A new year can signify a fresh start and new goals. Before creating a 2015 to-do list for your practice, analyze your business using a SWOT (strengths, weaknesses, opportunities and threats) analysis to determine exactly what you should work on this year, says Larry Distillio, director of financial advisor business management with Mackenzie Financial Corp. in Toronto.

A SWOT analysis allows you to take stock of your internal strengths and weaknesses and brainstorm external opportunities or threats that can have an impact on your practice. This information will help you plan your future activities to fulfill the vision you have for your business.

Here are the three steps to conducting a SWOT analysis:

1. Identify your long-term vision
A SWOT analysis is based on understanding what you want your practice to look like in three to five years, says Distillio, as opposed to where your business is right now.

For example, you may currently run a general practice but hope to narrow your niche. In this case, you would start your analysis knowing that it will relate to the long-term goal of running a specialized practice.

2. Consider various areas of your practice
Break down your business into various functions and objectives, and conduct individual SWOT brainstorming sessions for each of those areas.

Some areas to consider are:

  • planning for your business;
  • staying informed on your client base, target market and centres of influence;
  • marketing your practice;
  • providing exceptional client service;
  • team productivity and effectiveness.

Referring to the example provided above, you have decided you want to specialize in financial planning for young professionals with families. You know that changing your marketing strategy will be an important element of realizing that long-term goal.

Then, conduct a SWOT analysis, solely focusing on marketing. You might determine that your strength is the fact that you have your own young family and can relate to the concerns for this market. Your weakness might be a lack of digital communications materials for a population that prefers to read their information online. Your external opportunity might be meeting other young parents by participating in the parent/teacher association at your children’s school. And your threat might be another advisor in your neighbourhood who also targets this market.

3. Decide on your goals
Once you have figured out your SWOTs for a few areas of your practice, use that information to set three important 2015 goals that will help propel you toward your long-term vision.

Focus on the details, Distillio says. List the actions you need to take in order to accomplish each of those goals; who will be responsible for each action; the goal’s deadline; and how it will affect your business.

For example, a key goal is to create a digital communications strategy that will appeal to young, busy parents.

One action is to hire a communications firm that can produce visually appealing e-newsletters that include useful content. You might give your assistant two weeks to research various firms that can provide this service. You understand this action will involve a financial cost, but that is balanced by having content that can be shared online, which will boost your profile within your target market.

This is the first part in a two-part series on conducting a SWOT analysis.

Next: Tips to help in the process.