Fillable Printable SWOT Analysis Brochure - USDA
Fillable Printable SWOT Analysis Brochure - USDA
SWOT Analysis Brochure - USDA
SWOTAnalysis
Atoolformakingbetterbusinessdecisions
UnitedStatesDepartmentofAgriculture
RiskManagementAgency
Strengths
Strengthsareconsideredmostlyinternal.
Forexample,whatdoyouandyourfamily,
employees,andmanagementteambring
tothebusiness?Ifyouareplanningtostart
abusiness,youoranemployeeorfamily
membermayhavepreviousexperiencein
thatindustry.Ifnot,thismaybeviewedas
aweakness.Ifyoualreadyknowwhereto
gotofindthehelpyouneed,thiswouldbe
consideredastrengthforthisanalysis.
Weaknesses
Weaknessesarealsogenerallyconsidered
internalandarethefactorsyouwillneed
toaddresstorunasuccessfulbusiness.
Forastart-upbusiness,anexamplemight
bealackofexperienceintheselected
industry.Anotherexamplemaybethatyour
familymembersdonotcompletelysupport
youinthisventure.Youmaylackqualified
employees,orperhapsyourbusinesswill
notsupportfull-timeemployees.Ifyou
identifytheseasweaknesses,don’tworry
becauseexistingbusinessesmayhave
similarweaknesses.
Opportunities
Opportunitiesareconsideredmostlyexternal.
Whatopportunitiesareavailableforyour
business?Youmaybeabletotakeadvantage
oflowinterestloanpackagesforstart-ups
orgrantsforfeasibilitystudies.Youmay
haveanideathathasnotbeentriedinyour
areaandknowthereisademandforthe
productyouplantoproduce.Beawarethat
peoplewithpotentialbusinessestendtobe
muchmoreoptimisticthanthosewith
existingoperations.
Threats
Threatsarealsoconsideredmostlyexternal.
Threatsfromoutsideofyourbusinesswill
directlyaffectyou,butyoumayhavevery
littlecontroloverthem.Ifyouarestartinga
newbusiness,theremaybelocalregulations
thatnegativelyimpactyourbusiness.
Unforeseencompetition(localorforeign),
dissolutionofmarkets,andadverseweather
mayalsohaveanegativeeffectonyour
newbusiness.Manyofthesethreatswill
alsonegativelyaffectanexistingbusiness.
Risinginterestratesmayhaveagreaterimpact
onexistingbusinessesthanonstart-ups.
What’saSWOTanalysis?
ASWOTanalysisisatoolthathelpsyouevaluatetheStrengths,Weaknesses,Opportunities,
andThreats(SWOT)involvedinanybusinessenterprise—includingfarmsandranches.
ASWOTanalysiscanhelpyougaininsightsintothepastandthinkofpossiblesolutions
toexistingorpotentialproblems—eitherforanexistingbusinessornewventure.Fora
SWOTanalysistoworkwell,everymemberofyourteam(yourfamilyand/oremployees,
lawyer,accountant,andinsuranceagent)shouldbeinvolvedintheprocess.
Afteryoureadthisoverview,youwillfindadescriptionofasamplefarmandhavea
chancetogothroughaSWOTanalysisforit.Thisexerciseshouldhelpprepareyoufor
doingyourownSWOTanalysis.
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WhenconductingyourSWOTanalysis,
keepinmindthatoneitemcanoffset
another.Forexample,yourstrengthsmay
counterbalanceyourweaknessesandyour
opportunitiescanoffsetyourthreats.Ifthis
doesnothappen,thisexercisewillhelpyou
tounderstandtheissuesyouneedtoaddress.
HumanResources
Hiringemployeeswhohavetheskillsyou
deemnecessaryisonewaytocombata
weakness.Forexample,ifyouneedsomeone
todrivealargetruck,hiringsomeonewith
acommercialdriver’slicensewilleliminate
thatweakness.Or,youcouldlearnhowto
drivethetruckyourself—butcanyou
sparethetimeawayfromthebusiness?
Addingtoyourmanagementteamisanother
waytoeliminateapotentialweakness.
