How To Build A SWOT Analysis
Whether you’re dealing with a new business, evaluating a brand, running into obstacles, or seeing positive results, it is important to assess where you stand. A SWOT analysis is a beneficial tool used to organize different aspects of your business. It helps you visualize what tactics are working and what areas you can improve on. This model is broken into four categories: Strengths, Weaknesses, Opportunities, and Threats and focuses on both internal and external factors. Using this analysis is a good step to take in your strategic process so you can evaluate your business and plan for future success. Our team believes that it is so important that it is a mandatory step in putting together our NuView Marketing Strategy Guide.
HOW IT’S ORGANIZED
A SWOT Analysis template is formatted into a square diagram, composed with four smaller squares inside of it. They are separated by term and by their category of internal/external factor. It sets up a simple visual to help create goals, plan ahead, and explore characteristics that have an effect on your business. Here is an example of a basic SWOT analysis layout:
Unlike other business analysis, the SWOT method allows you to be short and straightforward. You don’t need to spend a too much time diving into extensive details. These descriptions should be general starting point ideas that will help guide you in a progressive direction. Be honest with where you stand. Evaluating the good and the bad can only work if you are providing realistic information. This method helps you move forward with your business, so don’t spend time focusing on past events or problems. You need to assess the present status of these internal and external factors. Stay organized, consistent, and balanced with what details you decide are necessary to include.
THE FOUR CATEGORIES
In the strengths portion of your analysis, you want to highlight the aspects of your business that help you stand out and that you recognize are having a positive effect. These might be things such as price points, location, product quality, or available resources. Strengths are unique and internal to your business. It’s key to acknowledge these in order to maintain a positive performance.
When assessing the weaknesses section of your SWOT analysis, you’ll want to determine which characteristics of your business aren’t going as well. Ask yourself what areas you could be improving on or where you are lacking. These will be internal factors that give you a disadvantage. Every business has weak points, and when you are aware of them it’s easier to set goals for improvement.
Opportunities are all about thinking ahead. What are you hoping to achieve? Where do you see a chance to grow? A good place to get inspiration for your opportunities is by looking at your weaknesses. This helps you shift your focus from what’s happening inside of your business and start looking at external factors. There might be a new target audience for you to consider or a major event going on in the marketplace you can use to your advantage.
When identifying threats, you’ll want to look at the outside factors of your business. Threats are things you can’t control but could potentially have a negative impact. Recognizing these factors helps you determine the effect they might have on your company and allows you to be prepared. Threats can include the success of your competitors, the status of the economy, and changes in the industry.
KEY TAKE AWAYS
The purpose of a SWOT Analysis is to help you better understand what’s going on inside and outside of your business so you can take advantage of your strengths and be aware of any challenges. This technique is meant to be used as a guide before you begin to strategize. It’s a good brainstorming tactic for you to critically examine what components you need to prioritize and to keep you organized.