Starting your own business is no easy feat. There are always so many details to attend to and many challenges to consider. Having a detailed framework through which you can uncover opportunities and spot risks will surely make things easier for you. This is where SWOT analysis comes in!
Say WOT?
SWOT analysis is a simple, yet powerful tool which helps you to develop your business strategy whether it’s a startup or an existing company.
What Does SWOT Analysis Mean?
It’s the first letter of four words, here’s what SWOT Analysis stands for:
S: strengths
W: weaknesses
O: opportunities
T: threats
It Consists of Two Parts
The first one is internal, which is inside your business and under your control (strengths and weaknesses). The second one is external, which is outside your business and you can’t control it (opportunities and threats).
How Will it Be Useful?
- Being cost-effective. You don’t need any specific skills or extensive training. You also don’t need an external consultant. All you need is a staff member who has knowledge of the business.
- Providing a comprehensive overview. It will help you have a wide range of information. You will be more understanding about your strategies and the market you are involved in, which will help you make the right decision.
- Offering a clear view of the strengths, highlights weaknesses, showcase possible opportunities and help you recognize threats.
How Do I Do It Right?
All you have to do is to answer these questions!
1- Strengths:
– What are the things you can do very well?
– Can you identify your distinctive skills?
– What are the experiences or specific knowledge do you have?
2- Weaknesses:
– Which areas do you need to develop yourself in?
– What resources does your business lack?
– What are the things you need to learn more about or get more experience in?
Now you have all the information you need about your internal business. The next step is to get information about your external one.
3- Opportunities:
– What are the project’s targets that you are working on now?
– How can you benefit from technology to develop your business?
– Is there a new audience you can target?
4- Threats:
– What are the external problems you may face?
– Can you identify the strengths of your biggest competitors?
– What is your economic situation?
After answering these questions you will be able to successfully plan for your new strategy. Now think creatively about what you should do to benefit from the opportunities, improve the threats and what you should do to switch the weaknesses into strengths.
Also, think about how to combine between strengths and opportunities and also between strengths and threats. As a team, you will need to brainstorm together at this point.
If you apply what’s in this article, you will be able to discover new opportunities, make the right decisions and the most important thing to make sure your business is successful.
Share with us your experience with SWOT analysis! How did it benefit your business?
