How to Evaluate a Business's Industry & Market Potential.

Good morning Buyers!

So, you’ve found a business that looks promising. But before you get too far down the road, it’s time to ask a critical question:

Is the industry solid and does this business have room to grow?

This week, we’re diving into how to evaluate a business’s industry and market potential, so you can avoid buying a lemon in a shrinking market and instead find a business built to thrive.

“The goal is not to be better than the competition, but to be different in a way that matters.” — Tom Fishburne

💡Deal Tip of the Week: Think Bigger than the Business

Don’t just analyze this business—analyze the market it’s in. Even the best-run operation will struggle in a dying industry, while a decent business in a growing market can be a launchpad for real wealth.

1. Is the industry growing or declining?
Look at revenue trends, consumer behavior, and macroeconomic tailwinds. Resources like IBISWorld, Statista, and Google Trends can help.

2. Who are the major players—and how fragmented is the market?
Industries dominated by a few giants can be tough for small businesses. A fragmented market = more room to carve out a niche.

3. What are the barriers to entry?
Low barriers might mean more competition. High barriers can protect your business but may require more upfront investment or licensing.

The broader your search, the higher your chances of finding the perfect business.

🛠️ Tools of the Trade

• Google Trends – Shows search volume over time (great for spotting growth or decline)

• IBISWorld – Deep industry reports (great for market size and competition analysis)

• Statista & Census.gov – Data on demographics, trends, and spending patterns

• Local Chamber of Commerce – For boots-on-the-ground insight into regional demand

🗯Expert Soundbite 

“The best businesses ride waves of growing demand. Don’t just ask how this business has done—ask how the industry is doing, and where it’s going.”
— Walker Deibel, Author of Buy Then Build

Real-World Opportunities

Some industries are booming right now—even as others stagnate:

• Senior care & home health – Fueled by aging demographics

• Pet services – A surprisingly recession-resistant niche

• B2B services – Recurring contracts and loyal client bases

• Blue-collar trades – Many owners retiring, fewer successors entering

📉 Mini Market Watch

• Labor Market Shift: The U.S. is seeing a rise in self-employment and business formation, signaling a broader entrepreneurial wave.

• Technology Investment: AI, automation, and e-commerce continue to reshape traditional industries—favoring businesses that adapt.

• Resilience Over Growth: In uncertain times, buyers are favoring stable cash flows over risky hypergrowth.

👉 Translation? Buying a business in a boring but steady industry might be your smartest move in 2025.

🔜 What’s Next?

Next week: “How to Value a Business the Right Way (Without Getting Burned)”

Got questions about evaluating industries or spotting market trends? Just hit reply—we’ll tackle it.

Know someone looking to buy a business? Forward this to them.

Until next week,

— The Practical Buyer Team 

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