How to Create a SWOT Analysis

Posted on Monday, January 7th, 2013 at 1:50 pm by shauli

When you are running a business it is hard to be on top of everything, especially anticipating possible threats and opportunities in the future.  One great way to stay ahead of the curve in regard to your business is to create a SWOT analysis.  Most organizations and businesses create a SWOT in the strategic planning phases of their business.  It is vital in appraising where your business is internally as well as externally.

What is SWOT?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.  It is a quick and easy tool for understanding where your business is currently, and in which direction you would like it to head.  What you want your company to do is play to its strengths while simultaneously working to better its weaknesses.  Also, everyday while you are working to better your business, you should also be considering what the future lies for you.

Your strengths are the things your business excels at.  It can be branding, or even your reputation.  Perhaps one of your strengths is the customer service you provide or the quality of the products that you sell.  Maybe your service is one-of-a-kind and unlike anything else on the market.  That is definitely a strength.  Maybe your price point is competitive and you have made many sales in the last few years.  Maybe your company has grown tremendously and you want to see that prolong into the future.

Weaknesses are things that your company could do better.  Perhaps you didn’t meet that sales goal or increase membership, or readership, or conversion rates.  There is always something else that can be done to better your business.  There is always something new to learn and another experience to be had.

Opportunities are what are presented to your company based on the strengths and weaknesses.  Maybe you need to be in more places on the internet or you need to hire someone to create a marketing campaign.  Opportunities are what you will do in the future to better your company.

Threats are the dark clouds in the future that might weaken your company, such as competition or new software that will make your product seem obsolete.  To be successful in business is to be aware of the threats so you can tackle them before they happen.

 

 

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