SWOT Analysis may sound like it’s complicated but it’s actually a pretty simple tool – yet offers pretty powerful results. Same as you wouldn’t plan a big road trip without checking your gas gauge and telling your GPS to avoid traffic jams, you don’t want to make big business plans without doing a quick SWOT analysis before heading out on your big business journey.
5 Minute Video on SWOT Analysis … or scroll past if you’d rather read.
Hello readers! Let’s start with the basics:
Who Needs SWOT Analysis?
Anyone about to create a big, new plan of action or business strategy. While anyone can use this tool, it’s mostly used by people in business like entrepreneurs and companies.
When to Use SWOT Analysis?
The perfect time to use SWOT Analysis is BEFORE you start making your big plans and strategies for growth. On a positive note, many entrepreneurs and companies will use SWOT Analysis before creating a business plan or launching a new marketing plan. In tough times, it’s
What is SWOT Anaylsis?
SWOT Analysis is an amazing strategic planning tool. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. You basically take a look at those four areas of the situation you’re in. It’s a great way to get the lay of the land, so to speak. You use this tool to get a complete picture of your current situ before you make a plan on how to deal with it.
Why is SWOT Analysis Important?
Once you’ve done the work, you’re in a much better place to make much better decisions about how to move forward. We don’t live our lives blindfolded, so why would we go about business blindfolded?
For instance, when walking through your living room you could just look straight forward as you walked. But if you have little kids, you learn to either always look down so you don’t step on a Lego with bare feet, or always wear shoes. Either way, you learn to take stock of your situation and act accordingly.
In good times, many entrepreneurs and companies will use SWOT Analysis before creating a business plan or launching a new marketing plan. Other times, it’s a handy tool to help figure out a better path past road blocks. Could be your business was devastated by Covid. Maybe a competitor moved into your territory and you need to rethink your approach to your business. Maybe it’s something delightful like a new baby in your family. But, even as s delight, new plans need to be made to keep moving forward in business.
In all of these cases, it’s best to take a look around before taking your next step.
How to make a SWOT Analysis chart:
Okay, this is the part where it’s probably easier to watch the video. You can move forward to the 2:00 marker to save some time. It has close captioning, so you don’t need sound on. But, if you’re like me, and you just prefer to read, keep going! ❤️
Here’s a picture of what you’re going to draw out. Below the pic is an explanation of each section so you know what to write in there.
- Situation I’m Trying to Figure Out: In this section write the amazing business goal you’re trying to achieve, the difficult situation you’re trying to overcome, or even something as simple as “how to sell more online.” This will be your focus for the rest of the page.
- Strengths
- This section is about the great things about you – related to the topic at hand. Your bench press numbers are not important here (unless your goal is to reach a new weight lifting record). What’s important is what strengths you have that will help you reach this goal or overcome the difficulty.
- Write at least 3 strengths you have that are related to the situation you’re trying to figure out.
- Weaknesses
- This section is also about possible pitfalls specific to you. What do you struggle with in this situation? What might hold you back as you move forward on your plan?
- Write 3 weaknesses you need to be real about so you can better plan to account for how you have self-foiled plans in the past.
- Opportunities
- This section is about positive stuff outside of your control. What great things are happening out in the world that could help you complete the goal or smooth out the rough edges of the difficulty? Are there new helpful trends? Is there a new way to do things that you could implement?
- Write 3 opportunities that you could use to your advantage to forge forward.
- Threats
- This section is about possibly negative stuff outside of your control. Stuff that may not happen – but if it did – you’re better off knowing beforehand and maybe even having a plan to swerve when it tries to hit you (rather than being blindsided).
- Write 3 possible outside threats to the situation that could possibly thwart your success.
Examples of SWOT in Action
I’m going to share two examples of how you might use SWOT. The first is for a light-hearted regular life example. Sometimes reading an example for regular life helps you better understand how to apply it to a business situation.
The second example is a business-related SWOT Analysis about “I want to sell more online.” That may not be your situation, but, again, it could help give you concrete ideas on what you could write down for yourself.
Example 1 – Regular Life Situation
Situation: I want to stick to my diet but I have to go grocery shopping.
Strengths:
- I have very deep resolve.
- I remember to eat a healthy snack before I leave.
- I keep a bottle of water in the car to fill me up even more on the way.
Weaknesses:
- I’m having a rough day which makes me want comfort food.
- I’m on day 3 of the diet, so the carb cravings are nuts right now.
- I’ve been known to get shaky on my resolve at a moment’s notice.
Opportunities:
- There is that new health store in town that has less junk food.
- I know my regular store like the back of my hand and could just keep my shopping cart in the safe zones.
- I could ask my partner to do the shopping instead.
Threats:
- It’s Saturday and the ladies with the food carts will be out, peddling free samples of fun stuff I shouldn’t eat.
- It’s morning, so the smell of fresh-baked bread will fill the store.
- The health store is further away and everything costs so much more.
Example 2 – Business Situation
Situation: I want to sell more online.
Strengths:
- I have a lot of connections already on Facebook and Instagram.
- I’m really good at connecting with people one-on-one in live selling situations.
- I am passionate about my product line.
Weaknesses:
- I don’t really have any knowledge or training on how to sell on Facebook or Instagram. (Here’s’ a list of all the free classes offered by Facebook.)
- I’ve been known to start off super enthusiastic with new projects, only to have them slowly get forgotten. (Get yourself an Accountability Partner to help. Here’s a video on it and here’s free worksheets to use.)
- My workspace is always a mess and I feel like I would need to be more organized to pull this off. (Here’s a great video I put together to help you with just that!)
Opportunities:
- So many more eyes are on social media right now because there’s no where to go during Covid.
- People are spending their dollars online more now then ever before.
- I saw a training that talked about how to sell without needing to ever show my face.
Threats:
- Well, about 100,000 other reps in my company are trying to figure out how to sell online at the same time. (Great article from entrepreneur.com “5 TIPS to Stand Out When Selling on an Online Marketplace.)
- I’ve known people to get in trouble with Facebook when they sell stuff on their personal page.
- My phone/computer has been acting on the fritz and I’m not sure if it will survive my online selling efforts.
Still Need Help with SWOT?
I get it! You may have more questions about SWOT. Maybe you’re not even sure how to state the situation in the first place. There are places to go for help.
- Get free business consulting from your area Small Business Development Center. No catch – they are free because you pay for them with your tax dollars.
- Get a free business mentor through SCORE. It’s related to the SBA, but a different program. They are meeting with people remotely during Covid.
- Join conversations with people like you, people just trying to make this whole small business thing work, in my Facebook group From Goal to Go.
Now You’re Ready to Create an Action Plan!
Yay! You completed your action plan! You have a better ideas of the strengths and weaknesses you bring to the situation. You are aware of opportunities and threats you might encounter along the way.
You’re now in a really great place to create an action plan to make this goal happen! Oh shoot! How do you do that?
Well, I do have an action planner you can get right away. It’s meant for a marketing plan for those in direct sales – but it’s free and it’s available right now. It goes well with my first book, “From Knocking on Doors to Making Millions: Top Strategies for Direct Sales Success.”
That being said, my entire second book is one big volume of business strategy planning for small businesses. It’s coming soon … January 2020!
Links in this article (actually only one) might be an affiliate link. If you purchase from that link I might earn a bit of money from the sale, but at no cost to you.
