Weaknesses, Opportunities, Strengths and Threats (SWOT) they can be taken to carry out an exhaustive investigation of all the internal and external processes of your business.
It is usually done by professionals, but today we will give you some guidelines to self-evaluate your business.
The investigation of the competition is a task that we must perform before starting our business, but sometimes we have several ideas to develop and we want to know the best of all without having to carry out complex market research for each one.
The following steps have been proven on several occasions as a preliminary investigation, remember that when you finish them you should conduct market research based on sales and marketing strategies, as preliminary investigations are often not completely reliable.
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We are going to mix two concepts. One, it's about the research we have to do on our Corporate SWOT. two, it is about including market research to strengthen that and other points of the matrix.
Weaknesses of your business:
The weaknesses are those flaws that cause errors in your business, low results or inefficiency in operations.
The weaknesses are internal, since they do not involve the action of others to your business to cause them. Making a list of weaknesses is the first way to eliminate them, being necessary to evaluate why each one happens and the possible ways to correct them.
Investigation #1 Number of businesses with your idea in operation
Knowing how many businesses sell your product or offer your future services will help us determine if it is worth competing or the market is really saturated.
It is likely that there is a wide competition for your product, but this is a sign that is in constant demand, if you find a way to beat your competition with an innovative sales model, you will be in advantage over others.
Opportunities of your business:
The opportunities are those actions that can be carried out but are not currently being used by your business, an example of very frequent opportunities is the solution to a common need in a market and for fear of investing in machinery or products that solve it, we leave to earn money.
Investigation #2 Prices in the competition
Before starting any business, the ideal is to know the prices of the competition because our accounts may be overvalued and this means that the profits will be less or zero if we do not look for a way to compete. You must be realistic and not try to match costs and benefits if they are low or zero.
Strengths of your business:
Strengths are those that keep your business running. The prosperity of it is directly proportional to its strengths. You should not try to improve them, but use them to be mixed with opportunities and solve weaknesses.
Investigation #3 Sales Strategies
Current businesses had to carry out their respective investigations regarding the way consumers buy, it is ideal to study the sales strategies of the competition and find ways to improve them. If these are not in our plans or do not fit in the current budget, it is better to choose not to compete in this field.
When finishing the previous simple investigations to the competition you will be ready to choose your idea or business model, remember that realism is the beginning of a business with futures.
Threats of your business:
Threats are those that are potential dangers to your business. Threats are always external and do not affect you on a daily basis, but they are latent and at any moment they can cause you problems.
The best way to solve them is by developing emergency plans in case they affect you.
There are economics books created explaining this SWOT Matrix. although we explain it briefly, each point requires rigorous research and is the work of experts in this area. the interesting thing about the SWOT Matrix, is to be the secret formula to the triumph of the great companies and the salvation to those that are about to close.