|
 As
a quick recap, in the last article, I discussed how we can
drive value into our accounts receivable factoring and
accounts receivable financing firm, using 2 approaches;
through the effective use of a strategy and operational
effectiveness. I discussed how these tools are much like the
Chinese symbol of yin and yang.
The article ended by discussing how important the self
assessment process is in the planning process, and that each
commercial factor firm needs to undertake and complete this
step before devising a strategy for success.
This article will introduce the step by process we have used
in our accounts receivable factoring firm to complete the SWOT
[Strengths, Weaknesses, Opportunities and Threats] process.
The SWOT
Process
As I previously mentioned, the SWOT process is a step that is
often ignored when one sits down to undertake and complete the
Strategic Planning Process. The reasons are pretty simple:
this process forces us to ask the questions that perhaps we do
not want to hear the answers to, and shines the light on our
weaknesses as business people. It threatens the status quo,
and requires that we consider there may actually be better
ways/talent than what we have available in our cash flow and
funding enterprises.
Rather than viewing this as a negative process, why not view
this as an opportunity to assess, perhaps for the first time,
both your strengths and weaknesses within your invoice
factoring and accounts receivable factoring business? As a
business strategy, it is imperative we understand and agree
what we are both good at, and where our weaknesses are. The
acknowledgment of our assets and liabilities sets the stage
for us to identify areas where we should focus our resources
[the strengths] and areas we need to correct or shy away from
[our weaknesses] in our invoice factoring and funding firms.
There are a myriad of approaches one could use to undertake
and complete the SWOT process. Each has advantages and
disadvantages. I would like to present one that I have seen
work with both our accounts receivables factoring firm and our
clients quite successfully.
A
Checklist Approach
One of the most effective tools for the SWOT analysis is a
checklist [outlined below] that I once found published by the
United States Small Business Administration. Their website,
http://www.sba.gov/library/pubs/eb-5.doc has entire library of
excellent articles for use in a small business. The article,
entitled “Audit Checklist for the Growing Business” was
authored by Terry R. Armstrong, PhD. and Walter J. Wheatley,
Ph.D., of the Department of Management at the University of
West Florida, Pensacola, Florida. It was originally published
in 1991, now nearly 15 years ago! However old, I believe it
still one of the very best tools you can use to start and
complete the SWOT process. |
