{"id":1537,"date":"2021-07-31T05:08:22","date_gmt":"2021-07-31T09:08:22","guid":{"rendered":"https:\/\/www.saudercpa.com\/blog\/?p=1537"},"modified":"2021-07-23T10:11:47","modified_gmt":"2021-07-23T14:11:47","slug":"swot-analysis-for-the-aspiring-entrepreneur","status":"publish","type":"post","link":"https:\/\/www.saudercpa.com\/blog\/2021\/07\/31\/swot-analysis-for-the-aspiring-entrepreneur\/","title":{"rendered":"SWOT Analysis for the Aspiring Entrepreneur"},"content":{"rendered":"

Preface: For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?\u00a0 Lest haply, after he hath laid the foundation, and is not able to finish it, all that behold it begin to mock him,\u00a0 Saying, This man began to build, and was not able to finish –Luke 14:28-30<\/em><\/p>\n

SWOT Analysis for the Aspiring Entrepreneur<\/strong><\/p>\n

Credit: Jacob M. Dietz, CPA<\/p>\n

Should I start a business?\u00a0 If you are considering becoming an entrepreneur, first spend significant amounts of time researching and thinking about your options.\u00a0 This article does not delve into all the considerations, but it recommends that the aspiring entrepreneur conduct a SWOT analysis to examine Strengths, Weaknesses, Opportunities, and Threats.<\/p>\n

Strengths<\/strong><\/p>\n

First, strengths are your characteristics and traits that can help.\u00a0 Some strengths that you might possess include a good work ethic, discipline, integrity, experience, and good hand-eye coordination. \u00a0If you start and run your own business, expect to work hard.\u00a0 You might work harder than you have ever worked before.\u00a0 If you already possess a good work ethic, that is a strength to you.\u00a0 Your life experience can be a strength.\u00a0 If you worked in a similar business for your father for years, then that experience will be a strength to you as you start your own business.<\/p>\n

Write down the strengths that you possess that could help you.\u00a0 Be honest.\u00a0 Do not overrate your strengths, but also do not underrate those strengths.\u00a0 They are blessings given to you.\u00a0 Appropriately considering your strengths may influence your decision about starting a business.<\/p>\n

Why write out your strengths?\u00a0 Seeing your strengths may bring clarity to you as to what your strengths are.\u00a0 You might be able to think of some strengths off-hand, but as you look at them written down you may grasp a fuller picture.\u00a0 Furthermore, if you seek counsel as you consider your business opportunity, and I recommend that you do seek counsel, then having written strengths allows your advisors to picture your strengths.<\/p>\n

What would give you a competitive advantage? What internal strengths would help you run this business successfully?\u00a0 Consider this question, ask your advisors for input, and write down the answers.<\/p>\n

Weaknesses<\/strong><\/p>\n

Along with your strengths, remember your weaknesses.\u00a0 Weaknesses include your characteristics that may harm you.\u00a0 It may be painful to recognize your own weaknesses, but it also can be extremely beneficial. If you know your weaknesses, then you may be able to avoid long-term harm by avoiding certain situations, or by minimizing your weaknesses in certain situations.<\/p>\n

For example, assume that you are terrified of heights and cannot work long hours in the heat without suffering from heat exhaustion.\u00a0 Perhaps you should not start a roofing business.\u00a0 On the other hand, sometimes a weakness can be mitigated.\u00a0 Maybe you are weak at analyzing financial data.\u00a0 If that is the case, then you may want to team up with a talented CPA who can assist you with the financial analytics.<\/p>\n

Knowing your own weaknesses can be hard since there can be a tendency to overlook our own weaknesses.\u00a0 Consider asking family members and work associates about your weaknesses.\u00a0 Ask someone who has managed you what your weaknesses are.\u00a0 Ask someone whom you have managed what your weaknesses are.<\/p>\n

Again, write down your weaknesses.\u00a0 If you do not write them down, it might be easy to forget them.\u00a0 Also, your business counsellors may have better insights if the weaknesses are written.<\/p>\n

The purpose of writing your weaknesses is not to make yourself feel bad.\u00a0 Considering your weaknesses may help you avoid bad situations or take steps to minimize the danger of those situations.\u00a0 Do not neglect this step.<\/p>\n

