The world is constantly changing, and so should your business. But making the right changes can be tough, especially when you're unsure of what's benefitting your business and what's not. That's where the SWOT team comes in! We'll show you exactly how to do this simple analysis for your business to adapt as the world changes.
Well, it’s not a team of officers in bullet-proof vests - It’s actually an acronym for strengths, weaknesses, opportunities, and threats. It’s a way to take a closer look at all the internal and external factors that affect your business. It’s a great tool for all businesses, big and small, no matter the industry.
When you think about the success of your business, what is the first thing that comes to mind? What do you think about when someone asks you what makes your business successful? These are things that are working for your business - things that you don’t want to change. As they say, “Don’t fix what isn’t broken!” Determine what your business does well at, what it thrives on, and what customers say they love most.
Weaknesses don’t have to be things about your business that aren’t working at all. Maybe they’re things that perform well but require many resources to produce. Maybe it’s something that other businesses are doing too and there’s not necessarily anything special about yours. Finding weaknesses is like determining what needs to be optimized. Products or services like this can either be completely changed, or tweaked enough to develop more ROI, or return on investment (time, money, resources).
What would you like to do with your business that others aren’t doing? Maybe you notice someone missing the mark on a product or service. That is an opportunity! Find what your customers are demanding and determine how you can give them what they want in a way that is better than your competitors.
Threats in a SWOT analysis are exactly what they sound like. They’re roadblocks for your business. What are the problems getting in the way of your goals? What are some things that may not be an issue right now, but could be an issue later? Evaluating your threats is important because it helps you be proactive. You should always be paying attention to the competition, but remember that threats can come from within too!
The great thing about a SWOT analysis is that it shows you how you can make successful changes for your business so you don’t have to go in blind. And the best part is, if something ends up not working out, you can always change it again! You can never use this tool too many times. You’ll probably learn something new with every analysis!