30 Minute Business Analysis STEEP

We all know that sound business planning is vital, and that monitoring your business regularly is really important too. Instead of wading through tomes of theoretical texts, this is the first of three help sheets which aim to explain the rudiments of 3 fundamental business models. Using them will make it easier to pull your thoughts together. At the end of each article, there is a template to help you work through that model.

The models presented are:

1) STEEP (general awareness of the industry or service area you operate in)

2) SWOT (specific analysis of your own business)

3) The ANSOFF Matrix (exploring the possibilities for business development)

STEEP and SWOT are tools you should use at the business planning stage, and as part of your annual business review. It will take you about 30 minutes to complete each one.

The ANSOFF matrix will help once your business is established, and you’re deciding which direction to follow in the future. Once your mind is focused, it takes about 30 minutes to think through.

If it’s the first time you have come across these tools, and don’t find it easy to envisage the outcome, have a look at completed examples of all three models, focusing on an interior design business: STEEP, SWOT and ANSOFF.


STEEP

The STEEP model (which is an updated version of the original PEST model) encourages you to take a step back from your business, and look at the big picture. It’s a tool to help you think about the wider issues that have an impact on the industry or service area as a whole, taking five main categories into account. STEEP is an acronym for Socio-cultural, Technological, Economic, Environmental and Political factors.

The following diagram suggests some of the issues that might affect the industry you operate in. This list, however, is not exhaustive, and you’ll probably be able to add some extra topics in each category. Don’t worry too much about which category a topic fits into – the key point is that you’ve highlighted a factor to consider.

	Potential Topics
Socio-cultural	Target market: age range; income brackets; gender specific? cultural leanings? life-style and leisure patterns; changes in social trends; shopping trends
Technological	IT for business management (hardware and software); ICT for communicating with other businesses and clients; equipment and materials (quality, cost and new developments)
Economic	General economic trends; interest rates; tax and insurance; funding sources and requirements
Environmental	Sustainability; recycling; waste disposal; energy-efficiency; fuel
Political	EU and national legislation; local by-laws; trade unions; Health and Safety; Equality legislation; working with vulnerable people; party politics and potential elections

Using the template below, (not forgetting to add other relevant issues), write brief comments about the topics that affect your industry. Bear in mind that they may not all be applicable at the moment, but could be in the future, when you do your annual review. Once the STEEP analysis in complete, you will have a summary of the major factors in your industry or service sector, and therefore a greater understanding of both the scope of your business, and challenges that lie ahead.


STEEP Template

Socio-cultural	Age range
	Income brackets
	Gender?
	Ethnicity?
	Life-style
	Leisure
	Social trends
	Shopping trends
	Other
	Other
Technological	Hardware
	Software
	IT for management
	ICT for communication
	Equipment
	Materials
	New developments
	Other
	Other
Economic	General trends
	Interest rates
	Tax
	Insurances
	Funding sources
	Funding req’s
	Other
	Other
Environmental	Sustainability
	Recycling
	Waste disposal
	Energy-efficiency
	Fuel
	Other
	Other
Political	EU law
	National law
	Local by-laws
	Trade unions
	Health & Safety
	Equality
	Vulnerable people
	Party politics
	Other
	Other