sna2015 ‘What sa SWOT Anatysis?| Bplans Ei Tim Berry « (http://articles.bplans.com/author/tim-berry/) Add a Comment What Is a SWOT Analysis? » 0 j=) fe) fe) oe) SHARES (ottpi/pas-wordpress- media.s3.amazonaws.com/content/uploads/2014/03/Whatis-a-SWOT-Analysis-Definition-Purpose-and-Examples.jpg) Conducting a SWOT analysis of your business is actually kind of fun. won't take much time, and doing it forces you to think about your business in a whole new way. (htp://en:bplans.com/members/dovinloads/swot-analyss-template/)Ready to ave in? Download our free SWOT analysis template (htp:/taw.bplons.comimembers/downloads/swot-analysis-template/. ‘The point of a SWOT analysis Is to help you develop a strong business strategy by making sure you've considered all of your business's strengths and weaknesses, as wel as the opportunities and threats it faces in the marketplace [As you might have guessed from that last sentence, S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats, A SWOT analysis is an organized list of your business's greatest strengths, weaknesses, opportunities, and threats, rip/ancles plans como: to perform. sw- analysis! 6sna2015 ‘What sa SWOT Anatysis? | Bplans ‘Strengths and weaknesses are internal to the company (think: reputation, patents, location). You can change them over time but not without some work. Opportunities and threats are external (think: suppliers, competitors, prices)—they are out there in the market, ‘happening whether you like it or not. You can't change them, Existing businesses can use a SWOT analysis, at any time, to assess a changing environment and respond proactively n fact, | ‘recommend conducting a strategy review meeting at least once a year that begins with a SWOT analysis. New busineses shuld use a siOT anaes a9 porto thi planning proces. There isno“one seis lon for your business, and thinking SRS REN BIEBER Tis unique “SWOT wil ut you on the ight rack ight away, and save you from alot of headachasatercomss77179.e0240242b6dS3 f-caSS08298S37ec, 149159056897" .1431S90869971.143159086897%,18,_hsse-246877179.1.1481S60S6897S8_ Inthis article, | will over the following: Questions to Ask During a SWOT Analysis Example of a SWOT Analysis: Tow Analysis: Developing Strategies How to Conduct a SWOT Analysis To get the most complete, objective results, a SWOT analysis is best conducted by a group of people with different perspectives and stakes in your company, Management, sales, customer service, and even customers can all contribute valid insight. Moreover, the SWOT analysis process is an opportunity to bring your team together and encourage thelr participation in and adherence to your company's resulting strategy. [ASWOT analysis is typically conducted using a four-square SWOT analys's template (http:/www.bplans.com/members/downloads/swot- analysis-template/), but you could also just make a lsts for each category. Use the method that makes it easiest for you to organize and understand the results. I recommend holding a brainstorming session to identity the factors in each of the four categories, Alternatively, you could ask team ‘members to individually complete our free SWOT analysis template (http:/Awew.bplans.com/members/downloads/swot-analysis- template/, and then meet to discuss and compile the results. As you work through each category, dan't be too concerned about elaborating at first; bullet points may be the best way to begin. Just capture the factors you believe are relevant in each of the four areas, ‘Once you are finished brainstorming, create a final, prioritized version of your SWOT analysis listing the factors in each category in corder from highest priority atthe top to lowest priority atthe bottom, Questions to Ask During a SWOT Analysis Ive compiled some questions below to help you develop each section of your SWOT analys could ask; these are just meant to get you started, ‘There are certainly other questions you rip/ancles plans como: to perform. sw- analysis! 