What is a SWOT Analysis
A SWOT analysis is a framework used to identify and understand your strengths, weaknesses, opportunities, and threats. These four factors play a critical role in assessing the overall health of your business, and they can be used to strategically plan for the future of your business.
Strengths and weaknesses are internal factors that you can influence. For example, a strength might be a strong brand image, a loyal customer base, or a unique process. A weakness could be slow inventory turnover or a lack of access to capital.
Opportunities and threats are external factors that can influence you, but that you can leverage, manage, or protect yourself from if you are aware of them. For example, an opportunity might be a potential brand collaboration with a related or partner business. A threat could be supply chain issues or strict government regulations.
How to Complete a Business SWOT Analysis
Completing a SWOT analysis for your business will help you:
- Assess how your business compares to competition
- Identify things that can be improved through strategic planning
- Analyze your strengths and how to capitalize on them
- Understand internal and external factors that can affect your business
- Be proactive in improving overall business performance
To complete a SWOT analysis, follow these steps:
- Identify key leaders and stakeholders that should be involved in the process
- Identify key strengths and weaknesses
- Identify key opportunities and threats
- Take action based on the results of your analysis
When preparing your SWOT analysis, ask questions like:
- What do you do well?
- What do you do better than your competitors?
- What can you improve?
- Can you do more for your existing customers?
- What skills or resources are you lacking?
- Is your target audience shrinking?
Let’s Get Started
Working with an external advisor who offers expertise in facilitating a SWOT analysis activity will help ensure your analysis is complete and effective.
Book a free consultation to learn how KWB’s ONSight Advisory services, including SWOT Analysis and Strategic Business Goal Setting, can support your success. Learn more about ONSight Advisory services here.