SWOT Analysis- To Make Your Business More Profitable
SWOT Analysis is a well-known method for describing a business or business propositions in terms of those factors that can have the maximum impact. The business owner does this analysis in order to improve the current position of the business. The Strengths and Weaknesses of the business are considered to be the internal aspects of a business, such as the quality of the product or the managerial skills. Whereas the Opportunities and Threats are the external factors, like the development of a completely new market or the arrival of new competitors.
The strengths and weaknesses of a business can be found in the following:
. Management sector: The over dependence of an employee on a manager or an owner is one of the major weaknesses in a business that often leads to the requirement of more managers. This area needs to be worked upon in order to reduce the expense of the organization and to improve the business.
. The work force: The difficulty in finding skilled staff as well as the employee turnover has to be handled efficiently to help a business grow successfully.
. Sales: The strength of sales, how dependent your sales are on external factors, and cyclical sales are some of the factors that affect the business.
. Financial: The factors affecting the financial condition of your business determine its strengths and weaknesses. The major aspects related to finance are the flow of cash, time to collect on invoices, and the ease of obtaining loans.
. Operations: Strengths and weaknesses are also determined by the internal efficiency as well as the speed of manufacture and delivery of goods.
Opportunities and threats are found in the following categories:
. Threats posed by the new rivals in the market: A new entrant in the market, selling a similar product or service, is considered to be one of the greatest threats, as you might not have a patent that could put a brake on new competitors.
. Bargaining power of suppliers: Suppliers can pose a major threat for the business as they might force you to take large deliveries. Many times they are also difficult to find, or the supply may not be available.
. Customer influence: There are some businesses that rely on a handful of customers, which include a lot of late payers. In addition, many customers bargain for lower prices. In such cases, the business tends to either face the threat of loss of customers or of being unprofitable.
. Substitution: People often get bored using a particular brand of product and tend to opt for a change. The market usually has a number of similar products of similar quality. So the major threat is that people might try a product other than yours, and eventually end up substituting your product with it.
You can use two methods to grade these strengths, weaknesses, opportunities or threats, namely, pictorial and numerical.
If you opt for the pictorial way, you need to first create four sectors on a writing pad, putting the titles Strengths, Weaknesses, Opportunities and Threats in each sector, and a large question mark in the center. Now place each of the SWOTs in each sector, with the most problematic factors being farthest away from the question mark, and the better factors closer to it. The closer the display is bunched towards the center of the grid, the better the shape of your business.
However, if you pick the numerical method of assessment, you need to rate each item from 1 to 5 according to how important each is to your business. In this rating, 5 is considered to be the most important. Besides, each factor should also be rated from A to E according to its impact on the business, where E would indicate the highest impact. Then, check how many Es and 5s you end up with. If there are bad factors then you need to change or work on them. And, if there are strengths and opportunities, then it is important to build upon those factors. This would help to boost your business.
Related Tags: business consulting, business consultant
Business Consultant helps entrepreneurs squeeze mega-profits in record time by working less? We have proof of this Business Consulting achievement. Discover how by visiting: http://www.businesscoach.com/go/bc/business-consulting/index.cfm.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- 5 Reasons That a Restaurant Should Use a Restaurant Recruiter
Have you ever noticed how many restaurants pop-up over time but then disappear just as quickly? Runn - Does Money Motivate?
Some say money can't buy happiness, but data shows that for those who can barely pay the monthly bil - Because Workforce Friendly Policies Payoff
Employer-sponsored wellness programs are becoming more popular as companies strive to maintain a hea - EAP Value
Life would be simpler if we could set aside our personal issues and emotional baggage when the workd - Hiring an Expert SEO Company to Improve Your Online Business
Search Engine Optimization or SEO Services are used to make your website or online business popular - Why Safety Training at Workplace is Important
Safety training at workplace should be one of the top priorities of your business. An effective safe - Team Building: Brain and Sweat to Attain Company's Central Goal
Are you one of those employees branded ineffective and unproductive? Reasons might be the sense of d - Security Alarm System
It is a must that houses and offices install a security alarm when we speak about safety reasons. Se - Workplace Safety Tips
When we speak of safety based on books, its importance is next to food. It is essential to all indiv - The Benefits Of Lease-to-own Properties
One of the hit real estate investments today is to buy properties that will later be put up as "leas
Most viewed articles in this category:
- A Map Mural for Your Business
Yay! That retail store you've been planning has finally opened its doors and you are officially in b - Attracting Customers Through An Improved Shopping Experience
So many new shopping malls and supermarkets are put up every year. Many more are already in business - "To Oz!": Leading a Resilient-High Achievement Organization
One of my favorite movies is "The Wizard of Oz" based on the book by Frank Baum. The story is about - 5 Critical Items Never to be Included in Cost Benefit Analysis
When dealing with decisions using Cost Benefit Analysis techniques it is very important to follow th - Collaboration and Change
I’m an expert on change and leadership, but my most popular speaking topic this past year, and - Workplace Gap
In your workplace, are you a manager with a smart group of people and they aren't responsive to your - Leadership - The Proper Relationship with Subordinates
In the army, "the men" are kept separated from those known as "the officers." This comes from the id - The 10 Most Asked Questions of Cost Benefit Analysis
When dealing with decisions using Cost Benefit techniques it is very important to follow the proven - Cubicle Space Planning
Space planning is an essential element of any project and efficient planning serves the dual purpose - Why Passenger Surveys are a Transport Operators Best Friend
Public transport operators who already use passenger surveys may not fully appreciate the multiple b