SWOT Analysis

According to me most important characteristic of entrepreneur is URGE to take a task. And I see that many individuals in our society have this urge. But unfortunately many of them give up in primary stages of decision and keep living pay cheque to pay cheque.

According to the new Encyclopaedia Britannica Entrepreneur is an individual who bears a risk of operating a business in the face of uncertainty about the future condition.
Many wannabe entrepreneurs want to set up a new venture but they are not able to gather courage for it.

Some entrepreneurs think in a way that let the problems exist, every problem has a solution. This way of positive thinking is really very good approach but thinking rationally will suggest you that its better if you take a caution, and calculate the risks and benefits involved.
A little trick to analyse business opportunities

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a project.
It involves specifying the objective of the business venture and identifying the internal and external factors that are favourable and unfavourable to achieve that objective. The technique is credited to Albert Humphrey.

Setting the objective should be done after the SWOT analysis has been performed. This would help an entrepreneur in realistic goal setting or objectives to be set for the organization.

Strengths: characteristics of the business, or project that give it an advantage over others.

Weaknesses: characteristics that place the team at a disadvantage relative to others.

Opportunities: external chances to improve performance (e.g. make greater profits) in the environment.

Threats: external elements in the environment that could cause trouble for the business or project

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

Example: I plan to set up a book shop at Deccan, in Pune.

Strengths: Every Puneity will see my shop minimum once in a month. Many other book shops neighbouring (Never consider them as your rivals, they are people believing in your concept).

Weaknesses: Low Space for vehicle Parking, high cost of infrastructure

Opportunities: If Metro rail project comes in to existence Deccan will work a central point for many routes bringing in tons of money.

Threats: when Metro project will start, there will be blockage in traffics effecting turnover for long time.
This will help you in setting up new goals of Profit venture.

Prior to defining the company’s strengths, weaknesses, opportunities and threats you need to:

• Have a written Vision, Mission and Values statement.
• Have completed a thorough internal and external business status evaluation.
  
  What makes a SWOT analysis effort successful?
  
  • You must start with your Vision, Mission and Values statement.
  • You must objectively prepare your businesses internal and external status.
  • You must be realistic and forthright in preparing the businesses, and your, strengths and weaknesses
    Be specific but keep it short and simple, don’t over analyze.
  • Developing strategies and tactics that match the SWOT analysis results.
  • Writing an operating plan based on your SWOT Analysis, strategies and tactics.
  • Implementation of a resulting operating plan.