Strategically planning for your business without a structured approach can cause blind spots in your planning process. Many businesses use a framework called a SWOT analysis to evaluate where they fit in the market. SWOT stands for strengths, weaknesses, opportunities, and threats. When done correctly, they’re great for evaluating the successes and struggles of a company. But what exactly is it and how do you conduct one? Keep reading to learn about each of the core elements and the process for conducting this analysis.

Strengths

Strengths refer to the internal attributes that separate a business from its competitors. Strengths are features within your control.

Some examples of a business’ strengths are strong brand recognition, skilled staff, successful marketing strategies,  and a loyal customer base. 

Strengths focus on what’s going well. When you think about your company’s strengths, ask yourself questions such as: what does your company do better than its competitors, what are your unique selling points, what do people know your business for, and how is your organization’s external/internal communication?

Weaknesses

Weaknesses are the internal components that place your business behind your competitors. Similar to strengths, these are likely within your control.

Examples of what may constitute company weaknesses include outdated technology, deadlines consistently not being met, weak online presence, and high staff turnover.

As you’re contemplating your weaknesses, consider asking yourself where  your business is losing money, where do you lack resources, what do customers complain about, and what do you struggle with as a team?

Opportunities

Opportunities refer to the positive external factors at play impacting the success of your business. These are potential considerations that may help your company stand out among your competitors. While the quantity and timing of opportunities are out of your direct control, it’s your responsibility to take advantage of them.

Some examples of a business’s opportunities include emerging markets, trends, new targeted audience, and partnership possibilities.

As you try to figure out what some opportunities might be, think about what trends could you take advantage of, whether a government regulation amendment allowed for the potential benefits, and if there are unmet customer needs in the market.

Threats

Threats pertain to the negative external factors affecting your business’s prosperity.  Although you can control many things to promote stability, threats ultimately remain out of your  direct control. 

Examples of what may constitute company threats include: new competitors, poor stock market, inflation, AI, your product/service becoming obsolete, and negative press.

You can figure out your threats by thinking through what environmental factors may negatively impact your performance, if there are government or economic restrictions, cultural and social changes that may impact your business, and what your competitors are doing that could give them an advantage.

Conclusion

Having a strategy when deciding what areas of your business need changing is key to success. Taking stock of what’s working, what needs improvements, and what external factors may be impacting this can save you time and money. If you have more questions about conducting a SWOT analysis, reach out using the form below and we’ll be in touch.