| As stated earlier, the only one who may read your | | | | over the past few years, how many people have |
| business plan is you, and that is okay. Completing this | | | | been employed making donuts, and how many units |
| section requires a bit of research, and not all of the | | | | have been sold by year. Look for trends and notice |
| information will be easy to find. Diligence will, however, | | | | where there is growth and where there is not. |
| pay off as you will gain a better understanding of the | | | | The second part is seasonality and sensitivity to |
| industry you want to enter. All businesses operate as | | | | economic changes. Do people in your area of the |
| a small part of a larger entity, each with its own place. | | | | country buy more concessions, or donuts, in the winter |
| What affects the industry will affect you. Increasing | | | | or summer? In beach towns or at fairs and festivals? |
| your knowledge about industry specifics will impress | | | | What you learn after accumulating all this data may |
| investors and help you make informed decisions. | | | | surprise you. It may seem tedious, but it really is |
| The first part of this section will have you describe the | | | | important to you. Are there more sales over holidays? |
| donut making industry, and the Internet will probably be | | | | This knowledge will help you put your financial |
| your best resource. There are many free sites that | | | | information together later on. Is there any way to use |
| provide historical financial information about the food | | | | the Internet to your advantage? Have there been any |
| vending industry. It may be difficult to find information | | | | recent technological innovations in the machinery used |
| about donuts in particular, but that is a good thing in the | | | | for production? |
| long run as this type of business is not saturating the | | | | The third part is supply and distribution. Where will your |
| market. What is the projected growth rate of | | | | batter or mix come from? How long does it take to |
| concession vending? Keep in mind you will probably be | | | | get from the supplier to you? Are quantity discounts |
| primarily selling one special product--donuts. How are | | | | available from the supplier? Maybe you want to use |
| other single food item businesses faring? Who are the | | | | local distributors like convenience stores and grocery |
| business leaders in donut selling? Are there national | | | | stores to sell your product. Are there local ones in your |
| franchises in your area that you will be competing | | | | area willing to do that and what would be their cut of |
| against? You will need to look for industry revenues | | | | the profit? |