| Winston Churchill once said, "However beautiful the | | | | advantage, which also means realizing that you need |
| strategy, you should occasionally look at the results". | | | | to get another team member to deal with the public. |
| It is essential to define your strategy for your | | | | Placing people in roles where they excel and are |
| business and utilize the process of good planning at all | | | | happiest makes for a better work environment, |
| times. In this way, strategic planning should be a part | | | | which will increase productivity and ultimately financial |
| of your normal business practices as an entrepreneur. | | | | results. |
| The first step in strategic planning has echoes of | | | | The external assessment is equally as integral to the |
| Churchill's words; you must assess your organization's | | | | growth of your company as the internal assessment. |
| current status. Starting here will assess your | | | | It is necessary to be knowledgeable on all facets of |
| organization's readiness to engage in the overall | | | | the business, as knowing these details will ultimately |
| strategic planning process. If you want to improve | | | | prepare you when making future plans for your |
| performance, you must first be aware of what is | | | | company. |
| currently going on in the everyday processes of your | | | | In the external assessment, there are two |
| company and the effects that are produced by | | | | environments to consider - the macro-environment |
| those actions. Use this assessment as a key tool to | | | | and the micro-environment. You want to study both |
| help you move forward in the process of identifying | | | | areas closely and determine the issues, trends, or |
| key issues to address. | | | | events that are positively or negatively impacting |
| In order to help you further define areas of | | | | your business. The macro-environment affects all |
| examination, a SWOT analysis can be a great tool. It | | | | types of firms, whereas the micro-environment |
| stands for Strengths, Weaknesses, Opportunities, | | | | affects only firms in a particular field or industry. |
| and Threats. These key factors are crucial in | | | | Some factors to consider when analyzing the |
| assessing your organization's strategic position. | | | | external factors are: |
| Identifying these areas will greatly benefit your | | | | -Macro-Environment Issues: Political, social, economic, |
| business and ultimately lead to the growth of your | | | | and technology |
| venture. Being aware of your weaknesses can also | | | | -Micro-Environment Issues: Barriers to entry, |
| be a great strength; so do not be fearful of | | | | customers, suppliers, substitute products, and rivalry |
| highlighting problem areas. Use these findings as | | | | among competing firms |
| another means to help you refocus that area and | | | | Opportunities |
| emerge stronger than before. Capitalize on any | | | | What are potential areas for growth and increased |
| opportunities you find and learn to recognize threats | | | | performance? The more you know about how your |
| that exist for your business. | | | | company and how it functions will translate into you |
| In looking at the internal factors, some items to | | | | being more aware of the opportunities that are |
| consider analyzing are: | | | | available to be taken advantage of. Your employees |
| -Resources | | | | can be another resource to aid you in recognizing |
| -Management | | | | such opportunities. Cultivate a good working |
| -Employees | | | | relationship with those you employ and encourage |
| -Operational efficiency + capacity | | | | open communication. Some of the best ideas could |
| -Partnerships | | | | come from people already on your team. |
| -Systems | | | | Threats |
| -Suppliers | | | | Threats are the challenges that face your company. |
| -Brand awareness and market positions | | | | You must be aware of what is happening in the field |
| -Patents and trade secrets | | | | of business that you operate to truly be able to |
| Strengths | | | | assess threats to your business. |
| Catalogue the particulars of what your company | | | | It can be a daunting task to take an unbiased look at |
| does well. What is benefiting the performance and | | | | your company, but it is necessary and will ultimately |
| raising the bottom line? Ask yourself what the | | | | serve to better your business and its practices. It is |
| company's capabilities, skills and resources are as | | | | natural that you take pride in your business and |
| knowing these answers will help you create and | | | | perhaps have rose-colored glasses, but that will not |
| execute future business plans. Another term for | | | | be helpful in improving your business and creating |
| these positives is "Core Competencies". | | | | your strategy. Be realistic about the strengths and |
| Weaknesses | | | | weaknesses possessed by those on your team, |
| Ask yourself what is holding the company back from | | | | yourself, and within the business. The SWOT analysis |
| its full potential. Be a detective and ferret out those | | | | will clearly outline your current position in the |
| seemingly small or inconsequential details that might | | | | marketplace, as well as adding definition to where |
| be having a larger effect on your company and its | | | | you could be in the future. |
| earnings than you had previously suspected. | | | | It may also be beneficial to apply the SWOT method |
| Is it also beneficial to get a sense of how your | | | | to your competitors businesses as well. The |
| customers view you. Is your company being | | | | competitive business world fights its own battles on |
| overlooked by the consumer for some reason? If so, | | | | a daily basis, and you want to go into this battle fully |
| do some research and find out where the issue lies. | | | | armed with a strategy and knowledge of your |
| Is there a problem with customer service that is | | | | opposing side. Miyamoto Musashi has said, "Perception |
| somehow off putting to clients? Are your employees | | | | is strong and sight weak. In strategy it is important |
| and team members competent as well as having the | | | | to see distant things as if they were close and to |
| skills to be able to deal with your clients? | | | | take a distanced view of close things." Always |
| You might have an employee who is incredibly savvy | | | | attempt to stay one step ahead of the game by |
| on the technological side of the business, but who is | | | | being able to anticipate actions that could take place |
| unfortunately also dealing with the customer and | | | | down the road, whether it is with a competitor, your |
| lacks the proper people skills to communicate | | | | business, or trends in the overall market. |
| properly and effectively. It is important to recognize | | | | For more on these topics visit Dyer Consulting Group. |
| the strength of the person and use it to your | | | | |