One of the most essential things you can do before you start planning and business is complete a SWOT analysis of your idea.
A SWOT analysis will allow you to look at your business idea from an objective point of view, and plan ahead for the future with all of the details in mind.
S – Strengths
W – Weaknesses
O – Opportunities
T – Threats
It can be tricky to create a SWOT sheet without having something to help; grab a swot analysis template to help you.
Let’s get started.
Objectives
Like everything in your business, you need to ask yourself why you are doing something. What is the purpose? In this case, what is the SWOT analysis going to give you?
A SWOT of business ideas is typically going to stop the idea in its tracks or offer you a way to overcome the threats and weaknesses.
Decide what the objective is and use that as the driving force for what you do.
Market
Part of your SWOT for a business idea should include some deep-dive research on the market that you want to get into.
Typically this is done ahead of the SWOT, but it can be done alongside it if you haven’t completed it already.
The market research will cover:
- Competition
- Customers
- Environment
- Market size
- Business regulations
And everything else that you need to know before producing a product or service.
Strengths
What is it that makes your business likely to be a success? Do you have education and experience in the industry that your business idea is based in? Have you got access to unique products?
Perhaps there are no other sellers in the local area.
Highlight everything that would aid your company in success.
Weaknesses
Make a list of the items in your business that you regard to be flawed, anything that could put your business at a disadvantage.
A lack of new goods or clients, employee absenteeism, a lack of intellectual property, diminishing market share, and a long-distance to market are all potential weaknesses.
Weakness can also be the business owner lacking the right background, training, or experience to navigate the market.
Opportunities
Your strengths and your opportunities aren’t the same, and it is a mistake many people make. New technologies, training programs, collaborations, a diversified marketplace, and a change of leadership are all possibilities.
It can also be that the local government is funneling into businesses that are the same as your business idea.
Threats
Threats aren’t the same as weaknesses. Weaknesses are internal factors, but threats are external factors. Threats could be a shift in the job market, lack of funding for your industry, an increase in competition.
Once you have looked at your SWOT in detail, you can then begin to piece together a plan of action that will specifically target your threats and weaknesses.
Perhaps you are in the even earlier stages and still considering how your future looks and the type of business that you want to open: Businesses You Can Start At Home.
