If you own a small business, you have to take adequate measures to streamline it. You have to invest in the right methodologies and tools to evaluate your business. It will affect your ability to change considerably and positively. You can also take appropriate preemptive actions by conducting a SWOT analysis, which in turn, will help in decision-making.
For SWOT analysis
This technique helps evaluate the good and bad aspects of your business. You should conduct it periodically, as it will benefit you in different ways.
- It enables you to assess niche areas.
- Having an overview of your business enables you to make appropriate decisions.
- Boost business longevity.
- Establishes ways to adapt and enhance your business.
Things to consider with examples On SWOT Analysis
1. Perform research on your business, competitors, and industry changes:
Your research should also include new industry trends. The reason for performing this analysis determines the focus. For instance, an online grocery store performs market analysis. Its objective is to identify the latest industry trends, compare them with their competitors, and understand public perceptions concerning their services.
2. Establish reasoning to conduct this analysis:
Identify why you desire to conduct this SWOT analysis first. Perhaps, the reason could be to derive a better overview of your business or to evaluate a particular department’s value. For instance, an IT company might want to analyze their customer service. The reason is that they are experiencing rapidly growing target audiences. The purpose of this SWOT analysis is to know if the department has enough resources to manage new demands.
3. Identify weaknesses in your business:
Identify areas where your business can make significant improvements. It is possible by preparing a list that contains your weaknesses. For instance, a restaurant in a popular region of a particular city exhibits the following weaknesses:.
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- It has limited seating capacity and a small dining space.
- Face stiff competition from the other 10 restaurants.
- Lack of an online presence or a website.
- They cater only to niche customers, approximately, 60+ years old, and fail to set smart goals.
4. Prepare a list containing your business strengths:
Research and prepare a list of things that your business is strong at. For instance, a staffing company may conduct research to identify its strengths, like:
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- Recruit staff from diverse professional backgrounds. The company can evaluate and choose eligible candidates for their target audiences.
- Diverse staffing services spread across finance, information technology, marketing, healthcare, and other trade professions.
- More locations in the region than other region-based companies.
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5. Prepare a list of potential threats during SWOT analysis:
Research to identify potential threats faced by your business and to ensure its continued success. It helps to stay focused on your established strategic plan and on effective decision-making. For instance, a popular lifestyle magazine evaluates potential threats faced by their business.
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- Claims-based regulations are made in the wellness and health segments.
- Higher employee turnover rate.
- Higher competition volume in lifestyle content.
- Reduction in print sales.
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6. Prepare a list of potential opportunities:
Potential opportunities can help motivate you to do better. It is generally based on current events taking place in your organization or on the latest industry trends. It helps establish and set smart goals. For instance, a local marketing company prepares a list of opportunities:
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- Expand offerings, thereby including event marketing.
- Offer previous clients 20% discounts on new campaigns.
- Expand business in selected countries.
7. Prepare an action plan based on business priorities during SWOT analysis:
Prepare a plan that initiates changes or resolves problems. For instance, the event venue might perform the following strategies to ensure continuous success:
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- Expand services to corporate retreats and private parties.
- Develop partnerships with other venues. Thus, wedding parties will have different venues to hold receptions and weddings.
Performing SWOT analysis periodically ensures determining the strengths, weaknesses, and opportunities experienced by your business.
