Industry analysis: how feasible is your idea?

Whether you are starting a gym or an online marketing agency, doing research on the developments in your industry will help your business move forward. An industry analysis gives you valuable insights into the characteristics and opportunities in your sector.

You can use the results of an industry analysis to test the feasibility of your idea.

5 questions

Ask yourself these 5 questions to analyse the industry in which you work.

1. How many starters and quitters are there in my industry?

You can find information on this in the Dutch Business Register (Handelsregister). It shows you, for instance, how many companies in your industry go bankrupt. Based on this information, you can decide to adjust or postpone your plans.

2. What is the average turnover in my industry?

If you want to know the turnover of a specific sector, you can request annual accounts and extracts from comparable companies within your industry. This information can also be found in the Business Register. If most of the companies in your industry are making a profit, this could be a good sign. If you see that the average turnover is decreasing, then it may be wise to readjust your ideas.

3. Who are the main suppliers in my industry?

Find out who your main competitors are and then ask yourself these questions:

• What is their target group?
• What products or services do they offer?
• What is the price of their products or services?
• What is their position within the sector?

Include these results in your competitor analysis.

4. How do products and services reach the customer?

Investigate through which channels products and services are distributed. Who delivers to whom? For example, if you see that many companies in your industry are switching to an online business, it may be wise to follow.

5. What are the developments and expectations in the industry?

Which occurrences are affecting your industry? Think of a shortage of qualified personnel or strong competition, influencing the prices. Check whether your company also stands a chance of success under these circumstances.

Where do I find reliable information?

• Industry information (in Dutch): here you find relevant information concerning your industry, such as  laws and regulations, developments, and turnover.
• Dutch Business Register: request annual accounts and extracts from companies in your sector.
• CBS: here you will find research statistics per sector.
•  KVK Company Counter : find out how many other entrepreneurs in your industry are located nearby
• Location scan (in Dutch): choose a suitable location for your company. Gain insight into where you can find your customers and competition (in Dutch).

How do you approach marketing issues? These marketing tips will get you further.