[19.10.15]

When considering strategy, business owners generally recognise the value of undertaking the well-known text book analysis – a SWOT analysis – Strengths, Weaknesses, Opportunities and Threats.  Strengths and Weaknesses recognise what’s going on within the business at any given time; whilst Opportunities and Threats consider the future issues which may affect a business.

We would encourage clients to fully assess their Strengths and Weaknesses; but we would guide them away from focusing too much on their Opportunities and Threats.  Strengths and Weaknesses are what’s going on within the business, and so business owners can affect them.  Whilst Opportunities and Threats are external to the business, and so business owners can not generally affect them; they can only react to them.  There is clearly a benefit to understanding what is going on external to your business; where you may be able to take advantage of Opportunities, and where you need to protect yourself from Threats.  However, considering your Strengths and Weaknesses in detail will have the greatest impact on your strategic direction, plan and priorities.

The business owner should include other people when considering the company’s Strengths and Weaknesses.  There is real value in involving other members of the team.  They will have different perceptions to the business owner; and will have ideas on how Strengths can be built upon, and Weaknesses can be overcome.

For further information contact Jackie or Andrew.

Castletons Accountants