In this discussion, we will discuss the development of an Accounting Firm SWOT analysis for a business that is seeking to acquire angel investment. Accounting Firms typically operate with a strong degree of economic stability as the necessity for these services remains in demand despite negative changes in the economy. Additionally, Accounting Firms generate substantial gross margins from their services that make them a viable candidate for angel investment from a private investor. As with all SWOT analyses, you’re going to want to develop a strength section, weaknesses section, opportunities section, and for that section that views every aspect of your Accounting Firm business.
First, you’re going to want to focus specifically on the strength of your Accounting Firm. Here, you’re going to want to reiterate the continuous demand for your services on a year round basis as it pertains to your customers. As such, you will be able to have a very profitable business very quickly if you were able to have your Accounting Firm generate customers very quickly.
Common within this section of the Accounting Firm SWOT analysis, is to have a discussion that showcases your experience is entrepreneur, your experience working in the Accounting Firm industry, and how you intend to expand the business during its initial years of operation. Drafting a business plan alongside your Accounting Firm SWOT analysis is very important for you to effectively have a number of pieces of information that reiterate the fact that these are very good businesses as it relates to being a candidate for angel investment or private investors.
In the next section of the SWOT analysis, you’re going to want to focus on the weaknesses relating to this business. This is a very important section to showcase clearly, especially if you’re looking for angel investors, as you will have shown that you have thought through every aspect of your Accounting Firm business. Typically, the greatest weaknesses that Accounting Firm businesses have are that there is a significant amount of competition within any given market. Additionally, there are a number of large overhead costs associated with operating an Accounting Firm in addition to licensure requirements.
Next, you’re going to want to focus on the opportunities that are associated with operating an Accounting Firm. Here, you can discuss how you intend to expand your marketing campaigns and marketing infrastructure by having a website, providing discounts during busy seasons, and the potential to develop additional offices throughout your target market while hiring associated personnel for your Accounting Firm.
Finally, you are going to want to thoroughly discuss the highly predictable streams of revenue that you will generate by providing these services to the general public on an ongoing basis as it pertains to delivery services. You will also want to mention the necessary licensure involved which provides your business with a high barrier to entry. The highly predictable streams of revenue generated from your Accounting Firm will ensure that you are considered to be a viable candidate for any type of financing that you are currently seeking.
On a final note, you are always going to want to seek proper advice from a number of different sources. Most importantly, you should have an initial discussion with your CPA, lawyer, and financial advisor as it relates to your ability to raise capital from an angel investor or private funding source.