How to Use a Simple SWOT Analysis For Your Business

If the last few years have taught us anything, it’s that life can throw massive changes our way. But how does one prepare for the unexpected? Is there a way to plan for something unprecedented? 

While questions about the future may have you reaching for the number of your local psychic, it’s far easier (and cheaper) to create a SWOT Analysis using what you already know about your personal and business resources. 

If you’re wondering what a SWOT Analysis is, you’re not alone. S.W.O.T. stands for, “Strengths, Weaknesses, Opportunities, and Threats.” It’s a great way to look at what you could be capitalizing on and what areas need improvement. 

For the sake of brevity, this article will focus on how businesses can use a SWOT Analysis. However, it absolutely can be used within your personal life to see where you should spend your money and time. 

The first thing to do when creating a SWOT Analysis is to divide a paper into four squares and label the sections “Strengths,” “Weaknesses,” “Opportunities,” and “Threats.” 

Strengths and weaknesses refer to things your company can control. These are things like hiring/training employees and purchasing new equipment. Opportunities and threats refer to those events outside of your control such as changes in trends or shifts in the economy. Make sure you are taking a close, honest look at the services your business provides to get the most accurate information possible.

Let’s take a deeper look at each item on the SWOT Analysis: 

Strengths are what your business does best. These are things that you have full control over and are excelling at. Be honest with yourself when asking questions like:

• What assets do we have?
• What is unique about our company? 

Weaknesses are areas you can look at to improve your business. Just like strengths, these are internal factors which you have direct control over. Consider questions such as:

• What training could be added?
• In what areas do we need to improve?

Conversely, opportunities are external factors that your business can take advantage of. You may not have control over them, but you can use them to your benefit. Ask yourself:

• Will natural events, such as seasonal changes, give us the edge? 
• What trends can we capitalize on?

Threats focus on those things you cannot control and could spell trouble if not navigated with caution. Consider questions like:

• Are consumer tastes changing?
• Are your staff members looking elsewhere for work?

While it is impossible to fully predict the future, creating and looking over a SWOT Analysis from time to time can certainly help you prepare for the challenges life may throw your way.

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