Sunday, 17 December 2017

Information and commentary for the small business banking industry

Show your small business customers how to conduct a SWOT analysis

03 Aug

SWOT – an important tool

It’s been around for a long time, and that’s because it works – the SWOT analysis:

  • Strengths
  • Weaknesses
  • Opportunities
  • Threats

Your small business customers should be using a SWOT analysis not only for themselves, but on their competitors as well. It helps them to fine-tune their business strategy, because it identifies internal and external factors that can help or threaten their business.

If you’re chatting with your small business customers and they tell you they’ve never conducted a SWOT analysis, it’s a good time to sit them down and show them how.

The SWOT Matrix – how it works

Although it looks simple, it’s a powerful tool that can swiftly assess the health and potential of a business. The first row contains the internal factors, and the second the external:

S W
O T

 

  1. Define the issue to be assessed, and enter it the appropriate space. For example, a business owner might be examining their competitive advantage, which is a strength.
  2. Work through the grid – go through each of the 4 criteria, and assess the business being examined on each one.
  3. Analyze – go through the grid with your small business customer and try to determine strengths that aren’t being exploited, or weaknesses that should be dealt with, along with opportunities to take advantage of and threats to be avoided.
  4. Rinse and repeat – once you’ve talked your customer through the basics of a SWOT analysis, it’s important that they conduct them on a regular basis. It’s simple, and can be done quickly and easily. It’s especially important to conduct one when making important decisions.

SWOT analyses are a great way to explore potential solutions, identify potential barriers, choose an effective strategy, or revise an existing strategy. For example, if one of your customers is thinking of buying a competitor, then it’s a good idea to conduct a SWOT analysis on that business.

If you can educate your small business customers on how to use this tool, you’re giving them an effective means of examining their business and keeping it on track, especially if they’re planning on expansion and growth.

Here at TSBC, we can offer you great content around SWOT analyses, including downloadable templates and guides on how to conduct the analysis. Contact us on sales@tsbc.com to find out how we can help you.

« »