A thorough SWOT Analysis May be the Best Exercise You Ever do for the Improvement and Success of Your Real Estate Investment Business
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.
- What advantages does your real estate investment business have?
- What do you, as a real estate investor, do better than other investors?
- What unique skills and knowledge do you bring to your real estate investment business?
- What about cash flow? Do you have capital or credit? If not, who do you know that does?
- What connections do you have with other real estate investors that you can leverage to offset any weak areas in your own tool box?
- What unique resources do you have access to that other investors might not?
- Do you have a mentor or coach?
- Do you belong to any groups, masterminds or clubs?
- What systems do you have in place, if any?
- Have you surrounded yourself with successful people?
- What areas of real estate investment could you improve in?
- Do you have procrastination or time management challenges?
- What financing issues do you face?
- What unique challenges are you facing in your particular real estate market?
- What improvements could you make in the way you handle your business?
- Do you treat your real estate investment activities as a hobby rather than a business?
- Do you lack coach-ability or a willingness to learn?
- Do you have naysayers or negative people in your life that discourage you?
- What trends are happening that you are aware of?
- What resources do you have access to so that you can be on top of what is happening in the industry?
- Have there been changes in governmental policies or the economy that could benefit your real estate investment business?
- What new tools, systems and applications could you put into place to facilitate success in your business?
- Are there changes in social patterns, lifestyle or population that could have a beneficial effect on your business?
- What strengths do you possess that could open up new opportunities?
- What weaknesses could you eliminate that would open up opportunities?
- What is the competition like in the real estate investment business in your area?
- What obstacles are in the way of success for your business?
- Do you have cash flow problems?
- Could any of your weaknesses be a serious detriment or threat to your real estate investment business?
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.