In my last post on How to Write a SWOT Analysis I discussed the short and long answer to the How To.  The next step in the quest on How to Write a SWOT Analysis is to take each of the four areas of the SWOT analysis – Strengths, Weaknesses, Opportunities, and Threats – and expand upon them.  These four areas are the foundation of the building.  If we do not take the time to develop a strong foundation our business or building will crumble or will not have the strength to withstand the hurricane force winds of adversity that any business encounters.  It is important to understand how to write a SWOT Analysis so that we have a firm foundation.

Consider the four main areas and expand upon those to have an Expanded SWOT Analysis.

Do not be lazy in constructing your foundation.  There are additional steps beyond a traditional “text book” SWOT analysis that you can do by delving deeper into industry dynamics. A more in-depth SWOT analysis is just one of the steps that can help you better understand your company’s competitive situation.

One way of the many ways to step beyond a traditional SWOT analysis is to include in the analysis more detailed competitor information. This detailed information can include activities that are internet related, such as participation in trade organizations, search engine inclusion, and outside links to the sites. This type of an analysis will better help you spot opportunities for your company and threats to your company.

You can also take a closer look at the business environment. Opportunities can come about as a result of a changing business environment. Some examples are:

A new trend develops for which demand outstrips the supply of quality options. Early on, the trend toward healthy eating coupled with an insistence on good-tasting food produced a shortage of acceptable natural food alternatives, for example.

A customer segment is becoming more predominant, but their specific needs are not being fully met by your competitors. An example of this is the Hispanic population, which underwent a growth surge in the late 1990′s and early 2000′s.

A customer, competitor, or supplier goes out of business or merges with another company. With the demise of many pure- play “dot coms”, examples of this abound. As each went out of business, opportunities arise to gain the customer base of the now defunct business.

You can also expand the reach of a SWOT analysis through surveys. You can learn more about your own as well as competitor’s sites and businesses. Areas that you should consider researching include 1) customer awareness, interest, trial, and usage levels, 2) brand, site, and/or company image, 3) importance of different site or product attributes to your customers, and 4) product and/or site performance.

Whether using a basic or more advanced approach to SWOT analysis, you are sure to come away with new found insights. Use the SWOT analysis to increase your company’s profitability, effectiveness and as input into your business or marketing plan.

The strong foundation that is created as we answer How to Write a SWOT Analysis is well worth the time expended.  The Business Plan and SWOT Analysis will fortify your business to meet the challenges that come to any business.  If you still do not understand how to write a SWOT Analysis you should contact the experts who can help you.

You can contact these experts
by simply clicking here.

The SWOT Analysis would seem fairly easy since there are only four main factors to examine.  A SWOT Analysis Example however shows the SWOT Analysis can become extremely detailed.  Once you understand how detailed the SWOT Analysis can become you will start to see the synergy between the Business Plan and the SWOT Analysis and why you need to use both in your small business.

Michael McCarty gives an excellent SWOT Analysis Example, parts of which follow.  Many people desire to establish their own food related business.  Mr. McCarty examines a Subway ® franchise through the use of a SWOT Analysis Example.

“The United States fast food market has seen a healthy rise in growth within the last three years which forecasts can be sustained. The fast food market is forecast to maintain its current growth expectations, with an anticipated Compound Annual Growth Rate (CAGR) of 2.3% for the five-year period 2005-2010. This is expected to drive the market to a value of $57.6 billion by the end of 2010. Drivers of growth include increasing numbers of Americans in the workplace, which reduces the amount of time spent on preparing meals at home. In 2010, the United States fast food market is forecast to have a value of $57.6 billion, an increase of 12.1% since 2005.

Forecast Volume

In 2010, the United States fast food market is forecast to have a volume of 37 billion transactions. This represents an increase of 5.3% since 2005. The CAGR of the market volume in the period 2005-2010 is predicted to be 1%.

Success Factors

Success factors for fast food franchisees will include products and marketing targeted to healthier menu selections, brand consistency, low start-up costs, franchisee support, and consumer convenience. Subway ® represents a poignant example of a fast food franchisee ready for success in the future fast food market. Their strategies transcend the fast food market and apply to many other markets and products.

