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How SWOT Analysis Can Help Your Business Grow a Lot

How SWOT Analysis Can Help Your Business Grow a Lot

There are so many options when it comes to assessing the performance of your business that it can be hard to know which to choose. SWOT analysis is a popular tool that helps you to assess the strengths and weaknesses of your organisation, and identify the threats and opportunities that could affect your future. [1]

    Read on to find out how a SWOT analysis could help your business grow.

    Why SWOT analysis is so powerful

    SWOT analysis is so helpful as it combines both internal and external factors to paint a completely clear picture of where your business currently stands, and where it’s likely to be in the future.

      Other techniques might be great at helping you assess your own organisation, but could ignore serious threats from competitors. An analysis that’s too insular could also miss key opportunities for growth and development outside the business.

      On the other hand, focusing solely on external factors means you’re reliant upon the actions of others, which takes control out of your hands and limits opportunities for internal improvement.

      Carrying out a SWOT analysis ensures you get the right balance of internal and external factors.

      When should I use a SWOT analysis

      A SWOT analysis can be helpful in many areas of your business, and we’ve listed some suggestions below:

      • When setting new business objectives

      • To analyse existing strategies

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      • When planning projects

      • When monitoring project/strategy success

      • When planning your marketing strategy

      There are no strict rules about where and when to use a SWOT analysis. As a general rule, they’re useful anytime you’d like to assess your current strengths and weaknesses and look for opportunities for growth.

      How to do a SWOT analysis

      Wondering exactly what a SWOT analysis looks like? Here are some key questions you should ask for each section.

      Strengths

      • What’s your unique selling point?

      • What do you do better than any of your competitors?

      • Which aspects of your organisation are particularly strong?

      • Which factors make customers choose you over similar businesses?

      • Which product or service makes you stand out from the crowd?

      Weaknesses

      • Where is there room for improvement within your business?

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      • Which factors cause you to miss out on sales?

      • Which area of your business has consistently encountered problems?

      • What about your business are customers likely to perceive as weakness?

      Opportunities

      • Are there any current trends you could take advantage of?

      • What changes in your market could provide opportunities for growth?

      • How can you take advantage of changes in policy?

      • Are there any local events you could become involved with?

      Threats

      • What are your competitors doing? Is this a threat to your business?

      • Could changes in your market negatively affect your business?

      • Do you have any quality issues?

      • Do you have any issues with cash-flow or debt?

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      • How seriously could these threats affect your business?

      Still not exactly sure what your SWOT analysis should look like? Check out the full examples below for inspiration.

      Example SWOT analysis 1

      You run a fast food shop that’s been experiencing a drop in sales, and conduct a SWOT analysis to find out why. Here are the results.

      Strengths

      • Cheaper food than any nearby shop.

      Weaknesses

      • High staff turnover – many staff are not fully qualified.

      • Scored very poorly on several recent health inspections.

      • Food quality much lower than nearby shops.

      Opportunities

      • New nightclubs are opening in the surrounding area, which will increase the number of customers late at night.

      • A local competition for best fast food shop is taking place soon.

      Threats

      • The increase in online review sites means that people can read negative reviews of the shop when deciding whether or not to visit.

      • A new chain fast food shop is opening down the street.

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      In this analysis, we can see that the weaknesses of the fast food shop outweigh the strengths – this is a key warning sign. Looking for ways to remedy the current weaknesses, and taking advantage of the listed opportunities should help this business to grow.

      Example SWOT analysis 2

      You run a small toy shop on a busy high street. You’d like to increase the growth of your business and decide to carry out a SWOT analysis. Check out the results below.

      Strengths

      • More unique toys than nearby shops.

      • Very friendly and personalized service, excellent staff.

      Weaknesses

      • More expensive toys than competitors.

      • Brand not as well established as big chain toy shops.

      Opportunities

      • Local children’s hospital is holding a big event to encourage toy donations. Sponsoring the event and donating toys could improve the company’s brand image and lead to positive publicity in local media.

      • A certain brand of toy is trending on social media. Focusing marketing efforts on this toy will encourage customers to visit.

      Threats

      • A large chain toy store is opening across the street and could threaten sales.

      • Video games are becoming more popular than traditional toys.

      In this analysis, we can see that the business has some key strengths and opportunities that can be of use when deciding how to deal with threats. Focusing on providing great service and building a good local image could help our small, independent toy shop deal with the threat of chain toy shop opening across the street.

      If you want to get a clearer idea of how your business can grow and improve, carrying out a detailed SWOT analysis is a great place to start.

      Reference

      [1]Mind Tools: SWOT Analysis

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      Last Updated on October 9, 2018

      19 Ways to Improve Creative Thinking Skills in the Workplace

      19 Ways to Improve Creative Thinking Skills in the Workplace

      Our world is changing at faster pace than ever. In order to keep up, we are continually adapting to new technology and the changing industries.

