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The Business Researcher Newsletter |
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April 18, 2005 Volume 8 Number 3 |
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| Hello, Welcome to the Spring issue of the BR Newsletter. There are a few data updates to report in this issue. First of all, December 2004 business counts have been release by Statistics Canada. This means that our Canadian Industry Profiles are now updated with December 2004 business count information. Statistics Canada has also released the latest issue of Annual Demographics Statistics. This publication contains the latest official population estimates by age and sex. Data is provided for Canada, the provinces, territories, census divisions and census metropolitan areas and economic regions. Estimates by age, sex and marital status and for census families are also included for the provinces and territories. In addition to the publication, this product also includes a CD-ROM with historical data by various levels of geography. This data can be easily exported into any spread sheet program to create custom demographic tables or to calculate per-capita rates for market research, quantitative analysis and planning. If you require current, reliable and accurate population data, Annual Demographic Statistics is THE source to turn to. GDSourcing is offering a 20% discount off the cover price. For more information or to order please see: http://www.gdsourcing.com/AnnualDemographicStatistics.htm. Finally the Industry Canada Performance Plus profiles have been updated to include 2002 data. Please see the article below for more information on this resource. I hope you find this issue helpful. John White GDSourcing - Research & Retrieval |
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What's New at www.gdsourcing.com - Trucks, Computers, ISPs & Trust |
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The following site
summaries were added to the GDSourcing web site over the
last 6 weeks.
Today's Trucking
Site:
http://www.todaystrucking.com/
Site Summary:
http://www.gdsourcing.com/works/Trucking.htm
Retail truck sales by class, top
trucking companies in Canada
Canadian
Association of Internet Providers
Site:
http://209.87.231.94/caip/
Site Summary:
http://www.cata.ca/caip/resources/industrystats/
Data on ISPs in Canada
Computer Industry
Almanac
Site:
http://www.c-i-a.com/
Site Summary:
http://www.gdsourcing.com
/works/Almanac.htm
Number of PCs in use in
Canada, Internet use
Edelman
Site:
http://www.edelman.com/
Site Summary:
http://www.gdsourcing.com/works/Edelman.htm
Annual Global Trust
Barometer
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The following statistics were released by Statistics Canada over the last 6 weeks. We have listed those releases we feel are of the most interest to Canadian entrepreneurs.
Very few of these statistics are available on-line. The URL listed is a direct link to the press release associated with the data. It provides contact and ordering information. If you want to purchase any publication related to these releases please see our web site: http://www.gdsourcing.com/works/StatCan.htm
We offer a 20% discount on most Stats Can publications and a 10% discount on Stats Can electronic products. For more information you can reach us at contact@gdsourcing.com. Put "StatsCan" in the subject line of your e-mail.
AGRICULTURE
Poultry and Egg Statistics, 2004
Study: High-tech vegetables: The booming greenhouse vegetable industry
1990 to 2004
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The personal and household service industry of Canada has grown rapidly over the last ten years. Time has become a premium for many families so they are willing to hire someone to get things done. The majority of these new consumer services are very specific (e.g. dog walking, professional organizer) and consequently there is very little (if any) industry specific data available.
For a general overview of this sector Statistics Canada publishes data on the Personal services industry. This broad heading includes everything from pet training services to personal shopping, from party planning to estheticians. The latest (2003) highlights for the sector can be found at the Statistics Canada web site: http://www.statcan.ca/Daily/English/050318/d050318c.htm This includes basic performance data such as total revenue and operating expenses.
The Daily link above also includes access to the related CANSIM tables (see bottom of release). These tables provide the same data at a more detailed industry level. There is a charge of $3 per time series for this data.
You can also access greater industry detail through either GDSourcing's Canadian Industry Profiles (http://www.gdsourcing.com /SBDC.htm) and/or Industry Canada's Performance Plus database (http://www.sme.ic.gc.ca). Both provide more financial benchmarks than the basic Statistics Canada figures above. For more established businesses you will find a heading that exactly matches your line of business (e.g. 812320 Dry Cleaning & Laundry Services) However most personal service entrepreneurs will find their business is part of the larger more generic industry heading: NAICS 812990 Other Personal Services.
For these types of businesses you will need to rely heavily on media articles and reports. Use a periodical database. You can access one at most public libraries. Search on keywords related to the your service and its benefits. Also search on business specific "lingo". For example many home services that provide assistance with errands and chores are referred to a "personal concierge services".
