SWOT Matrix Analysis:
A Good Place to Start for Setting Business Goals

Doing a swot matrix analysis is a quick way to analyze your businesses current market position to see what areas need some attention and then to set your business goals based on what you identify.

Business Coaching Insight:

The process of business building requires you to continually look for ways to improve and grow your business every single day.

Reviewing your business and doing a quick audit of your position is a good habit to get in to, especially as you become more successful.

It's easy for complacency to creep in when you think you've found the recipe for success. As Andrew Grove is quoted as saying "Success breeds complacency. Complacency breeds failure. Only the paranoid survive."

A swot analysis matrix is not a complicated business coaching exercise. It is simply a framework for you to create a list of strengths and weaknesses in your business plus the external opportunities and threats.

SWOT stands for:

  • S – strengths (what makes your business stand out against the competition?)
  • W – weaknesses (in what areas are you vulnerable to competition?)
  • O – Opportunities (what opportunities are there that you could take advantage of to consolidate or grow your business?)
  • T – Threats (what factors are you facing that could endanger your business?)

SWOT Analysis Example

Here is a SWOT analysis example that shows you how you might use this framework in a small business:

Applications for the SWOT Matrix in small business

Doing a swot analysis is one way to kick-start your business planning process – by identifying your strengths, weaknesses, opportunities and threats you can soon work out what your next action steps should be.

Businesses should review all of these factors affecting their business at least yearly. Market conditions are continually changing and making time to write them down will enable you to see more clearly what changes you need to make.

Doing a swot matrix is also a really good activity to use as a brainstorming tool in your team meetings.

This framework can be applied to any situation. You can use it to analyze the whole business or specific parts of it. For example, it might be useful to do a marketing SWOT analysis before you start preparing your annual marketing plans.

Where to start

Doing a swot analysis on your business should give you some clarity about your market position and what you need to do next. The next stage is to feed this in to your business planning and goal setting process.

Business Coaching Questions:

  • In what ways is your business potentially vulnerable to competition?
  • What do you need to put in place to strengthen your position in the market?
  • What opportunities are available to you right now?

Return from swot matrix to writing a business plan

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