How to Use a SWOT Analysis

A SWOT analysis evaluates strengths, weaknesses, opportunities and threats. It's usually used during the beginning stages of a business in strategic and market planning. It can also be used when making decisions and when letting employees know about any changes in a company. A SWOT analysis can be used in your personal life when trying to decide a career path and can assist you in making a niche in your market.

Things You'll Need

• Paper
• Pen
• Computer

Instructions

1. Figure out your strengths. Questions you can ask yourself include: What advantages does your business have? What sets your business apart from others? What do people in your area see as strengths? Think about the questions from your point of view and from others.

2. Determine your weaknesses. Some things you can ask yourself: What can you improve on? What do those in your field see as faults? Does anyone see weaknesses you don't? Deal with any negative answers as soon as you can. You should think about these questions from your point of view and from others.

3. Recognize your opportunities. Do this by asking: What good openings do you have? What trends do you know about? Helpful opportunities can come from things like lifestyle events and variations in societal patterns. A good method for looking at opportunities is to evaluate your strengths and weaknesses.

4. Discover your threats. Ask: What problems do you face? What is your competition doing? Can any of your faults hinder your business? Doing this will let you know what should be done to put things in perspective.

5. (Optional) Analyze the competition.You can use a SWOT analysis on your competition as well. If you do this, you'll see how to compete against them.

References

• SWOT Analysis- Discover New Opportunities: Manage and Eliminate Threats