What is the nature of the competition?
Just because you offer a distinctive (or unique) combination of
products/services does not mean you have no competition. Instead,
it means you have several forms of competition.
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 come up with
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 you are 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 or Economic Development websites for your city.
Salisbury
Chamber of Commerce
- See links to the Chamber's Directory of Members as well as the
'Business & Government' category that includes a number of resources.
Provides a concise overview of Salisbury in
Facts & Figures.
Maryland Economic Development Directory
World
Chamber of Commerce Directory
Search by city.
3. Other sources:
Community
Sourcebook of County Demographics (ESRI)
Reference HA 203 .S65 2004
For each state, provides county level data per Population, Race,
Age, Households, Families, Median Household Income, Income, Spending
Potential Indices.
Also provides, business data per county (number of firms, top
industry).
U.S. Census Bureau: County Business Patterns; Zip Code Business
Patterns; Metro Business Patterns - data on establishments per
county, zip code, or metro area
Estimating Sales & Market
Share:
You won't be able to get exact sales and market share information for
each of those businesses that you got from the phone book or other
business directories. Estimates are easier to get.
Economic Census
The Economic Census profiles American business every 5 years, from the
national to the local level.
Step I: Find the NAICS code for
your specific industry:
-
NAICS
website, enter a keyword search to the left of the screen.
-
OR see the NAICS book on Ready Reference HF
1042 .N6 2002
*ask for this title at the Research Services Desk, Blackwell Library
Step II: Find local, state,
data for your industry:
-
Economic Census
-
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.
-
Once on the industry report you need, look to
the top right of the page.
-
You can search by county, city, or metro area.
To find an estimate of market
share:
(# of businesses divided by sales of product/service category)
-OR-
Once you get the number of businesses that would be similar to yours
within a geographic location, then you will need to find retail sales
for the product or service category for your city/county/town. Use
the
chamber of
commerce &
economic development websites to look for retail sales of that
product/service category. *Sometimes the category is really broad
versus specific to what you are looking for. For example, car wash
may be under the broader category of 'Automotive Aftercare'.
If you can't find retail sales from the
Chamber of
Commerce or
Economic Development sites:
Survey
of Buying Power and Media Markets
September Special Issue of Sales & Marketing Management (2004-05)
Shelved at the Reference Desk
back to top
What is the nature of the industry? Does it feature high or low
barriers to entry? If low, you should expect newcomers after you start.
Do suppliers wield much power? If so, your costs are likely to be
high. Do customers? If so, your prices are likely to be low.
The business you are proposing to open fits into an industry category.
Locating
the SIC Code or NAICS number that identifies your industry:
Standard Industrial Classification System Search (OSHA)
North American Industry Classification System (U.S. Census
Bureau)
Once you find out what industry you are in, use article
databases to find out more about the market size, forecasts,
price trends, customers, etc.:
Business Source Premier
Sign in using your Gull Card barcode and last name. Choose
Salisbury University as the campus and then click the log in button.
For
industry articles:
-
Click on the 'Advanced Search' tab at the top
of the search page.
-
Use the pull-down menu and select
NAICS/Industry Code. Enter the NAICS Code for your industry.
*Also, try to enter the industry as a 'Subject Team', ex. car wash
-
Enter additional search terms as needed
(demographics, trends, forecast, etc.)
For
industry reports/overviews (not all industries will have these
available):
-
Click on the 'Advanced Search' tab at the top
of the search page.
-
Scroll down and find the dialogue box for
NAICS/Industry Code. Enter the NAICS Code or description for
your company.
-
Look at the ways to limit searches at the
bottom of the search page and find 'document type'. Choose
'industry overview'.
-
Click the 'search' button at the top of the
screen.
Gale Business & Company Resource Center
Off-campus, sign in using your Gull Card barcode and last name.
Choose SU as the campus and then click the log-in button.
Business & 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.
Coverage is from 1980 to the present.
If you already know the SIC/NAICs Industry Code:
-
Click on
the 'Industry' graphic from the database home page
-
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.
Mergent/FIS Online (previously known as Moody's) [5 seats]
Blackwell Library subscribes to the U.S. Company Data module
which offers a wealth of detail on items including business
description, history, property, subsidiaries, officers &
directors, long-term debt and capital stock. Off-campus, sign
in using your Gull Card barcode and last name. Choose Salisbury
University as the campus and then click the log in button.
- Do a 'Basic Search' for the company name or ticker
symbol.
- Click on the company name on the next search screen.
- Click on 'Create Reports' for income
statements, balance sheets etc.
Morningstar [2 seats]
Morningstar's data reports cover more than 20,000 securities
with historical data back to 1996. Off-campus, sign in using
your Gull Card barcode and last name. Choose Salisbury
University as the campus and then click the log in button.
- Under 'Reports', enter a company's ticker or name and
click on 'Go'.
- Click on the various links across the left of the screen
for detailed information (Snapshot, Quote, Analyst Research,
Morningstar Rating, Data Interpreter, Valuation Ratios,
Financial Statements, Key Ratios, Charts, Dividends &
Returns, SEC Filings, Owners & Estimates).
- Remember to click on 'End Session' at the top right to
exit program.
