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What is a SWOT analysis?

What is a SWOT analysis?#SWOT analysis is one way to work out if your business or social enterprise can succeed before you've even started.

How do you do it?

To make an analysis you need to considerĀ four factors:

S: The strengths of your team

This is any aspect of your business which makes your product or service good.
For example, this could be your specialist expertise, keeping costs down, the location of your business or the innovativeness of your product or service.

W: The weaknesses of your team

These are things which could hold your business back and stop you from winning that prize at the finals.
They could be things like a lack of expertise, poor quality products or services or the fact that there is nothing to make your service or product stand out from the competition.

O: The external opportunities for your business or social enterprise

External opportunities are things that you could take advantage of which will help your business or social enterprise.

They could be things like the chance to work in a developing market like the internet, the fact that you are offering something that no one else does or the chance to provide a product or service which addresses a growing trend.

T: The external threats to your business or social enterprise

Threats are things which could destroy or weaken your business or social enterprise.
They can be things like a new competitor on the market, higher taxation on your product or service or the fact that a newer, better version of your product or service is made available.

SWOT tips

  • When compiling a SWOT analysis, remember to:
  • Be realistic about the strengths and weaknesses of your organisation
  • Think about where your organisation is today, and where it could be in the future.
  • Be specific about what you mean
  • Think about competitors
  • Keep it short and simple

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