5p23

MBAB 5P23 Entrepreneurship - Business Plan Research: 

MBAB 5P23 Entrepreneurship - Business Plan Research Linda Lowry (BCom, MLS, MA) Business Librarian James A. Gibson Library Brock University Winter Term 2008

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What Dragons Want…Lessons From the Dragons’ Den. Do: Provide support for your claims Do: Know your market Do: Know your numbers Source: Wise, Sean. What Dragons Want. Profit, October 2006, v.25(4), p.92-93.

Today’s Agenda: 

3 Today’s Agenda Basic Parts of a Business Plan Researching to prepare your business plan Industry research, Market research, Financial research, Organizational research Sample Business Plans Getting help in the Library

What are the Basic Parts of aBusiness Plan?: 

4 What are the Basic Parts of a Business Plan?

Industry Research Strategies: 

5 Industry Research Strategies Step 1: Identify your business opportunity. Step 2. Identify the industry that your startup company would operate in using standard industry classification codes (e.g. NAICS). Step 3: Identify competitors using business/company directories, databases, or websites. Step 4: Look for company and industry profiles, background information and current news on similar products/services and competitors.

Step 1: Identify your business opportunity: 

6 Step 1: Identify your business opportunity Jot down your Elevator Pitch Circle or highlight a few keywords or phrases that describe your business idea. These will be useful as you move through your research tasks.

UnderstandingNAICS Canada 2007: 

Understanding NAICS Canada 2007 NAICS was created by statistical agencies of Canada, US & Mexico It uses a hierarchical structure to divide the economy into sectors, subsectors, and industries A NAICS code is up to 6 digits long http://www.statcan.ca/english/concepts/industry.htm 7

Anatomy of a NAICS Code: 

8 Anatomy of a NAICS Code 45 Retail Trade (Sector) 453 Miscellaneous Store Retailers (Subsector) 4539 Other Miscellaneous Store Retailers (Industry Group) 45391 Pet and Pet Supplies Stores (Industry) 453910 Pet and Pet Supplies Stores (National Industry)

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You may browse or search for Canadian NAICS Codes on Statistics Canada’s web site Step 2: Identify the Industry using NAICS Canada codes

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Step 3: Identify competitors using company directories, databases or websites: 

11 Step 3: Identify competitors using company directories, databases or websites National / International Canadian Company Capabilities (Strategis) http://strategis.ic.gc.ca/sc_coinf/ccc/engdoc/homepage.html Hoover’s Online (Library Database) Search by NAICS code, by Keyword, or browse lists of industries Local / Regional Yellow Pages Directory http://www.yellowpages.ca/ Note: search by keyword – NAICS doesn’t work here!

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Step 4: Look for company and industry profiles: 

13 Step 4: Look for company and industry profiles Business Source Complete (Library Database) Includes company profiles, industry and market research reports. Hoover’s Online (Library Database) Contains company and industry profiles Mergent Online (Library Database) Indepth information on publicly-traded companies worldwide. Detailed reports for 22 global industry sectors (e.g., Hospitality & Tourism). Industry Canada (Http://www.ic.gc.ca) Business Information by Sector *Canadian*

Step 4: Look for US & International Industry Profiles: 

14 Step 4: Look for US & International Industry Profiles Encyclopedia of American Industries Ebook online via Gale Virtual Reference Library database Covers all NAICS industries. Industry profiles include background information, current conditions, industry leaders, etc. Encyclopedia of Global Industries Ebook online via Gale Virtual Reference Library database Covers over 100 major industries (e.g. Periodical Publishing, Alcoholic Beverages) and includes background information, current conditions, industry leaders, etc.

Step 4: Look for more background information & current news: 

15 Step 4: Look for more background information & current news Find magazine and newspaper articles on your business concept, industry or competitors in these Library Databases: ABI/INFORM Global Business Source Complete Canadian Newsstand (for newspapers) CBCA Complete or CPI.Q Canadian Periodicals (for other magazines) Virtual News Library (for current articles in the St. Catharines and Niagara Falls newspapers)

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Researching markets and consumers using secondary data sources: 

17 Researching markets and consumers using secondary data sources Step 1: Gather sales, market share & consumer spending data (by company, product type or brand name) Step 2: Gather socioeconomic and demographic data on target market (customers and location) Step 3: Gather information on consumer behavior, marketing and promotion strategies, and advertising media

Step 1: Gather sales, market share & consumer spending data: 

18 Step 1: Gather sales, market share & consumer spending data Market Share Reporter Call No: REF HF 5410 M2 Compiles annual market share data on companies, products and services around the world Each entry cites source of original report (e.g. article or website) Important to look at several volumes (e.g. 2007, 2006, 2005) for relevant data

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Table from Market Share Reporter

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Original table from Grocery Headquarters magazine

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Remember to search the Statistics Canada web site for more data sources 21

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22 Spending Patterns in Canada

Step 1: Gather sales, market share & consumer spending data (U.S.): 

23 Step 1: Gather sales, market share & consumer spending data (U.S.) Household spending: Who spends how much on what? Call No: REF HC 110 C6 O34 U.S. consumer spending data on hundreds of products /services broken down by demographic categories (gender, age, income, household type)

Step 1: Gather sales, market share & consumer spending data (Global): 

24 Step 1: Gather sales, market share & consumer spending data (Global) European Marketing Data & Statistics Call No: REF HA 1007 E87 International Marketing Data & Statistics Call No: REF HA 42 I56 Also great sources of global socioeconomic and demographic data!

