A SWOT analysis could save your business, here's how to do one

1. Understand what a SWOT analysis covers

The SWOT analysis (strengths, weaknesses, opportunities, threats) helps you to have an overview. It distinguishes between what comes from within your business (strengths and weaknesses) and what comes from outside (opportunities/threats).

2. The four pillars of analysis

Here are the 4 elements to observe:

• Forces (internal): what you do better than anyone else, a unique product, your creativity, a loyal customer base.
• Weaknesses (internal): what slows you down, lack of team, limited equipment, too long deadlines.
• Opportunities (external): market developments, new trends, potential partnerships.
• Threats (external): growing competition, regulation, rapid technological change.

4. When should you do your SWOT ?

Of course, you need to make one when preparing your initial business plan, and it's also useful to adjust it when one of the following situations occurs:

3. Conduct the analysis without stress

Here is a concrete example for Léa who owns the Café du coin:

Forces
Léa runs a café and knows that she has a strong connection with her local community.

Clearly discerning your strengths helps you reinforce what makes you unique.

Weaknesses
Its website is not very visible, so online sales are stagnating. In addition, it only has one coffee machine, so customers can sometimes wait a long time for their coffee.

Identifying weak spots allows you to invest where it will really make a difference.

Opportunities
The city is now offering grants for local businesses that make less than $500,000 in sales.

Taking the opportunity at the right time can boost your growth.

Threats
A chain café has just opened nearby, with a very advantageous loyalty card.

Anticipating threats helps you adjust your offer and strategy.

4. How to integrate your analysis into your action plan

Once you have completed your SWOT, you can prioritize your strategic projects: develop online commerce, apply for a grant, strengthen your local branding, etc.

Conclusion

SWOT analysis is an accessible but powerful tool: it gives you a clear vision of where you are and helps you chart a clear path to where you want to go. By doing it consistently and rigorously, your business is much more likely to last over time.

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