A good way to test a business plan is to use a SWOT analysis.
In the following I will conduct a SWOT analysis on a sample business plan for a new clothing store. One of the first steps he/she must take is creating a business plan.
New businesses identify critical threats before any new launch. Every company in a business has certain frameworks that they follow in order to understand the market they are catering to.
Think of it this way: What is the one thing that could happen that’ll completely ruin our new business? They usually keep on checking the nerve of the market where they want to focus their products upon.
The owner is Vrootje Magen who has over 20 years of experience in marketing and retail.
This boutique will sell designer clothes and accessories for women wanting for a professional look. They will also offer services such as Style Assessments, alterations, and personal shopping.
The competition is a common threat, as is changing laws, regulations, or the state of the economy. A PESTLE analysis will be extremely beneficial since it examines how political, economic, social (customer), technological, legal, and environmental factors will affect the company.
These factors can’t be changed easily, making them an endless threat if not factored into the business plan. If you identify threats ahead of time, you have plenty of time to create a plan of action if Dooms Day arrives.
This is where customers are able to use products and showcase results or reviews online (popular on social media platforms like Instagram or Snapchat). They’ll offer a product, create a hashtag, and encourage customers to share makeup looks, tutorials, and reviews of the product.
The customer includes the hashtag in their post and the company takes snapshots to show off.