The Basics of SWOT Analysis to Supercharge Your Businesses
My clients tell me they are constantly juggling multiple responsibilities and making crucial decisions that impact their business’s future. But how can you make sure you're making the right choices? Try the SWOT analysis - a powerful yet simple tool that can help you get clarity for these decisions.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. With this classic framework, you’ll analyze both internal and external factors affecting your business and see a view of your current position and growth potential.
Let's break down each component:
Strengths: These are the areas where your business excels and what competitive advantages you have. It might be your exceptional customer service, a one-of-a-kind product, or an ideal location.
Weaknesses: Every business has room for improvement - be honest about areas where your company falls short. Do you need a better social media presence? Is your product line too small? Do you lack a footprint in a fast-growing market?
Opportunities: Are there emerging market and industry trends that you can capitalize on? What new technologies have been launched that could streamline your business operations? Has their been recent legislation that you can capitalize on?
Threats: Threats are external risks that have the potential to harm your business. These can include competition, changing regulations, new technology or economic downturns.
Note: Research cited in the Harvard Business Review suggests completing Opportunities and Threats before Strengths and Weaknesses. The idea is that you’re better able to see the environment that both you and your competitors are operating in. You can then optimally determine exactly which Strength and Weaknesses should be a top priority.
Here's a simple 8-step process to get your SWOT analysis started:
Draw a grid with four quadrants: Strengths, Weaknesses, Opportunities, and Threats.
Start with Strengths: What does your business do well and what are your competitive advantages and differentiators?
Weaknesses: Where can your business can improve? Where is your business performing poorly? What gaps or missed opportunities do you see?
Opportunities: List any external trends and new movements that could benefit your business, such as emerging trends and technologies. What is making news? What is being discussed on social media and popular thought leadership?
Threats: List any external challenges like competition, regulations, new technologies and economic factors. Stay on top of your industry’s news and movements to spot disruptions.
Find data to support your theories using market research, industry reports, competitive analysis and customer feedback. (I can help!)
Prioritize your list in each quadrant by ranking the items from most to least important.
Develop action plans for each top item with the help of your team.
A SWOT analysis should be a regular part of your business planning to stay on top of changing market conditions, ideally every six months or annually.
The classic SWOT analysis is a valuable tool for any business owner looking to gain a clearer picture of their operating landscape. It's simple enough to implement quickly, but has the potential to give extraordinary insights.
Are you interested in setting up a SWOT analysis for your business? Contact me here.
- Kristen
When you’re ready, here are 3 ways I can help you:
Custom Research Project: Perfect for ad-hoc research needs including market research, general research, trend identification and competitive reviews.
Research Subscriptions: Stay massively informed on any topic, competitor or industry with my weekly and monthly research subscriptions. And you can set up as many subscriptions as you need.
Schedule a 1:1 Coaching Call: Need guidance on your project? Not sure how to approach a research project? Have a small budget and want to know exactly how I would tackle it? Set up a call with me.