Entrepreneurs running a small business may find SWOT analysis an immensely helpful tool. A thorough and honest analysis of their business’ strengths, weaknesses, opportunities and threats can be of utmost importance. It can help them analyze both the external and internal factors related to their business which may either advance or hinder their progress and growth in the industry. Here is how you can use SWOT analysis examples for small business to learn the efficient use of this analytic tool and use it for analyzing your own business and situations you face in the future.
Base the SWOT Analysis on Real Facts
When you draw a SWOT analysis example for small business, be sure to base it on ground realities and real facts. Avoid being modest when stating your strengths and weaknesses. Rather, make sure that you state these explicitly so you know what to capitalize on and where to be extremely cautious. In case you exaggerate your strengths, you may not be able to draw a realistic and reliable SWOT analysis.
For instance, if your strength is your excellent customer service skills, then try to capitalize on this skill. However, make sure that your claim is backed by sufficient data and evidence. Similarly, if you overlook or fail to consider your potential strengths, you may miss out on capitalizing on an important business opportunity. When drawing the strengths section in your SWOT analysis example for small business, consider the following questions:
- What is your expertise?
- What is your competitive advantage?
- Is your experience your strength?
- What makes you think your customers will prefer you over the competition?
- Do you have unique skill(s)?
When writing down your weaknesses, consider the following points:
- Do you lack expertise?
- Do you lack experience?
- Do you lack resources?
- What are the areas in which you need improvement?
- Which section of your business you suspect may not turn out to be profitable?
When listing down opportunities in your SWOT analysis example for small business, consider the following questions:
- What factors can you use to boost your business? Is it based on technology or skills?
- What are the consumers missing?
- Can you acquire new customers?
- Is there any need-solution gap in the market that you can fulfill?
When listing down the threats, consider the following:
- Strengths of your competitors
- Monopoly in the sector you are entering
- Changing trends
- Evolving technology
- Any obstacles/ hindrances you may face as new entrants
Utilizing the Gathered Data to Maximize Your Chances of Success
After you have drawn your SWOT analysis example for your small business, you will be aware of your strengths. Therefore, chalk out strategies which may help you to take maximum advantage of these. Once you have identified your weaknesses, look into what can be done to minimize their impact. When you know the opportunities that lie ahead of you, make sure you utilize them to the fullest with carefully chalked out plans. Strive to minimize the impact of threats on your business by countering them with your strengths and opportunities.