Running a business of any size is hard work. With so many different things needing your attention. It is very easy to get caught up in the little things at the expense of the big picture.
Perhaps the only way to ensure your business thrives and stays around for the long haul is to frequently step back and take a look at things from a broader, more informed, perspective.
That is why SWOT analysis is such a useful tool to help you take a good look at your business’s true potential and to identify opportunities to grow.. It doesn’t matter if you are just starting out or working on taking it to the next level. You won’t just be examining how your business is performing today, you will be able to investigate how it is likely to perform next week, next month, and even next year.
SWOT or PESTEL?
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organisation, its initiatives, or an industry. The organisation needs to keep the analysis accurate by avoiding pre-conceived beliefs or grey areas and instead focusing on real-life contexts.
A PESTEL Analysis (Political, Economic, Social and Technological) is a management method whereby an organisation can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those four areas are central to this model.
The PESTEL strategic planning approach includes the additional aspects of Legal and Environmental.
A PESTEL analysis is best used to measure a market situation and is usually done before a SWOT analysis.
It will help to prepare for a SWOT Analysis by completing a PESTEL analysis first.