Businesses often run SWOT analyses (strengths, weaknesses, opportunities and threats) when launching a new product, moving into a new area, or physically expanding a retail base. But before you even start your business, consider running the same analysis on yourself.
Most analysts identify a handful of reasons why so many businesses fail:
- Under-capitalization. They just didn’t have enough money to operate and didn’t realize how seriously in trouble they were.
- An inability to get necessary loans or capital investment.
- A non-entrepreneurial personality trying to be what they aren’t.
- Failure to create a valid business plan and continue to review and update it each year.
- Lack of preparation and knowledge about business ownership.
A SWOT analysis might help you figure out whether you have what it takes to be an entrepreneur and how well thought out your business idea is.
Are you a self-starter with a hard-driving, no quit work ethic? That’s a definite strength. But if you’re also in a shaky financial situation with a lot of loans and a credit score under 700. That’s a weakness and a threat to your businesses success.
Ever written a business plan or followed a detailed budget each month? Another plus. But you’re no accountant so running those pesky monthly reports and spending time analyzing the numbers may not be something you’ll want to do. But you may be an innovator with a unique idea. Ideas are great, but turning them into products and services is often a lot more work than it seems. Are the opportunities worth the risks? Do you know what you will need and where to get it?
The Small Business Development Center (SBDC) offers a number of tools to help you take action to give your business its best chance of success. The “Jumpstart” program is now available online and on-demand. This is an in-depth program that covers most issues a new business faces. Part I is built a to emphasize feasibility and preparation. Part II provides help with building a business plan – and a template. Part III is all about the financing process, building projections, and understanding basic financial statements.
Click here to start the registration process. Then select the program that meets your needs.