Using SWOT analysis in 2021

July 7, 2021

Using SWOT analysis

As business owners, we must constantly prioritize the things that concern us. Tough decisions about resource allocation are inevitable. No matter how successful you are, you always have to filter and choose where to focus your attention, and SWOT analysis can help you determine where to focus your energy and resources.

Narrow your list

Start with a list from a brainstorming session. Now, narrow these lists down so that they fit into a 2 x 2 matrix on a page (example below). You might narrow down the list based on two factors: how strong a particular factor is, and how likely it is that a particular factor will happen.

For example, relying on a large client for the majority of your income is a powerful disadvantage: it puts you in a passive position, even if you're pretty sure they won't leave. Conversely, even if you're not worried about rent increases, you need to plan for them if lease negotiations are imminent. Even if you have created a one-page matrix, keep the uncensored list for future reference. You don't need to focus on the rest of the list now, but being aware of it will ensure that you don't miss any important issues, especially if variants of the situation occur. Things that are less important now may become critical in the future, and you need to be aware of this possibility. You can always rearrange your list, or return to an item later on.

Develop a strategy

For each item on your final list, develop a strategy for exploiting strengths and opportunities, as well as dealing with weaknesses and threats. These initial strategies do not need to be particularly complex or robust, although you may choose to expand them at a later date. For now, only a broad plan of action is needed.

Also, remember that different factors can be used together to constrain each other. How can you use strengths to improve weaknesses? How can you use an opportunity to eliminate a threat? Can strengths be used to make better use of opportunities? Do you need to prioritize a disadvantage in order to prevent a threat?

【Source text: by report】

Latest articles

see all articles