This is Part 2 of our focus on STRATEGY.  (to see part 1, click here)

This week’s challenge is an oldie but a goodie.  When is the last time you did a SWOT analysis for your company?  You may think a SWOT is something that consultants and advisors only use but in reality a SWOT analysis can be a secret weapon for your business that allows you to to evaluate your strengths and weaknesses (internal issues) as well as identify and act on opportunities and potential threats (external issues).

To develop your own SWOT analysis, consider each section with a certain degree of realism and be specific. Avoid the standard line, “we are great at everything & have no competitors”. Your customers will know you in the marketplace for certain attributes or things that make them say, “WOW”. Don’t forget the complaints of late shipments or customer issues. To effectively complete a SWOT for your organization, look at the following examples:

Strengths – Consider your strengths relative to your competitors and from your customers’ perspective.  Anything a customer wants that you provide and your competitor doesn’t, can be a possible strength.

Weaknesses – It is far easier writing down your corporate strengths than weaknesses. Think of objections your customers raise during the sales process. Think of your competitors’ remarks. Is there any truth to what they say?

Opportunities – What can your business learn and take advantage of that enable you to become more profitable?  Opportunities may arise from market, competition, industry/government and technology.

Threats – Your business is influenced by the external environment, such as: legal, political, technological, and cultural factors. Consider what can make your business obsolete, and what will replace it. Threats can become opportunities or vice versa.

The SWOT analysis is a quick and simple tool to understand the overall big picture. It is the starting point of strategic planning.

The most important take-away from this exercise is to apply this knowledge to your business. Take all necessary actions to reduce the threats to your company and position yourself to take advantage of the opportunities.

Get this on your calendar to discuss and complete this week with your team!  Don’t let the issues of today limit the success of your business for tomorrow. Learn how to apply a SWOT analysis to your business and position yourself ahead of competitors.

Sincerely,

Bruce Rector

The Rector Group

Tel: 954-356-0439

brector@therectorgroup.com

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