What is the importance of SWOT analysis? Entrepreneurship is a profession that should be embraced by people. Are you embracing it? Of course, successful people inspire us. They make us believe that we can achieve what they have achieved. They increase our hopes of becoming successful. There are myths about being an entrepreneur, don’t be misled by some of them. Being an entrepreneur will not make you to take an off whenever you want.
I have never heard any successful entrepreneur say that it is easy to be successful in business. Not even Steve Jobs said so! All I hear from these successful entrepreneurs, “Be focused, persistence, work hard and have passion.” Until you start your entrepreneurship venture is when you realize what it entails to be an entrepreneur.
Some of us want to transform our ideas to businesses immediately after graduating from Entrepreneurship Colleges. On the other hand, there are some entrepreneurs who did not complete college. Right from their college dormitories, they launched their business ideas with the help of their friends. Today, these entrepreneurs have employed many people and are offering internships to college students.
Young entrepreneurs face challenges when starting their businesses. You won’t know these challenges until you get started. If you fear failing, then entrepreneurship is not for you. Kindly find something else to do. This is because an entrepreneur is a person who is willing to take risks. He is not afraid of taking risks. Entrepreneurship is all about taking risks. What differentiates between entrepreneurs who are successful from those who aren’t is the occurrence of risks undertaken. Entrepreneurs learn more from their failures than their successes.
I didn’t fail I just found a 1000 ways of how NOT to make a light bulb-By Thomas Edison.
What is the importance of SWOT analysis (Strength, Weaknesses, Opportunities and Threats) to an entrepreneur? To know the importance of SWOT analysis, let us discuss it in details.
1.) Strengths: In SWOT analysis, the letter ‘S’ stands for strength. As a young entrepreneur who is getting started you should analyze your strengths. What is it that will make you to be ahead of your competitors? How good are you in selling your business idea? Will you be persistence and focused during challenging times? Your strengths will help you to become a success entrepreneur.
2.) Weaknesses: The letter ‘W’ stands for weaknesses in SWOT analysis. Analyzing your weaknesses will enable you to come up with a strategy of overcoming the weaknesses when running your entrepreneurship venture. Entrepreneurs make mistakes since they’re human beings. No person is perfect, we all have our own weaknesses but it is upon us to identify them so as to overcome them.
As a young entrepreneur, identify the weaknesses and turn them to be your strengths. For example, if you’re not good at hiring and managing employees then you should hire someone (personnel manager) who is skilled in hiring and managing employees effectively.
3.) Opportunities: The letter ‘O’ stands for opportunities in SWOT analysis. As you continue running your entrepreneurship venture you should identity opportunities that arise from it. The opportunities that you’ll identify will make your business to thrive in the market. You’ll expand your business to new markets and this is the kind of growth that will strengthen your business.
4.) Threats: In SWOT analysis, the letter ‘T’ stands for threats. Scrutinize your business thoroughly in order to identify possible threats. Every business has got threats. If you identify these threats you’ll be able to prevent them from occurring. Or, you’ll prepare a contingency plan to take care of them if they occur.