      Employers are looking for employees who can solve problems, think creatively and be a leader in every situation.

      These 19 tips will help you find ways to improve creative thinking skills. You can also use these skills to gain credibility as a leader in the workplace:

      1. Set limitations

      In order to increase your own creative thinking, it helps to set limits for yourself, so you have to think outside the box to come up with solutions.

      Set deadlines, budgets or any other type of limitation to increase your creative problem solving. This will build your credibility as a creative problem solver as you come up with innovative solutions.

      2. Change things up

      If you find yourself falling into a rut and doing the same thing every single day, then you will likely struggle to come up with new ideas. This is why it is important to change things up in your routine and break out of your rut.

      Get your creative juices flowing by exercising at a different time, or trying something new for lunch. Move your desk to a different position or change your personal workspace.

      Any of these changes will help spark your mind and get the new ideas pumping again.

      3. Listen and care about others

      When you show that you care about others and listen to their ideas and thoughts, they will trust you more.

      “Leaders who listen are able to create trustworthy relationships that are transparent and breed loyalty. You know the leaders who have their employees’ best interests at heart because they truly listen to them.” — Glenn Llopis

      Listening to your coworkers allows them to be more open with you and feel that they can take risks and be creative.

      Discussing ideas with your coworkers will not only help you improve creative thinking techniques, but also set the environment for a more creative office.

      4. Find good mentors/critics

      If you want your creative work to improve, then you need to find a good mentor or critic who can give you positive feedback and help you to keep moving forward.

      As your work improves over time because of your dedication and your mentor, people will hold you in greater respect.

      Every type of creative work takes several drafts before it is ready to go. With your mentors, you can find ways to continually improve your work. Ed Catmull, president of Pixar said:[1]

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      “Early on, all of our movies suck. That’s a blunt assessment, I know, but I… choose that phrasing because saying it in a softer way fails to convey how bad the first versions of our films really are. I’m not trying to be modest or self-effacing by saying this. Pixar films are not good at first, and our job is to make them go… from suck to non-suck. We are true believers in the iterative process – reworking, reworking and reworking again, until a flawed story finds its throughline or a hollow character finds its soul.”

      Use your mentor’s knowledge to bring your first drafts to life.

      5. Try and fail, a lot

      The best way to get better at things is to keep trying and failing until you improve. This enhances your creative thinking and shows your coworkers that you don’t give up easily and are willing to improve.

      The ability to take failure and turn it around is one of the best qualities of any leader.

      The Harvard Business Review reported:[2]

      “Darden Professor Saras Sarasvathy has shown through her research about how expert entrepreneurs make decisions, they must make lots of mistakes to discover new approaches, opportunities, or business models. She frequently references Howard Schultz who, when he started Il Giornale in Seattle, the company that Schultz used to later buy the original Starbucks brand and assets, the store had nonstop opera music playing, menus written in Italian, and no chairs. As Schultz has often said, “We had to make a lot of mistakes” before discovering a model that worked.”

      6. Be consistent (no tortured artists here)

      When you think of creativity, an image of a broken-hearted artist or alcoholic writer may come to mind. Many people today associate creativity with isolation, despair, alcohol and inconsistency.

      Just picture Jay Gatsby.

      While that is good for drama, that’s not really how creativity works. Creativity is fostered through consistent effort. Put in the work everyday and you will find your creative muscles and credibility will grow.

      As a leader in your workplace, you need to show consistency in everything you do, not just your own work, but throughout the company to build your business’s credibility.

      7. Be honest to yourself and others

      Acting dishonestly is one of the fastest ways for you to lose your credibility. Always be honest to the people around you and to yourself.

      If your coworkers feel that they can trust you, then they rely on you more and work with you better. Honesty is what builds a solid foundation for a successful workplace.[3]

      During the creative process, it is important to be honest to yourself. It’s easy to get carried away with fantastic ideas but you will need to learn to be honest with yourself about what is and is not possible.

      8. Collaborate

      The best work usually comes from teamwork. Katherine W. Phillips said,[4]

      “The fact is that if you want to build teams or organizations capable of innovating, you need diversity. Diversity enhances creativity. It encourages the search for novel information and perspectives, leading to better decision making and problem solving.”

      Show your coworkers that you value their efforts and perspective. By working together, you can create new ideas and make something better than you ever have before.

      Collaborating will not only improve your own creative thinking but will create a bond between you and your team.

      9. Use humor

      As a leader, you want your coworkers to feel comfortable to be creative and open-minded.

      Humor has been proven to help people to relax and feel more willing to try something new and helps foster creativity.[5]

      To improve your own credibility and help others gain confidence in their own creative thinking, use an appropriate sense of humor to lighten the mood when needed and to get those creative juices flowing.

      10. Be vulnerable

      This goes along with being honest with yourself and others. To be a creative thinker, then you have to be willing to fail, admit your failures and be open to receiving critique.

