What is a SWOT Analysis
A SWOT analysis is a framework used to identify and understand your strengths, weaknesses, opportunities, and threats. These four factors play a critical role in assessing the overall health of your business, and they can be used to strategically plan for the future of your business.
Strengths and weaknesses are internal factors that you can influence. For example, a strength might be a strong brand image, a loyal customer base, or a unique process. A weakness could be slow inventory turnover or a lack of access to capital.
Opportunities and threats are external factors that can influence you, but that you can leverage, manage, or protect yourself from if you are aware of them. For example, an opportunity might be a potential brand collaboration with a related or partner business. A threat could be supply chain issues or strict government regulations.
How to Complete a Business SWOT Analysis
Completing a SWOT analysis for your business will help you:
- Assess how your business compares to competition
- Identify things that can be improved through strategic planning
- Analyze your strengths and how to capitalize on them
- Understand internal and external factors that can affect your business
- Be proactive in improving overall business performance
To complete a SWOT analysis, follow these steps:
- Identify key leaders and stakeholders that should be involved in the process
- Identify key strengths and weaknesses
- Identify key opportunities and threats
- Take action based on the results of your analysis
When preparing your SWOT analysis, ask questions like:
- What do you do well?
- What do you do better than your competitors?
- What can you improve?
- Can you do more for your existing customers?
- What skills or resources are you lacking?
- Is your target audience shrinking?
What are Strategic Goals?
With your SWOT analysis completed, you can use the insights you’ve generated to complete strategic goals. Strategic business goals are long-term objectives that focus on the big picture of what you’d like to accomplish. Strategic goals should be SMART – specific, measurable, achievable, relevant, and time-bound.
Why are Strategic Goals Important?
Strategic goals are incredibly important in helping you achieve success in your business. When done effectively, they help you define your priorities, guide your team, measure your success, and ensure your business is on the right path forward.
How to Set Strategic Business Goals
In order to set effective business goals, focus on the big picture and long-term first. What do you want to achieve three to five years from now? From there, you can determine milestones or short-term goals that you can accomplish within one to two years and that contribute to your progress towards your long-term goals.
Segment your goals even further by breaking them down based on a specific division of your business or the specific people who will be responsible for and accountable to achieving them.
With your strategic goals in place, the next step is to consider what is required to achieve your short and long-term goals. Consider the resources you have available and the resources you will need to acquire.
SWOT Analysis and Strategic Goal Setting Support for Business Owners
KWB Accountants & Advisors specializes in working with business owners to provide you with the support and services that will help you create the business and lifestyle of your dreams.
To begin simplifying your accounting, improving your profit, and achieving your goals, book an introductory meeting to discuss how KWB Accountants and Advisors can support you here.
You can also watch our webinar on how to complete a SWOT Analysis and Strategic Business Goal Setting here!
