You know that fully grasping your financial climate is essential to running a successful business, and this doesn’t have to be a difficult process.
By completing a SWOT analysis (defined as a “strategic management tool that is often used in business to analyze a company, process, system, business opportunity, etc.” by Cash Money Life) on your financials, you’ll get a clear idea about what you’re doing right and what you need to work on to keep your finances on track.
- • Strengths: First and foremost, you need to know what your strengths are when it comes to your business’s financials. Take a look at your financial goals; a strength is anything that is helping you to achieve this goal. You should be looking at not only your monthly cash flow, but also debt and income. Noticing an growing cash flow? You may want to consider a high yield business checking account to optimize on your income.
- • Weaknesses: Your weaknesses are just as important as your strengths. When defining your weaknesses, it’s important to look at what is keeping you from achieving your financial goals. If an uneven cash flow is one of your weaknesses, you may want to consider a line of credit. Financial institutions offer short-term business loans and lines of credit that can help you get back on track. Be sure to look for a financial partner that gets to know your business and can help you determine what tools will be best for you.
- • Opportunities: Financial opportunities are chances you have to improve your financial climate, but have not yet maximized. These can be in the form of decreased debt, increased income, or even investments. Talk with a financial advisor to discuss what potential investment opportunities your business has.
- • Threats: In order to keep your finances moving in a positive direction, you need to be aware of threats to your business: factors that could hinder your financial climate. Threats, such as the economic climate, aren’t always in your control. It’s essential that you know what your business’s threats are so you can have an established plan at your disposal.
Simply completing a SWOT analysis is only the beginning; to keep your business successful, you need to act on your findings. For more tips on ways a SWOT analysis can help your business, visit CashMoneyLife.com.
Telhio Credit Union offers an array of business financial services, including loans, lines of credit, business checking accounts and financial advisors. For more information on Telhio financial services, visit Telhio.org or call 614-221-3233.
Telhio Credit Union is open to everyone who lives, works, worships or attends school within Franklin County and surrounding communities. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct.
Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers seven branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*
* Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.