By Scout Nelson
Farmers and agricultural entrepreneurs often turn to strategic tools like SWOT to evaluate their business. An enhanced version, known as TOWS, crafted by Heinz Weihrich at the University of San Francisco, offers a fresh perspective by shifting the analysis sequence. It starts externally, then moves inward.
Understanding TOWS:
Threats: External factors that might adversely impact your business. This could be anything from local regulations to new housing developments.
Opportunities: External chances that can benefit your business. It could be arising from industry shifts, competitor changes, or local trends like the growing interest in local foods.
Weaknesses: Internal areas where competitors outshine you. This could relate to production costs, resources, or debt levels.
Strengths: Your unique internal advantages. It might be your efficient production, specialized skills, or any other aspect that sets you apart.
The objective is to develop an actionable matrix using the insights from TOWS.
Strengths & Opportunities: Leverage your strengths to tap into external opportunities. For instance, using your prime location for a value-added enterprise.
Strengths & Threats: Use strengths to counteract external threats. Superior product quality and compliance might appeal to discerning consumers.
Weaknesses & Opportunities: Align opportunities to address internal weaknesses. Maybe using a solid reputation to secure long-term leases or tapping into tourism based on your location.
Weaknesses & Threats: Reduce risks by focusing on eliminating or managing weaknesses. Building a capital reserve can help adapt to potential threats.
Incorporating the TOWS methodology can significantly contribute to the sustainability and growth of an agricultural enterprise.
Photo Credit: gettyimages-chagin
Categories: Minnesota, Business