In an ideal world your media search will uncover articles which describe your target market and identify marketing challenges of key businesses in your industry. In more cases than not however you will have to glean the required information from a variety of articles and combine these insights with your own observations and market expectations. In other words you will need to develop your own target market profile. To do this consider who will benefit the most from your service and more importantly who will recognize its value.
Normally we recommend that researchers ensure their information is strictly Canadian. For this sector however, we encourage researchers to look at U.S. periodicals as well. Many of the most innovative home services originated in the U.S. before they appeared in the Canadian marketplace. Use the experience of U.S. companies to ensure the success of your own operations in Canada.
Keep in mind when you are using American information that if you are planning on providing a service that is yet unknown in Canada, you will need to educate your market as to the benefits of your service. Many entrepreneurs are excited by the idea of being "the first" to offer a particular service and are surprised when they have difficulty finding customers.
Remember, it is often easier to attract a portion of an existing market than to develop a new one from scratch. With a new market you must convince people to spend money on something they have never even considered purchasing before. You need to demonstrate the benefit and convince them of the value. With an existing market, customers already recognize the value and the benefit and only need to be shown that your company will meet their needs the best.
Once you have developed a profile of your "best customer", you will need to determine how many are located in your local market. The characteristics of a local market can be found using 2001 Census data. Most major libraries now have Census publications with Census Tract data (urban neighborhoods). You can also use the publication FP Markets - Canadian Demographics for information at a city or town level.
Another helpful source is SuperDemographics (http://www.superdemographics.com). This site lets you identify the Lifestyle population groups within a 0.1km to 10km radius of a specific postal code. An example of a lifestyle group is:
For a fee the SuperDemographics web site also lets you access other local data on spending patterns and Census demographics.
Local governments can also be helpful in profiling neighborhoods or providing by-law specific information such as numbers of dog licenses.
Beyond media sources and local demographics look for related organizations and associations. There are groups you can contact for even the most specific personal service businesses. Some can be found in the publication Associations Canada (available in most major libraries). Others can be located by searching Google. Search on your line of business in quotation marks and add the word association. (e.g. "dog walking" +association found the Professional Dog Walkers Association: http://www.prodogwalker.com/) These organizations may or may not have any industry data. However all of them should be able to offer advice on business set up, industry issues and market growth.
If you have competition active in your market place use them as an information resource. First determine how they advertise in your market. Are they listed in the Yellow Pages? What business heading are they identified under? What services or qualities do they highlight in their ads? This will help you to assess their marketing strategy. It will also help you to identify other competitors in your market (i.e. other companies listed under the same Yellow Page heading.)
It is always difficult to assess the market size for most personal services because they are not included in retail trade surveys and most of the spending categories in the Statistics Canada Survey of Household Spending are too broad. To view available categories see: http://www.gdsourcing.com /Categories.htm
One way to get a rough estimate of market size is to use a business directory which includes revenue size information. Business directories usually provide more industry sub-headings than you find in standard industry benchmark surveys and often cover very specific personal services. If you use the directory on the GDSourcing site you can access individual company information free of charge. (http://www.gdsourcing.com /CdnDir.htm) All you need to know is the full postal code of your competitor. You can get this from the Yellow Pages online (http://www.yellowpages.ca) or by using Canada Post's Postal Code Look-up Tool (http://www.canadapost.ca/tools/pcl/bin/advanced-e.asp)
Simply enter one postal code along with your line of business in the search criteria. (Use the keyword search or the SIC code look-up feature). Your results list should identify only one business (the competitor in question). If you click on the "preview list" icon you can then see the revenue details of this listing. Clearly this can be a time consuming process if you have a number of competitors. Depending on your time-constraints you may find it more efficient to purchase the entire list of your competitors outright. If you have difficult determining who your competitors are or in downloading a list, please contact us at contact@gdsourcing.com.
Once you have the sales estimates of all your competitors, simply total the figures to arrive at a market size. These sales figures should only be used as rough a guide to local competitor performance. They are based on self-reported sales volumes and InfoUSA estimates. Use them to identify sales ranges and to determine your biggest competitors. Do not consider them as actual sales volumes or an exact market size measure.
Finally do not forget to speak to people directly in your market and in your industry (e.g. suppliers). Oftentimes this is the best and in some cases the only way to understand the true nature of a personal services market and business. Also make sure you talk to the first customers who actually purchase from you. As your "first" they likely represent the best customers of your entire target market. Find out how they discovered your business and why they chose to hire you.
