30 Minute Business Analysis SWOT

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 second 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.


SWOT

Whereas the STEEP model looks at the industry as a whole, SWOT concentrates on your particular business. The acronym stands for Strengths, Weaknesses, Opportunities and Threats. Generally speaking, the first two are internal factors, and the last two external ones; those on the right of the template are positive factors, those on the left, negative.

As above, the following diagram suggests some of the issues that may be significant, but as this is a personal analysis, only you will be able to specify the details. For the results to be meaningful, you have to be brutally honest about your business – remember that no one else needs to read it!

	Potential Issues
Strengths	Strong market position; niche market; successful advertising campaign; effective management procedures; regular financial monitoring; well trained staff; location of premises; good market research; suitable pricing policy; reliable suppliers
Weaknesses	Accounts not up to date; cash flow problems; over/under pricing; not enough customers; business is seasonal; skills shortage; lack of adequate publicity; publicity not reaching right clients; poor market information; working too many hours
Opportunities	New funding streams; new clients; market expansion; free business support; free training; Internet marketing and sales; attending exhibitions; networking
Threats	Strong competitors with lower prices; general economic decline means clients reprioritise leisure spending; new competitor in market; product/service no longer ‘trendy’; new legislation will require investment

Using the template below, do your SWOT analysis by writing a comment about each relevant issue, thus identifying the key points and summarising the current status of your business.


Action Plan

Next, using each of the relevant issues you have identified, draw up an action plan, listing what you can do to:

• Reduce or eliminate weaknesses, making some into strengths
• Build on your strong points
• Forestall avoidable threats
• Take advantage of the opportunities arising

Prioritise the tasks you have set for yourself, set a time schedule, and start putting your plan into action!

Remember that a quick SWOT analysis can help you to focus your thoughts. It need not only be applied to your business as a whole, but maybe one aspect of it (eg. marketing); buying a new IT system or piece of equipment, relocating or even your own negotiating skills.


SWOT Template

STRENGTHS	WEAKNESSES
OPPORTUNITIES	THREATS