- Business and Employment
Starting A New Busines
Dreaming in Owning a Business?
So, are dreaming in owning your business? That's great! Everyone should allow him or herself to dream such a dream, don't you think?
Everyone wants to be his or her own boss and, that is a right that we all have but, unfortunately, owning a business is something harder that most people think.
The decision of owning a busines is probably one of the most important decision that one will ever make during his or her lifetime because involve high risk, time, commitment and discipline among other factors.
It is one of those decision that will make or brake and, that will determine your financial future, your life future and happiness, so, if owning a business is so important, why most people don't take such a decision more seriously, why so many people fail to succeed in such vital decision?
As the ancient people use to say: if you fail to prepare, you prepare to fail!
The Perfect Fomula to Achieve Success on Your Business!
What is SWOT Analysis? What this has to do with business success?
SWOT analysis, stands for: Strength, Weakness, Opportunity and Threats. This is a popular term widely used in the business world, it is the formula for a successfull business when properly implemented in a business srategic plan or commonly known as business plan.
Why SWOT analysis is so important to your business to succeed?
Swot analysis will allow you to fully and deeply analysis four of the most important areas of your business.
1 - S (Strenght): This function will allow you to self assess your business strength in areas that you are performing really well so that, you can keep doing so.
2 - W (Weakness): This fuction will allow you to self assess your business weaknesses, such as poor customer service, poor service, product, pricing and so on, by identifying the areas that needs improvement, you will also be able to find proper measure to change the course of the areas that needs to be improve.
3 - O (opportunity): Once you have identified your company's weaknesses, you will create opportunity to improve the business in such areas, this is part of the opportunity that you will have to get your business back on tack.
Opportunity also helps you learn other areas, such as: marketing trends, competition and so, on, by identifying the opportunities that are available to your business, you will be able to better position your business ahead of the trend and, therefore, you will be better prepared to compete and survive in this so competitive marketing place.
4 - T (Threats): This is an area that most business owners are affraid to assess, however, it is vital and it is a determinant factor that could easily decide the future of your business.
Do not ignore this part of SWOT equation, this is as important as the other three topics, however, understand one thing, there are two different types of threats: Internal & external.
Internal threats: Internal threats usually happens within the boundaries of the company, they are threats that can be managed and controled by the company.
Example of internal threats: Unethical business practice within the company, employee dishonesty, sexual harrasment in the workplace, higher price than the competition, inferior products and services and, so on.
Most of those threats can be avoid, adjusted or completely eliminated by your own company, it is within the company control, that's why is called internal threats.
External threats: These threats are beyond your company's control, therefore, you can't change.
Example of external threats: wheather condition, your competitor business practices and so on.
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