Many small business owners view a SWOT Analysis as only being useful when they conduct their annual review of the business. They don't realise its potential to kick-start their business and to take advantage of their strengths and opportunities, particularly in difficult times such as the current financial crisis.
The natural tendency of a business owner is to take action. In challenging times owners tend to want to work harder 'to make things happen' and to feel in control. Often this can result in activity for the sake of activity. What is needed is activity that is directed towards the achievement of goals, working on strengths, grasping opportunities, and working smarter.
A SWOT Analysis is a tool that allows a business owner to review their business in a structured way and to identify the parts of the business where they need to take action. The first step is to decide on the objectives that are going to be achieved by the business over the next 12 months and for the next 3 years. This then forms the basis of the SWOT Analysis as you review each of the four criteria in the SWOT against your current situation and the objectives to be achieved.
When looking at your Strengths you are reviewing each area of your business in terms of whether it is a strength that will allow you to achieve your 12 month and 3 year objectives. The weaknesses of your business need to be identified - what is going to hold you back? What action can you take to minimise the impact of your weaknesses?
What opportunities are there to grow the business - new products, new markets or new forms of distribution? The threats to your business need to be identified and where possible eliminated. Many businesses are now paying the price of carrying too much debt into a downward economic cycle. What actions are you taking to 'recession' proof your business. Now is the time to start taking action.
Once you have completed your SWOT Analysis you don't need to write a lengthy business plan. Decide on the actions that you need to take - compile a list and with your staff decide on priorities and set deadlines. Many owners feel out of control when the economy starts to turn against their business - a SWOT Analysis is a useful tool to kick-start your business.
I have developed a FORMIDABLE SWOT Analysis guide for small business that you can get right now at my website www.swotanalysis.com.au for just AU$6.95.
Mark Laing - Business Coach
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