Matswapati October 5, 2020 Strategic Planning
A successful business is always started with a good foundation of business planning and strategy. Every businessman will try to create the best formulation of how their business will run. If you happen to have a business or interested in starting one, you need to set up a strategy for you and your business.
One of the popular methods in business planning is the SWOT analysis. SWOT, an abbreviation for strengths, weaknesses, opportunities, and threats, analysis will give you an insight on how your business really is. It lists all the internal and external factors that will affect your business now or in the future. This will help you achieve the first purpose of strategic planning which is to clarify your vision about your business. Without further ado, here is the explanation of how you can use a SWOT analysis.
Strength is an internal factor that will be the most visible for you as the business owner. Everybody has a high pride over their business. Some maybe even a little overboard. When listing your business strengths, make sure to only include what your business has right now. It can be uniqueness, originality, quality, or anything that you believe is the strength factor of your business.
Weakness is an internal factor that is hard to admit. But, in business, you have to stay objective. Acknowledging the weakness of your business is important in making business planning and strategy. Weaknesses can be your lack of experience, lack of capital, or anything else.
Opportunity is an external factor that you or the market expect will happen to the business. For example, if you have a laundry business, your opportunity is how you can attract some specific customers, such as college students or small families. By recognizing that, you can make a more focus plan for your business to help it develop in the future.
Threat is an external factor that can bring harm to your business. Some examples of threats are competitors, economic recession, and many others. Acknowledging threats is an important step for your business. You can create a plan to face the threat before it happens to your business. With more preparation, your business can turn the threat into something that can make your business stand out more.
SWOT analysis is a beautiful method that can be used for any kind of business. As the business owner, it is important for you to understand and implement the SWOT analysis method. This method surely will help you in making business planning and strategy easier.
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