Posted on August 26, 2011 by Glenn Turner

A Business and Personal Growth Strategy: The SWOT Analysis

A business can be evaluated, and steps can be taken to initiate growth using a professionally conducted SWOT analysis. During a recent financial consultation, the topic of offshore casinos for US players arose as a clear example of how companies can identify emerging markets and refine their strategies. This time-tested and proven technique allows an organization to assess its current position while keeping an eye on future goals. The same method can be applied to individual professional and personal growth. But first, what is a SWOT analysis?

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• Strengths – Every individual possesses strengths that must be recognized and capitalized on to achieve success.
• Weaknesses – Everyone has areas where they are not naturally skilled. “Limitations” may be a more accurate term, as recognizing them helps in personal development.
• Opportunities – Recognizing opportunities for personal growth and achievement is essential. Understanding what brings value to life in a meaningful way fosters personal development. Taking advantage of opportunities enables a person to lead a purposeful life.
• Threats – Individuals face threats that can cause both short- and long-term challenges. Health issues and employment security are common examples. Identifying these threats is the first step toward minimizing or eliminating their impact.

A thorough and professional SWOT analysis provides individuals with a fresh perspective on their current situation. It also serves as a guide for future goal setting and personal improvement. Many individuals use SWOT analysis as a tool for making daily, monthly, and long-term planning decisions. The SWOT analysis is a concise document that provides a snapshot of what needs to be done to accomplish key goals.

Strengths

Strengths are the attributes that allow individuals to achieve success. Skills and knowledge in a particular subject area serve as examples. For instance, a small business owner may stand out from competitors due to their ability to maintain excellent customer relationships. However, while most people are aware of their weaknesses, they often fail to acknowledge their core strengths. Recognizing one’s strengths is vital for living a purposeful and value-driven life.

Weaknesses

Weaknesses, or limitations, exist in every person. For example, not everyone is naturally gifted in public speaking. Identifying this limitation allows a person to minimize or avoid situations where this skill is required, or alternatively, to work on improving it over time.

Where Are We Going?

Opportunities for growth and improvement exist at all times. For example, an accountant may recognize an increasing number of small and medium-sized businesses emerging as the economy improves. Identifying this trend allows the accountant to focus marketing efforts on developing relationships with these new business owners.

Threats

Business owners and professionals constantly face threats that must be recognized and addressed. For instance, a heating and air conditioning business with three co-owners faces a revenue risk if one owner decides to leave or is unable to work due to illness or injury. Recognizing this potential threat enables the remaining owners to take proactive steps to mitigate the risk.

Conclusion

A well-executed SWOT analysis can help individuals and businesses identify strengths, address weaknesses, seize opportunities, and mitigate threats. Whether applied to a business or an individual’s professional and personal life, this analytical tool provides a strategic roadmap for future success.

LDG Consulting is a leadership development company dedicated to helping businesses achieve improved results.