SWOT Analysis for a Consulting Firm
Consulting firms help other businesses improve the way they operate, but it is important for a consulting firm to give the same level of focus to its own business that it gives to its clients. To improve a consulting firm you can begin with a SWOT analysis, which assesses the firm's strengths, weaknesses, opportunities and threats.
Make a list of your firm's strengths. A strength is anything that gives the company an edge over other consulting firms. For instance, having in-depth knowledge of a certain industry or having consultants from the top business schools are strengths.
List all of the firm's weaknesses. A weakness is any area where the competition has an advantage over your firm. For instance, poor client retention or an inferior reputation compared to other firms are weaknesses.
Identify opportunities that the firm can take advantage of with its strengths. For instance, if the firm has strong connections to a foreign country, it could take advantage of this strength by opening an office in that country. Brainstorm to find as many opportunities as possible and act on the ones that are most practical.
Recognize threats to the firm. A threat occurs when a weakness has the potential to harm the business. Consider how the competition may take advantage of weaknesses, and make a plan to eliminate these weaknesses. For example, if your firm has too few consultants to keep up with the work, plan to increase the workforce before competitors begin stealing clients who need work completed quickly.