
- Begin selecting data by clicking on the report indicated by the first two numbers of your NAICS code.
- Click on the 'More' links to fully open the parts of the report you need.
- When you are viewing the industry report you need, look to the top right of the page. Narrow the report by county, city, or metro area.
- Once the data is displayed, look for # of establishments and sales.
Survey of Buying Power and Media Markets
MCOB Reference HF 5410 .S98
A special issue of Sales & Marketing Management--provides retail sales by store group per county or city for each state.
Other sources which will assist in obtaining retail sales (value of the market):
Note: You may be able to locate ... "how much the average consumer spends on x" ... in business articles or reference books. You would then multiply that number by the population figure for your area (# represented in your target market) and then divide by the number of businesses in your product/service category.
Best Customers: Demographics of Consumer Demand
MCOB Reference HC 79 .C6 B47 2006
This book will help determine a potential target market for a specific product or service. Data for each product/service includes: average spending, indexed spending, market share of spending by age, household income, household type, race, region of residence, and educational attainment. Each table is accompanied by text identifying the best and largest target group of customers, analyzing spending patterns, describing spending trends for the product/service over the past few years and predicting future trends based on the nation's changing demographics.
Business Source Premier (EBSCO)
Click on advanced-search at the top and try the various searches listed below:
- In the first search-box enter the NAICS code and use the pull-down menu to select 'NAICS Code or Description". In the second search-box, enter 'consumers' or the keyword for your demographics.
- In the first search-box, enter the industry name as a keyword. In the second search-box, enter consumers and use the pull-down menu to select 'subject'.
- In the first search-box, enter American Demographics and use the pull-down menu to select 'publication title'. In the second search-box, enter the industry name as a keyword or demographic group. Remember to think of synonyms.
Who's Buying Series ... (New Strategist Publications)
| Alcoholic & nonalcoholic beverages |
MCOB Reference HD 9348 .U5 W46 |
| Apparel |
MCOB Reference HD 9940 .U6 W46 |
| By Age |
MCOB Reference HF 5415.33 .U6 W45 |
| By Race & Hispanic Origin |
MCOB Reference HF 5415.33 .U6 W46 |
| Entertainment |
MCOB Reference GV 53 .W46 |
| Groceries |
MCOB Reference HD 9321.4 .W46 |
| Healthcare |
MCOB Reference RA 410.53 .W46 |
| Household Furnishings, Service, and Supplies |
MCOB Reference HD 9773 .A1 W46 |
| Information Products & Services |
MCOB Reference HE 7601 .W46 |
| Pets |
MCOB Reference SF 414.7 .W46 |
| Restaurants & Carry-outs |
MCOB Reference TX 945 .W46 |
| Transportation |
MCOB Reference HD 9710 .U52 W54 |
| Travel |
MCOB Reference G 155 .U6 W46 |
Each report in this series provides: household spending trends for 5 years across a number of demographic characteritics, household spending for specific types of products/services, and a ranking list. For each product/service: best customers are identified, customer trends are given, and average household spending is provided across a number of demographic variables.
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Last Updated: 9/8/08 DLH
