52 CHAPTER 3 GETTING DOWN TO IT
Be a SWOT
You should not begin your written plan with an analysis of your strengths, weaknesses,
opportunities and threats – the infamous SWOT analysis. This belongs later in the docu-
ment (see Chapters 6 and 11); however, now is a good time in the planning process to
give the matter some preliminary consideration.
Strengths and weaknesses are internal factors over which you have some control
or influence.
Opportunities and threats are external issues that you cannot control.
For example, an outstanding management team is a strength, unless it belongs to your
competitors in which case it is a threat. The boxes below list ten areas where you might
find strengths and weaknesses or opportunities and threats. The lists are a bit over-simpli-
fied and generic, but they might help you think about your situation.
Ten places to look for strengths and weaknesses
Area of your business Strengths Weaknesses
Processes High productivity Slow time to market
Management Good at acquisitions Poor staff management
Marketing and sales Good at direct sales Poor market research
Other skills Excellent R&D Poor maintenance
Experiences Success overseas Fingers burnt somewhere
Intellectual property Branding, trade secrets Expiring patent
Premises Excellent location Unwanted lease
Plant, machinery Specialist equipment Worn-out plant
Information technology Good management
information
Poor automation
Finance Good cash flow Burden of debts
BE A SWOT 53
For your business, try to list about ten items under each of the four categories. This will
give you a good handle on the realities of your business. Keep this list in view as you work
through the planning process, and amend it as you go. You will probably add to it consid-
erably as you work through Chapters 4 and 5.
1 Your review of the internal working of your business in Chapter 4 will help you
primarily with the list of strengths and weaknesses. But remember that these can
also be related to situations in the big wide world (Chapter 5).
2 Your review of the world in Chapter 5 will lead to additions to your list of
opportunities and threats. But remember that opportunities and threats do not all
come from outside – some arise from within.
Ten areas where opportunities and threats can arise
Area Opportunity Threat
Market Your market is growing
rapidly
Your market is reaching
maturity
Industry Competition is fragmented
Competitors have strong R&D
Industry association Compliance with standards
strengthens your product
Meeting new standards
increases costs
Labour market Locally available skills Disruptive strikes
Financial markets Low-cost funds Higher borrowing costs
will reduce customer
spending power
Exchange rates Cheaper imported raw
materials
Cheaper competing products
Green (environmental)
lobby
Opportunity to sell, say,
water-saving devices
Cost of anti-pollution
legislation
Economic trends Economic expansion will
boost demand
Growing unemployment will
reduce demand
Government policies Tax holiday Incentives for rival company
Natural disasters Sell specialised equipment
or relief supplies
Loss of production or data
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.