Understanding the Strengths, Weaknesses, Opportunities and Threats of your business idea is a great place to start. If done honestly and with thought, it will help you see where you are going and what you have to work with.
So, let’s put your idea under the microscope.
Your SWOT
You have probably heard of a SWOT before. It stands for Strengths, Weaknesses, Opportunities and Threats.
We always encourage you to do a SWOT on your competitors but doing a SWOT on your business idea– especially if done honestly– can help you see your idea clearly and have a better idea of its potential.
Click here to find a worksheet to help you identify the Strengths, Weaknesses, Opportunities and Threats of your idea.
Let’s look at them to get you thinking about your idea.
Strengths
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- What do you do better than most? What are people always asking you for or about?
- What are your unique capabilities?
- Your skills?
- Your experience?
- Are your finances stable?
- Your Unique Selling Position? What would compel someone to want to do business with you?
- Do you have knowledge across multiple areas? Most entrepreneurs must be able to manage many areas in their business.
Weaknesses
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- What do your competitors do better than you?
- What do YOU perceive as your weaknesses? Sometimes these are real and sometimes they are imagined. Either way, it is a mindset thing that you need to acknowledge.
- What are things you should improve or avoid?
- Are there any gaps in your skills or experience? If so, how will you compensate for that?
- Financial instability? If your finances are unstable, this could cause you some problems that could derail you before you get started.
- Your reputation- is it a good one or bad one? A bad reputation can cause problems in being able to develop trust with your audience.
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Opportunities
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- Are there market developments out there for your idea? These are things that could be in the works that would present important opportunities for your business.
- Competitors vulnerabilities. What do you know about the vulnerabilities of your competitors that could present opportunities for your business?
- New markets to tap into. Have you identified potential new markets that might have been overlooked by others and that you could tap into?
- Do you have contacts and partnerships that others don’t? These could set you up for greater success if they are ones that could help your business.
- Technology and innovation. Are you ahead of the game when it comes to technology and innovation? This is something that can often help a small business excel and stand out from their competition.
- Niche target markets. Have you identified some niche markets that you could capture for added revenue and future growth?
- Do you have connections in your industry that could provide valuable support as you start and grow your business?
Threats
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- What do you know about your competitors’ future plans? Could these represent a threat to you?
- Is the market demand shifting or diminishing? Things change so you want to understand your market to make sure it is not starting to shift or be eliminated.
- Are there any insurmountable weaknesses you just can’t seem to overcome? If so, what could their impact be on you and your business?
- Political and environmental threats that could possibly impact your business should be taken into consideration before starting.
- Have you confirmed the availability of key staff to make your business successful? You want to make sure the labor force you will need is there.
- Seasonality of your concept. Is there a seasonality to what you want to do? Will that hinder your success if it is too short lived?
- Are you missing vital contacts to help you in your business?
- Are your finances volatile? If so, what can you do to fix that? Can it be fixed?
Taking the time to put your idea under the microscope in each of these areas can make a huge difference in the success of your business.
If you would like help with this activity, let us know.
Email us at rhondaloweconsulting@gmail.com
