5 TOOLS FOR EFFECTIVE BUSINESS ANALYSIS

Survival of businesses in such a competitive world is challenging. A business must always be cautious of its decisions to have a positive return. Analysis helps the business make effective decisions, ensuring a smooth and progressive workflow.

5 Tools For Effective Business Analysis

Here are 5 tools for practical business analysis that every firm should take before making a decision.

• SWOT Analysis

  SWOT is one of the most basic analyses every business can and should perform. SWOT helps a business to know more about itself by identifying the Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis helps a business determine the current position it acquired with respect to the other existing or emerging competitors and helps formulate future policies. 

  
  

• PEST Analysis

  While Making business decisions, it is also essential that you consider the environment in which you operate. The PEST analysis helps the business understand the external factors that could significantly impact the business. PEST is about carefully analyzing the political, economic, social, and technological environments in which the business operates. It is analyzing each factor and the influence it can have on the decisions of the business. 

  
  

• Heptalysis

  Heptalysis is an analysis conducted early in a business's life to identify factors that impact its operations. The seven factors include Market opportunities, Product, Execution plan, Financial position, Human capital, Potential return and Margin of safety. 

  
  

• Competitors Analysis

  Competitor analysis, as the name suggests, is an analysis of the existing as well as the emerging competitors in your business field. Competitive analysis is related to identifying the competitors' products, sales, and marketing strategies. A business must always be aware of its competitors, plan to cater to more customer demands, and then frame its policies accordingly. 

  
  

• Customer Analysis

  Customers are the ones who actually contribute the most to the business. Therefore, analyzing the customers and their needs is a crucial step every business must take. Analyzing the customer needs and finding the product or service to cater to that need can help a business gain many customers. 

  
  

Making decisions, formulating policies, and setting down the targets to be achieved by a business are tasks performed with utmost diligence. Any decision taken in a hurry could cause the business to lose the time and money invested. Therefore, the decisions should be made after meticulously analyzing the facts and figures.