SWOT Analysis

Subway sandwich shops are well positioned to leverage their strengths and address reasonable threats, weaknesses, and opportunities. The table below highlights these Strengths, Weaknesses, Opportunities, and Threats.

Strengths

• Size and number stores and channels
• Menu reflects demand for fresh, healthy and fast.
• Use of non-traditional channels.
• Partnering with the American Heart Association.
• Worldwide brand recognition.
• Customizable menu offerings.
• Low franchisee start up costs.
• Franchisee training is structured, brief and designed to assure rapid start-up and success.

Weaknesses

• Décor is outdated.
• Some franchisees are unhappy.
• Service delivery is inconsistent from store to store.
• Employee turnover is high.
• No control over franchise saturation in given market areas.

Opportunities

• Continue to Grow Global Business.
• Update décor to encourage more dine-in business.
• Improve Customer Service Model.
• Continue to expand channel opportunities to include event wagons.
• Improve franchisee relations.
• Experiment with drive-through business.
• Expand packaged dessert offerings.
• Continue to revise and refresh menu offerings.
• Develop more partnerships with movie producers and toy manufacturers to promote new movie releases through children’s menu packaging and co-branding opportunities.

Threats

• Franchisee unrest or litigation.
• Food contamination (spinach).
• Competition.
• Interest Costs.
• Economic downturn.
• Sabotage.
• Law Suits.

Competitive Analysis

Subway is not without competitive pressures. Chief competitors include Yum! Brands, McDonalds, Wendy’s, and Jack in the Box. Yum! Brands are the world’s largest, with 33,000 restaurants in over 100 countries. Four of the company’s highly recognizable brands, KFC, Pizza Hut, Long John Silver’s and Taco Bell, are global leaders of the Mexican, chicken, pizza, quick-service seafood categories. Yum! has a workforce of 272,000 employees and is headquartered in Louisville, Kentucky.

McDonald’s Corporation (McDonald’s) is the world’s largest foodservice retailing chain with 31,000 fast-food restaurants in 119 countries. The company also operates restaurants under the brand names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. McDonalds operates largely in the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people.

Wendy’s International (Wendy’s) operates three chains of fast food restaurants: Wendy’s (the third largest burger chain in the world), Tim Horton’s, and Baja Fresh. Wendy’s operates over 9700 restaurants in 20 countries, has been included in Fortune magazine’s list of top 500 US companies, is headquartered in Dublin, Ohio, and employs about 57,000 people.

Jack in the Box owns, operates, and franchises Jack in the Box quick-service hamburger restaurants and Qdoba Mexican Grill fast-casual restaurants and is headquartered in San Diego, California.

Target Markets

The increase in sales of the sandwiches has been a result of decreases in consumer interest in hamburgers and fries and increases in demand for healthier options. Sales of sandwiches are growing 15 percent annually, outpacing the 3 percent sales growth rate for burgers and steaks.

Current Marketing Program

A new breed of restaurant is making big gains against the market-saturated hamburger establishments. Termed “fast-casual,” these restaurants are dominated by Mexican chains, and sandwich restaurants offering fresh-baked breads and specialty sandwiches.

Responding to evolving consumer expectations for health, fresh, custom-made sandwiches; Subway’s marketing program addresses these expectations through a number of approaches. The most notable were the television commercials featuring Jared. These commercials emphasize the healthy aspects of a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway sandwich diet. Subway also markets through a national sponsorship in events such as American Heart Association Heart Walks and local events such as triathlons, and children’s sports teams.

The Subway example represents marketing and product strategies that are classic examples of focusing on market demand, consumer trends, product leveraging, and innovation. The marketing strategies of creating clear brand recognition, brand and product association, and market demands, have strategically positioned Subway to advance market share into the near future. These marketing strategies are also repeatable fundamental marketing strategies transcending the fast food market. Does your marketing strategy bind brand recognition to products that support your market’s future direction?”

Does this SWOT Analysis Example help you understand better not only why you need the SWOT Analysis, but also why you perhaps will need assistance in the creation of your company?  You are going to spend time, money and effort to develop and run your company.  Take the time at the beginning to ensure that you are properly prepared for your new endeavor.   Consider this SWOT Analysis Example as you begin your business.  If you are like me the idea of a SWOT Analysis may seem intimidating.  Get help with your SWOT Analysis Here.

