Chapter 5
Examining the Business Environment
IN THIS CHAPTER
Defining the business that you’re in
Taking a closer look at your industry
Finding out where to turn for information
Knowing the keys to success
Watching out for business opportunities and threats
One of the most important questions you can ask yourself as you prepare to create a business plan is “What business am I really in?” The question may sound simple, even trivial, which is precisely the reason why businesspeople too often ignore it. However, if you can answer this basic question correctly, you take the first giant step toward creating an effective business plan.
Remember when crisscrossing the United States on trains, with their elegant dining cars, two-level Pullman cars, and smoking lounges, was commonplace? Probably not. But you can still catch an old movie and become a bit nostalgic for a long-lost era (except for that smoking part). Railroad companies in the 1930s, ’40s, and ’50s thought that they knew exactly ...