When I was a high school teacher, my lesson plans included the acronym S.W.B.A.T. This was confusing to the outside world, but all it meant was student will be able to. S.W.O.T. is even easier: strengths, weaknesses, opportunities and threats. It is important when writing your business plan to be honest to a fault. If someone was to ask you for money and they said it would be a solid investment, you would want to know what the catch is. Banks and investors understand that nothing is without faults, but often people do not want to take a look at the challenges their businesses face.
What are your future company’s strengths?
These strengths are inside the company and can be great selling points.
What are your future company’s weaknesses?
employee turnover rate
Not matter how great your future company will be, it will have obstacles. Be as honest as possible. Maybe you run a food truck and the short cooks do not stay a long time or your run a school and the average teacher turnover rate is five years. Your business plan must address the weakness(es) in order for you to come across as trustworthy and competent.
What are your future company’s opportunities?
growing market demand
A doctor opening a practice in an underserved community could have the market share of patients.In that situation, the demand is high while the supply is low making it an opportunity. Figure out what your opportunities could be and go at them hard.
What are your future company’s threats?
weather (hurricanes, typhoons)
You must let your investors/bank know what the threats are and your plan of action. It demonstrated that you are an aware business owner, but more importantly proactive. For those not living in South Florida, hurricanes pose a real threat not only to businesses but to life as well.