What is a Business SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? This type of analysis is more than just a WHO.  All small businesses need to include a SWOT in their strategic planning. A Business SWOT Analysis is a key element of successful strategy development.What is a Business SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? This type of analysis is more than just a WHO.  All small businesses need to include a SWOT in their strategic planning. A Business SWOT Analysis is a key element of successful strategy development.The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a Business SWOT Analysis is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. Another reason to use the SWOT is it helps identify and then further, minimize internal weaknesses.  The SWOT Analysis can also help you develop management strategies for these external threats.The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a Business SWOT Analysis is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. Another reason to use the SWOT is it helps identify and then further, minimize internal weaknesses.  The SWOT Analysis can also help you develop management strategies for these external threats.

What is a Business SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? This type of analysis is more than just a WHO.  All small businesses need to include a SWOT in their strategic planning. A Business SWOT Analysis is a key element of successful strategy development.

The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a Business SWOT Analysis is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. It also helps to first, identify and the, second, to minimize internal weaknesses and develop management strategies for external threats.

The most effective use of a Business SWOT analysis is within the planning process. But analysis and plans must be followed with actions. Develop your SWOT and build an action plan that includes who, what, where, when, why and how to deal with the strategies.

The best approach is to include members of your organization who are key, in the process of the creation of the Business SWOT Analysis. If you are a one-person business; then do it on your own or try to do it within your network of business acquaintances.

The Internal Organization: strengths and weaknesses. Ensure that you build on your strengths and manage and control your weaknesses.

External Factors:  The external environment (also known as the macroenvironment) is about the opportunities and the threats that the organization faces. These external factors are not controlled by the business, but we can manage to minimize threats and maximize opportunities. By managing the external environment’s impact on your business you can be successful.  A part of the external factors you must consider includes tracking economic indicators and then understanding how they impact your business and what you need to do about them.

To be successful you must first, understand, and then second identify your organization’s strengths and weaknesses and then finally, know what the opportunities and threats are in your industry. The Business SWOT analysis is used in your small business to give you an added advantage over your competitors.  You should update your Business SWOT Analysis on an annual basis since your business and your external environment is constantly changing and evolving.

If you want to learn more about what a SWOT analysis is watch this FREE VIDEO.What is a Business SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? This type of analysis is more than just a WHO.  All small businesses need to include a SWOT in their strategic planning. A Business SWOT Analysis is a key element of successful strategy development.

The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a Business SWOT Analysis is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. It also helps to first, identify and the, second, to minimize internal weaknesses and develop management strategies for external threats.

The most effective use of a Business SWOT analysis is within the planning process. But analysis and plans must be followed with actions. Develop your SWOT and build an action plan that includes who, what, where, when, why and how to deal with the strategies.

The best approach is to include members of your organization who are key, in the process of the creation of the Business SWOT Analysis. If you are a one-person business; then do it on your own or try to do it within your network of business acquaintances.

The Internal Organization: strengths and weaknesses. Ensure that you build on your strengths and manage and control your weaknesses.

External Factors:  The external environment (also known as the macroenvironment) is about the opportunities and the threats that the organization faces. These external factors are not controlled by the business, but we can manage to minimize threats and maximize opportunities. By managing the external environment’s impact on your business you can be successful.  A part of the external factors you must consider includes tracking economic indicators and then understanding how they impact your business and what you need to do about them.

To be successful you must first, understand, and then second identify your organization’s strengths and weaknesses and then finally, know what the opportunities and threats are in your industry. The Business SWOT analysis is used in your small business to give you an added advantage over your competitors.  You should update your Business SWOT Analysis on an annual basis since your business and your external environment is constantly changing and evolving.

If you want to learn more about what a SWOT analysis is watch this FREE VIDEO.

There are a myriad of uses for SWOT Analysis.  Uses for SWOT Analysis can include analyzing your entire company, it can be an analysis of a sector of your business, or even you own character.  An example of uses for SWOT Analysis could be as simple as how to make money online.  To determine if the way you have selected will be successful do a SWOT Analysis.  SWOT IS NOT A GUESSING GAME.

