Do a SWOT analysis

A SWOT analysis is a strategic planning tool. Use it to assess your business's strengths, weaknesses, opportunities and threats (SWOT).

Performing a SWOT analysis can help you:

• look at your business from different directions
• create or fine-tune your business plan
• prioritise areas for growth to achieve your business goals.

Start by gathering a group of employees with different perspectives on your business. If you don’t have employees, you can ask family members, business advisors or mentors. The key is to have different points of view.

Conduct a brainstorming session to come up with possible items for each SWOT category. You can use the questions below as a guide.

Put your final lists of items into our SWOT analysis template. Order the items in each category from highest to lowest priority.

Identify your strengths

Strengths are positive aspects of your business that you can control.

Ask yourself:

• What do we do well?
• What do we do better than our competitiors?
• What are our unique internal assets? For example, knowledge, background, network, reputation or skills.
• What are our unique external assets? For example, customers, patents, technology or capital.
• What gives us a competitive advantage?

Identify your weaknesses

Weaknesses are negative factors internal your business. These are things you might need to improve to be competitive.

Ask yourself:

• What things could we do better?
• What do our competitors do better than us?
• What are the gaps in our assets and resources? For example, knowledge, cash or equipment.
• Is it obvious what sets us apart from our competition?
• How can we improve our business processes?

Identify opportunities

Opportunities are external factors that might give you a competitive advantage and contribute to success.

Ask yourself:

• What trends can we use to our advantage?
• Are there any changes or events that might benefit us? For example, consumer behaviour, regulation, policies or new technology.
• Has anything changed in the market that creates an opportunity for us?
• Do the public like us?

Identify your threats

Threats are external factors beyond your control that might put your business at risk. You may need contingency plans for dealing with these threats if they occur.

Ask yourself:

• What external factors could place us at risk?
• Could potential competitors enter the market?
• Are our supplies unstable or insecure?
• Are there any changes or events that might negatively impact us? For example, consumer behaviour, regulation, policies or new technology.

Use your SWOT analysis to develop strategies that help you achieve your business goals. Plan to keep building on your strengths while improving on your weaknesses.

Ask yourself:

• How can we use our strengths to take advantage of our opportunities?
• How can we use our strengths to minimise our threats?
• What do we need to do to overcome or minimise our weaknesses?