Before your business starts to really grow, you need a realistic picture of its current status. There are several easy methods for doing this which can bring great clarity. They can reveal your strengths and weaknesses and show you a birds' eye view of market forces that affect you. It's an essential first step towards business growth.
SWOT analysis is the most widely used model. In this method, we create a grid for four sections: Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are internal to your company while Opportunities and Threats identify market forces or other external factors. By filling out this chart, you can easily see the situation your business is currently facing. Once you have the information on hand, then you can start developing strategies for business growth.
SOAR – The Positive SWOT
SOAR is similar to SWOT but takes a more positive slant. It identifies Strengths, Opportunities, Aspirations, and Results. Like SWOT, you list each in the spaces provided and this gives you a clear picture of your company and the current market.
Some say that since SOAR removes the negatives, it doesn't give a clear picture. However, proponents of the method say it's more effective because it reframes the negative factors as challenges or opportunities. While SWOT looks at the current situation, SOAR presents a vision of future business growth.
PEST – A Look at the Outside World
PEST is a similar method that focuses on the market and other external factors. While you examine both internal and external factors with SWOT, PEST focuses only on the external. It stands for Political, Economic, Social, and Technological.
PEST analysis gives you a chance to look at trends in the world like attitudes toward health or lifestyle, exchange rates, government regulations, and technological innovations like automation or AI. PESTLE a variation on PEST that adds in Legal and Environment.
SCOPE Planning – SWOT Taken to the Next Level
SCOPE planning is considered SWOT taken to the next level because it adds a fifth factor and focuses more on strategic development. It stands for Strengths, Core Competencies, Obstacles, Prospects, and Expectations. It considers the current situation as well as internal and external factors with an eye toward business growth through assessing prospects and expectations.
About Alicia Sinclaire
Founder of Creative Bloom
Alicia has over a decade of experience in marketing, sales, and client relations which allowed her to garner the expertise as well as the knowledge to help other people reach the peak of their success.
A multi-passionate entrepreneur and multipotentialite, Alicia has worked with various small businesses, nonprofits, and corporate clients in industries such as finance, education, real estate, health, law, and technology helping build their business from the ground up and maintain growth to open doors for new possibilities.
A Message to You From Alicia
Are you ready to start growing your business? It's not so hard if you approach it in an organized way. Learn how to conduct an effective analysis of your business and get started growing with my free training here.