An example of uses for SWOT Analysis is blogging.  Everyone wants to make money online, and making money online through blogging is an up and coming trend.  Many of us jump into blogging without realizing the potential of blogging for money. Some people started a blog for fun or to network with friends, while others considered taking it to the next level as an opportunity for an internet business.

You can start a recreational blog then convert it into an internet business opportunity if you plan it right. There are many approaches you can take. By developing a SWOT Analysis it will help you determine if the business scenario that you are examining is viable.  Why do you need to perform a Blogging SWOT Analysis you ask?  First, you need to determine the type of competition and you ability to perform, i.e., develop the blog.  Second, you want to succeed in this internet business so you need to know your strengths, weakness, opportunities and threats!   One you begin to understand the SWOT factors, you would then perform a SWOT Analysis on blogging. An example of such a Blogging SWOT Analysis follows:-  

Strengths

1. Some knowledge in internet business
2. Able to apply SEO technique
3. Some SEM knowledge e.g. article directory, URL submission
4. Have written several articles
5. Some HTML programming knowledge
6. Understand SWOT Analysis template | matrix

Weaknesses

1. Tends to loose focus after a while
2. Weak in article structure to attract search engine
3. Least knowledge in traffic
4. No access to internet line
5. Run out of ideas what to write

Opportunities

1. Sharing of Internet knowledge is increased
2. Less competition with my topic of interest
3. Public WIFI is increasing
4. There are many free articles publishers

Threats

1. Competition is very great on popular topic
2. Webpage ranking is not guaranteed
3. Spamming
4. Duplicate content  

This basic SWOT Analysis of a blogging business is geared to show you one of the uses for SWOT Analysis.  Do not forget that you need to develop a Business Plan as well.  An analysis of using the SWOT and the Business Plan are your THIS.  Do not be swayed by the THAT’S who say these are not necessary for your business.  It is the successful entrepreneur who takes the advice of the experts and not their friends.

Learning SWOT and Business Plans is simple.  CLICK HERE to get your free information.

Perhaps you woke up this morning asking, “What is a Business Plan?” If you are like most people the question of what is a business plan is not even asked in our dreams let alone in real life. Someone once wrote: “Most small business owners would tattoo ‘idiot’ on their forehead before they would develop a business plan!” I have to agree. Unsuccessful businesses do not ask: What is a business plan. I think the primary reason most entrepreneurial Small Business Owners have such a poor regard for a business plan is that they automatically associate a Business Plan with the painful experiences they imagine they will go through when they take it to their banker. What is a business plan is not even a dream in their head.

It doesn’t have to be that way! In fact, the best use of a Business Plan is to keep it to yourself and use it to track your success in your business. How many entrepreneurs have started a business with boundless enthusiasm for what we were going to achieve? How many of us still have most of those ‘achievements’ buzzing around in our heads? If only we could find the time to take action on them. A Business Plan will help us do that.

What is a Business Plan? A Business Plan is nothing more than putting down on paper, your business:

* Goal (Mission Statement)

* Objectives (How I’m going to achieve my goal)

* Products/Services (How I’m going to make money)

* Sales/Marketing Plan (How I’m going to convince people to buy my products/services)

* Operations Plan (How I’m going to spend money to make money)

* Management Plan (How I’m going to make sure all this happens)

* Finance Plan (How I’m going to keep track of it all)

* And most Importantly, Key Performance Indicators (what you’re going to measure over time to prove your success)

From a technology point of view, documenting your technology requirements in the Business Plan ensures that you spend your technology dollars wisely. There should be a good fit between the technology and the Operations Plan, otherwise you may find yourself rebuilding the technology as your business grows or evolves. By planning ahead, you can ensure that the technology can and does grow with the business.

And now that you’ve got all of this out of your head and on paper where you can see it, you can review it regularly to measure your successes and correct anything that is hindering success. Then, when you are ready to expand your business, you will have a proven Business Plan that you can take fearlessly to your banker and with confidence, show why lending to you is money well invested.

The question of what is a business plan cannot be answered in one sentence or even a small post like this. It is apparent though that what is a business plan is more than a dream if you are going to be successful in your business.

If you need help with your business plan seek help from the experts by clicking HERE.