26srta2015 ‘What sa SWOT Anatyss? | Bplans Strengths (internal, positive factors) angths describe the positive atributes, tangible and intangible, internal to your organization. They are within your control. What do you do wel? What internal resources do you have? Think about the following: Postve attributes of people, such as knowledge, background, education, credentials, network, reputation, or Skil Tangible assets of the company, such as capita, credit, existing customers or distribution channels, patents or technology. What advantages do you have over your competition? Do you have strong research and development capabilities? Manufacturing facilities? What other positive aspect internal te your business, add value or offer you a competitive advantage? Weaknesses (interna, negative factors) Weaknesses are aspects of your business that detract from the value you offer or place you at a competitive disadvantage. You need to enhance these areas in order to compete with your best competitor. What factors that are within your control detract from your ability to obtain or maintain a competitive edge? What areas need improvement to accomplish your objectives or compete with your strongest competitor? What does your business lack (or example, expertise or access to skills or technology)? Does your business have limited resources? Is your business in a poor locaton? Opportunities (external, postive factors) ‘Opportunities are external attractive factors that represent reasons your business is likely to prosper. What opportunities exist in your market or the environment that you can benefit from? Is the perception of your business positive? Has there been recent market growth or have there been other changes in the market the create an opportunity? Is the opportunity ongoing, ori there just a window for it? In other words, how critical your timing? Threats (external, negative factors) Threats include external factors beyond your control that could place your strategy, or the business itself at risk: You have no control over these, but you may benefit by having contingency plans to address them if they should occur. Who are your existing or potential competitors? What factors beyond your control could place your business at risk? ‘Ave there challenges created by an unfavorable trend or development that may lead to deteriorating revenues or profits? What situations might threaten your mark wg efforts? Has there been a significant change in supplier prices or the availability of raw materials? What about shifts in consumer behavior, the economy, or government regulations that could reduce your sales? Has a new product or technology been introduced that makes your products, equipment, or services obsolete? Example of a SWOT Analysis For lust tion, here's a brief SWOT example from a hypothetical, medium-sized computer store in the United States: [-SwoT Analysis Example for a Computer Store rip/ancles plans como: to perform. sw- analysis! 36sna2015 ‘What sa SWOT Anatysis?| Bplans {http:/ipas-wordpress-rnedia.s3.amazonaws.com/wp-content/uploads/2013/09/SWOT_example.jpg) See our SWOT Analysis Examples (http://articles.bplans.com/business/swot-analysis-examples/2414) article for In-depth examples of ‘SWOT analyses for several different industries and business types or download our free SWOT analysis template (hetpis/www.bplans.com/members/downloads/swot-analysis-template/) Developing Strategies from Your SWOT ‘once you have identified and prioritized your SWOT results, you can use them to develop short-term and long-term strategies for your business, After al the true value of his exercse is in using the resus to maximize the postive influences an your business and minimize the negative ones, ut how do you turn your SWOT results into strategies? One way to do this sto consider how your company’s strengths, weaknesses, opportunities and threats overlap with each other. Tiss sometimes called a TOWS analysis. For example, look atthe strengths you Identified, and then come up with way: se those strengths to maximize the opportunities (these are strength-opportunity strategies). Then, look at how thase same strengths can be used to minimize the threats you identified (these are strength-threats strategies). Continuing this process, use the opportunities you identified to develop strategies that will minimize the weaknesses (weakness- ‘opportunity strategies) or avoid the threats (weakness-threats strategies) ‘The following table might help you organize the strategies in each area! ‘Opperunitos Threat (Cal esti (errr agate) Seu, | stroamonvetuy sain | Senge-Tvmas sea ch of te camanys serge | How can you uate corpeny's fe eal ceaten te cng te mrinze tbe Pros Sooruntas