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20 Sales & Marketing A successful SWOT analysis focuses equally on each element of the acro- nym, and allows a business to identify all forces that infl uence their strategies, actions or initiatives. Managers and executive staff who are able to provide input on these positive and negative elements ensure a SWOT analysis effectively examines all aspects of an operation. How to build a SWOT analysis Drafting a SWOT analysis typically starts with a table split into four columns where you can catalog the traits of your business. Strengths and weaknesses won't typically match listed opportunities and threats, though they should correlate somewhat since they're tied together in some way. The fi rst two letters in the acronym, S (strengths) and W (weaknesses), refer to internal factors, which means the resources and experience available at that time. According to business planning software, LivePlan, examples of areas typically considered include: Financial resources, such as funding, sources of income and investment opportunities Physical resources, such as your company's location, facilities and equipment Human resources, such as employees and target audiences Access to natural resources, trade- marks, patents and copyrights Current processes, such as employee programs and software systems LivePlan says external forces infl uence and affect every company. Whether or not these factors are connected directly or indirectly to an opportunity or threat, business owners should take note of and document each one. This is the O (opportunities) and T (threats) of the analysis. LivePlan says external factors typically reference things that a distributor or dealership does not control, such as: Market trends, like new products and technology or shifts in audience needs Economic trends, such as local, national and international fi nancial trends Relationships with suppliers and partners Political, environmental and eco- nomic regulations Once you've fi nished your analysis, it's time to determine what you can do based on the results. Linda Pophal, owner and CEO of Strategic Communications consulting fi rm, says one common approach after completing a SWOT analysis is building a business plan that focuses on leveraging discovered strengths and opportunities to overcome weaknesses and threats. "This is actually the area of strategy development where organizations have an opportunity to be most creative and where innovative ideas can emerge, but only if the analysis has been appropriately prepared in the fi rst place," Pophal says. Ian Johnston, vice president of opera- tions and marketing for Harman HVS, says his company does a SWOT analysis each year around November or Decem- ber when the market slows. "We look at the past year and the upcoming year and see how things fared and what we can do to improve," John- ston says. "We look at whether new equipment or processes are needed and the new product lines and how they fi t. We take a good look at every aspect of the business and see what things are working and what areas we need to improve." Johnston says the SWOT analysis gives the company a better understanding of changes needed in their short and long- term business planning process. "There are areas where we can be fl ex- ible and some where we can't. The SWOT helps us in planning our goals." T R U C K P A R T S & S E R V I C E | J a n u a r y 2 0 1 7 We look at whether new equipment or processes are needed and the new product lines and how they fi t. We take a good look at every aspect of the business and see what things are working and what areas we need to improve. – Ian Johnston, vice president of operations and marketing for Harman HVS [Leveraging discovered strengths and opportunities to overcome weaknesses and threats] is actually the area of strategy development where organizations have an opportunity to be most creative and where innovative ideas can emerge. – Linda Pophal, owner and CEO of Strategic Communications