Every medical business owner needs to understand the benefits of a SWOT analysis. In addition to using this analysis for marketing decisions, many potential lenders require a SWOT analysis with your loan application. Marketing managers that fail to perform a detailed analysis can fall victim to poor planning. Use this guide to perform a detailed SWOT analysis and build a dynamic marketing plan.
Layout Your Grid
A SWOT analysis is presented in a four-quadrant grid. Each quadrant focuses on a different characteristic of your business. Some healthcare business managers prefer to use the grid. Others use four sheets of paper. Start by brainstorming and putting your thoughts on paper. You can hone the details later.
The first component to consider is your company’s strengths. These are the internal benefits unique to your business. You may have a superb staff. Your financial coordinator may be able to quote healthcare insurance facts verbatim. The office location may be ideal for your clients. You may still be protected under a patent that makes procedures less invasive. While your competition may have similar strengths, take time to recognize how these qualities make your business successful. It is also critical to ensure that you maintain those strengths. For example, well-developed employee recruitment and retention plans help ensure employee satisfaction.
Make a note of any internal weaknesses or challenges you face. Build a strategy that strengthens those identified areas. For example, failing to accept a variety of health insurance carriers can be remedied by completing the necessary applications.
Examine the external opportunities your healthcare business faces. Consider factors in your environment that you can turn into strengths. Should you expand into a new location where there are fewer services available? Do you plan to take advantage of new technology hitting the market? Is a competitor retiring and considering selling their practice? With planning, these opportunities could prove to be great strengths if they align with your overall marketing strategy.
Threats typically evolve from your competition, the economy, or the environment. Your competitor may plan on expanding the practice, encroaching on your client base. Governmental or insurance regulations may change, limiting your profitability. Your landlord may significantly raise your rent when you are negotiating a new lease agreement. Threats can be challenging to prepare for because you may not be looking for them. Once identified, consider how you can convert them to strengths.
Working through these steps annually or any time there is a change in your company structure will help you prepare for potential challenges that your business may face. A well-defined SWOT analysis will help you make wise business decisions and improve your company’s profitability.