What is a SWOT analysis?
A SWOT analysis allows business owners to evaluate their position in the marketplace. The acronym SWOT stands for strengths, weaknesses, opportunities and threats.
Strengths and weaknesses are internal factors. They’re things that you as a business owner have the power to change. Your organisation’s strengths are things your company does well and the qualities that set you apart from your competitors. Your company’s strengths might also be assets and resources within your business, like knowledgeable team members or proprietary technology. Weaknesses are things that could be holding your business back. These are things your competitors do better than you, or things your business lacks.
Opportunities and threats are external factors that are outside the scope of your control. However, they can impact your operation for better or worse. External opportunities include everything you could do to increase sales or grow your business. Opportunities can be new markets, new products or emerging needs. Threats include anything that poses a risk to your success or growth. Threats can be new competitors, financial risks and negative attitudes towards your business.