What is a SWOT analysis in Business?
A SWOT analysis is a useful way to understand and evaluate one’s strengths, weaknesses, opportunities and threats when faced with a decision. What makes a SWOT particularly powerful is that with a little thought, it can help you uncover opportunities that you are well-placed to take advantage of. By understanding the strengths and weaknesses of yourself, or your business, you can then manage and eliminate any threats that may present. What do find out more information on how to complete SWOT analysis for your online business view details of our diploma of Business courses by clicking here for more information or have a look at the diploma of management course information here. If you are not ready to study at the Diploma level you court start by enrolling in a certificate IV level course such as the Certificate IV in Business administration. This qualification will give you the foundation you need to have a better understanding of business administration tasks.
How do I do a SWOT analysis for a small business?
First thought of by Albert Humphrey in the 60s, the SWOT analysis is a very powerful tool to help you understand your strengths and weaknesses, or your business’ strengths and weaknesses.
It is important to ask the hard questions, no matter how uncomfortable or confronting it might be. The characteristics of a successful business remain the same regardless if you remain the same regardless if you are trying to change the world with driverless technology or you have a small business at the local business district.
Here are some examples of questions you can ask to help you complete a SWOT analysis.
- What advantages does your business have?
- What do you do better than anyone else?
- What unique resources can you draw upon that others cannot?
- What do people see as your strengths?
- What is your organisation’s unique selling proposition?
- What are the benefits of this strategy or this plan?
- Why would a client choose you over your competitors?
- What could you improve on?
- What should you avoid?
- What are people in your market or your customers likely see as your weakness(es)?
- What factors cause you to lose sales?
- What factors cause you to lose customers?
- What opportunities can you spot?
- What areas of the market is unserviced or under-serviced?
- How can you help fix a problem the market/industry / a client has?
- What changes are there in technology?
- What local events are there that you might be able to present at?
- What obstacles do you face?
- What are your competitors doing?
- Are there any quality standards or specifications for your job, products or services?
- Are there any changes occurring within your industry – legislative or technological advancements or consumer sentiment?
- Do you have any bad debt or cash-flow problems?
- Could any of your weaknesses seriously threaten you or your business?
A business example of a SWOT analysis
- Qualified workers
- Constantly meet regulatory requirements without any haste
- Able to respond very quickly
- Can change direction very quickly
- Low overheads
- Avoid negative conversations in the workplace
- Has little to no market presence
- No funds for marketing
- Vulnerable to vital staff being sick or leaving the organisation
- understanding of Budgets and industry
- More technically capable and cheaper software out on the market
- Local government wants to encourage small businesses
- Competitors slow to adopt new technologies
- Industry expanding with customers now more educated on their options
- Workforce requirements
- Favouritism for staff with a particular manager
- A small change in the focus of a large competitor might wipe out any market position the business has
- The downturn in the market
- Burnout from over working