Conducting Your SWOT Analysis in Five Simple Steps

1,361 words; 5 min 26 sec reading time

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SWOT: Conducting Your Analysis in Five Simple Steps

What is a SWOT Analysis? 

A SWOT Analysis is an exercise all companies will benefit from. This analysis not only tells you where you are but also advises where you should go next. A SWOT uses a simple framework to evaluate your company, current and untapped markets, your competition, and potential issues you might face. 

Whether you're entering a new market or pivoting in an existing one, the market and your position in it is always changing. To outperform your competition and improve your offerings, SWOT analysis are essential. 

Breaking it down: SWOT

• Strengths
• Weaknesses
• Opportunities
• Threats

By methodically going through each of these sections a SWOT allows your company to take a good, honest look in the mirror. What do you see? Where are you strong, and where do you need work? What are the emerging market opportunities you should seize? Where is your competition outperforming you, and what might be the obstacles that loom in the future? This analysis is essential because it removes your biases and allows you to focus on what lies ahead. 

The Four Steps of SWOT Analysis

In the following sections, we will outline each step of the SWOT process. To begin, you'll need to decipher your area of focus. Will you evaluate your company as a whole? A particular offering? A potential pivot you'd like to take in the market? SWOTs can be performed on your current offerings or on ideas you want to validate. Next, you'll need to choose your brainstorming mode of choice. Anything from a word processing program to the simplicity of a pen and paper is a great way to organize your ideas. 

Here's an example of a SWOT template we created:

Step 1: Strengths

Start by asking yourself, "what do you do well." Think about your:

• Offerings
• Company
• Team
• Resources
• Network
• Disposable Capital
• Reputation
• Patents
• Technology
• Individuating Factors of your Competition

Perhaps your offerings are widely applicable to the general public or your team works exceptionally well at handing off warm leads from Marketing to Sales. Maybe your company has a stellar reputation or strong industry network. You could have enviable patents in place or new technology which puts you ahead of the competition. Write down everything that makes your company run smoothly and sets you apart from the crowd. 

Step 2: Weaknesses

Next, you'll evaluate what needs work. Remember, this is an exercise that is supposed to help. Don't be afraid to be critical. You can only turn the negative into a positive if you're honest about where your weaknesses lie. Weaknesses are anything that hinders productivity, innovation, or value. Consider again:

• Offerings
• Company
• Team
• Resources
• Network
• Disposable Capital
• Reputation
• Patents
• Technology
• Individuating Factors of your Competition

It may be that your offerings are limited compared to your competitors or that your team lacks education or cohesion. Perhaps you're new to the market, and your network is small. Maybe you are in between rounds of funding or are experiencing a low margin year. You might need to invest in better technology or apply for further merits (such as backing from regulating offices or accreditations). Write down everything that hinders your company's ability to compete.

Step 3: Opportunities

Opportunities exist anywhere you observe or discover an opening or a need for your offering. For this step, look at all applicable markets (not just your current markets) from a bird's eye view.

• What do you see happening now? 
• What are the trends for the future? 
• How are you currently positioned? 
• What new opportunities exist?
• Is the market expanding?
• Is there a niche you're likely to fulfill?

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