2022-23 Work From Home Deductions - What You Need to Know

SWOT analysis has been studied, re-studied, and expanded at length, and can be enlightening in assessing your organisation’s current health and position.

SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) helps you to identify and categorise both internal attributes (strengths and weaknesses) as well as external factors (opportunities and threats) that have an impact on your business.

When you can identify all of these factors, you can use leverage your assets and opportunities and avoid problems presented by your weaknesses and threats. Here we go:

 

Strengths

This is the easy part. It’s satisfying to think about all the things your organisation does well, but take a step back and really analyse the situation. Be realistic in your analysis and get an outside point of view if at all possible. Ask yourself the following questions: 

• What does our business do well?
• What advantages do we have in our market or industry?
• What resources and connections do we have access to?
• How are our strengths perceived by customers, vendors, and competitors?
• Which of our products and services are selling best?

As you answer these questions, think about how your organisation compares to your competitors. If all of your competitors offer products of the same high quality, then high quality isn’t really a strength. Look for the strengths that give your business a unique position and edge.

 

Weaknesses

Don’t get down on yourself; every business has weaknesses. Try to see your weaknesses as areas for improvement. If you didn’t have any weaknesses, you’d have no room for growth or improvement. Answer these questions:

• What areas do we know need improvement?
• What problems consistently halt our progress?
• Which departments seem to struggle?
• What do we do poorly?
• Which relationships need improvement?

You’ll find that instead of feeling discouraged after this exercise, you feel motivated to conquer your organisation’s weaknesses. Understanding your weak points can help you to find solutions.

 

Opportunities

As you think about your organisation’s opportunities, read through your answers to the “Strengths” and “Weaknesses” questions. These answers should help you to see where your opportunities lie.

For example, as you listed your resources and connections, maybe you thought of resources and connections you would like to have. As you thought about your departments that struggle, maybe you got ideas about ways you could improve them.

 

Threats

Threats are the things you worry about: the competition, unknown factors in the economy, changes in rules and regulations, technological changes, cash flow problems, etc. In most cases, naming the threats can help you to worry less. When you know your specific threats, you can take pro-active measures to reduce the threats and take control. 

• What obstacles are we facing to our continued health and growth?
• Are changes in technology threatening our position?
• How is the competition doing?
• How much debt do we have?
• Are we consistently running into cash flow problems?

You may be surprised how illuminating SWOT analysis can be. What felt like huge threats can suddenly seem like opportunities. You can focus on the issues that may cause instability while taking advantage of the resources and strengths you already have.

That’s our 10-minute SWOT guide for you. Even if you use these quick questions to nail down your strengths, weaknesses, opportunities, and threats, you will get illuminating answers to the issues that have concerned you.  The analysis is also a powerful tool for inclusion in your overall business plan.