should a biz plan include swot analysis?

[ronenkroch]

Hello,

i am writing now a biz plan and i am wondering if i should include a SWOT anaysis in it. Your advice is much appreciated.

thanks,
ronen

[peterjhale]

Hi and welcome

You can not write a plan without a SWOT

This describes the status quo of your business and is the foundation of your plans

You can't write strategy unless you know where you and your competition is right now

So, yes, you need one

[Cougar]

I agree with Peter. The hard bit is actually doing the SWOT. Sometimes it's not that easy to get the information you really need. The most critical information is sometimes going to be what is not in the public domain.

Its also important to get some objectivity into the SWOT. Its easy to overplay own strength and dismiss threats from others. The danger is that unless done as a sort of arms length exercise, the SWOT becomes a justification for current thinking and patterns of action rather than a tool to inform decision making for change, where change is necessary or desirable.

Am I too cynical? How do we keep the SWOT thing objective enough to be of value? Use an external resource? Could get pricey!

[peterjhale]

good stuff Phil

Whenever I write SWOTs for large multinationals they come up with many more weaknesses than strengths - always have done !!

The thing about SWOT is to be honest in your assessment

You can get a lot of info on what's going on w/out paying anything.

EG: from competitors -- I know my competitors inside out -- they help me set pricing, I know my product is better than theirs and where (so I can sell those strengths)

EG: market size -- I've no idea what the market is for business plans -- but I do know how many small businesses start each year and in total -- this is my end customer

Think a bit lateral I suppose is what I am saying

[Wolf]

I guess this is the reason I only lurk around these type of posts, so I don't look a complete plonker, but here goes. What's a SWOT then?

[keys]

SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework helps you to focus your activities into areas where you are strong and where the greatest opportunities lie.

[Wolf]

Hey, you learn something new on this site every day. Cheers Keys.

[eversunmamtech]

Definitely you need a SWOT analysis... It is the first stage of planning and helps marketers to focus on key issues.

A word of caution, SWOT analysis can be very subjective. Do not rely on it too much.

Hope this could help.
Good luck!!!

[robert05]

One of my marketing guys says always add "so that".

So you take one of your SWOT's and add so that explanation at the end, hopefully something to help benefit your business. Might help cos things like PEST, SWOT etc can sometinmes get a bit academic.

Robert

[Anthony Ravenscroft]

Those are some excellent comments.

When advising others, I've found that there's some inherent fear to admitting one's own weaknesses. At the same time, I've talked to bankers & (potential) investors who feel that an entrepreneur that's willing to face up boldly to the inherent gaps & flaws is someone who can far better be trusted.

One of my own plans pointed out that there are no practical bars to entry in that particular enterprise, yet the fact that nobody's taken the reins is indicative. I then went on to point out that, once claimed, the idea can be solidified with some creative branding that effectively raises a barrier for anyone who tries to come after. Now, mind, I only did this because my back was to the wall & I was reduced to selecting the best shade of lipstick for the pig, but I've been congratulated for having the guts to come up with a novel claim.

It's one of those points at which you have opportunity to turn a negative to a positive.