A SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) is nothing new. However, it remains a valuable tool and I am often surprised how few internet marketers actually make use of it. As far as I am concerned, every business plan should include a SWOT analysis.
Let’s briefly consider the four elements:
Strengths (Internal factor - Refers directly to you)
What are your strengths? What are you bringing to the table? This is typically the answers you would give someone when they ask why YOU think the business will succeed.
Here are some examples of possible strengths:
- I have working experience…
- I love working on a computer…
- I have done enough research to know my idea is financially viable.
- I have studied this topic and clearly understand the concept.
- I have lots of practical experience doing this.
Be honest with yourself. You are not setting goals here! Don’t mention anything as a strength unless you really believe it to be the true.
Weaknesses (Internal factor - Refers directly to you)
This is often the hard part for most people. It is not nice to make a list of our weaknesses. However, we all have strengths AND weaknesses. By being honest with yourself and identifying your weaknesses you are actually only listing possible problems.
Some examples include:
- I hate writing…
- I often lack self-discipline…
- I have a habit of procrastinating.
- I have a great product but don’t know how to promote it.
Focus on playing to your strengths and overcoming your weaknesses. For example, if you hate writing you can always outsource it to someone that loves writing. If you are not sure how to promote a product you can buy some books that will give you step-by-step advice.
There is also a lot of free information available on the internet!
Tip: Visit some internet marketing forums such as Warrior Forum.
Your weaknesses are not to be used as excuses. The reason for listing your weaknesses is to find solutions!
There will always be some negative people, even in your own family circle, that will say things like “But you hate writing. How are you going to…” By acknowledging your weaknesses and finding solutions you don’t need to get defensive when it sounds as if someone is criticizing you.
In fact, having done your homework you will gain their respect and support by illustrating that you acknowledge your weaknesses and have spent some time finding solutions. Weaknesses should not be hidden away or ignored. You can only ignore a weakness at your own peril!
Opportunities (External factor - Refers to outside factors)
In many ways, identifying an opportunity may be best reason to take action. Very often, opportunities do not last long. You need to get in early. An opportunity is simply not going to wait until you finally decide to do something about it.
Have you identified an opportunity? Yes? Seize it with both hands!
Some examples include:
- Offering a unique solution to a problem.
- Taking advantage of a new trend before everyone else.
- Improving an existing product.
An opportunity is normally something that gives you an advantage, if you act on it. For example, what opportunity is there in becoming a plumber if there are already 20 other plumbers operating in your area, all good and hungry for business?
On the other hand, there may be no plumbers in your area. This could be an opportunity!
Remember that there are opportunities all around us. But, you need to be open-minded and look for opportunities. Waiting for an opportunity to come and stand right in front of you and pull you by the ear to follow it is simply not going to happen.
Tip: Learn to be creative.
I once attended a lecture on creativity. The lecturer asked each one of us to make a list of possible uses for a pen and gave us only 60 seconds. I would have been happy only getting 5 seconds! Apart from the obvious one of using a pen to write my mind was blank. I was simply not open to exploring new possibilities…
How many uses can you come up with for a pen in 60 seconds?
Here are a few, just of the top of my head…
Writing, coloring in something, chewing it in your mouth (helps you think, solution to boredom), rolling it between your fingers (keeping your hands busy), drawing or sketching, breaking it (giving relief to frustration), using it as a paperweight (to prevent papers from blowing away), lending it to someone (doing someone a favor), selling it (it may be a collector’s item), using it as a toy (throwing it, imagining it is a missile), using it as a lever, using it to type on your cell phone (if your fingers are too big), etc.
In fact, there are probably hundreds of possible uses you can list. Just shows you what can be done if you are willing use your creative mind!
Imagine the possibilities (and opportunities) in creative problem solving!
Threats (External factor - Refers to outside factors)
Threats often come in the guise of competitors. However, a possible change in legislation, consumer behavior, and cheaper substitutes can all be major threats.
Some threats may already be existing threats while other threats may or may not actually become real threats in the future. You need to take both types into consideration.
Let’s look at an example of something which is rife in internet marketing: information theft. You write a killer new e-book on the best ways of getting rid of fleas on your dog. Someone steals most of your ideas, writes his own e-book and starts selling it on eBay for 99c.
What can you do? Very little. Ideas can not be patented. Yes, he is not allowed to infringe your copyright, i.e. he may not copy parts of your e-book without your permission but nothing stops him from using your ideas and writing his own “unique” take on events.
As in the case of “weaknesses” you need to be realistic about threats.
Do not let the threats you have identified prevent you from taking action. No, if most people reacted like this most businesses would not exist today and many people would be too afraid to get out of bed in the morning!
Threats are risks and every business has them. The point is that you need to be aware of them. You need to manage risk. This will allow you to plan better and increase your chances of success.
Just a word or two about competitors, one of your main threats. Any successful business will have competitors. In fact, competition (now or in the future) is a given. Learn from your competitors. What are they doing that is obviously working? What are their strengths and weaknesses?
As the old saying goes “Keep your friends close and your enemies closer” I am not saying you should think of your competitors as the enemy. However, you should keep a close eye on them.
Tip: View threats as potential opportunities or opportunities in disguise.
Most successful internet marketers have learned that the trick is not to try and destroy competitors but rather to work together in promoting one another’s products. In fact, although many internet marketers have exactly the same target market doing a JV (joint venture) can prove highly beneficial for both parties.
Remember that what you may perceive as a threat may turn out to be a great opportunity!
Francois du Toit is a full-time internet marketer and the author of “Digging For Gold Nuggets — Lessons Learned In Internet Marketing” (This article is a small extract from this brand new book). Visit Work At Home Internet Marketing Business or click on the following link to claim a copy of this 100 page book while it is still being offered for free http://www.DiggingForGoldNuggets.com
Tags: internet marketing, Making money Online, swot, swot analysis
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