Do You Know the Sweet Spot of Your Business?
We look at the importance of conducting a sweet SWOT analysis model for your small business
Many of us think about doing SWOT analysis in our planning but how many of us target the real issues that affect our business. I have been privileged to work with UK200 Group Business Strategy Panel Chair, Nick Mayhew, on an extension of the basic SWOT analysis model and have found people not only receptive to the idea but embracing it with an enthusiasm I don’t often see.
SWOT analysis in an organisation analyses of strengths, weaknesses, opportunities and threats to the organisation, which often finds its way into the business plan but is then used no further. The Sweet Spot SWOT goes 2 steps further.
Firstly it looks at the strengths and reduces these to focus on the Sweet Spot strengths. We have all come across the shot in sports such as cricket, golf or tennis where we hit the perfect shot. They say that this is the sweet spot, so where in your business do you find a similar thing happening? Is it your customer service, your product or your branding?
Instead of looking at all of the many weaknesses that an organisation has, this model focuses on the critical limitations you may be facing. Areas such as skill gaps, cash or production breakdowns would be considered here.
Opportunities should be narrowed again to reflect only those that are the low hanging fruit. This way you focus on those opportunities that are less risky.
Finally you review your threats by carrying out a risk review or a ‘Failure Mode Effect Analysis’. This will highlight the risks to your business that are potentially the most damaging so that you can do something about them first.
Once you have these areas identified, action plans can be drawn up. How do you use your strengths to maximise your opportunities and overcome your threats? How do you ensure your critical limitations don’t spoil your opportunities or combine with the risks to bring the business down?
It is then critical that the action plans are implemented and monitored to ensure that the organisation continues to move forwards.
For more information on how your business can benefit from Sweet Spot SWOT analysis please contact John Painter, of UK200Group member firm.