Do you know where you stand in the market? It might be time to take stock. To find out what sets you apart from your competitors or what changes you might need to make to improve profitability.
You can do this by making a SWOT analysis. What are your business’s Strengths, Weaknesses, Opportunities and Threats? It’s like taking a snapshot of where your business is right now and then actioning the results.
With a SWOT analysis you can analyse all aspects of your business and, if done honestly, will greatly assist you to set your business priorities.
Strengths – these are what you need to capitalise on and take advantage of. Ask yourself what your business does really well? What makes it great or different?
Weaknesses – these are what you need to analyse to determine where improvements can be made. Ask yourself why your products or services are not in high demand? What could you do better?
Opportunities – these need to be discussed no matter how optimistic, as you may be able to develop a strategy to take advantage of them. Ask yourself what has changed in the market that you could invest in or take advantage of? Is there a gap in the market that isn’t being filled?
Threats – these need to be discussed so you can develop strategies to overcome or avoid them. Ask yourself what has changed in the market that you need to plan for or mitigate? What issues are likely to happen in the future that you need to plan for?
It would be worth discussing the SWOT analysis with your accountant both before and after you list the issues. They could send you a checklist of items relevant to each heading to ensure you don’t overlook some of the important issues. If required, they could also help you analyse the results and work out the strategies needed to move your business forward.
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