How to Easily Conduct a SWOT Analysis for Your Small Business

You’ve got a terrific business idea but need to find out if it’ll do well.

Worst still, you’re trying to validate that business idea but just can’t get past the “SWOT analysis” part.

You’ve searched for a rundown on SWOT analysis, but if you’re still here, then it’s likely because you’ve still not figured out how to conduct one.

As a mom, you’re already stressed with all the other things you do. All you want is to start a business with that beautiful idea and talent of yours so you can spend more time with your family. Why waste time learning the complicated stuff?

Don’t fret much, as a fellow mother who has gone through all that– I can pretty much relate with you. So how about I help you simplify things so you can get started already?

I’ll start by showing you how you can easily conduct a SWOT analysis for your business idea.

The Four Parts of a SWOT Analysis

I won’t be sharing the generic Swot meaning and rundown you can find on a quick search.

Instead, I’ll give a simplified rundown, just in case it’s your first time hearing about Swot analysis. 

First, think of Swot analysis as a simple overview summary. It can be for a business, for a career, or a task.

It’s a way to see everything about your idea or business at a glace;

• What’s good about you and that idea?
• What’s bad about you and your idea? 
• Ways you and your idea could really shine.
• What could go wrong down the line?

It’s as simple as that, think of it as the good, the bad, the chance, and the setback.

Now we’ve gotten that down, let’s discuss the 4 parts of a Swot analysis.

A. Strengths:

Take a look at my simplified version of a Swot analysis, I want you to focus on the first on that shirt list.

“What’s good about you and your idea/business?”

Now, let’s get a bit more technical: What makes you stand out? Whatever you think of, that’ll be your strength. 

I’d love to give some examples, but I’ll save that for later where you can see the whole analysis play out.

B. Weaknesses:

“What’s bad about you and your idea/business”

Now you may say “But Charmaine, there’s nothing bad about my business”.

So let’s look at it from a different angle, what do your competitors have that you don’t? 

What should you provide that you can’t provide at this point for some reason?

Consider whatever makes your business feel incomplete as a weakness –the missing link.

C. Opportunities:

While “opportunities” and “strengths” may feel similar in this context, they’re actually quite different. 

You can see opportunities as the events or situations that’ll give you (or your idea/business) a chance to bloom.

Opportunities could take the shape of a one-time event, an annual event, a local situation, or even a competitor gap.

D. Threats:

I’m pretty sure you get the trend now. 

However, for the benefit of the doubt, I’ll still clarify.

Anything that can endanger your business or make it go boom (In a bad way), that’s a threat.

P.S. Here’s my simple formula:

• S & W are internal factors that I can control.
• O & T are the external factors that I cannot control, but I can plan for (opportunities) or plan against (threats).

The Stress-Free Way to Conduct SWOT Analysis for Your Small Business.

Now I’ve given you a simple rundown, let me share with you the easier (and hopefully fun) way to conduct your Swot Analysis.

1. Consider Your Type of Business:

It’s not exactly a one-size-fits-all, if you want to run a digital business, your approach will be different from one for a local business. 

Take your sweet time to sketch, note, or draw your business model, and understand if it’s digital or physical, local or global, or what kind of mix it is.

2. Consider Your Skills:

You’ve decided on your business. Hooray for that first step in the right direction!

Now, consider your skill set and knowledge base, do you have anything that’ll make or help you run your business well?

Do you have a different approach that’ll sit well with your target market and make them give you a try… and then stay?

Do you have the capital to start and then run your business till you’re profitable?

If your answers are all positive, then you’re on the right track and we can move to the next step.

If you got negative answers, then:

• Do you know how to build a team with the right skill set and micromanage everything?
• Did you optimize already existing approaches to better suit your target market?
• Do you have a way to raise the money you need?

Same process– If your answers are positive, then you can further explore your business idea.

If they’re still negative, then you really should revisit the drawing board.

3. Consider the Flaws:

We’ve long come to terms with the fact that there’s no perfection.