Opportunities<\/strong><\/p>\n

In addition to analyzing your internal strengths and weakness, also consider external opportunities and threats.\u00a0 What are the opportunities in the industry?\u00a0 For example, suppose you want to become a residential homebuilder.\u00a0 An opportunity could be that your township revised its zoning laws to allow more houses to be built.\u00a0 Another opportunity could be a growing population of a certain demographic group that wants your product or service.\u00a0 For example, if you want to start a home healthcare business, then a growing population of senior citizens could be an opportunity.<\/p>\n

Opportunities are external to you, so they may require some outside research.\u00a0 Reading can be a great way to gather some of this information.\u00a0 Business publications, trade publications, and even your local newspaper might provide helpful information.\u00a0 Consider talking with your librarian.\u00a0 Your library may have access to business databases, publications, and references that will help you research.\u00a0 You also may want to talk with experienced people in the industry in which you are considering starting out as an entrepreneur.\u00a0 Do they know of any good opportunities to seize?<\/p>\n

Some people who know the opportunities the best may not wish to share them with you as a competitor.\u00a0 Nevertheless, you might find some entrepreneurs who may be willing to share their knowledge, even if they know that you might compete with them.\u00a0 If you are having trouble finding someone, consider trying to find someone who might be less concerned about competition.\u00a0 For example, if you aspire to start a roofing company, perhaps a building supplies entrepreneur might have some information on your industry.\u00a0 In that situation, you would not be seen as a competitor but as a potential customer.\u00a0 You might also be able to talk to someone who lives geographically far enough away to avoid some of the competition to share with you.\u00a0 Just remember that there could be geographic differences in opportunity.\u00a0 Consider reaching out to an older man who knows the industry, but who loves to pass on knowledge to those getting started.\u00a0\u00a0 Consider seeking out advisors and professionals who have knowledge in your industry.<\/p>\n

Threats<\/strong><\/p>\n

A threat is an external item that could harm your potential venture. Threats may include legal, economic, and other hazards.\u00a0 For example, if you wanted to start a residential construction company right after a housing bubble popped then you may face a major threat.<\/p>\n

Some of the same research that you do to learn about opportunities may help you learn about threats as well.\u00a0 Consider researching publications, talking with your librarian, and seeking out those with experience in the industry.<\/p>\n

When researching threats and writing them down, try to portray them accurately.\u00a0 If you and your business counsellors accurately understand the threats, then you might be able to chart a good course.<\/p>\n

Just because you find grave threats does not automatically mean that you should abandon the idea for a business, although in certain situations that could be prudent.\u00a0 Firefighters understand that fire poses a grave threat to their health and lives.\u00a0\u00a0 When the fire alarm goes off, however, the firefighters do not stay in the safety of their living rooms sipping cold water to avoid the grave danger.\u00a0 Firefighters rush toward the action and the danger.\u00a0 Firefighters, however, invest much time and action into safety to protect them from the danger.\u00a0 They train for safety.\u00a0 They don personal protective equipment to guard them from the danger.<\/p>\n

If firefighters did not understand the danger of fires, then fires could hurt more of them.\u00a0 Likewise, entrepreneurs increase the likelihood of problems if they do not understand the threats to their enterprise.<\/p>\n

The factors going into a decision about entrepreneurship are many. \u00a0Remember to include a SWOT analysis in the decision process.\u00a0 It might steer you away from a disastrous decision.\u00a0 Alternatively, you may still make the decision to enter that field but be better prepared to use your strengths to seize certain opportunities and to take measures to minimize the risks from weaknesses and threats.\u00a0 Feel free to contact your accountant if you would like to talk about becoming an entrepreneur.<\/p>\n

This article is general in nature, and it does not contain legal advice. \u00a0Contact your advisors to discuss your specific situation.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Preface: For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?\u00a0 Lest haply, after he hath laid the foundation, and is not able to finish it, all that behold it begin to mock him,\u00a0 Saying, This man began to build, and … Continue reading “SWOT Analysis for the Aspiring Entrepreneur”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/posts\/1537"}],"collection":[{"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/comments?post=1537"}],"version-history":[{"count":1,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/posts\/1537\/revisions"}],"predecessor-version":[{"id":1538,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/posts\/1537\/revisions\/1538"}],"wp:attachment":[{"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/media?parent=1537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/categories?post=1537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/tags?post=1537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}