How to create a SWOT analysis

A SWOT analysis is a basic planning technique that can help you focus on any strengths and weaknesses within your business and any external threats or opportunities.

It should be used when planning a particular project or when analysing a competitor.

A SWOT analysis comprises four key areas:

Strengths – what do you do well?

Weaknesses – what do you need to improve?

Opportunities – what are your goals?

Threats – what obstacles do you face?

Dividing your SWOT analysis into these four areas will enable to you to evaluate your internal and external position.

There are several questions you should look to answer as part of your SWOT analysis.

Strengths

• What do you do well in your business?
• What tangible assets do you have such as inventory, vehicles, equipment, buildings and investments?
• What intangible assets do you have like skills and expertise, intellectual property, patents or goodwill?
• What projects/campaigns have you completed successfully?
• What makes you stand out from your competition?

Weaknesses

• What does your business not do well?
• What tangible and intangible things does your company lack? These can include staff, assets and processes.
• Is your selling position unclear, for example if you lack marketing resources?

Opportunities

• What are you open to try?
• Are there any other markets you can tap into?
• Can you turn any of your strengths into an external opportunity?

Threats

• What are your competitors doing?
• What are the external threats to the business? These not only include competition; they could also be around government legislation, environmental or social issues.