A SWOT (Strengths, Weakness, Opportunities, Threats) study is typically broken up into two components; internal and external and each of the four parts can be further analyzed with other tools. This structure lends itself to introducing ideas, brainstorming, strategic planning, marketing, and many other areas. The following article will lead us through the theme SWOT tool for Wisconsin Small Business Analysis.
However, the franchise market is riddled with poor performers who will compromise an entrepreneur's dreams if she doesn't perform a complete franchise scrutiny of each opportunity being considered. For many entrepreneurs, purchasing a trivial commerce franchise opportunity represents their entire life savings (not to mention the resources from supportive family members and friends). So choosing the best franchise option can be a life-altering decision!
'Big' is a relative term, and every organization reaches a data scrutiny limit some time or the other. For minor trades, one can avoid that limit because data is generated at lower volumes. However, it doesn't take much time before the volume, variety, and velocity of data come in out of hand proportions. So, how can minor trades leverage this type of scrutiny?
While every business keeps customer information or sales record, there are not enough details captured in those files. Consider that you are managing an E-commerce website, merely maintaining a history of how many customers come from which advertising sources isn't enough. Details like how long they at your site, how long one takes to complete a purchase process, or how long they stay at each of the pages, etc. Are valuable inputs for data scrutiny.
After checking out each franchise on your list, narrow your choices down to 5 or even less if you can. Then list the strengthens and weaknesses you have uncovered for each franchise on your short list. What traits set them apart from the others and what factors appear to be problems or potential red flags? Hopefully, this process will result in a further narrowing down of you options-possibly to 2-3 opportunities.
Weaknesses: Where can your business improve? What does it need to do better? Where are you getting beat by your competitors? What are your customers complaining about? Are your sales growing or declining? Do you know why? Is your market share decreasing? Do your customers view you as a commodity seller? What do your customers perceive as your weakness? Are there areas your business needs to avoid and why?
Next, ask for a copy of the Uniform Franchise Offering Circular (UFOC) which provides critical information about the franchisor-franchisee relationship. Don't sign any paperwork except for possibly a non-disclosure form before reviewing the UFOC. If a franchisor refuses to give you the UFOC without hassles and commitments, then move on to another small commercial franchise opportunity. A comprehensive review of the UFOC is a necessity.
Threats: Are there competitors in the market with significant advantages? Do you have to make complicated or expensive changes to try to take advantage of a market? Are your production, channels, and customer acquisition/retention costs much higher than your competition? As with opportunities, are changes (technology, market size, regulations, etc.) impacting your business? Is cash flow a challenge in moving into a new market or developing a new product?
However, the franchise market is riddled with poor performers who will compromise an entrepreneur's dreams if she doesn't perform a complete franchise scrutiny of each opportunity being considered. For many entrepreneurs, purchasing a trivial commerce franchise opportunity represents their entire life savings (not to mention the resources from supportive family members and friends). So choosing the best franchise option can be a life-altering decision!
'Big' is a relative term, and every organization reaches a data scrutiny limit some time or the other. For minor trades, one can avoid that limit because data is generated at lower volumes. However, it doesn't take much time before the volume, variety, and velocity of data come in out of hand proportions. So, how can minor trades leverage this type of scrutiny?
While every business keeps customer information or sales record, there are not enough details captured in those files. Consider that you are managing an E-commerce website, merely maintaining a history of how many customers come from which advertising sources isn't enough. Details like how long they at your site, how long one takes to complete a purchase process, or how long they stay at each of the pages, etc. Are valuable inputs for data scrutiny.
After checking out each franchise on your list, narrow your choices down to 5 or even less if you can. Then list the strengthens and weaknesses you have uncovered for each franchise on your short list. What traits set them apart from the others and what factors appear to be problems or potential red flags? Hopefully, this process will result in a further narrowing down of you options-possibly to 2-3 opportunities.
Weaknesses: Where can your business improve? What does it need to do better? Where are you getting beat by your competitors? What are your customers complaining about? Are your sales growing or declining? Do you know why? Is your market share decreasing? Do your customers view you as a commodity seller? What do your customers perceive as your weakness? Are there areas your business needs to avoid and why?
Next, ask for a copy of the Uniform Franchise Offering Circular (UFOC) which provides critical information about the franchisor-franchisee relationship. Don't sign any paperwork except for possibly a non-disclosure form before reviewing the UFOC. If a franchisor refuses to give you the UFOC without hassles and commitments, then move on to another small commercial franchise opportunity. A comprehensive review of the UFOC is a necessity.
Threats: Are there competitors in the market with significant advantages? Do you have to make complicated or expensive changes to try to take advantage of a market? Are your production, channels, and customer acquisition/retention costs much higher than your competition? As with opportunities, are changes (technology, market size, regulations, etc.) impacting your business? Is cash flow a challenge in moving into a new market or developing a new product?
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