Industry Analysis

In many ways, the industry analysis tells the reader whether you really know what you’re getting yourself into. A good industry analysis explains how certain competitive, regulatory, political, and economic forces tend to affect the businesses that operate within a particular segment of the market.

Some industries are easier to break into than others (think about a restaurant vs. a telecommunications company). There are extremely high barriers surrounding the telecommunications industry, for example. It can take billions of dollars just to acquire the infrastructure and resources needed to get started. This prevents most businesses from being able to compete.

Don’t spend too much time talking about your business— this section shouldn’t focus on you. Explain relevant industry forces and what kind of opportunities/obstacles they present. This should be like a snapshot of what the industry and looks like as a whole (not how you’ll look in it).