Mark E. Buckley

SWOT Analysis

When deciding to start a business you should conduct a SWOT analysis. This could even be done after you have been in business for a little while.

Sometimes this SWOT analysis is incorporated into a larger Business Plan. Of course this can be done separately to help you make decisions about whether to go into business and how to operate your business

SWOT refers to Strengths, Weaknesses, Opportunities, and Threats. It is nothing more complicated that a list of plusses and minuses about you, your business, and the market place.

You can create this document yourself, or you can bring in someone else to facilitate the process. With any create process like this, the folks brain storming the ideas should not be saddled with keeping notes. The act of note taking actually inhibits the right brain necessary for this exercise.

Strengths

List every positive you personally have. List every positive your business has. Think of all your skills, experience, and education. Also list any positive personality characteristics, e.g. outgoing, analytic, creative, organized, hard working, etc.

Weaknesses

Now list every negative about yourself and the business. Be honest. If you are an organized and detailed person, chances are you do not have some the gregarious, salesy skills. If you are outgoing and friendly, you might have trouble with being organized and managing your time. If you are steady and diligent, you might be indecisive. If you are decisive and assertive, you might not be empathic at all times.

Opportunities

Now think about the market place in general and how your product or service fits into the market place. Do you see positive trends about the demand for your product? Are there few competitors in your area? Do you see a contined growth in the demand for your product? Are pricing levels high?

Threats

Now think of challenges in the marketplace. Is the level of business activity driven by interest rates, lack of competition, trends, or fads? If any of these factors changed how would it impair your business planning?

Strategy

Now that you have conducted this self audit, you can make informed decisions. You may decide to not go into business, to go into business but seek out a partners, to delay going into business, or to diversify into other business activities. An important revelation will be that you are not great at everything. What aspects of your business will you need to delegate to employees or outside contractors? Do you need assistance from an accountant to organize your finances? Do you need marketing assistance to help grow your business?