SWOT Your Business!

One of the steps in writing the traditional business plan is the SWOT analysis. Taught as a part of many business course, the SWOT analysis is a great tool to begin exploring the viability of your business idea. SWOT stands for :

S-Strength

This refers to the advantages you will potentially have internally within your organization. This is the time to figure out if you perhaps known a genius that will give you technological leverage over competitor. Or do you have the ultimate networker in your family that can introduce you to people? Or are you a persuasive genius that is the next big thing?

W-Weakness

This refers to the internal letdowns within your organization. Are you going to be operating on a meager capital base? Are you lacking essential technology that may make your product more expensive? These are things that are challenges that may wreck your business development.

O-Opportunity

What chances exactly is the market presenting to you? Is there a gap in the market for a personal grocery shopper?  Is Alaba market so crowded that customers will pay a premium to get the same products in a stress-free environment? This is the point to examine if you will have a target market for your product or service.

Threat

Are there tailors on every corner waiting to reproduce your design? Is there a “blockade” at customs to the importation of your essential ingredients? How would you process payments for your e-commerce transactions? These are the systemic challenges to your business. In Nigeria, the list can be endless.

The SWOT analysis gives you a quick overview of your business idea. A SWOT analysis where the negative outweighs the positive is not any reason to think your idea is invalid. It is rather a chance to pause and refine your idea. You begin to look at the minutiae of your business and fiddle about. Before you know it, you will recognize a way to flip the negative into positive and protect your business.

By the way, even for established businesses, a SWOT analysis can help the business owner to recognize future potentials and pitfalls. The SWOT analysis can be a great way to adjust your business.