Ifyourbusinessisgrowingandyouare
handlingthebookkeepingtasksyourself,
hiringabookkeeperwillfreeupyourtime
tofocusonotherpartsofthebusiness.
Ifyoudo,besuretohiresomeoneyoutrust
ordoanextensivebackgroundcheck—
especiallyiftheywillhavecheck-signing
capabilities.Havingthatpersonbondedwill
alsocreatealevelofsecurity.
Somethingstoconsider.
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Insurance
Formanyagriculturalbusinesses,insurance
isawaytoeliminatepossibleweaknesses,
threats,orrisks.Ifyouranalysisshowsthat
youareundercapitalizedtohandleamajor
emergency(asaremostagricultural
businesses),insurancecoveragewillhelp
eliminatethisissue.Threatsfromliability,
fire,automobileaccidents,andcropfailures
canallbereducedwithproperinsurance.
Liabilityinsurance
Liabilityinsurancecoversanyonewhois
injuredonyourfarm.Thiscoverageis
includedonyourfarmowner’spolicy,but
thecoverageisonlyforthedollaramount
listedonthepolicy.Forexample,ifyour
liabilitylimitis$500,000andsomeonesues
youfor$1million,youwillonlybecovered
forthe$500,000.Theremainderofthe
judgmentawardisyourresponsibility.
Youshouldreviewyourrisklevelwith
yourinsuranceagent.
Fireinsurance
Fireinsuranceis
alsoincludedon
yourfarm
owner’spolicy.
Youmaychoose
toinsuresome
buildings,butnot
all.Thelevelat
whichyouwill
bereimbursediswritteninyourpolicy.
Thereareseveralmethodsofcoverage,
includingactualcashvalue,replacement
value,andfunctionalreplacementvalue.
Automobileinsurance
Yourautomobileinsuranceisseparatefrom
yourfarmowner’sinsurance.Anylicensed
over-the-roadvehicleyouownshouldbe
insured.Ifyouhavemultiplevehicles
ontheroad,youmaybeeligibleforfleet
insurance,whichmaysaveyousome
expense.CheckwithyourState’s
DepartmentofTransportationandyour
insuranceagenttodeterminethecoverage
thatisrightforyou.
Cropinsurance
Youmayinsureyourcropswithseveral
typesofpolicies,suchasMultiplePeril
CropInsurance(MPCI)andCropRevenue
Coverage(CRC),amongothers.Youmay
insureyourrevenuewithAdjustedGross
Revenuecoverage(AGR)orAdjustedGross
Revenue-Litecoverage(AGR-Lite).Tolearn
moreaboutcropinsuranceanddetermine
thebestcoverageforyouroperation,
contactyourlocalcropinsuranceprovider.
Tolocateacropinsuranceagent,visitThe
RiskManagementAgency’sonlinelocatorat:
www3.rma.usda.gov/apps/agents/.
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MeettheRyanFamily
TheRyanfamilyhasoperatedadairyfarm
forover50years.PaulRyan,age48,took
overthedairyfromhisfather20yearsago.
Thedairyisaverage-sizedforthearea:the
Ryansmilk60cows,growmostoftheir
ownforageandgrain,andraisetheirown
heifers.Thefamilywithdrawsabout
$30,000fromthefarmbusinesseachyear
forlivingexpenses.Thedairyislocatedin
aruralarea,buturbanandsuburbanareas
arecloseby.Thenearestcityhasa
populationof100,000.
MargaretRyan,42,isPaul’swife.They
havethreechildren:Jane,Hal,andSusan.
Margaretusedtoworkonthefarm,but
forthelast8yearsshehasbeenworking
full-timeasaclerk-typistintheschool
districtoffice.Take-homepayfromthisjob
is$18,000,plushealth,dental,andother
benefitsthatextendtothewholefamily.
Atthispoint,Margaretoverseesthe
financeswithPaul,occasionallymilks,
andmanagesthehousehold.
JaneRyan,21,hasjustreceivedher
bachelor’sdegreeinculinaryartsfromthe
localcommunitycollege.Duringthe
summers,Janeworksfull-timeonthefarm
withthemilking.Sheisconsideringfarming
asanoccupation,butwouldliketocontinue
herworkinvalue-addedfoodproduction.