you eras? Yeuerited? Weaknesses | Weakness Opportunity seaepes | Weakness Tivenssalgien ara ice catanwnuee |e ne {hinge opeonuntas youlcerahes? | teste You arhed™ (ntip:/pas-wordpress-media s3.amazonaws.com/wp-content/uploads/2013/09/tows, small jpg) ‘Once youve developed strategies and included them in your strategic plan (httpi//artices.bplans.com/growing-a-business/strategic plan-for-your-business/86), be sure to schedule regular review meetings. Use these meetings to talk about why the results of your strategies are different fromm what you'd planned (because they always will be) and decide what your team will do going forward. Looking for more? See our SWOT Analysis Examples (http:/aticles.bplans.com/business/swot-analysis-examples/2414) article for in-depth examples of SWOT analyses for several different industries. ABOUT THE AUTHOR Tim Berry's the founder and chairman of Palo Alto Software (http://wwnu.paloatto.com/? _hste=246577179,00240242b6d531 fc7cd855083a8537ec. 143159056897 .1431590568977, 143159056897 1.18_hssc=246577179.1.143 {and Bplans.com, Follow him on Twitter @Timberry (http://www twitter.com/timiberry) Follow Tim on Google+ (nttps:/plus google.com/1174870554815754463007rel-author) Read more » (httpi//articles.bplans.com/author/tim-berry) ‘lik hereto join the conversation (0 Comments) we) 72 | 0 63 us 49K owe P| get rip/ancles plans como: to perform. sw- analysis! 46sna2015 ‘What sa SWOT Anatysis?| Bplans rare THis ARTICLE ieee How to make faster, more informed business decisions scoreboard) - - Your business is up and running, and now you're laser focused on growth. And you're smart: you want to keep your finger on the pulse of the financial health of your business. But, you don't have time to run reports or analyze endless spreadsheets What if you had an easy-to-use financial dashboard (/scoreboard) that gave you a visual overview of all your key business numbers? What if you could set up budgets and sales forecasts without sacrificing critical time away from your business? This is where a powerful, yet easy to configure business dashboard comes into play. Click to learn more {/scoreboard) about how a business dashboard can help you grow faster and make smarter, more informed decisions. Clekto continue scoreboard) (hepscoreboardlveplan comvinasc-T2Ch 3&_hste=246577179 0024024264537 195S0838937ec 1431 S9OSGE971. 143159056897 141590568971."8_hsse=246S77179.1.1431590S699758_hstp-340517 35HVpls goorle.conv-bplans) Sploss owned and operated by Pal Ato Sotnare Inc, asa fee resource to help entrepreneurs start and run beter businesses Business Phong partes lan onviingsusineslan) Fann tarides brs convinancngsbusitess seatne aredestplansconsarngbishess) | Phringintputaniestelaneconveluorhpisen | Grin pints pins conronnasebusnes) Qa ACpIANNtsensconiskpon _ale hepariceplinecar) PLANNING RESOURCES Business Plan Software (hephvw bplansconvbusines pln. sofware/) Business Planning Videos (ntp/wabplanscomvbusiness, planning, esourcesiviceos)) Business Planning Caeusors Business Plan Writers (tp/ww Iveplar.comvbusinas-plar-consulingl? sao plans comusiness. altars sipr320517271 SOFTWARE IvePlan (htpen Iveplon com? pase-bplane footert_nste-246577179.00240242b6dS31¢7cd8SS08928597ec,1491590568971.1€31590S68971,1491S90S68971.18_nsse-246577179.1.149159056897! Business Pn Pro pte 246877179 lw paloatscombusiness_plar_sofware? 246d 7 508398837 ec 1491 S90S68971,1431590568971.1491590868971.18,_hese-246677179.1.1491S8OSEEN7SE._ | fpe340517201 rip/ancles plans como: to perform. sw- analysis! 56sna2015 ‘What sa SWOT Anatysis? | Bplans mall Center Pro thm erallentrpro com) [MARKETING RESOURCES Soles and Marketing (hp:lmmw.aloa.comsales_and, marketing pln, software? “ser249577179,0024024206053117c485508308537ec 1437580558971 1431580568971 1451590568571,18_hsse=246577179,114315905689756_hslpr340517271- Sofware (hp bplans comy/business. lan software Sample Marketing Plans (pw eplans com/samplesmarketing ns. php) Market Research han oplns.com/business. planning. resourcesimarkst researc) ‘ABOUT BPLANS, ‘About us ttpsmwnoplans.comvabout us!) Conte: Us tps pateate comyeontact us? _pste-246577179 2024024206053 cd85508208597e¢.1437S90S68971.1431590S58971,1431S00S68971.18_hsec=266577179.1.1431S90S6897S8,_ haf ‘Wee for Us ipsatiesbptons.comiauthorsf rip/ancles plans como: to perform. sw- analysis! 66