How to SWOT (Analysis) Like a Boss
Talking about SWOT analysis takes me back to business school (where are my SU oranges at!?). I always thought of them as kind of stuffy and archaic but let me tell you, now that I have my own business and have actually used a SWOT analysis to guide my business decisions, I'm a big fan.
What is a SWOT analysis?
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Think of it like a check up for your business. You're assessing where you're killin' it and where you have room for improvement. Then there's the added layer of looking outside of your business at where there are opportunities and threats in your industry.
SWOT analysis worksheet included in our Brand Review Workbook. Sign up for our newsletter to get your free copy!
Strengths
Where are you absolutely crushing it? What are the things in your business that you can do in your sleep? What do other people always come to you for? What sets you apart from your competitors?
This is an opportunity to celebrate what you're best in the world at! The best way to fill in gaps and eliminate weaknesses is by leveraging your strengths so truly allow yourself to see what you're doing well.
Weaknesses
Where are you dropping the ball? Why do customers choose your competitors over you? Where do you have fewer resources than others? What part of your brand are you least confident in?
Don't get discouraged when writing out this quadrant. You can't improve anything until you know what needs to be improved. Weaknesses can include things like cash flow, access to updated equipment and technology, workflow efficiency, brand consistency etc.
Opportunities
This is the creative part where you get to analyze solutions. When looking at opportunities it's a good idea to not only look at what's happening in your business but also outside of it.
What are trends that you can take advantage of? Are there holes in your market that you can fill? How can you turn your weaknesses into opportunities? Are there initiatives being passed that benefit your industry?
Threats
Again this quadrant is about what's happening in the greater market just as much as it is about what's happening in your business. By identifying potential threats to your business you can better prepare for change, making your business agile and resilient.
Consider what's happening in the world and/or your community that could impact your business. Are initiatives being passed that could restrict your industry? Do you have personal things that could impact your business (like a procrastination habit or self-doubt)? Do you have periods where you don't have cash coming into the business?
Why do one?
Clarity. It's so easy to get caught up amongst the weeds when you're running a business. Taking time to analyze where you're actually at will show you where you need to focus your efforts, where you can celebrate and how you can prepare your business for changes in the marketplace. It can also help you identify problems and at the same time show you solutions.
This exercise has helped me get unstuck when I'm feeling stagnant in my business or when I have a million ideas and don't know which direction to go in.
When to do one?
There's no time like the present! If you've never done a SWOT analysis I recommend trying one after you're done reading this. It doesn't need to look pretty or be perfect. If you'd like to make this a regular part of your business development here are some ideas...
When you're feeling stuck or stagnant in your business
To evaluate a new product or service
At year end as part of a Brand Review
Every quarter so you can see which actions are paying off and which aren't
When you're looking to scale so you can evaluate what you need to have in place to scale sustainably
You can apply a SWOT analysis to a specific part of your business, like Marketing or Customer Service or you can make it more broad and look at your business as a whole. In addition, if you're using it to evaluate something like a new market you want to break into you can do an analysis of the overall market, this will help you develop products and services that stand out.