In business it is essential to understand where your business stands. Business is a playground where it isn’t a given that everyone plays fair. Understanding the strengths and weaknesses of your business can give you an edge over your competitors, allowing you to increase market share and increased returns on investment.
An easy way to establish where your business stands is by using a SWOT Analysis. SWOT enables you to analyse your business within the four main aspects of business: Strengths, Weaknesses, Opportunities, Threats.
This is what your business does well. Highlight key performance markers demonstrating how your business performs well internally.
This is what your business, well, doesn’t do so well at, and needs improvement in. Highlight where your business has difficulty in efficiency or how something is pulling your business back.
What opportunities does your business have to expand into within its business environment. Capitalising on an opportunity can give your business an advantage over your competitors.
These are factors which can impact your business in a negative manner. For example, a law requiring stricter testing of products which will mean you can no longer sell until these tests are passed. Another threat could be a competitor gaining a competitive advantage over you.
SWOT in action:
Being able to formulate an organic strategy for your business can be a large factor in your long-term success. A SWOT analysis enables you to highlight where you excel, where you can improve, and how your business fits into the business environment.
Brainstorming using the SWOT framework is a powerful tool your business should use to gain that upper hand.