SWOT Analysis

What is SWOT analysis?

SWOT analysis stands for strengths, weaknesses, opportunities, and threats. You can examine your business from within using strengths and weaknesses. This is the ‘easier’ part of the analysis.

Examining opportunities and threats require you to examine outside factors and how they relate to your business. It can be a bit trickier because the information isn’t readily available.

Successful small businesses need the full picture. SWOT analysis provides that by forcing you to examine your company from all angles. You’ll find opportunities to further capitalise on your company’s strengths. You’ll address weaknesses to eliminate threats that undermine your success.

This is the true power of SWOT analysis. You’ll be able to identify the following:

• Your unique selling position

• Where to focus your business to grow

• What competitive advantages you have

• How to find threats and react accordingly

Your SWOT analysis relies on honestly. It’s easy to focus on what is working for your company, especially when customers are praising you. But you must also examine what isn’t working, like when customers complain or leave bad reviews. It’s not fun, but since SWOT analysis strengthens your business, service or product from multiple avenues, it’s worth it.