SWOT analysis

Let's now talk about another of the tools of a business coach, the SWOT analysis. This analysis takes into account four main aspects, weaknesses, threats, strengths and opportunities. This method is very useful for analyzing weaknesses and strengths, as well as external resources and obstacles in your potential ventures.

The SWOT analysis can be used at any stage of the business life cycle, particularly at the beginning of the business, which will help you know where you stand and what steps you need to take in the future to make your venture a success.

Characteristics of the SWOT analysis

This tool uses four main points for the analysis of the company. Each one has its specific characteristics that make them very useful for the global vision of any business.

Weaknesses

The weaknesses of a company are those aspects of it that can prevent it from performing at a higher level. They are elements in which there is great room for improvement in order to keep the company competitive. Some examples of weaknesses could be:

• Weak brand identity.

• Above-average decline in the number of customers.

• Large debts or declining liquidity.

• Loss of confidence in executives.

• Lack of knowledge.

• Fear of failure.

Opportunities

This aspect includes all the external elements that can favor and give a competitive advantage to your company. For example, you are working with a group of employees, and you find out that they need a professional coach. This allows you an opportunity to get new contacts or clients. Another situation where you might find new opportunities is when you attend networking events and meet people who are interested in what you do.

Strengths

Strengths are used to describe what the company is good at and different from all others. Some of the strengths of a venture may include a:

• Strong brand identity.

• Good online community.

• Loyal clientele.

• Unique techniques.

• A good budget balance.

Threats

Threats also count as external elements, but in this case with the potential to harm your business. So it is an aspect that you must tackle in the shortest time possible and not allow it to damage your business. One threat to almost all businesses globally, including the coaching industry, was the Covid-19 pandemic. During the active time of this pandemic, people were unable to meet, exercise or eat together, which greatly limited the ability of many businesses.

The SWOT analysis in your company

To form the SWOT analysis of your company you must investigate everything that happens within it, since everything is useful when you delimit the strengths and weaknesses. In order to find these strengths you can start by asking yourself:

• What am I doing well so far?

• What aspects of my company do I consider the strongest?

To discover weaknesses you can use these questions:

• What is preventing us from progressing as a company?

• What is holding me back externally as an entrepreneur?

The external elements of the business are as important as the internal ones. External pressures, including financial policies, market fluctuations or the state of suppliers, can play a key role in uncovering weaknesses and opportunities in your business.

To learn about external aspects that can support your business efforts or opportunities, you can use the following questions:

• What demographic sectors have we not yet explored?

• What services or products can I market that will give me a competitive advantage?

When we then want to uncover potential threats to our venture:

• How extensive is our competition and how much of the market do they cover?

• Are there new legislations or statutes that could harm my business?

The SWOT analysis on yourself

This tool is not only useful for companies, but it can also be used in people with the objective of self-analysis and self-improvement. When you yourself are the foundation of your venture, the SWOT analysis can give you the tools to upgrade yourself and, by transitivity, your business.

It is important that, when listing your weaknesses, you are as honest as possible, as this is the only way you will be able to transform these perceived weaknesses into potential opportunities. An example of this is when you believe that, as an entrepreneur, you are not sufficiently prepared in a specific area. This is both a weakness and an opportunity, as you can take advantage of it to learn more about that subject through courses, workshops and other forms of learning.

You should not exclude any aspect that could negatively impact your business and you as an entrepreneur. List everything from the introduction of new competitors to the market, to potential downturns in the overall economic market.

Here are some questions you can use for your personal SWOT analysis to narrow down your strengths:

• What advantages do I have that no one else has?

• What do I do better than others in the business world?

• What values do I possess that make it easier for me to be successful?

To determine your weaknesses, especially those that can affect your progress in business:

• What activity do I tend to avoid because I don't feel confident doing it?

• What might others perceive as my weakness?

• What aspects of my personality prevent me from moving forward?

To discover what opportunities may be in your path, ask yourself these questions:

• What can make it easier for me to move forward?

• How many useful contacts do I have or can I create?

• What kind of needs are still unmet in my market space that I can address?

• What should I focus on to achieve my goals?

To narrow down current and potential threats, use the following questions:

• What obstacles do I currently have as an entreprene