Whether you have an established small business or are still in the planning phases, you may feel a little daunted by strategic analysis. Even the term is intimidating! However, strategic analysis is actually a simple, concrete way of evaluating your small business and identifying future challenges. Whatever the type of brand and company you own, it is important to think ahead and to be realistic about future challenges. Strategic analysis can help you accomplish this in just a few simple steps.
Look Within: Strengths and Weaknesses
The first step to evaluating your company is to identify what strengths and weaknesses you have within your structure and your brand. What kinds of traits are going to be an advantage over the next months and years? What weaknesses could pose a challenge? In many cases, finding this information can be as simple as looking at customer feedback. If you hear a certain complaint or compliment often, this is likely a strength or weakness to be considered.
If you are having trouble seeing your business objectively, try looking at your competitors. Often, you can see their strengths and weaknesses more clearly. It is easy then to see what makes your company unique. One common weakness is an unprofessional logo design or a lack of a cohesive company brand.
Once you have identified your strengths and weaknesses, you can plan for success. Build on your strengths and find ways to make them core elements of your brand. Deal with your weaknesses and ensure that they don’t have a negative impact on your future.
Identify External Factors: Opportunities and Threats
Once you have looked at factors within your company, both positive and negative, it is time to look outside yourself. This can be much more challenging, but again it is necessary. What potential opportunities will be presenting themselves in the next months? Will you have an opportunity to expand? Is a new and untapped market building in your community? On the other side of the coin, look at threats to your business. Perhaps a new competitor is coming to town, or an aspect of your business has the potential to gain negative publicity. Identifying these threats before they actually affect your business will allow you to keep the damage to a minimum.
Again, having a strong brand is one of the best ways to deal with external factors such as competition. Act now to solidify your customer base and prepare for future competition.
There is a simple way to remember the steps of strategic analysis: Strengths, Weaknesses, Opportunities, and Threats, or SWOT. The strengths and weaknesses refer to internal factors, while opportunities and threats are the factors outside your business.
Many small businesses feel that planning ahead is less important than dealing with the present because you never know what will happen tomorrow. However, no one likes to be ‘tossed around on the wind’. You can’t predict the future, but you can act now to give your small business brand the best possible chance of success.
