It’s important to know and analyze your business’ industry. For example, if you’re starting a hairstyling business, you’re a member of the services industry. If you’re starting a tiling business, you’re a member of the construction industry. Having a good understanding of how an industry works, who the big players are, and who the major suppliers are can help you find strategic partners, venture capital and customers.
Six industry health questions to ask
To help you find out the health of your industry, do some research to get answers to the following six industry health questions:
- Is my industry growing?
- Where are the opportunities in my industry?
- How is new technology being used in my industry?
- Are there young, successful businesses in my industry?
- Who are the key players in my industry?
- What are the typical financial results for businesses in my industry?
As a starting point, we recommend searching for secondary data sources using your NAICS code. Also known as the North American Industry Classification System, NAICS is used to classify companies, to collect, analyze and publish statistics, and to provide collective industry definitions across Canada, the United States, and Mexico.
Finding your NAICS code
To find which NAICS code matches your company’s industry, visit Statistics Canada’s website to figure out which sector, subsector, industry group and industry your business falls under. Here, you can either browse through industries or search for example activities that these businesses perform.
Here are the two-digit NAICS codes for sectors of the Canadian economy.
- 11 Agriculture, forestry, fishing and hunting
- 21 Mining, quarrying, and oil and gas extraction
- 22 Utilities
- 23 Construction
- 31-33 Manufacturing
- 41 Wholesale trade
- 44-45 Retail trade
- 48-49 Transportation and warehousing
- 51 Information and cultural industries
- 52 Finance and insurance
- 53 Real estate and rental and leasing
- 54 Professional, scientific and technical services
- 55 Management of companies and enterprises
- 56 Administrative and support, waste management and remediation services
- 61 Educational services
- 62 Health care and social assistance
- 71 Arts, entertainment and recreation
- 72 Accommodation and food services
- 81 Other services (except public administration)
- 91 Public administration
Researching your industry using your NAICS code will help you find data about your industry’s past and current growth; expected growth; key players in the industry; trends impacting the health of the industry and other unique aspects. So get to know your code!
How well do you know your industry sector? It’s important to analyze the industry in which your business will operate. For example, if you’re starting a hairstyling business, you’re a member of the services industry. If you’re starting a tiling business, you’re a member of the construction industry. Having a good understanding of how an industry works, who the big players are, and who the major suppliers are can help you find strategic partners, venture capital and customers.