In starting a small business success is only as close as the next question. The key to starting a small business is to know what questions to ask yourself and those people around you. Starting a small business is no easy task. Starting a small business involves time, sweat and money with a heavy emphasis on the sweat and the time. Well, money is important too. But before we spend the time, the money or incur any sweat we have to ask ourselves and others questions. Starting a small business means we have to be knowledgeable about our new business. This is where the SWOT Analysis and Business Plan come into play.  There are a myriad of questions to ask. There is no golden bullet. There is no one $64,000 question that if we have the answer to will make our small business a huge success. So in starting a small business what types of questions should you ask?

Probably the most asked question I get is, “What do I need as the basics to start a small business?”

The prospects are scary, you are unsure of yourself and you don’t want to fail. Perhaps it is critically important that you succeed. Maybe you’ve left yourself no room to retreat. Relax, it’s all okay.

Do the following:

1. Get an idea of how good your competition is. If you are starting a physical business like a coffee shop or plumbing company, look at the yellow pages and check the better business bureau. Check to see if any of your competitors are on the bureau’s bad list.

If you are starting an online business, do a web search exactly as follows including the quotes: “intitle:”theme of your site” inanchor:”theme of your site” inurl:”theme of your site”. The number shown will show you the number of serious competitors you have on the world wide web.

2. Make sure you have enough capital to keep going for 6 months. The best way to do this is starting part time. This would be fine if you are working online, but not possible for a walk off the street business.

Talk to your bankers about your list of small business ideas. They can offer sound advice. If you are starting a web business, even your banker can’t really help you much because hardly anyone has an online enterprise so they have little information. On the other hand, with an online business, you have virtually no costs and, if you do an affiliate business, you have virtually no risks.

Either way, just make sure you are not following some Pied Piper with a get rich quick scheme. They are all over and they are very good at making you believe they have the secret to instant wealth.

Everything takes time and work.

Can you see now why a few simple inquiries will save you all kinds of grief? If you are not sure, seek information from an expert in your field. Most people are quite happy to help if approached correctly.

Since there is no one $64,000 question, starting a small business can be a daunting task. But do not be so afraid of starting that small business that you never even start to ask the questions. If you are not sure what questions to ask, where to turn to for help or just need a helping hand in starting a small business contact us.

Small Business Plans are very important for a small business. You have to explain your background, qualifications, experience and your capacity to implement the project. A good business plan is absolutely essential to convince the banks and financial institutions to lend you money for the project. Think of Small Business Plans as the blue print for your small business. Any contractor worth his salt will not begin construction until he has both the blueprints and has looked at the blue prints. Small Business Plans are the bedrock of your business. Without the blue print you will not know what to build, and further you will not know how to build the successful small business.

Your business plan should explain who is starting the project. What is the project? When are you starting the project? Why are you starting the project? How are you going about it? The results expected from the project, should also be mentioned.

Your background and qualifications have to be explained in detail. You have to explain what projects you have done before. You should give a detailed explanation of the product or service you are going to launch. And also the competition you might face. If you are already in business, you should also give details of the activities of the company or business. The revenue expected should be mentioned in detail.

If it is new business the details of how you are setting up the business. How long it would take to set it up? Your production and sales targets should also be mentioned. How you are meeting these targets should also be explained.

Where are you going to set up the business? Whether it is a shop or a factory? How are you acquiring the land? The details of construction of the building and the costs involved should be mentioned.

Your marketing plans will have to be explained. Who are your customers and how are you going to reach them should be explained. Whether you are hiring a marketing company to market your product or marketing it on your own has to be explained. If you are planning an expansion, the details of how it would be financed should be mentioned.

You have to do quite a bit of ground work and research before starting any new project. It is always better to have contingency plans to get over any unforeseen problems. I have seen people visualizing various scenarios, and making plans to face them. It is always better to look before you jump.

Small Business Plans lay out the ground work for the Small Business particularly when used in conjunction with the SWOT Analysis . Perhaps your business might be small today but the same thing was said for Apple, Google and Microsoft. While realistically our Small Business Plans will probably not turn into those types of businesses we know that if we do not use Small Business Plans we will not even have a small business. We will have nothing. So use Small Business Plans.  To learn how to use business plans get your FREE HELP HERE.