How to Make a SWOT Analysis for Your Small Business

If you do not already have a SWOT Analysis for your small business, it is time to start one. A SWOT analysis is critical to the long-term success of your small business. The contributing factors in the growth of your business are being able to identify the strengths, weaknesses, opportunities, and threats.

Knowing about the different opportunities for growth in your business industry gives you the chance to capitalize on them so that you reach your revenue goals. Knowing and understanding the challenges that your team will face will give you a better opportunity to develop a strategic plan to combat any potential issues.

How to Get Started

Before you start the SWOT analysis process, meet with your team and discuss what will be done during the process. You can have each team member write down the strengths, weaknesses, opportunities, and threats they discover while on the job over a course of a month. Following up with meetings each week will help find solutions that are needed for the business.

SWOT Analysis Process

Strengths

The first step to take is to identify company strengths so write down a list of factors that contributes to the overall profitability to your business. Both internal and external factors can be company strengths.

The following are some examples of internal and external factors:

External factor: having the proper licensing to operate.

Internal factor: hiring new team members which in turn will increase the revenue of the company.

Weaknesses

A weakness is anything that the company can do to improve on the efficiency effectiveness, and bottom line of the business. To identify the weaknesses, think about what resources and skills are lacking. Weakness are mostly internal factors so focus on those internal issues first to see the company’s weaknesses.

Opportunities

Industry opportunities are external factors that can be capitalized upon the company to increase its bottom line. The best way to identify industries opportunities is by conducting research. Make sure you research using reliable industry sources. Check updates on your industry quarterly so if there are new opportunities in your industry, you can know about them before they start to affect your industry and your company.

Threats

Threats to the industry are also external factors that affect your business. Threats are defined as anything that affects the growth and sustainability of the business. One way that you can keep up with industry threats, is by subscribing to an industry newsletter or magazine. By subscribing to these newsletters, you will be in the know of any industry trends or changes that can affect the success of your business.

The Bottom Line

Conducting a SWOT Analysis for your small business can help with the long-term success. It is important to understand the strengths of the company that enables you to identify what you have and what you do not have. Begin creating your SWOT Analysis today.