Carrying out a SWOT Analysis for your business is super easy. It not only saves you a lot of time and trouble in the long run but also makes you familiar with new ideas and approaches towards your business.
The main purpose of this analysis is to assist you in making a powerful business plan by weighing your business’ strengths and weaknesses. At the same time, it also assists you in being well-informed about the current and potential threats and opportunities in the marketplace.
What Is a SWOT Analysis?
SWOT, as mentioned above, stands for Strengths, Weaknesses, Opportunities, and Threats. This helps you to calculate your business’s performance on these 4 markers and plan for the future.
As strengths and weaknesses are internal to your company, these can be controlled to an extent by you. You just have to put in some time and effort for this purpose. When I started my business, I encountered a problem with poor Internet connection in the first few months. I conducted a SWOT analysis with my team and subscribed to one of the very attractive Spectrum Internet plans ultimately.
Opportunities and threats, however, are external to your company and these can’t be changed by you. Some examples can be your competitors and pricing regulations.
Why Do a SWOT Analysis?
Below are 2 ways in which SWOT Analysis can help an established business
- Rethinking the business strategies in case of an unforeseen change in market trends
- Rethinking business ideas to explore new avenues
Similarly, SWOT can help a new business in these ways
- Preparing a smart and cost-effective plan for your business
- Exploring the potential of new and unique services in the market place
How to Do This Analysis?
Here’s how you can conduct this analysis the right way:
Take out Some Time
Although you don’t need a whole day to do this, you need to spare about 2 or 3 hours for it. Create a scheduled meeting and make sure everybody in your team attends it.
Include Representatives From All Departments
It is important to ensure the inclusion of at least one representative from every department. As every department has different operations assigned to it, getting feedback on all operations will ensure the success of this analysis.
Make Sure That Everybody’s Opinion Gets Heard
Everybody’s opinion is important for this exercise. Therefore, you have to make sure that few people don’t overpower others. You can start the session by asking a question and make everyone jot down their opinions on sticky notes.
Start a Discussion
After the above exercise, you can group the same opinions on a subject and start a discussion. Let people add new ideas as well so that each aspect can be covered.
Use a Voting System
Conduct a voting exercise among members. It’ll help you choose the best ideas and move ahead with these.
Wait for the Authority to Make a Final Call
Once the ideas have been discussed and ranked, now it is time for the person in charge to approve these ideas. If there’s a strict hierarchy in your business, the CEO will be making that decision. However, a group of people can also decide upon an idea if your business has a more homogenous structure.
Creative Questions That Can Help You With The Analysis
You need to make a list of questions for discussion before scheduling the SWOT meeting. So, here are a few of these to get you started.
Strengths
These are the constructive aspects of your company that are under your control.
- In what aspects do you outrun your competitor?
- What kind of unique skills do you have?
- What are the most profitable aspects of your business?
- Where do you rank your business in terms of possession of physical assets?
Weaknesses
These are the bleak aspects of your business that are also under your control.
- What kind of improvements do you need to achieve your goals?
- Are your company’s resources enough for growth?
- Do you need to set up your business elsewhere?
- Is the team communication in your business ineffective?
Opportunities
Opportunities are external aspects that have the potential to help your business flourish.
- Has there been a market boom that can make your business grow?
- Can some new rules and regulations benefit your business?
- Are your customers satisfied with your services?
Threats
Threats are external aspects that can negatively impact your business. These are not under your control.
- How strong are your current or potential competitors?
- What kind of hurdles can you face in your marketing attempts?
- How significantly a change in consumer behaviour drive down your sales?
Final Words
SWOT analysis is crucial for your business growth. These guidelines will surely help you carry out a successful SWOT analysis session with your team. A constructive SWOT session with my team encouraged me to dial the Spectrum Customer Service number and get my Internet problem fixed.