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Business School for Non-Business Minds: Got a NAICS Number?

Article Description:
====================

I’m a journalist. I spent a lot of my career in the news
business. As my career has progressed, I’ve spent time at small
and large companies, and I have sat through dozens of business
meetings wondering what the heck the “money” people are talking
about. They used acronyms as if they were a foreign language.


Additional Article Information:
===============================

423 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2008-04-15 13:24:00

Written By:     Melissa Mashtonio
Copyright:      2008
Contact Email:  mailto:[EMAIL PROTECTED]



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Business School for Non-Business Minds: Got a NAICS Number?
Copyright (c) 2008 Melissa Mashtonio
Manta
http://www.manta.com



I’m a journalist. I spent a lot of my career in the news
business. As my career has progressed, I’ve spent time at small
and large companies, and I have sat through dozens of business
meetings wondering what the heck the “money” people are talking
about. They used acronyms as if they were a foreign language.

Now I work for a company that publishes company information, and
I’m in a whole new world of acronyms. One of the biggest in this
business is the NAICS, pronounced “Nakes” number.

The North American Industry Classification System (NAICS) is a
series of numbers assigned to business establishments by
government agencies (or themselves) that identifies the primary
business of the establishment. In 1997, NAICS was established to
largely replace the older Standard Industrial Classification
(SIC) system.

The five- or six-digit "Nakes" replaced three-or four-digit
"Siks" in order to do a better job of covering service and
technology industries and to include Canada and Mexico in the
classification system—thus the North America part.

Both codes are still in use and both are widely used by market
researchers, securities analysts and other systems used to
classify companies.

What NAICS Numbers Mean

NAICS is a two- through six-digit hierarchical classification
code system-- the longer the number, the more detailed the
industry description.

Each digit in the code is part of a series of progressively
narrower categories, and the more digits in the code signify
greater classification detail. The first two digits designate the
economic sector, the third digit designates the sub sector, the
fourth digit designates the industry group, the fifth digit
designates the NAICS industry, and the sixth digit designates the
national industry. A complete and valid NAICS code contains six
digits.

Examples of NAICS codes: 51 Information 513 Broadcasting and
telecommunications 5133 Telecommunications 51332 Wireless
telecommunications carriers (except satellite) 513322 Cell phones
and cell phone service



How Companies Get a NAICS Number

There is no central government agency with the role of assigning,
monitoring, or approving NAICS codes. Individual establishments
are assigned NAICS codes as they do business with banks, vendors
and credit lenders. The U.S. Census Bureau, for instance, assigns
NAICS codes to collect, tabulate, analyze, and disseminate
statistical data describing the economy of the United States.

Generally, NAICS classification codes are derived from
information that a business establishment has provided on
administrative, survey or census reports. The fact is, as soon as
you start to do business, a NAICS code will be necessary and
either you’ll seek it out yourself or someone will assign you one






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Melissa Mashtonio  writes for Manta.com, the authority 
for finding 45 million free company profiles. The site 
(http://www.manta.com) covering large to small firms 
worldwide--and their related industries and products. 
Empowered with CRM tools, users compete smarter, 
accelerate sales prospecting and partnering, and 
identify revenue opportunities faster. Use Manta.com 
to help you keep track of potential partners and 
competitors.


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