SOUTHBURY, CT--(Marketwire - April 27, 2010) - Entrepreneurs can increase the profitability of their companies by periodically performing a SWOT analysis on their business, says AdviCoach.
A SWOT analysis allows for a different view of the business -- one that gives a business owner valuable insight and key data in support of a strategic business plan.
"However, as part of a greater strategic business plan, a SWOT analysis must first start with defining a desired goal or objective," says Brian Miller, COO and President of AdviCoach.
"A SWOT analysis gives greater insight into a company's Strengths, Weaknesses, Opportunities and Threats, and they are very much tied to the creation of a mission or objective of the business or even a project," said Miller. "By understanding these four aspects of their company, they can better leverage their strengths, correct the weaknesses, capitalize on golden opportunities and manage the potential threats."
Identifying the Strengths and Weaknesses of a company is usually a view of the internal structures of the business and can be used to develop a competitive advantage.
Strengths
Examples would include patents and intellectual property, strong brand recognition, good reputation among customer base, and cost advantages based on proprietary know-how.
Weaknesses
The absence of certain strengths can be viewed as weaknesses including lack of patent protection, weak brand recognition, poor or inconsistent reputation among customers and a high cost structure.
The Opportunities and Threats are generally external related and may reveal certain opportunities for profit and growth.
Opportunities
Examples would include identifying an unfulfilled customer need, arrival of new technology, strategic partnerships or discovering cheaper distribution methods.
Threats
These include changes in the external environment that aren't always predictable but with insight, can be managed with forethought. They could include a shift in consumers' taste away from a product or service, emergence of competition and new regulation.
Through a supportive partnership with business owners, AdviCoaches work with clients to assess their business' performance in critical areas, address gaps and overcome obstacles to drive immediate results.
To learn more about AdviCoach, please visit www.advicoach.com.