If your business is going through a stagnant period, it may take developing a plan to get out of this. Developing a plan to grow your business requires creating a strategy that works. This is something you may be able to do on your own by using SWOT analysis. Here are three things to understand about this business tool.

What Is It?

A SWOT analysis is a tool used to determine your company's strengths, weaknesses, opportunities, and threats. This tool is specifically designed to help companies create a strategic plan to enhance growth. Companies that do not have plans in place often have a hard time growing, and this is why it is so important to develop an actual plan for success.

What Does It Mean?

The first two sections in a SWOT analysis are designed for internal information about your company. The strengths of your company can include what sets your company apart from others and what makes your company's products or services necessary for customers. The weaknesses of your company are things that are holding it back. An example of this might be technology. If your company is behind in technology, it could be causing you to lose money.

The other two parts are opportunities and threats, and these refer to things that are outside of your company. For example, opportunities can include new trends that people want, while threats could also include new trends, but these might be trends that will make your products obsolete.

How Can This Tool Help?

If you can spend some time making a list of each of these four categories, you may be able to find the problems your company has. This may also help you open up possibilities of new paths to take. In addition, you can use this model to set goals for the future.

Using a SWOT analysis can be extremely helpful for strategic planning, but it can be even more helpful if you hire an expert to assist you with this. Business strategy consultants are experts in strategic planning, and they can help you create a thorough SWOT analysis. In addition, they can help you create a clear plan that will assist you in growing your business in the coming months and years.

If you are tired of your business standing still, now is a good time to take action. For more information about strategic planning and business growth, contact a business strategy consultant today.