When running a business, the “Ignorance is bliss” approach may seem tempting but may create major roadblocks when trying to grow your accounting business. Successful Business owners often know their business inside out. One of the ways they do this is by conducting a SWOT analysis of their accounting business.
Albert Humphrey discovered the SWOT analysis in the 1960s. It helped companies understand their business as a whole and analyse their current situation.
SWOT stands for Strengths, Weakness, Opportunities, and Threats. This doesn’t need to be complicated and is simple enough for any business owner to do it.
Just list out the 4 categories and do a brainstorming session with your colleagues to make it a more joyful exercise.
1.Strengths: This can be anything that sets your business apart from your competition like knowledge, experience, certifications, workforce, product /service uniqueness, location etc.
2.Weakness: Anything that’s hindering your progress ex: bad reviews, cash flow problems, too many employee absences, etc.
3.Opportunities: For example a gap in the market where you could help, a specific niche or group of people, new ways to reach your customers, etc.
4.Threats: This can includes your competitors, government regulations affecting your industry as a whole, etc.
Once the exercise is done, you would have a clear picture of the various things that require immediate attention. These can help revise your goals and equip you for future challenges.
A simple way to use your SWOT list is as follows:
- Use and build on your strengths to stand out,
- Work on your Weaknesses,
- Get ready to use the opportunities that are coming your way
- Think of ways to minimise the effect of the Threats.
Do you need help with your SWOT analysis? We can help you. Please click the link and contact us today. If you are struggling to market your accounting firm please click the link to read our article which highlights three top tips to market your accounting firm.