Using A SWOT Analysis Is A Smart Way To Start A Business Venture
What is a SWOT? It is a strategic planning method used to evaluate the Strengths,Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.
Setting the objective should be done after the SWOT analysis is complete. This would allow achievable goals or aims to be set for the organization. SWOT analysis filled out in 4 parts.
1. Strengths: characteristics of the business, or project team that give it an advantage over others
2. Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others
3. Opportunities: external chances to improve performance (e.g. make greater profits) in the environment
4. Threats: external elements in the environment that could cause trouble for the business or project
The use of a SWOT is essential because the steps, resources in planning for achievement of the selected goal will be derived from the careful brainstorming it takes to fill out a SWOT. Ideas come around all the time. Many business ventures would be more confident with the knowledge of a what they should do to start their business in the right direction. A SWOT can save a business much money and time and should not be over looked. The details only take a small amount of time to fill in. Here is an example of A SWOT Analysis:
-There are no other businesses that I’ve found that are doing this time of business idea.
-This business will create bonds that will build my business loyalty with the community and it will also create a positive interaction.
-This is the first business with this business focus.
-People tell me about their interests in a business like this one so it must be needed.
-Open later than most creative recreation centers/ hobby shops.
-No business plan as of yet.
-Not sure of who my competition is.
-The business idea is in the beginning stages.
-There isn’t an existing business to learn from or from statistics from.
-Trying to do too much, not properly delegating.
-The economy is challenged and the public doesn’t have many outlets business wise to turn to for support of their creative efforts that people are getting more into as a result of their money shrinking.
-People are looking to save money and that means they’ll be supporting independent made products and small businesses to support or they’ll need a place to come to create their own products.
-I don’t have a clear picture of what the day to day will look like within this business.
-I haven’t seen this type of business done before.
-Large businesses that are well established like, general recreation centers, hobby or crafting shops.
-My business is still in the planning stages.
I enjoyed filling one of these out. Do your business a favor and do one! You will be glad you did.