Starting a Business with SWOT Analysis

Today, home-based businesses are pursued by a large part of society. The economic situation is one of the reasons for many people. In the current pandemic era, we are faced with many problems related to the economy. The decline in people's income because of the pandemic has caused some business sectors to reduce their activities or close down completely.

This has affected some workers in the business sector. Salaries have not only been reduced or cut. Some workers even lost their jobs because those business sectors reduced their workforce. As a result, some people were forced to look for other alternatives, and some even became unemployed.

Of course, as members of society we must be able to adapt to whatever happens in the future, such as finding other alternatives to meet economic needs at present. There is no need to look for another, more promising job. We can also build innovation by applying the ideas and thoughts we have. One of the most popular options is a home-based business.

As reported by the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, at the end of 2021 Indonesia's economy grew by 7.07% (yoy) in the second quarter of 2021. This is the highest growth in the last 16 years. It also recorded the highest quarterly growth since the Subprime Mortgage Crisis, and even rivals the economic growth of peer countries.

This growth was driven by various growth-driving sectors. One of them was the improvement in domestic economic conditions, which boosted production capacity in the business world. It was also because all business sectors experienced improvement. For example, the manufacturing industry, the largest contributor to GDP, grew positively by 6.58% (yoy).

It is not only large businesses that can drive the country's economy; small businesses can too. As is the case now, many people are getting into business rather than looking for other jobs. People are more interested in this kind of business because it generates a more promising income.

The businesses a person can pursue come in many kinds. Examples are businesses that produce goods, culinary businesses, service businesses, and home-based businesses. One of the easiest for people to start is the home-based business. This is because a home-based business is run by just one family to meet its economic needs. It also includes businesses such as selling food or small goods that are consigned to someone.

Anyone can even pursue this home-based business, by developing their skills, for example by creating innovations in the culinary field. For example,  one can develop regional food into something attractive.

What needs to be considered when starting a business is paying attention to several aspects. The first is business opportunity. A business opportunity is a chance that arises, and that chance can then become an idea for an entrepreneur.

From that opportunity, a person starting a business must dare to take risks. From these risks, entrepreneurs must have the ability to plan techniques and strategies, so as to bring about change within their business environment. This business risk takes the form of failure or being unsuccessful in seizing a business opportunity.

There are also business risks that can arise, such as demand in the form of changes in fashion, tastes, and purchasing power; business cycle changes, in the form of ups and downs in economic conditions; and finally, competition.

Not only that, an entrepreneur must map out business opportunities. This mapping can also be called SWOT analysis, which consists of Strength, Weakness, Opportunity, and Threat.

The first is Strength. This is strength built from the various advantages a business has. The product sold by the entrepreneur must have advantages in terms of brand, customers, a strong balance sheet, and a unique product.

The second is Weakness. This analysis covers the weaknesses found in the business. The entrepreneur needs to improve these weaknesses, so that the product stays competitive in the market.

The third is Opportunity. This analysis refers to favourable external factors, which means these factors can give the product a competitive advantage.

The fourth is Threat. Entrepreneurs must know the factors that could potentially harm the business. For example, many competitors opening the same kind of business as ours, or rising costs, disasters, labour supply, and so on.

In this regard, it should be remembered that building a business requires careful thought. Not only that, an entrepreneur needs to know all the parts above. A business does not have to be a large industry; it can also be a small business, one of which is the home-based business that many people pursue today. By developing something that is still small, with perseverance and carefulness, every business we pursue will become big. Most importantly, a business needs capital.

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