HalRyan,16,isinhighschoolandworks
withhisfatherpart-timeduringtheschool
year,andfull-timeduringthesummer.
Heisnotinterestedinthedairyorinany
typeoffarmingandwouldratherattenda
universityandstudyscience,engineering,
oreconomics.
SusanRyan,12,isamiddleschoolstudent
whoreallyenjoysthefarm.Shetakescare
ofthecalvesafterschool,belongsto4-H,
andhasjustbeguntoshowaninterestin
helpingwiththecrops,althoughsheistoo
youngtodrivethetractor.
JeanMiller,64,isMargaret’smother.
Sincethedeathofherhusband5yearsago,
JeanhaslivedwiththeRyans.Sheshares
aninterestincookingwithher
granddaughter,Jane.
Exercise:SampleSWOTAnalysis
Hereisanexampleofasmallfarmthatneedstodiversifyinordertoremainsustainable.
ThisfarmfamilyneedstoconductaSWOTanalysis.Readtheexampleandconductyour
ownSWOTanalysisfortheRyanfamily.Whenyouaredone,youcancheckyouranswers
againsttheanswerspreparedbyexperiencedusersoftheSWOTanalysistool.Thoseanswers
areonthepageafteryourfill-in-the-blankspage.Ifyouranswersareclosetotheexperts’
answers,youarereadytodoyourownSWOTanalysis.
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Alternativeventures
TheRyansareconsideringanalternative
farmenterprisebecausetheyneedadditional
incometosendtheiryoungerchildrento
collegeandtosaveforretirement.Pauland
Margaretfeelstronglythattheywouldlike
JaneorSusantotakeoverthefarm.
Thismeansthat,untiltheyretire,thefarm
mayhavetosupporttwofamilies(Jane
currentlyhasnoplansformarriage).The
Ryansarethinkingaboutexpandingthe
dairytogenerateadditionalincome,but
Janewouldratherbeinvolvedinavalue-
added(foodproduct)enterprise.Pauland
Margaretrealizethatchangesinthefarm
mayhavetooccurtosatisfythedesires
ofthenextgenerationandarewillingto
explorealternativefarmenterprises.
Thefamilymettodeterminehoweach
personfeltaboutdevelopinganew
enterpriseonthefarm,andfoundthatJane
andhergrandmotheraremostexcitedabout
thisidea.Aftertheydidaninventoryof
resources,theyconcludedthattheirmain,
underutilized,physicalresourcesareasmall
pieceofland—about5acrescurrently
usedtogrowextrahayforsale—anda
concreteblockshedusedtostorebicycles
andpatiofurniture.Theirmain,under-
utilized,marketingresourceisthecity38
milesaway.TheRyansalsohavegoodroad
frontagealongafairlywell-traveledhighway.
Managementandlaborresourcesavailable
year-roundwouldcomefromJaneandJean.
Highschoolstudentswouldbeavailable
primarilyinthesummer,aswouldSusan.
ThefamilydecidedthatJanewould
generateenterpriseideas,andtheothers
wouldofferopinionsonsuitability.Jane
andJeandiscussedpossiblefoodproducts
thatcouldbemadeusingfarmresources.
Shealsospoketosomeformerprofessors
andclassmates,afarmingneighborshe
respected,andtheExtensioneconomic
developmenteducator.Shereviewedback
issuesofculinaryandcountrymagazines
andspentanentiredaywalkingthrough
thecity,visitingstores,restaurants,the
downtownarea,andmalls.
Outof6ideasthatJanecameupwith
(fruitpies,salsa,strawberryjelly,cheese,
icecream,andyogurt),theideathatmost
familymemberslikedwascheese,which
JaneandJeanthoughtcouldbesoldata
farm-marketstandortothemanyhotels
andrestaurantsinthecity.
YourTask
HelptheRyansbecomemoreconfident
aboutthisideabydoingaSWOTanalysis
forthisproject.UsethefirstSWOT
worksheettorecordyourthoughtsand
thoseofothers.Youmaycopythesecond
worksheetasoftenasyouwanttodoa
SWOTanalysisforanyenterpriseyouare
considering.Worksheetsarealsoavailable
atFarm-Risk-Plans.USDA.gov.
