Do you plan on starting a new business venture? Or maybe you plan on introducing a novel business strategy? If yes, your business will find it quite helpful to conduct a SWOT analysis. With a thorough analysis of your Strengths, Weaknesses, Opportunities and Threats, you can get a deeper insight on the external/internal factors that can help you business reach its goals. Though a SWOT analysis is quite useful and easy to perform, there are a few things that you should keep in mind while performing a SWOT analysis.
1. Start out with external factors
Begin the analysis by evaluating the external factors of your business before evaluating the internal factors. Opportunities refer to your company’s ability to grow in the market and offer better value to your customers. Threats on the other hand are factors that put your business at a risk. By finding out the threats before they can escalate, you can come up with an effective plan to get over them.
2. Convert strengths and weaknesses into opportunities
Hold a discussion with your staff and identify the weaknesses and strengths of your business. Carefully go through each and every strength and weakness. This can help you analyze whether or not it can be converted into new business opportunities.
3. Opportunities and timeframes
Discuss the deadline for all the opportunities that you have listed. Since opportunities are external, your company can take advantage of them. By assigning a timeframe, you can better understand the time needed to get the maximum benefits out of the available opportunities.
4. Threats are not within your control
You must remember that threats are mostly out of your control. However, you can view threats as challenges that your business should overcome. Continue reading