Entrepreneurs need to constantly be aware of the strengths, weaknesses, opportunities, and threats that confront their enterprises. Using a SWOT matrix in your business might be a good way to keep on top of them.
The standard SWOT matrix is pictured here. It is commonly used in strategic planning and marketing, where the internal and external factors can be identified. Before plunging in with SWOT analysis please keep these things in mind:
1. After you complete your initial SWOT, it makes sense to periodically update or repeat the analysis to diagnose how the factors are changing over time.
2. Developing a SWOT in a group setting will produce the best results.
3. Only use SWOT if it contributes to specific decision points in your organization. There is no need to go through the SWOT process, if it only results in the accumulation of information that adds nothing to decision making.
4. Be aware of the limitations. Sometimes SWOT is used to defend decisions already made. SWOT should encourage brainstorming and critical thinking and not used to create barriers to innovation.
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