SWOT stands for Strengths, Weaknesses, Opportunities and Threats; when a thorough analysis of these four contributing factors is conducted, valuable insights can be obtained about both internal and external elements that can inhibit or benefit the success of your real estate investment business.
SWOT, developed by Albert S. Humphrey in the 1960s, has been an invaluable tool for entrepreneurs and businesses for decades as a sort of “kick off”, mind mapping tool for new projects or businesses, or as a more sophisticated exercise in developing detailed strategy.
To do a good SWOT Analysis for your real estate investment business, open an Excel file with multiple work sheets, create a file with a series of Word documents, or just get out a good old-fashioned notebook and a pen. Write the four headings of Strengths, Weaknesses, Opportunities and Threats; under each heading, list the following suggested corresponding questions, along with any others you might think of that are pertinent to the real estate investment game. Finally, give plenty of time and consideration to each question before writing down your answers in detailed, precise and, where appropriate, verifiable statements. Avoid long lists of factors; be merciless in pruning the details down to only the most important so that you can prioritize your focus.
Conducting a complete SWOT Analysis of your real estate investment business and of yourself as a businessperson and entrepreneur could result in a massive turnaround and improvement in your life and your business. Don’t skip this very important tool; it’s is without a doubt worth the time and effort and you’ll be thankful you did it.
Kent Clothier is President and CEO of Real Estate Worldwide (REWW), a highly sought-after speaker, the owner of three multi-million dollar a year Internet marketed brands, and proud husband and father. Kent is motivated by his love of family and freedom, creating products that enable people to live their lives the way they choose.