Business qualification method

Business qualification method

In order for a business to be aligned, it is necessary to identify strengths and weaknesses. In this way, you need to understand the strengths and weaknesses. In doing so, he can compensate for his weaknesses, develop his strengths and run a successful business.

This idea, which business experts call "SWOT" by its English acronym, serves as the standard for business process qualification. If you also weigh your business with this metric, it will help you move in a direction where you can be more productive while handling changes appropriately.

"SWOT" is a compound of 4 words in English, namely:

1. Strength (Strengths)
2. Weakness (Weaknesses)
3. Luck (Opportunities) and
4. They are threatened (Threats).

Of these four, strength and weakness indicate the internal state of our business, while opportunity and risk indicate external (beyond our control) factors.

Let's take a look at each of our strengths, weaknesses, opportunities and threats.

Internal factors

The so-called internal factors of a business are:

• Financial capacity (contribution, source of income, investment option)
• Material wealth (location, supply, equipment)
• Human Resources (staff, volunteers, clients)
• Opportunity to access natural resources
• It's patents, copyrights, and so on.

Internal factors can be a source of strength or weakness.

1. Strength

What are my strengths (as a business)? What is good about what makes my business different? How am I better than other similar products or services? What specific factors make my business preferable?

When we know our strengths, we can develop using what we know and find even greater business opportunities. Our strengths are the things we nurture.

2. Weakness

What are the weaknesses we have? What are the problems with ourselves or with our decisions that hinder our business from becoming more streamlined?

When we recognize our weakness, we can look for a solution by eliminating or compensating for our weakness. Our weaknesses are things that we improve/compensate for.

External factors

The so-called external factors of a business are:

• Market status (competitors' holdings, new products, technological development)
• Economic situation (national and global financial situation)
• Relations with suppliers and sheriffs
• They are political, social and economic laws and so on.

External factors can be a source of opportunity or threat.

3. Fate

What opportunities do time, location, different environmental or other factors present to our business?

Opportunities are things we take advantage of.

4. Risk

What are the business risks facing us in terms of opportunity, time, location, different environmental or other factors, as well as competing businesses?

Threats are things we defend.

A person who has made good use of this method of business assessment will find it easier to find solutions to new problems at work. Moreover, it can also move in a direction that makes it more effective while exploring the possibilities and limitations of change.