In simple words, SWOT Analysis is a helpful business analysis tool. Small Business owners and managers can use this tool to identify strength weaknesses opportunities and threats for their different business situations.
When conducting Swot Analysis properly, it gives business owners valuable information, clarity and can improve problematic areas and make the most of what the business excels at.
In this marketing tutorial, you will learn how to use Swot analysis examples for small business in a more efficient way. This analytical tool will also help you to analyze your existing and future business situations.
How to Use SWOT Analysis for Maximum Benefits
Before you start Swot analysis example for small business, let us understand how to use the tool it in a proper manner to get maximum benefits.
- Start the process with a SWOT meeting defining an objective. Focus on one objective that is a project, product, tactical plan etc.
- Each project and business activity need a unique SWOT. When you change your objective it also changes your strengths, weaknesses, opportunities and threats.
- Draw a Timeframe – SWOT Factors such as people attitude, government laws and regulations, technology, tax and interest rate changes over time.
- Don’t exaggerate and use reliable and accurate information
- Equipped your team with prior information
- Ask questions for further discussion
- Prioritize the up to 5 critical questions in each quadrant
- After completing SWOT Matrix get feedback from stakeholders
Please remember, if you have any specific strengths like loyal customer base, excellent sales team, do capitalize these strengths. If you don’t have sufficient data and unable to identify your strength, you may unable to capitalize it as business opportunity for your projects and products.
When listing your strength quadrant keep in mind the following questions
- What makes your business unique and different from others?
- What do people and customer praise you for?
- What give you an advantage over others?
When considering your weaknesses quadrant, ask these questions
- What can we improve on in your business or product?
- What do people or customers tell us we need to improve on?
- What are the thing we need to be avoiding?
When considering your opportunities quadrant, ask the following questions
- Technological trends that can give you an advantage?
- Any government laws, policies and economic situations that work in your favor?
- Are there any events taking place that you can leverage?
When listing the Threats quadrants, consider the following
- What are the technological trends that could disrupt or affect you negatively?
- Are there any laws, policies, or economic situations that could impact you negatively?
- Are there market financial risks that could be affecting you?
How to Use SWOT Analysis Data to Successfully Attain Your Goals
When conducting swot analysis for a small business we identify strengths weaknesses opportunities and strengths. The important part is to use the compiled SWOT analysis data to get maximum benefit from it.
Now you know your strengths, develop strategies to take maximum benefits of it. Also, try to build up strengths to the next level. You have already identified your weaknesses try to build up and minimize the impact. Chalk out plans to exploit opportunities to the fullest and take maximum advantages from it. Devise a plant to use your strengths and opportunities to minimize the impact of threats on your business
If you understand how to gather and use your swot data strategically, the swot analysis tool will be more meaning and beneficial for your small business decision-making process.