When Should You Use SWOT?
SWOT is designed to be used in the proposal stage of strategic planning. It should be used before any kind of business action, it can be used for the following four scenarios:
- Exploring possibilities for new initiatives
- Deciding on an implementation strategy for a new policy
- Recognising likely areas which need to be changed in a program
- Refining and redirecting energy after the commencing of a project.
SWOT analysis can be used for organisational purposes such as for finding solutions, finding obstacles and highlighting opportunities. Using a SWOT analysis improves business operations as well as decision making abilities.
It also allows management to recognise high performing key areas along with areas which need improvement. However, small business owners tend to view this type of analyses as casual. As a small business owner if you were to do a formalised SWOT analysis you would be able to improve on:
- Capitalising on their businesses strengths
- Improve on and eliminate the businesses weaknesses.
Both the business owner and other members of the team should be involved in the SWOT analysis process. By doing this you can combine the collective knowledge of the team.
It also removes blind spots which, if left unchecked, could be damaging to your business or your relationship with customers. By including your whole team it will also give your team a better understanding of your business and a feeling of increased involvement in your business.
Make sure not to use the SWOT analysis as an all-in-one fix. It is a self-analysis tool which can be used incorrectly when ego or insecurities are allowed to manipulate the information. In order to use this analysis properly you must be honest with yourself as well as be willing to give feedback that reflects your capabilities, accomplishments and skills truthfully.