*** From the Archives ***

This article is from August 18, 2003, and is no longer current.

The Art of Business: Deploy the SWOT Team

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As the saying goes, we often have trouble seeing the forest from the trees. And it’s understandable; we know our operations and ourselves so intimately that it’s hard to measure or compare ourselves objectively. When large companies have the same problem, they engage in an exercise called a SWOT analysis. As its abbreviation suggests, SWOT is designed to identify their Strengths and Weaknesses, and of examining the Opportunities and Threats they face.

You can use the same technique for your creative business. It’s actually a very simple process and can be completed in less than the time it takes to have lunch. But don’t do it alone. Involve coworkers, trusted clients, significant others — anyone who knows you and your business well.

After lunch, when you’re waiting for the bill, do a SWOT analysis of your competitors — a particularly enjoyable experience, especially when you detail their weaknesses and threats.

Assemble your Weapons
To carry out a SWOT analysis write down answers to the following questions. Jot down answers both from your point of view and from the point of view of the people you deal with. Hard as it might be, try not to be modest or delusional:

Strengths:

  • What are my advantages?
  • What do I do well?
  • What relevant resources do I have?
  • What do other people see as my strengths?

A solo Web designer might write: “I have both a good sense of design and the ability to use many applications, including back-end development software. This allows me to tackle ecommerce and database-driven Web projects. My partnerships with writers, photographers, and engineers allow me to act as a virtual company providing services beyond my own capabilities. My clients see me as flexible and competent.”

There are even strengths in weaknesses. A small design shop may discover, for example: “We are able to respond very quickly due to our low workload. We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers. We can change direction quickly if we find that our marketing is not working. We have little overhead, so can offer good value to customers and compete on price.”

Just one more step: Look at your strengths in relation to the competition. If, for example, all your competitors have little overhead because they too are working out of a spare bedroom, then your ability to compete on price is really not a market strength, just a necessity.

Weaknesses:

  • What can I improve about my offerings and myself?
  • What do you do poorly or not at all?
  • What should you avoid?
  • What objections do potential clients frequently raise?

Again, consider these, internally and externally: Do other people perceive weaknesses that you do not see? Are your competitors doing any better than you in particular areas? Be realistic now, and face any unpleasant truths as soon as possible.

A graphic designer’s weakness list may look like this: “I have great design skills but I don’t execute well, particularly when I am forced to consider input from several people from within a client’s business. I also have trouble focusing on critical proofing stages and so I often miss errors introduced during this stage. I’m sloppy with estimates and that has caused me to complete jobs for much less than they’re worth.

Opportunities:

  • Where are the best opportunities in the near future?
  • What are the interesting trends, such as:
    • Changes in technology and markets on both a macro and micro scale;
    • Changes in the economy;
    • Changes in social patterns and media;
    • Changes in my local events.

One useful approach when looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them.

Here’s an example: “The advent of PDF workflow allows me to offer new services to mid-sized and large companies that need to improve internal operations. I can charge by the hour and hence bypass the dangers of bidding a job and coming up short. This new ‘in’ will also provide me the opportunity to pick up additional contracting work when the in-house design department is overloaded. Locally the economy is picking up and I’m one of the few creative professionals with ties to local businesses on a personal level.”

Threats:

  • What obstacles do I face?
  • What is my competition doing?
  • How will changes in my area of expertise affect what I do?
  • Is changing technology threatening my position?
  • Do I have bad debt or cash-flow problems?
  • Could any of my weaknesses seriously threaten my business?

Threats can be illusive, so this portion of the analysis is often the most difficult and illuminating — both in terms of pointing out what needs to be done, and in putting problems into perspective.

A photographer might discover that “advances in digital photography threaten to erode market opportunities as clients start believing they can venture into photography because they no longer have to risk the cost of film and development. My reputation as a quality B&W photographer may not translate well into the digital world and my new studio is costing me a bundle, meaning I need a steady stream of income.”

Call to Action
The analysis is only the first part of the exercise. Now it’s time to take action by shoring up your weaknesses, defending against threats, promoting your strengths, and exploiting your opportunities. Create a to-do list addressing the major points in each category. Spend one hour a day bringing these directives to life.

For example: “Because of our low overhead and partnerships, we will specialize in rapid response, good value services to local businesses and those in the XX industry. We will create a marketing strategy that promotes these advantages. Meanwhile, we will continue to evolve partnerships until we are perceived as a creative ‘hub’ in our marketplace.”

A SWOT Analysis is just one of many good techniques you can use to build a strong, competitive position for you and your company. And thinking strategically is the greatest strength of all.

Read more by Eric J. Adams.

  • Anonymous says:

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  • Bartu says:

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