It’s not a bad thing. If things were perfect, they’d stagnate. Imperfection leaves room for growth. 

Now you’ve considered your skill set and knowledge base, you’ve also asked yourself the necessary questions and all the boxes tick.

Next, consider the rough edges.

A. Local (Physical) Business:

Consider things like;

• Location: is the location where your target market frequent?
• Pricing: is your pricing too high or too low?
• Power supply: is your business dependent on power supply? Do you have backup power generators?
• Space: are you able to get a large enough space for your consumers?
• Legal considerations

B. Digital Business:

Consider things like;

• Timeframe: how long will it take you to get lots of eyes on your business? 
• Pricing.=
• Platforms
• Laws: privacy laws, tax, etc.
• Competition: the competition in the online business space is terrifying, how intense is the competition in your niche?
• Technology: What kind of tech resources do you have available to you to get started?

4. Consider Chances for Growth:

A stable business is fine, but every good business has growth spurts. 

Look at your business idea, look at its related factors, and check if there are any chances for you to take advantage of.

It’s fine if it’s not immediate, those chances can come a year later, 2 years later, 2 weeks later. But they should be worth it, i.e. provide significant growth spurts.

If you’re wondering, these chances don’t have to be big or cataclysmic.

Any change, event, or situation your business can take advantage of (without being bitten) is an opportunity.

5. Consider the Possible Setbacks:

Finally, it’s here: the final stage of your SWOT Analysis. 

The simplest way to complete this is to ask yourself, “What could go wrong?”

Once you start thinking of possible “wrongs,” you have your threats.

Plan against them. Find ways to mitigate them, avoid them, or get back up if they’re unavoidable.

Check Out These Swot Analysis Examples.

1. Home-based Bakery:

Strengths:

• High-quality, tasty bakes
• Flexible working hours
• Custom bakes (specialized custom pre-orders)

Weaknesses:

• Limited production
• Limited sales (based on production)
• Inability to scale

Opportunities:

• Serving in local community events
• Demand for organic bakes
• Custom gift package orders (also consider festivities)

Threats:

• Competition from established bakeries
• Health and safety considerations
• Delivery issues
• Perishable inventory

2. Handmade Crafts Business:

Strengths:

• Unique crafts and styles
• Personalized orders
• Consistent quality

Weaknesses:

• Inability to scale
• Limited production output
• Possible lack of business experience

Opportunities:

• Custom gift orders for holidays
• Craft fairs and events
• Online sales

Threats:

• Competition from bigger businesses with bigger workforces
• Inflation
• Burnouts

3. Skill Mentorship Business:

Strengths:

• Expertise
• Flexible schedule
• Unique experience

Weaknesses:

• Limited number of people you can mentor at once
• Too many administrative tasks for one person 
• Success is dependent on personal factors (mentees’ personal efforts, IQ, etc)

Opportunities:

• Spike in the amount of people looking to learn that skill
• One good batch can lead to recurring recommendations 
• Selling Ebooks to increase revenue and reduce workload

Threats:

• Free resources on YouTube 
• Competition from established workshops
• Technological problems (bad devices, poor signals, etc.)

4. Local Restaurant Business:

Strengths:

• Good business management
• Great staff
• Expansive food menu

Weaknesses:

• High running costs
• Poor inventory management
• Difficulty maintaining consistent food quality

Opportunities:

• Special events and dates (Valentine’s Day, wedding orders, etc)
• Local community patrons (sports, school excursions, etc)
• Online presence (websites, social media, etc)

Threats:

• Unsteady and rising food costs
• Health regulations
• Negative reviews

Conclusion

You’ve made it to the end. How do you feel about conducting your own SWOT analysis now? Simple right?

On the other hand, if you just can’t figure out how to validate your business, check out this post. Otherwise, check my homepage to follow my entrepreneurial journey.

You could also listen in on my podcast, A (Mostly) Stay-at-Home Mom, where I share weekly tips for busy moms earning or looking to earn a side income. Find it on Apple Podcasts, Spotify, and more!