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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 April 17, 2019

      10 Essential Soft Skills That Will Help Advance Your Career

      10 Essential Soft Skills That Will Help Advance Your Career

      What’s the secret of professional success? Some of it lies in the mastery of your discipline and all the technical skills you have to carry out your job; but a much bigger part lies in the soft skills list you possess.

      Soft skills are your people or relationship skills—how well you get along with others and your ability to communicate and collaborate—as well as the personal characteristics you bring to the job, such as optimism, a can-do attitude and the motivation to work hard. These skills are not always easy to point out, but their absence can cause serious problems and negatively affect the whole work atmosphere.

      They say that hard skills will help you get the job, but soft skills will help you get along—and get ahead. With that in mind, here’s the top-10 essential soft skills list to help you advance your career.

      1. Communication Skills

      Communication skills are hands-down the most sought-after soft skill that bosses want, and this one ability covers a lot of ground.

      To communicate well, you have to listen carefully, interpret the context of the conversation, express yourself clearly, persuade others of your point of view, check your body language and use an engaging presentation style that won’t intimidate or bore your audience. That’s a big ask!

      Your personality traits can influence the way you communicate with others. For instance, some people get straight to the point and center their arguments around facts and logic; others are cooperative and sensitive to how others feel. Both these approaches are equally valuable but there can be misunderstandings if you don’t understand where the other person is coming from.

      Taking a comprehensive personality test can help you understand why you communicate the way you do and where your blind spots are. It can also help you understand other communication styles is so you can tailor your communication to the person you’re dealing with.

      After all, connecting with your conversation partner is the hallmark of good communication.

      2. Flexibility

      Change is an essential part of any business. Companies need employees who are flexible enough to work with new initiatives, open to new ideas, and generally are able to tough it out when things don’t go as planned.

      Research has found a link between job performance and flexibility over the long term because there will be times when you have to step outside your routine and rise to fresh challenges that didn’t exist before.

      Being flexible doesn’t mean you have to hop into a new task or job role like an expert. Rather, it’s about showing you’re willing to accept new responsibility and learn different things.

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      Bosses look for people who are prepared to step outside their comfort zones and are open to alternative solutions when their first idea doesn’t work.

      3. Being a Team Player

      Working on a team can be challenging but learning to do it well can definitely help you get ahead in your career. Employers look for people who can negotiate, cooperate and manage conflicts with other people to achieve a common goal. That includes the ability to build lasting relationships with customers and clients.

      What makes a good team player? Essentially, it’s someone who knows the goal and knows her role. Employers look for evidence that you know your strengths, your responsibilities and how you can best contribute to the team, then put those skills into action by sharing ideas and communicating in a respectful manner. That’s the definition of being a good team player.

      This is another area where taking a personality test can help you get ahead. When teams work together, each member brings a unique set of skills and qualities to the group. Research has shown that different combinations of personalities affect how teams collaborate and how productive they are.

      Knowing who you are, and how you work on a team, can drive new insights and open the door to better teamwork.

      4. Positive Mental Attitude

      There are plenty of things you can’t change at work, like the people you work with or the fact that the printer is broken again. The one thing you can change is how much you let these things bother you.

      Bosses like people who are calm, rational and upbeat—those who diffuse tensions in the workplace, not get all grouchy and go around slamming doors.

      Studies show that people who maintain a sunny disposition have better relationships at work, are happier in their jobs and make better decisions than those who whine and complain. Some suggest that a positive mental attitude can also make you live longer—which means it’s beneficial for every area of your life![1]

      It’s not always easy to keep a “glass half full” mentality when work is stressful and the deadlines are piling up. But there are some things you can do to help maintain a positive attitude. Laughing at your unfortunate circumstances keeps the work environment positive, and taking “sanity” breaks can help you keep your cool in high-pressure situations.

      Managers look for positive mental attitude in a team member that is ready for a promotion, so it really does pay to keep your cool in challenging situations.

      5. A Strong Work Ethic

      People with a strong work ethic are committed to the role, persevere when things get tough and are inspired by challenge. These people are ambassadors for the organization, and will always be seen as top talent and ideal candidates.

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      If you can exhibit this skill, then expect to be seen as a great candidate, eligible for new opportunities and positions throughout your career.

      Since a strong work ethic can mean different things to different people, it helps to show specific examples of your exceptional work ethic during a performance appraisal or interview. For instance, you might talk about:

      • A time when you persisted in the face of challenges and did not shy away from hard work.
      • How you volunteered to help with projects even though these tasks did not form part of your job description.
      • The networking, workplace learning and skills betterment you’ve undertaken, which shows ambition and drive (people with a strong work ethic have those qualities in spades).
      • How you own your mistakes and never, ever point the finger of blame at others.

