Find out how to use SWOT analysis effectively to boost your productivity and your bottom line.
We entrepreneurs tend to be fast movers so having routines to stay on top of your business is essential.
Personally, I implement a SWOT analysis every quarter to gain a fresh perspective on my operations. It is a fun and relatively painless way to keep forward momentum. And, even more importantly, it gives me that continuous momentum to re-discover new angles. Gear up for Q4 (make-or-break it time!) and push your U.S. real estate business to that next level now!
What is a SWOT analysis?
If you don’t already know, a SWOT analysis is similar to an audit because you perform exercises to assess your business. SWOT stands for: Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is essentially a brainstorming session for your business.
When you are conducting your SWOT, you have to be honest and blunt (in other words, don’t lie!). Take a hard look at your strengths and weaknesses and really make the effort to leverage those into valuable business development. Most of my success has been my ability to create top-profit performance strategies in any economic climate through the active application of SWOT strategy.
How does it work?
The idea behind a SWOT analysis is to look at current operations and understand the strengths, weaknesses, opportunities and threats to each on face head-on and maximize your business.
Internal Components: Strengths and Weaknesses are internal considerations. For example, let’s say you were looking at the strengths of your company. You might say that one great strength is your ability to provide personal client services or seamless property evaluation online or that you enjoy an economy of scale in a particular region…(depends on you, but you get the idea).
External Components: Opportunities and threats are external components. This might have to do with U.S. real estate market conditions, demographics, competing businesses… things that are outside of your immediate control.
You want to list three strengths, weaknesses, opportunities and threats for this stage before moving on to create your kickass action plan.
How do I create an action plan?
The action plan takes you from the thinking to the doing so for many of us entrepreneurial spirits, this is the fun part.
A simple step-by-step action plan with dates and deadlines is all you need to optimize on your SWOT. Also, if you have a partner, it’s really interesting to compare your notes afterwards. Just remember: it is KEY that you are honest in your evaluation and quick to implement your action plan.
This type of thinking will show you not only how to maximize your business, but you’ll develop that uncanny ability to recognize opportunity in disguise.