Developing a SWOT Analysis For Your Business
Updated: Mar 2, 2020
Being organized contributes to the success of your business. As a business owner, there is a lot you have to manage and it can be stressful. One of the best ways to analyze your performance and plan for improvements is through developing a SWOT analysis. SWOT Analysis is an approach to organizing information and communicates your initiatives to others in a more concise way.
If you are unaware, SWOT, is the acronym for strengths, weaknesses, opportunities, and threats. Each of these elements has different components to them. The strengths and weaknesses are internal, while the opportunities and threats are external. From gathering and analyzing this information, you can form a strategy to go after your weakness and threats. It will also come in handy when you are developing goals.
These are usually the easiest to identify because most people are very aware of them. Your strengths are not only your positive attributes, but they are also areas that have had significant improvements.
Are pretty simple, they are attributes that are not performing as well as they should be. It also can be areas that have been declining or not making any progress. Weaknesses are inevitable, though they can be challenging it’s important to remember that they are in your control and can be improved upon.
After analyzing your strengths and weaknesses, it will identify the areas where a change needs to occur. Opportunities should be based around changes that can be made and also your weaknesses since they can be improved upon.
Identifying your threats is more complicated, because they are out of your control and might not exist yet. When compiling your threats, you have to think outside of the box and come up with a situation that may happen for every strength and opportunity you have.
Constructing a SWOT Analysis
When constructing this analysis it’s formatted like a table. Draw a big square and break it down into four smaller squares. The strengths will go on the top left corner, weaknesses on the top right, opportunities on the bottom left, and lastly the threats on the bottom right corner. The reason for them being laid out this way is because they all relate to each other.