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ExerciseSWOTAnalysisSheet
F
ortheRyanfamily,brainstormaboutideasrelatedtothefourareasbelow.
UsethissheettodeterminewhethertheRyansshouldexploreanenterpriseideafurther.
Foranswers,seetheinsidebackcover.
STRENGTHS
OPPORTUNITIES
WEAKNESSES
THREATS
AdditionalcopiesofthisworksheetareavailableatFarm-Risk-Plans.USDA.gov
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STRENGTHS
OPPORTUNITIES
WEAKNESSES
THREATS
ExerciseSWOTAnalysis
Answers
•Longevity—theRyanshavebeen
farmingfor50years.
•Theyraisetheirownreplacements
andfeedstuffs.
•Family’sinsuranceispaidfroman
off-farmjob.
•Theyhaveoff-farmincome.
•Theyusefamilyforlabor.
•Therearemultiplegenerationsliving
onthefarm.
•Theyarewillingtoexplorealternatives.
•Theyhavegoodfamilycommunication.
•Theyhaveavailablelandandabuilding
touseforanalternativebusiness.
•Theyarelocatedclosetoa
suburbanarea.
•Theyhavegoodroadfrontage.
•Thenearestcityhas100,000people.
•Janehasabachelor’sdegree
fromcollege.
•Janewantstoreturntothefarming
operation.
•Theyarelocatedonawell-traveled
ruralhighway.
•Theystillneedtowithdraw$30,000
peryearforfamilylivingexpenses.
•Theyarelocatedinaruralarea.
•Thesonisnotinterestedincontinuing
thefarmingoperation.
•Theyneedtosetmoneyasidefor
children’scollegeexpenses.
•Theywillneedtosupportmultiple
familiesinthenearfuture.
•Theymayneedtohiresomeoutside
laborforthealternativeenterprise.
•Noonehascheesemakingexperience.
•Theremaybeothercheesemakers
intheareawiththesame
marketingideas.
•Theyhavea76-mileroundtripto
thecity.
•Thisdoesnotsayiftheyhavea
vehicletotransportthecheese.
•Needasteadyworkforcefroma
ruralarea.
•Governmentregulationsmaydictate
manyaspectsoftheoperation.
Theseanswersaremeanttobeaguideandmaynotbethesameasyouranswers.
Everypersonseesabusinessfromhisorherownperspectiveandmayreadtheinformation
differently.Youcanapplytheseprinciplestoyourbusinessandanalyzeyouroperation.
ByLynnF.Kime,seniorextensionassociate-PennStateUniversityand
WinifredW.McGee,countyextensiondirectorinLebanonCounty-PennStateUniversity.
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YourSWOTAnalysisSheet
F
oryourownpossibleenterprises,brainstormaboutideasrelatedtothefourareasbelow.
Usethissheettodeterminewhetheryoushouldexploreanenterpriseideafurther.
STRENGTHS
OPPORTUNITIES
WEAKNESSES
THREATS
AdditionalcopiesofthisworksheetareavailableatFarm-Risk-Plans.USDA.gov
9
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(Braille,largeprint,audiotape,etc.)shouldcontactUSDA'sTARGETCenterat(202)720-2600(voiceandTDD).TofileacomplaintofdiscriminationwritetoUSDA,Director,OfficeofCivil
Rights,1400IndependenceAvenue,S.W.,Washington,D.C.20250-9410orcall(800)795-3272(voice)or(202)720-6382(TDD).USDAisanequalopportunityproviderandemployer.
Designyourownsafetynet.
Logonandfilloutariskmanagementchecklist.
Identifyyourownstrengths,weaknesses,opportunities,
andthreats.Explorenewenterpriseoptions.
Doitallwithawealthofriskmanagementinformation
atyourfingertips—ataWebsitecreatedjustforyou.
UnitedStatesDepartmentofAgriculture
RiskManagementAgency
Farm-Risk- Plans.USDA.gov
Helpingfarm ers&ranchersfin dsuccess
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