SWOT Analysis

If your newly forming company is not developed yet, a SWOT Analysis for the company will not make sense. Therefore, the initial assessment will be towards yourself. Knowing your Strengths, Weaknesses, Opportunities and Threats can help you develop the company. Often, this assessment will be the same for a company owner and newly forming company until the company is established.

Where to Focus Effort

There has been a great deal of debate if employees (and companies) should develop weakness into strength OR focus on making strengths even stronger? While there is no right or wrong answer to this pondering, here is what 27 years have taught The Big Oak. If a weakness is easily correctable, then fix it. However, a weakness is usually a weakness for a reason. I would recommend focusing more effort on enhancing strengths, taking advantage of opportunities and eliminating threats, than stressing over weaknesses.

Below is a sample SWOT Analysis for a smaller, local tree care company in Minnesota.

STRENGTHS

  • TCIA National Accreditation

  • Ability to provide flexible pricing

  • Operate at high level of arboriculture

  • Specialize in townhome / HOA work

  • Proactive in nature

  • Adaptable operations

WEAKNESS

  • Lack of financial backing         

  • Production in winter slowed by weather

  • Only 1 person providing sales and business planning

  • Limited use of website, networking and marketing plan

  • Office is located far from majority of client base

  • Recruitment / new employee pool is declining

OPPORTUNITIES

  • Slow discipline growth

  • Expansion of tree planting

  • Ride the EAB wave while it lasts

  • Ability to keep high ratio of PHC services

  • Local company (family feel)

THREATS

  • One salesperson

  • Increasing overhead costs

  • Working with family

  • Loss of Property Managers

  • Injuries

  • Chemical liability

  • Changing PHC environment

The Importance of the SWOT Analysis

Once the SWOT Analysis is complete, this information can be used to develop short- and long-term planning for sales development, market penetration and other business development. This will typically be the baseline for developing a business plan moving forward.