What is a SWOT Analysis?
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is an analytical framework which your business can use to defeat its challenges and discover a promising new market. While you are busy with your business plan research and preparation, it is crucial to conduct a SWOT analysis. A SWOT analysis can be used to determine risks and rewards when considering a new business or product.
The ideal result of a SWOT is precise information. This can be used to develop an action plan for dealing with weaknesses and threats and enabling you to use your strengths and opportunities to your advantage. The analysis will result in business awareness and is the foundation of any successful strategic plan.
It isn’t possible to map out a business’s future accurately without evaluating it from every angle first. This involves a comprehensive look at both internal and external resources and threats. A SWOT analysis achieves this in four easy steps.
A small business owner can use a SWOT analysis to guide their business by leveraging strengths along with outsourcing and partnering up with others where you are weak and focusing on opportunities and being aware of threats.