Regardless of your business size, a SWOT analysis can help you build a solid business strategy and lay the foundations to achieve your goals. So, let’s dive in.
WHAT IS A SWOT ANALYSIS?
SWOT stands for:
Strengths – what your business is doing well and gives you a competitive advantage.
Weaknesses – what the business is lacking or what your competitors do better.
Opportunities – openings in the market that can help grow your business.
Threats – roadblocks or increased competition that can impact your business model.
Strengths and weaknesses are internal factors so they can be controlled within your business. Opportunities and threats are external factors and can be influenced by changes in the market, trends, government regulations or new technology disrupting the ebb and flow.
A SWOT analysis can be presented in different ways, but it always consists of four categories. The most common style is a two-by-two grid with strengths and weaknesses at the top and opportunities and threats adjoining below.