While I wish I could remember all of the concepts I learned in business school, sadly, I don’t. There are specific things, though, that really stand out. These are things that I not only remember to this day, but that I actually USE.
One of these concepts is the SWOT Analysis. If you’re looking to reflect and better understand your business situation and environment, it’s a really powerful tool. Not only does it give you perspective as to where your business stands, but it provides insight into how to best move forward. (It even works for side hustles!)
Let’s dive into how to conduct a SWOT analysis.
SWOT in a Nutshell
As you may have guessed, SWOT is an acronym for the four dimensions of your business you will be analyzing.
Strengths
What characteristics give your business an advantage over others in the same category/sphere? In other words, what positive attributes separate you from the competition? These can also be innate strengths, even if others have them too.
Weaknesses
What characteristics give your business a disadvantage over others in the same category/sphere? In other words, where do you fall short versus your competitors? These can also be inherent weaknesses, even if others share them.
Opportunities
What environmental or situational elements can the business use to its advantage? In other words, what opportunities could your business capitalize on?
Threats
What environmental or situational elements could pose risks or negative outcomes for your business? In other words, what threats exist that could negatively impact your results?
Grab Your FREE Template
At it’s core, a SWOT analysis simply consists of analyzing these four dimensions. And I’ve created a helpful printable template you can use! Find it in the Business Building section of my FREE Resource Library when you sign up below.
You can then jot down bullet points under each section.
Get Analyzing
Once you’ve chosen a template and drawn your outline, it’s time to start capturing your thoughts.
Here are some questions to ask yourself in completing each part. I’ll include some examples from my own business to help illustrate.
Strengths
Sample Questions to Answer
What makes your business superior to others?
Which factors have led to the success you’ve experienced so far?
What tools, experience, or skills do you have that the competition doesn’t?
What is your “special sauce”?
Examples from My Business
Strong business education
Experience in the corporate world (brand management + marketing + strategy) coupled with entrepreneurial experience (Etsy shop)
Dedication and commitment to this mission
Genuine passion and desire to help others
Conscientiousness and attention to detail
Weaknesses
Sample Questions to Answer
What makes your business inferior to others?
Which factors have hindered your success or led to unwanted outcomes?
What tools, experience, or skills do you lack (especially those that the competition has)?
Where do you fall short?
Examples from My Business
Short lifespan (only launched September 2017)
Less traffic, fewer email subscribers than established blogs
Lack of experience with affiliate marketing, product launching
Historic focus on achievements vs. things I can control
Opportunities
Sample Questions to Answer
Are there tools or connections do you have access to that your competitors don’t? What are they?
What history or experience do you have that your competitors don’t?
Are there Strengths from the section above that could be turned into opportunities?
Examples from My Business
Creating thorough, detailed, and organized products and free resources
Leveraging business knowledge in creating helpful content for audience (like this blog post!)
Use passion and authentic desire to help as a point of difference to create a unique voice that stands out
Threats
Sample Questions to Answer
What risks exists in the environment?
Are you overly reliant on anything for your results?
Examples from My Business
Reliance on Pinterest for traffic (risk of traffic drop if Pinterest changes)
Motivation drop if results don’t improve
What now?
Use your SWOT analysis to get clear on where things stand and decide how to move forward. Your next steps may include a revamped business plan, an overview for any new partners you plan to onboard or work with, or fodder for a future coaching or mentorship meeting.
Check out my post Making Money on Etsy: How I Doubled My Income on the Cheap to see a case study of this in action.
Have you ever done a SWOT analysis before? Leave me a comment and let me know!
And don’t forget to grab your FREE SWOT Analysis Template here:
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