If you don't have the time (or very possibly the inclination) to read this blog, click on the red arrow below to listen to Julie reading it.
In my last post, SWOT your business, I talked about the value of doing a SWOT analysis on your business. But even that SWOT analysis is not really enough to develop your business and take it forward. Many SWOTs remain unused, and lie unloved at the back of a desk drawer, or on a dusty shelf somewhere, because people do not convert them into commitments to particular actions.
Enter the (equally-dull-sounding-but-oh-so-useful) SWOT extension.
The SWOT extension can force you to focus on how best to use the strengths of the business, which weaknesses need most urgent attention, which opportunities deserve the most resources, and how you can avoid or plan for threats that materialise (there is a free downloadable pdf of this form, for you to complete, save and return to when you choose. It includes a full-size version of the examples shown below, to save you having to peer at the text!)
(Why not download it now and let me talk you through it by clicking on the audio button at the top of this page?)
OK. Let's look first at your strengths. From your SWOT, list each strength in turn, and then ask yourself, 'Is it marketable?', 'Is it unique?'. If you can answer 'yes' to those questions, then ask yourself what action you can take and where best to use that strength. Here's an example of a completed form:
Next, turn to your weaknesses. Taking each one in turn, rank it 0 (low) to 5 (high) under the heading, Priority. Think about them in terms of Seriousness (the effect on customer service), Urgency (the effect on the needs of your business plan, and Growth (its tendency to worsen). Here's an example:
Next, turn to your opportunities. Do you have the resources currently to exploit the opportunities that you've identified? If you do, then list the actions you could take to make the most of the opportunity. If you do not have the resources yet, but will have them in the future, put a note in your diary to remind yourself to do something about the opportunity you've spotted. Don't let it slip by! Here's an example:
Finally, those pesky threats. This time, ask yourself, 'What could go wrong?', 'How can I avoid it? (if it's possible to avoid it) and 'What can I do if this happens? Your completed sheet will look something like this:
Now, I know, from painful first-hand experience, that not every looming threat can be listed in a SWOT analysis. One of my business ventures was all-but-destroyed in the market aftershocks of the World Trade Centre attack. No-one in their right mind would have listed 'Possible terrorist attack in America' on the SWOT analysis of a business owner in the south of England ... but that said, a SWOT is still useful because it gets you and your team thinking about the future and how you will tackle the good and bad things which most definitely will happen to you. It's just a matter of time and forewarned is forearmed.
A SWOT keeps you on your toes. Just where every good business owner should be.
