How To Choose an NAICS Code for a Business Plan
Enloop's business plan writing software lets you search and select an NAICS Code (formerly known as SIC codes) for your business plan. All users can set their NAICS code in the app.
Why Use an NAICS Code for a Business Plan?
NAICS Codes (which stands for North American Industry Classification System) is a numbering system created by the United States Census Bureau as a way to identify the 1,000s of types of businesses commonly found in the United States. All types of businesses have an assigned code number.
Compare Your Company to Industry Averages for Your NAICS Code
One of the great features Enloop provides is that we compile twenty-five critical financial ratios for your business and then compare your financial forecasts for your business against actual industry averages for the NAICS code you select. This allows you to quickly see whether your forecasts are in the ballpark for how other companies actually perform. We use financial ratios to make these comparisons. Financial ratios are commonly used by loan underwriters to evaluate financial performance in their credit risk analysis. If your business isn't performing within industry average, they'll want to know why (and you should, too.) This feature is available at paid subscription levels.
Where to Select Your NAICS Code in Enloop
After logging into the Enloop app and opening the business plan you'd like to work on, you'll find the NAICS Code selection in the Business Idea section, within the Business Information area. After searching for and selecting your NAICS code, you can always change the code to a new selection.
Within the Enloop app, setting your NAICS code affects your ratios, your business plan score and your report card. You can leave this blank but your business plan ratios, score and report card will be incomplete or inaccurate.
What if my Business is Not in the United States?
You can leave the NAICS selection blank, but for forecasting purposes you should select a code that most closely fits your business. Even though the data for the codes is based on companies in the United States, you might benefit from knowing these metrics and how your company compares within the industry.