      For help with building a strong work ethic, check out these tips: How to Build a Reliable Work Ethic

      6. Public Speaking

      Who’s terrified of public speaking? Pretty much everyone, since public speaking is America’s number one fear, ahead of death at number five and loneliness at number seven.

      Yet, according to Warren Buffett, mastering this one skill you could increase your personal value by 50 percent.[2] That’s huge!

      If you’re not natural at public speaking, you’re in good company. Buffett had to work hard to overcome his stage fright and once dropped out of a public-speaking course before it started—because he was afraid of public speaking! He eventually realized that he needed to build up his confidence by just doing it; over and over in front of small groups.

      For a more structured approach, Toastmasters International teaches public speaking and leadership skills through a variety of pathways. Membership of this non-profit looks good on your resume but the real payoff will come when you can put your newfound skills to use on the job or in the interview room.

      Or, you can check out this advice: The Ultimate Public Speaking Tips to Hook and Impress Any Audience

      7. Integrity

      From a manager’s point of view, the two integrity skills that will set you apart are:

      • Always doing what you say you will do
      • Owning an error instead of minimizing or hiding it

      …even when no one is around to check up on you.

      There are lots of people who have climbed the ladder without scruples, but they are not the people who others trust, respect and support when promotion time comes around.

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      Behaving with integrity is a safe and consistent way to enhance your reputation and achieve your professional goals.

      8. Managing Your Time

      Phone calls, texts, Slack pings, meetings, huddles, side projects, multitasking—we are busier today than any generation before us. There’s no denying the workplace is an incredibly distracting place to be.

      A lot of us have traded effectiveness for busyness which we wear as a badge of honor, both as a proxy for productivity and to show our value to the company. But what bosses want, what they really, really want, is someone who actually gets stuff done on time.

      Time management is not merely the art of being on time, but of managing your time so you focus on the projects that really matter and add value to the business. This means prioritizing well, sticking to schedules, delegating, and not getting distracted by tasks that are easier to perform or less important. It means planning ahead and learning when it’s appropriate to say no.

      Time management can be a tough skill to maintain, but not a difficult one to pick up. Monitor your actions for a few days—how long do your tasks take to finish? What’s interrupting you? What causes you to lose focus? Once you have the answers to these questions, you can set a schedule for yourself to make sure you’re spending your time wisely and this valuable asset is never wasted.

      These 20 Quick Time Management Tips to Super Boost Your Productivity are also great to try.

      9. Assertiveness

      In any workplace, you typically will find people with the following conflict styles:

      • Passive: Those who go out of their way to avoid conflict.
      • Passive-aggressive: Those who express their negative feelings through actions rather than words.
      • Aggressive: Those who respond to conflict in a hostile and rude manner. These people get their opinion heard but they won’t make any friends in the process.
      • Assertive: People who stick up for their rights while still respecting the rights of others.

      Managers look for assertiveness above all other styles because it allows decisions to be made without conflict or alienating people.

      How do you use this information for yourself?

      It starts with understanding your personality so you can anticipate how you will react when conflict arises and address your own shortcomings. Then, you can start influencing the team for top results, and securing your own career advancement in the process.

      Learn how to be assertive and gain respect:

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      How to Be Assertive and Stand up for Yourself the Smart Way

      10. Creative Thinking

      LinkedIn recently analyzed over 50,000 skills that employers search for when looking for candidates to find out what skills are currently in demand.[3] Taking the number-one slot on the 2019 soft skills list was creativity: the ability to solve problems and think outside the box.

      Creativity is about bringing fresh, and sometimes unorthodox, ideas to the table. This helps companies to innovate, and companies that do not innovate will not survive very long.

      How do you showcase your creative thinking skills? The golden rule is to participate.

      Be brave and share your ideas during group brainstorming sessions. Volunteer to run a society, networking event or recruitment drive. Ask “what if” questions: “What if we add this information to the client welcome pack?” “What if we eliminate step 3 from the process?”

      These activities demonstrate that you’re prepared to go beyond “business as usual” towards creative problem solving—an ability that will serve you every day, all throughout your career.

      You can learn to unleash your creativity power:

      What Is Creativity? We All Have It, and Need It

      Final Thoughts

      The good news? Every item on this soft skills list can be learned. Although you may feel lacking in certain areas, taking an inventory of your strengths and weaknesses will allow you to focus in on the areas that you’ll benefit from developing.

      So take an inventory of your personality, skills, and talents. This will give you a baseline for your communication style, attitude to change, conscientiousness and more. You can then identify your weak areas and develop strategies for improving your team-building, assertiveness and conflict skills.

      The better news? The effort is worth it. Developing your soft skills opens the door to a new job or a promotion, and helps you succeed once you get there.

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      Featured photo credit: Rachael Gorjestani via unsplash.com

      Reference

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