• Are there other firms in the industry you wish to enter? How many? Of what size?
• Plot out the varied sizes of those firms. What is the same about all of them? What is different about them? Are there reasons for the sameness or differences that might impact what you are trying to do?
• What is the success rate of your competitors (those other firms)?
• Where are the other firms located geographically? Are they in small or large communities, and do you know why? Where are they located in terms of national or state regions? Globally?
• How do transportation availability and cost fit into operations of these other similar businesses? How will they impact your ability to compete with these other firms?
• How interdependent are these other similar businesses with other industry, such as in supplying technology, equipment, materials, etc.? Is there a dependence on other industry as customers?
• What kind of technologies are these other firms putting to use?
• Do sources of supply for raw materials, parts, etc., exist for the other businesses? Will they exist for you? At what cost or cost ratio?
• What has been the recent business activity (mergers, acquisitions, failures) of similar businesses in the area in which you wish to do business?
• Are there negative perceptions in your community, among government agencies or in society in general about the business you wish to enter? Are there positive perceptions? List both.

• Can you define the age and numbers of people in the age groups to whom you hope to market?
• What race, sex, education, occupation, etc., characteristics apply to the population group you are targeting?
• What does this mean in terms of the number of persons who make up your available market?
• How are demographics (population characteristics) shifting in the areas in which you will be marketing your products? Growing? Declining?
• What do economists and community experts predict for the future as far as changing demographics?
• What term can you apply to the markets for your products – growing, stable, declining?
• Given the changing demographics and your information about potential markets, can you estimate the volume of sales you might realize if you do everything else right?
• Can you state the volume of sales needed to give you a satisfactory return? Does that compare favorably with your findings for the previous question?

• What large goals do you wish to accomplish by what time?
• What smaller goals, if reached, help you achieve the larger goals? What specific products/services can most easily be promoted to help you achieve both large and small goals?
• Given competition (as outlined earlier), what goals or objectives can you reasonably set for obtaining a portion of the market share for your company?
• Consider your product. What variations in product (as set against those products of others in the industry) might help you achieve goals – size, cost, availability, quality?

Set goals also for research and development, like having a product change or improvement every year, two years, etc., to grow the market.

Set goals also in terms of finances, such as debt-equity ratio and target return on sales.

Give these goals dates that enable you to meet your obligations.

Location, Location, Location
Selecting a site for your plant or for your sales is one of the most critical activities you will carry out. Some experts say location is “everything.” At least, it can be said that a good location contributes to success, whether you are talking about a working plant or the ability to reach customers.

Consider the following factors:

• Is the site accessible to markets?
• Are raw materials readily available?
• Is transportation available – at what cost?
• What are the labor rates and estimated skill levels of labor?
• Are utilities adequate? (water, power, gas, sewer)
• What is the business atmosphere?
• Is this a site at which we can expand or would we have to relocate?
• Is the layout of the site conducive to the type of business we are in? With expansion?
• Are there services, such as fire and police?
• Is there housing available for workers and at what cost?
• Will the land increase or decrease in value with activity surrounding the site?
• How is this site different from sites of other similar firms?
• What are zoning regulations for the site?
• Are there options? (Go through the same question process for those.)
• Are there alternative ways to do business, such as sharing some resources in an industrial group setting?
• Would those shared resources assist you?

Resource
Tate, Curtis E. Jr., Megginson, Leon C., Scott, Charles R. Jr, and Trueblood, Lyle R.; The Dow Jones-Irwin Business Papers; Dow Jones-Irwin, Homewood, IL 60430; ISBN 0- 87094-145-3; 1977. Adapted and rewritten.