Do you know the NAICS Code for your business?

So what is the NAICS Code for your business? How do you use it?

In North America anyway, it's where your business' classification and branding officially begins. That is if you have a formally organized business.

And when filling out your businesses' Federal Tax Return, the NAICS Code should be placed on each tax return. 

So let's dig in ...

The acronym NAICS is an abbreviation of the North American Industry Classification System. The NAICS  is a classification of business establishments by type of economic activity (or the process of production). It's used by the government and businesses in Canada, Mexico, and the United States of America ― a true hemispheric strategy. And it has largely replaced the older Standard Industrial Classification (SIC) system, except in some government agencies, such as the U.S. Securities and Exchange Commission (SEC).

NAICS is a collaborative effort by Mexico (INEGI), Statistics Canada, and the United States Office of Management and Budget (OMB), through its Economic Classification Policy Committee (ECPC), staffed by the Bureau of Economic Analysis (BEA), the Bureau of Labor Statistics (BLS), and the Census Bureau. The system is designed to be largely compatible with the United Nations Statistical Office's International Standard Industrial Classification system (ISIC). 

Whew. So why is this important to your business?

Effectively, NAICS divides the economy into 20 sectors and NAICS offers a greatly enhanced coverage of the service sector, relative to the old SIC Codes. Specifically, an ‘establishment’ is typically a single physical location, though administratively distinct operations at a single location may be treated as distinct establishments. Furthermore, each establishment is classified as an industry according to the primary business activity taking place there. Moreover, NAICS does not offer guidance on the classification of companies that are composed of multiple establishments.

The NAICS numbering system employs a five or six-digit code at the most detailed industry level. The first five digits are generally (although not always strictly) the same in all three countries. The first two digits designate the largest business sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industries, and the sixth digit designates the national industries.

Importantly, NAICS changes or updates are ONLY done at intervals of 5 years, so it's essential that you get yours listed correctly. Choosing the right NAICS Code for your business is SO important prior to the registration of your business because once you choose the wrong one, you might really lose the potential of thousands or hundreds of thousands of dollars in revenue.

People often ask me what I do. It's simple, really.

Kings Crossing Brands does business within a narrow scope of business targets by ‘slicing and dicing’ current data (using U.S. data only) by industry, then by states or geographical regions. In one state — Florida, which has a 2020 population of 22 million, we serve two top-line industry sectors/agreements (NAICS Codes): Healthcare and Real Estate. As well, we target and serve another four top-line NAICS Codes in 10 midwestern states with a 2020 population of 65 million. This is the core group that makes up the audience for Beerconomy.

This is important as it intently focuses us on our core mission. Focusing on our primary NAICS sectors, then drilling down into our needed business sectors, subsectors, industries, industry groups, and lastly, national industries. Then we can serve them with a myriad of branding and branding-related services.

So here's our primary business mission: using our NAICS as we specifically target certain NAICS businesses. And it's been working, for quite a while.

Care to share your business' mission below?

#NAICS #BusinessMission #CoreServices

Steve King, once a scorched earth turnaround artist, is often a pushy, sassy writer. He's chief Brand Evangelist at Kings Crossing, helping people take control of their Brand Culture and Brand Equity, then using this branding in Digital Marketing.

Coaching, sherpaing, writing, and sharing on the impact of Branding Innovation and Digital Marketing, revolving business models, emerging customer experiences, and ways of purchasing. He’s best known for his “visual map of the data landscape.”

Personally, he’s a futurist and hopeless romantic, shamelessly enamored with the history and secrets that lie amongst the breweries and taprooms of the Midwest.

Growing up in Cincinnati, playing baseball at four years old and all the way into his early twenties, even professionally. It was his very own “wonder years”.