Since the start of the COVID-19 pandemic, more people are creating their own businesses right from the comfort of their own homes. With more businesses, comes more competition. If you’re a business owner, you know the importance of being aware of your competitors and how your business can be better than other businesses. If you are looking for financial planning help or transitioning your business in any way, Cooper Norman has a team who is ready to help you!
What is a SWOT analysis?
This type of analysis is really helpful to see the strengths and weaknesses of your business. SWOT is an acronym that stands for Strengths, Weaknesses, Opportunity and Threats. This is a very useful tool before you make changes to your business or implement anything new. A SWOT analysis evaluates both your company’s internal and external features to help you understand all parts of your business.
Why do we need to do a SWOT analysis?
Do a SWOT analysis every quarter, or however often you feel your business needs it. Not only will it help you to identify strengths and weaknesses but to foresee threats. If you are keeping an eye out for the bigger picture, this will help your business in the long run. Remember that this is a guide and tool rather than what you should or shouldn’t do for your company.
How to do a SWOT analysis
Have a meeting with department heads or a group of representatives from your business to help with analyzing your business. Have one person be the notetaker and create a chart with four sections which include Strengths, Weaknesses, Opportunity and Threats.
Make a list of all of your company’s strengths. This will help you to see all of the positive things that your company does well with as a whole. A crucial part is identifying what makes your company different from your competitors. Examples of strengths for your company could be your branding, logo, going the extra mile for clients, etc.
Look at this as aspects that are holding your company’s potential back. There could be areas that you are lacking in where you could be more of a threat to your competitors. Some weaknesses that a company can have are a bad logo, branding, too much debt, or a non-reliable supplier.
This portion of the SWOT analysis focuses on the potential of outside factors. Ask your team the following questions:
- What technology can we use to improve our business?
- How and what can we expand within our company?
This is a critical part to completing your SWOT analysis. Analyze consumer trends, how profitable the company is at certain times of the year and how well your competitors are doing. Observe what they do well and create a plan of improvement.
After learning about what a SWOT analysis is, why it is important and how to conduct a SWOT analysis, it’s time to take action. Set up a meeting as soon as you can with your team so you can do a SWOT analysis for your company on both internal and external factors. Your future self and the future of the company will be appreciative.