Business analysis techniques are the tools used to identify needs and solutions in your business. Essentially, it’s rooting out the problem and using an optimal method to correct issues, meet business goals, and understand how the business operates currently.
This is a simple definition and there’s plenty more about business analysis and how to use it appropriately. While not required, you can become certified for better business analysis understanding and career opportunities.
Don’t worry if you’re not, because the business analysis techniques available are simplistic but effective to pinpointing weakness in your business. And you can start with these techniques right now.
1. SWOT analysis
SWOT analysis examines your business from the inside out. The point is to identify strengths, minimize weaknesses, optimize opportunities, and acknowledge threats. SWOT analysis can be applied to any aspect of your business such as:
- Business models
- Campaigns and more
For the best analysis, it’s important to use resources and be open about weaknesses and threats. With enough time and planning, it’s possible to turn weaknesses into strengths as well as reducing the effects of future threats.
2. PESTLE analysis
PESTLE analysis examines business from the outside in — opposite of SWOT analysis. Specifically, PESTLE focuses on how numerous forces may hinder or benefit your business. Such as:
- Political factors (government and bills)
- Economic factors (economic fluctuations on a global and local scale)
- Sociological factors (changes in society and communication)
- Technological factors (advancements in technology)
- Legal factors (bills and legislation)
- Environmental (issues in environment on global and local scale)
All of these are often “outside forces” which can affect the success of your business. It can also dictate how to run your business now and then in the future. PESTLE works best before the launch of a new product or expansion to ensure all bases are covered.
3. GAP analysis
GAP analysis references how to “close the gap” between having a goal and achieving that goal. Primarily through analyzing which persons have the necessary skills.
The point is to move away from a stagnant position and towards a prosperous result. While also creating an active plan to keep that result continuously flowing.
This may require adding new employees or training existing ones to meet the goal. But you will need to examine the current issue and the expectations to change it.
4. SWOC analysis
Similar to SWOT analysis, SWOC analysis examines the strengths, weaknesses, opportunities and challenges surrounding your business problem. The difference is in the challenges. Challenges are obstacles standing in the way of meeting your business goal.
Challenges appear negative — and when left unchecked, they are. But when challenges are acknowledged early, they can be overcome and used as a stepping stone to propel business further.
Business analysis techniques vary; these are just a few you can use when doing your own analysis. Each one helps focus on a different aspect of your business and can be done whenever you have the time.