How many times a year would you say you perform a SWOT analysis for your trade business? If your answer isn’t at least once, you need toASAP. A SWOT analysis (strengths, weaknesses, opportunities & threats analysis) is an effective tool in analysing your business’s internal and external positioning.
By identifying these four factors in your business, you’ll have a clear view of what your business lacks and become aware of its current standing in the business environment. Considering the fast-changing environment we have nowadays, SWOT analysis’ are more crucial than ever.
It’s important to note that a SWOT analysis is just a tool to help you recognise certain factors in your business. It’s ultimately up to you how you use this to your advantage by using the information that comes out of the analysis to create your marketing and business plans.
Identifying your SWOT can be easier and less time-consuming if you know what questions to ask yourself. Below, you will find guide questions that you can use when conducting a SWOT analysis:
Strengths
- What is our unique selling proposition?
- Why do our customers prefer us over our competitors? Is it because your local? Professional? Lower in price?
- What product/service do we sell that is popular among people?
- Do we have state-of-the-art technologies that we use in our business? Example, you’re the only plumber in your area using a Jetter at this point in time.
- Is our location advantageous for us?
- Do our employees have relevant years of experience and skills?
Weaknesses
- What resources are we lacking? Financial resources? Human resources?
- Why do customers give us bad reviews?
- What are the common customer complaints we receive?
- Why is our customer service subpar?
- Why are we having cash flow problems?
- Why aren’t we chasing customer payment debts?
Opportunities
- How can we convert our strengths into opportunities?
- What are our competitors not utilising which we can use in our favour?
- Are there market opportunities we can use to our advantage?
- What are the changes in your industry that we can use as an opportunity?
- Do our customers ask for something in our business that we haven’t provided yet but can certainly add?
- Are we ignoring a possible niche market which we can actually benefit from?
Threats
- How can I benchmark myself against competitors?
- Do we have more competitors now compared to the last three years?
- Why do some customers prefer purchasing from our competitors?
- What are the issues with our suppliers?
- Are there are any technological advancements that could make our business mediocre in the future?
- How will the instability of the economic environment affect our business?
- Are we having difficulty finding new employees due to manpower shortages in our area?
Note here, these are just a few of the questions you can use as a basis for your SWOT analysis. A more in-depth SWOT analysis will include many more!
And remember, it’s up to you to use the information and knowledge you gain from your SWOT analysis in your marketing and business plans!
Interested in learning more about implementing a marketing and business plan in your trade business?
What’s next?
- Join our Kick-Ass Tradies Facebook Group, for access to trade business specific conversations, tips and resources, plus a like-minded community of tradies.
- Book a 15-minute Game Plan Call with Andy, owner of Dr. DRiP plumbing and co-founder of Lifestyle Tradie, to clarify your priorities and get clear action steps.
