new business module

DEFINING AND ASSESSING A BUSINESS IDEA 45
Reference list for a SWOT analysis 10 (see Hand-out 18)
Management and operational skills required
Management competence
Age/experience
Skills availability
Technical know-how
Financial situation of the business
Amount of money needed to run the business
Amount of money needed for equipment
Owner of the money needed
Situation on the target market
How is the market organized?
Competitors’ strategy
Potential sales
Required quality of the product
Supply of inputs/ materials needed
Adequate supply (price, quality, quantity)
Required infrastructure and physical assets
Work place
Machinery and technology
Location
Management contact/network
Salesmanship of owner/staff
Personnel management skills
Access to additional money
Profitability of the business
Financial risk of the business
Market: growing, stagnating or contracting
What is, was and will be the market demand?
What is, was and will be the supply situation?
Social acceptance of the good or service
Reliability of adequate supply
Transport facilities
Infrastructure and utilities
Entrepreneurs should consider the factors that they have information
on and attempt to obtain information on what they do
not know. During the course of the business planning process,
they will collect additional information. As they do, their
knowledge about their business environment increases and
they will be able to refine their assessment of the quality of
the business idea. 10
Once entrepreneurs have identified the strengths and weaknesses
of the business idea and the opportunities and threats
that it may face, they have to decide whether the objective,
i.e. the implementation of the business idea, is attainable or
not. They have to draw a conclusion. A SWOT analysis can help
them decide whether they should:
• continue with the business idea and conduct a full
feasibility study;
• adapt the business idea; or
• abandon the business idea.
10 Adapted from BDS (2008a, p. 8).