How to Perform a SWOT Analysis for Your Business

A SWOT analysis is a business tool designed to help differentiate the company from its competition. The tool allows a business to analyze its current market condition, products, and services against existing ones. The analysis should help a company find market opportunities and solidify marketing strategies.

What Is a SWOT Analysis?

A SWOT analysis is a technique for finding the strengths, weaknesses, opportunities, and threats of a business or specific project, product, or service. Almost every business, from small to large organizations, uses the method. It is a tool for organizing thoughts and strategies and staying ahead of market trends.

What Does SWOT Stand for?

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis examples should help paint the picture of a business, product, or service. In the strengths portion, a company wants to write down what it does better than competitors. It should also include anything unique to the brand and any features or benefits it offers that competitors don't.

For weaknesses, the company should list areas for improvement. Feel free to list initiatives that are underperforming or need improvement. In the same area, list what improvements are necessary or what resources could help.

Opportunities should include things that can better brand or product performance. For example, are there market gaps you can take advantage of or promotions that might improve performance? Remember, a SWOT analysis is about transparency and idea generation.

Finally, the analysis should review threats. Threats can come from direct competitors, industry changes, new market trends, or anything that affects the sales or performance of the business.

Why Is It Important?

A SWOT analysis is essential because it helps a business examine internal and external factors that can affect profits and operations. The tool helps business owners assess their current market position and hypothesize how to improve it. 

Most businesses use SWOT analyses to interpret various brand products and services; they don't rely only on a single analysis. The tool helps the brand find ways to improve market and operational performance at various levels.

Performing a SWOT Analysis

While a SWOT analysis may seem like a complicated tool and technique, it is relatively easy. To perform the analysis, you first want to focus on internal factors, which correlate with the strengths and weaknesses portion of the analysis and represent things a business can control to an extent. For example, if a company lists a weakness as team communication or delegation, it can resolve it by adopting a project management tool.

After Assessing internal strengths and weaknesses, it is time to review external factors or things outside of your control. Opportunities and threats refer to competition, market trends, or industry rules and regulations. An example of a threat would be a new direct competitor opening in your area.

Once your SWOT analysis is filled in, it is time to hold a brainstorming session. You want to find ways to eliminate weaknesses, overcome threats, take advantage of opportunities, and ultimately strengthen your overall position.

Examples of SWOT Analysis

An example of a SWOT analysis template might include several things under each category. It depends on your business and product. An example might include:

• Strengths: Customer service,

• Weakness: E-commerce visibility

• Opportunities: Marketing channels

• Threats: New e-commerce competitor

Tips To Consider

When completing a SWOT analysis, you want to be brave and embrace flaws in your business. Some tips to help you get started include:

• Prioritize opportunities

• Be transparent

• Ask for input

• Take action

Running a business is challenging, and keeping it profitable is often a struggle, especially for smaller businesses. A SWOT analysis can help you create a plan for the future, but you might also benefit from the expertise of a management consultant. Contact a local business specialist for more information.