Step 2: Gather socioeconomic & demographic data (Canada or Local): 

25 Step 2: Gather socioeconomic & demographic data (Canada or Local) FP Markets Canadian Demographics Call No: REF HC 111 F5 2007 Population & Income Estimates Demographics by Province and CMA Psychographic profiles

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26 FP Markets Canadian Demographics – PSYTE Categories

Step 2: Gather socioeconomic and demographic data (Local): 

Step 2: Gather socioeconomic and demographic data (Local) http://www.niagaracanada.com

Step 2: Gather socioeconomic & demographic data (U.S.): 

28 Step 2: Gather socioeconomic & demographic data (U.S.) American Generations Series Call No: REF HN 60 A44 v.1-v.4 Covers the Millennials, Generation X, the Baby Boom and Older Americans Includes socioeconomc and demographic data on education, health, housing, income, labour force, spending, and wealth.

Step 3: Gather information on consumer behaviour, marketing strategies, advertising media: 

29 Step 3: Gather information on consumer behaviour, marketing strategies, advertising media Use these same Library business and news databases to locate articles in journals, magazines and newspapers on your topic Search by brand name, target market segment, marketing strategy, advertising media etc.

Step 3: Gather information on advertisers & advertising media: 

30 Step 3: Gather information on advertisers & advertising media Canada: Media Digest REF HF 5813 C2 C3 or http://www.cmdc.ca/mediadigest.html Canada: National List of Advertisers REF HF 5808 C2N3 US: AdAge Data Center – Media http://www.adage.com/datacenter.cms North America: Gale Directory of Publications & Media REF Z 6951 A97 2006 (v.1-5) or via LexisNexis Library Database Global: Standard Directory of Advertisers & International Advertisers “Advertiser Red Books” LexisNexis Library Database [No off-campus access]

Financial Research Strategies: 

31 Financial Research Strategies Benchmark your financial data by type of business, size of business, and line of business (NAICS) Try the Performance Plus benchmarking tool (based on Canadian tax return data) http://www.sme.ic.gc.ca Look at Financial Performance Indicators for Canadian Business (Statistics Canada) On the Library’s Multimedia Workstation – located near the Research Help Desk on the 6th Floor

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Organizational Research Strategies Consult the Business Start-Up Assistant http://bsa.cbsc.org

Organizational Research: Production or Operational Issues: 

37 Organizational Research: Production or Operational Issues How Products are Made: An illustrated guide to product manufacturing REF HF 1040.5 H68 v.1-7 Each volume include profiles of 100 products (e.g. artificial turf, sushi rolls) including the history of the product and the manufacturing process See also: http://www.madehow.com/ How Stuff Works (Internet site) http://www.howstuffworks.com Calls itself the leading source of credible, unbiased, and easy-to-understand explanations of how the world actually works

Sample Business Plans:Business Plans Handbook: 

38 Sample Business Plans: Business Plans Handbook Call No: REF HD 62.7 B865 v. 1-10, v.11-12 via Gale Virtual Reference Library database Samples of actual business plans (20+/vol.) from small businesses in North America Typical businesses include: bed & breakfast, coffee house, marketing communications firm, travel agency

Getting help: preparing business plans: 

39 Getting help: preparing business plans Bankable Business Plans by Edward G. Rogoff (Call No: HD 30.28 R644 2003 ) Building a Dream: a Canadian Guide to Starting Your Own Business by Douglas Gray (Call No: HD 62.5 G66 2000 ) Business Plans Made Easy by David H. Bangs (Call No: HD 30.28 H474 2005 )

Off-Campus Access to Databases!: 

40 Off-Campus Access to Databases! Before you try and log into a Library Database from off-campus, make sure your know your Library PIN. To select a PIN, use the My Library Account Link on the bottom of the Library Home Page. If you forgot your PIN, contact the Library’s Circulation Desk (ext. 3228) to have the PIN reset.

Additional Sources of Assistance: 

41 Additional Sources of Assistance Please consult Research a Topic in... On the Library web site www.brocku.ca/library Business Entrepreneurship Legal Information Marketing Statistics

Getting Help in the Library: 

42 Getting Help in the Library Please ask for assistance at the Library’s Research Help Desk (on the 6th floor) In Person or by Telephone at 905-688-5550 Ext. 3233 By LiveHelp Chat (11-5 M-F) Drop by my office hours in Taro Hall Wednesdays 1-3 pm in Taro 245 You may also schedule a research consultation with me (by appointment only) Email: Linda.Lowry@Brocku.ca