Running your own business while rewarding, is an extremely challenging endeavor. Most of the times, entrepreneurs have to deal even with the most minuscule aspect of their business such as customer service and staff scheduling. On a larger scale, business owners have to manage cash flow, staff issues, new technologies, as well as government interventions and new economic regulations. Because of these complexities, business owners tend to overwork, which ultimately result to stress and even depression.
However, when done right, owning a business can also give benefits that a 9-5 job will never be able to provide. When the aforementioned aspects are managed properly and effectively, it will give your more time for yourself and your family, more time and attention on activities that will grow your business, and ultimately financial success.
In order to help business owners like you avoid being overwhelmed by the challenges you face as an entrepreneur, we here at Business Coaches Sydney urge our clients and friends to go back to the very basics of management by implementing one of the tested strategy known in the business landscape – the Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis. This strategy allows you to be proactive – rather than a reactive business owner, who deals with challenges as they arise.
Implementing SWOT Analysis
SWOT analysis is a simple framework that will help you identify and address issues you are facing at your business. Here are the four sections of SWOT in detail along with few questions that can help you use this tool more effectively.
Strengths. This aspect not only refers to your personal strengths, but of your business as well, which includes financial resources, infrastructures and equipment, and competitive employees.
- What are your personal and business strengths?
- Which personal and company strengths you should pursue now?
- How can you use, maximize, and improve these strengths?
Weaknesses. This refers to the liabilities and weaknesses that you and your company have. While dealing with your weaknesses is important, it is better not to be consumed with them because it will only prolong your time on building your company’s strengths.
- What are your personal and business weaknesses and liabilities?
- How can you neutralize or outsource these weaknesses?
Opportunities. This refers to any external opportunities that are available to your business. From better economic growth, newly opened market, to improved tax system, you have to be aware of every opportunity that may arise so you can seize them before your competitors do.
- What revenue-generating opportunities you have right now?
- Which of these opportunities provides the maximum ROI?
- How can you effectively seize these opportunities?
Threats. Last but not the least, you must identify any threats or dangers that may stop you from growing your business or may bring your business to the brink of insolvency. After that, you have to put a strategy in place for determining how you can minimise or eliminate these threats.
- What are the greatest threat/dangers facing you and your business?
- How can you effectively minimise or eliminate these threats?
With SWOT analysis, you can easily identify which part of your business you are stuck into, allowing you to resolve problems much quicker. Having this simple framework at hand will help you focus on core areas of your business without getting overwhelmed!
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