      This can be difficult especially in a workplace where you want to show your strengths instead of weaknesses, but by admitting yo ur weaknesses and being open to others, your credibility will grow as your coworkers know that you listen and are adaptable.

      Take a look at this article to find out Why Showing Vulnerability Actually Proves Your Strength.

      11. Have meaningful conversations

      Creative people love to have meaningful conversations. This is the best way to gain a new perspective.

      You have had a certain amount of experiences that have shaped the way that you see the world. But everyone around you may have different perspectives. By engaging with these people, you can learn more about their views. Try to walk in their shoes and understand their perspectives, especially if you disagree.

      Steer clear of shallow small talk and discuss bigger and more meaningful topics with those around you. Ask about their experiences, their hopes, their opinions and you will gain new perspectives that will assist your creative thinking.

      12. Be constantly learning new things

      Some of the greatest minds in the world (Bill Gates, Oprah Winfrey and Mark Zuckerburg) have said they dedicate at least five hours every week to learning new things.

      They are passionate about growing their minds and learn about everything from nuclear physics to politics. As they learn about different topics, they look for ways to apply what they have learned to their own industry.

      Start your own educational journey today by finding some books you would like to read or finding high-quality articles online about each topic.

      Keep in mind your own industry and how you can apply what you learn to your job. You never know all the different ways astronomy can help your marketing efforts.

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      13. Experience it all

      Steve Jobs once said that creativity comes from experience.[6] The more experiences you have, the better connections you will be able to make to find solutions.

      Try to experience as many things as possible. You don’t have to go on some huge trip around the world to have more experience; simply meeting new people and trying new things will give you more experience that will build your creative skills.

      14. Give yourself some love

      When I was younger, I was given the advice to take the time everyday before I went out for the day to ensure I felt good about myself and fully confident. Sometimes this took the shape of wearing a new pair of shoes or writing in my journal that morning.

      I was told if I could take the time to prepare myself for the day, then I could focus all of my energy on the people around me. This is something that great leaders do today.

      Take the time to rest and prepare for the next day, so you can throw yourself into your creative work and help those around you.

      Self-care can be whatever it is that you need: a hot bath, going to the gym, walking your dog, reading, the list goes on and on. Figure out what energizes you, and do it as often as needed.

      15. Take ownership

      Accountability fosters your creative thinking because you know that others will see your work and know whether you did it well or not.

      Creativity works best under some pressure, so take your projects seriously by taking responsibility for them.

      Your coworkers will have greater respect for you as you take ownership for your work projects, even if you are disappointed in the results.

      16. Be reflective

      Hindsight is 20-20, so by looking back at past successes and failures, you can get new ideas for your work.

      Reflecting is a part of the creative process and will help you as you continue to create and work. Learning from the past sets an example for your coworkers and will improve your credibility among your colleagues.[7]

      “Creativity requires us to be confident in our areas of practice, whatever they may be. And reflection is an indispensable part of observing, developing, digesting and being in dialogue with our creative ’self’.”

      17. Communicate

      Communication is key to any good relationship and this includes the relationships between you and your coworkers.

      Notice how your coworkers handle critique and find the best way to give them constructive criticism. Notice how your coworkers handle conflict, and find a positive way to help each of them through it.[8]

      “Effective communication is one of the key prerequisites for a thriving workplace. It drives fast, clear and precise flow of information between individuals and groups. A lack of proper communication can greatly decrease productivity.”

      Communication is a skill that is vastly underestimated and incredibly useful in the workplace. As you develop this skill, you can become an impressive creative leader.

      18. Meet deadlines

      We have all experienced those coworkers who can’t meet a deadline with their projects. It can be frustrating and throw off everyone else’s work.

      To be a credible leader, don’t be that person.

      I’ve already mentioned that creativity works best with a little bit of pressure. When you try to meet deadlines, you force yourself to come up with creative ideas.

      Use your creative thinking to finish your projects on time, so you can meet your deadlines.

      Your coworkers will know that they can count on you to get the job done on time, which will likely lead to you getting more projects.

      19. Respect others

      No matter how brilliant you are, if you don’t show respect for the people around you, your credibility in your workplace will suffer.

      The opposite is true as well, if you show respect to each of your coworkers, your credibility as a leader will grow.

      Michigan Ross Professor Jane Dutton who has conducted research on the impact that mutual respect has on creativity said:[9]

      “Across our studies, we demonstrate that respectful engagement is more than simply a nice way to interact, but is a catalyst and cultivator of creativity.”

      By creating a friendly workplace, not only your creative thinking will improve but also everyone around you. With a work environment of mutual respect, ideas can develop into something incredible.

      The bottom line

      Creative thinking and leadership abilities are some of the top skills that employers are looking for. Start applying these 19 tips to your work, and you will see great results in your own work and with your coworkers’ work.

      Featured photo credit: Pexels via pexels.com

      Reference

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