The value of a SWOT analysis for your Mornington business

Is it possible to check up the condition of your business’ health? It definitely is. With a SWOT analysis, you can now assess the state of your business and identify the things that may affect it adversely in the future. For the uninitiated ones, SWOT stands for Strengths, Weaknesses, Opportunities, and Threats and a SWOT analysis is a written exercise of sorts that helps you clarify and focus on these areas. It’s best to perform a SWOT analysis when you are doing strategic planning, contemplating a change in direction or formulating new strategies for distribution, marketing and sales.

If you’re wondering whether your business needs a SWOT analysis or not, it definitely does. Now you don’t have to worry if you don’t have the budget to hire a consultant to perform a SWOT analysis like those larger corporations out there do. The thing is, whether you should hire a consultant to perform a SWOT analysis or not depends on the size of your company, how in-depth the SWOT Analysis needs to be; and how much of your investor’s money you’d like to spend. So, if your business is a small one and doesn’t need much of an in-depth analysis, you can perform a SWOT analysis even with a pencil and a piece of paper. Just make sure you involve all the key players in your business (management, employees, your attorney, and accountant) to ensure that you don’t miss something important.

So here’s how you can perform a SWOT analysis with just a pencil and a piece of paper. First, take the piece of paper we’re talking about, and divide it into four quadrants by drawing a vertical line down the center and a horizontal line through the center of the page. Separate the first quadrant (upper left) for the Strengths, use the second for “Weaknesses”. Drop down to the second tier and label the first quadrant (lower left) “Opportunities” and the remaining quadrant “Threats”. With a separate quadrant for each factor, list the strengths, weaknesses, opportunities and threats in their respective quadrants. Your strength can be things like a product or service that sells well; an established customer base; a good reputation in the marketplace; a good track history; a high traffic location, and the likes. Employee problems; lack of marketing and sales expertise; lack of capital; bad location; poor management and so on are your weaknesses. Likewise, things like new markets, possible mergers and acquisitions go to the “Opportunities” category and changing marketplace conditions; rising company debt; cash flow problems; and a strong competitor entering your market belong to “Threats”.

Once you’ve listed them all in, use the information you have obtained in the best way possible. That is, when you’re planning a strategy, use the information to get closer to the opportunities and stay as far away from the threats as possible. And remember to keep it simple and to the point. Another important thing to keep in mind is that a SWOT analysis is just an analysis tool, not a magic bullet. This means you shouldn’t take the results as gospel.

Agile IT specializes in providing the right IT support for your Mornington Peninsula business.  IT can play a crucial role in your SWOT analysis.  Contact us today and have our team of Mornington IT professionals help you with your business SWOT analysis.

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