What is a SWOT Analysis, How Do You Develop One?

SWOT = Strengths, Weaknesses, Opportunities, Threats

The SWOT analysis is the foundation for developing your strategies and tactics that then become the road map for writing your business operating plan.

Prior to defining the company’s strengths, weaknesses, opportunities and threats you need to:

• Have a written Vision, Mission and Values statement.
• Have completed a thorough internal and external business status evaluation.

SWOT Analysis Example

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This example is meant to show all the parts of a SWOT analysis with some typical results. To start putting together your analysis you can do so with 6 pieces of paper labeled:

1. External Status
2. Internal Status
3. Strengths
4. Weaknesses
5. Opportunity
6. Threats.

If you have a staff you might call them together give each copies of the six pieces of paper and start brainstorming. There are two schools of thought on this. To start you can brainstorm together filling out each sheet of paper or you can send everyone off to fill out each sheet as they see the business then get back together to discuss and agree on a final SWOT analysis. If you are the staff it might be wise to seek outside consultation to work with you while going through the process and critiquing the information you put together. This could be a member, or members, of your board of directors, advisory group or a business management coach with expertise in business planning.

What makes a SWOT analysis effort successful?

• You must start with your Vision, Mission and Values statement.
• You must objectively prepare your businesses internal and external status.
• You must be realistic and forthright in preparing the businesses, and your, strengths and weaknesses
  Be specific but keep it short and simple, don’t over analyze.
• Developing strategies and tactics that match the SWOT analysis results.
• Writing an operating plan based on your SWOT Analysis, strategies and tactics.
• Implementation of a resulting operating plan.

The SWOT Analysis should be looked at as your foundation for creating a business or operating plan. A process flow chart for guiding you in developing your complete plan can be viewed here.

For additional information, sample forms, or help developing your SWOT Analysis, contact us at planning@bizstrategies.biz for a FREE consultation on putting a SWOT Analysis effort in place.

For additional information on SWOT Analysis check out Wikipedia.

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