Personal/household services businesses are unique as the people operating them. While this makes the sector an exciting one to participating it, it also makes it a very challenging one to research. More so than any other business, it requires your own analytical abilities to stitch together resources. Do not give up if your initial research efforts are fruitless. Redouble your efforts and perhaps take a different approach (e.g. research other types of competitors, use alternate words and phrases in your periodical searches). Persistence is the key to researching this sector.
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The Industry Canada
Performance Plus database has been updated to now include 2002 data (http://sme.ic.gc.ca/).
This database provides small business (less than $5 million in revenue)
financial benchmarks by province and by specific industries (5 digit NAICS) for both
incorporated and unincorporated businesses. It is an easy and free way
to quickly assess industry performance. The source for this database is
Statistics Canada's Small Business Profiles which in turn are based
on business tax returns as well as a sample survey.
Each industry profile
includes a balance sheet and income
statement. This data is then
subdivided into revenue size groupings so that you can then view performance data for
all small businesses in your sector or for only the smallest. These
financial benchmarks allow you to assess standard industry performance and
provide a reliable baseline against which to develop your own cash flow
projections.
In addition to using
this data as a benchmark tool it is also an
excellent resource for initiating contact with someone in your industry.
Many business owners do not even know this information exists. Ask
them to comment on the data to see if they think the figures are relevant
and reasonable for your sector. If they do not think they are, ask
them what seems the most out of line? Find out why it does not match
their own experience? Make sure you have an extra copy you can leave
with your contact. People tend to be much more helpful when they recognize a
benefit in return for their time.
If you are looking to
market to small businesses, you can also use this data to assess market potential, market size and to identify sectors more likely to be interested in your
product/service. For example if you are selling marketing services or
tools to small businesses you may want to compare a variety of small
business sectors to determine who typically spends the most on advertising.
(e.g. Lawyers typically spend $4000 a year, while Full Service Restaurants
spend $10,700 and Funeral Homes spend
$13,900). You can then use this information to direct your marketing
efforts or tailor your service offerings.
As a rough guide of small business
market size you can also multiply the average expenditure dollar amount for
all businesses (incorporated and unincorporated) by the number of small
businesses in your market. Use our Business Directory (http://www.gdsourcing.com
/CdnDir.htm)
to get free local business counts. Make sure your search criteria limits
your results to small businesses (with less than $5 million revenue). This
market estimate should be used only as rough guide.
When you are first
creating your Performance Plus Profile you have the choice of viewing the data
in thousands of dollars or as a percentage of revenue. Given the fact that
the data is from 2002, we recommend that researchers use the percentage of
revenue figures. That way the effect of inflation will be minimized.
Of course if you are more comfortable looking at actual dollar amounts or
are trying to estimate market size
select the dollar option.
In addition to how the
data is displayed you can also choose
the type of businesses you wish to examine. You have the choice of “All Businesses”, “Incorporated Businesses” or
“Unincorporated Businesses”. Look at all three tables since slightly
different data is presented in each.
Once you have selected
your province, business type, data type and industry, click on "create
report" to view your profile. Across the top of the your profile table you
will see that the revenue ranges of each column are presented in $000s.
This means you will need to add three zeros to each of the
figures. The first column provides data for all small businesses in your
industry (less than $5 million). The next two columns divide the
industry into two revenue-size groupings and provide data for businesses in
the upper and lower half. The next four columns then divide the
industry into four revenue size groupings (quartiles). The last
column identifies the percentage of business in the industry that reported
each variable.
Some of the more
insightful variables in this database include:
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Each Business
Researcher Newsletter ends with a collection of five statistics related to
Canadian small businesses.
1. What %
of self-employed businesses in
Canada have paid help?
Source: Statistics Canada (2004) 2. What % of self-employed businesses in Canada are service producing?
Source: Statistics Canada (2004) 3. Which is growing faster: the number of employees in Canada or the number of self-employed?
Source: Statistics Canada (2004) 4. What % of Canadian home-based businesses had Internet access in 2002?24%
Source: POLLARA (Mar 2002) 5. In 2002 what % of Canadian small businesses (less than $5 million revenue) were profitable?68.2% Source: Industry Canada - Performance Plus (2004)
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G D S O U R C I N G - R E S E A R C H & R E T R I E V A L * www.gdsourcing.com * contact@gdsourcing.com * |
| Copyright 2000, 2001, 2002, 2003, 2004, 2005 GDSourcing - Research & Retrieval. All rights reserved. You may circulate this newsletter freely as long as GDSourcing is clearly credited as the source. We encourage people to subscribe directly. There is no charge for this newsletter. A subscription form is available at http://www.gdsourcing.com /newsletter.htm |
