SWOT ANALYSIS

Past and Future Growth of Your Industry

Size and Growth Rate of Your Industry

Pay particular attention to the rate at which your industry is expanding; this gives you insight into the opportunities available for your business. How does the growth rate for your industry compare with the growth ofthe gross domestic product (GDP), which measures the national economy? This comparison will give you an idea of the current health of your industry.

For example, if your industry is growing at 2% a year, and the GDP at 5% a year, your industry is losing ground, and opportunities will be few. However, if your industry is growing at 15% a year, while the GDP is at 5%, you are in an industry with far greater potential.

If information for your overall industry is difficult to find, you may be able to estimate its approximate size and growth by evaluating the largest companies in your field. Get copies of their annual reports or analyses from stock brokerages and read articles about them in trade and business publications.

After obtaining these basic facts about your industry, fill in the worksheet on page 88, indicating the industry’s past and projected future growth.  Of course, your own company’s development may differ greatly from industry averages — statistics may show that on a national scale, fewer people are dining out, yet your restaurant could be booming. If your business plan’s figures are far out of line with industry averages, you need to explain in your plan how you account for the variation.

Factor	2 Years Ago	Past Year	This Year	Next Year	Next 5 Yrs (Avg)
Total Revenue
Total Units Sold/Volume
Total Employment
Industry Growth Rate
GDP Growth Rate
Rate Compared to GDP (+or %)