Download Developing a SWOT Analysis for Your Business

Developing a SWOT Analysis for Your Business
Biz4Kids.com - May 2004
SWOT? That funny word is an acronym for Strengths, Weaknesses, Opportunities, and Threats. A SWOT
Analysis is a basic part of any marketing plan. Creating a SWOT analysis is a habit you should form early in
your career as a businessperson.
This important practice of creating a SWOT analysis helps you to identify areas where your business needs help
and also areas of your business that are doing well. By conducting a SWOT analysis periodically, you
summarize the important areas of your business and you become aware of key business issues.
In the Biz4Kids Youth Book, we talk about brainstorming and how important it is to think of EVERYTHING. Of
course you won’t use all the ideas you think of during a brainstorming session, it is still important not to limit your
thinking.
Let’s do a practice SWOT analysis and pretend that you are starting a lawn care business.
Strengths
What are my strengths with regard to my business? What do I have that others trying to compete against
me don’t have?
Knowledge. I’ve been helping my parents with lawn care for the last five years. Their grass, trees, and
soil are like all the others in the neighborhood. I am confident that I have the knowledge to take care of
other lawns as well as I do my parent’s lawn.
History. I've been in my neighborhood my entire life. I have many family friends that live close to me.
These people trust me and would like to help me reach my goal of owning a new bicycle.
Price. I can charge less to do lawn care than some other lawn care services.
Weaknesses
What are my weaknesses with regard to my business? If I could change a few things about my business to
make it more profitable, what would these be?
Size. I am not as big as some other lawn care services. It might take me a little long to finish the work.
Time to work. I can only do lawn care on the weekends during the school year. Since school starts at
the end of the summer the lawns in my business will only be able to be cared for on the weekends.
Assets. I have limited assets so if my mower breaks I will have to wait a week or more to get it fixed
and begin mowing again.
Opportunities
What opportunities do I have to grow my business?
Customers. Many homes have been built in my neighborhood and the people moving in these new
homes have very young children. They might want to stay home and inside with the kids than care for
the lawn.
Service. After the business gets going there will be additional services that I can offer besides the basic
lawn care service. I will be able to earn more money from the same customers by providing more
services.
Additional Employees. If the business gets big enough, my younger brother and my friends can help
the business. I’ll have to pay them but it will be nice for the extra business.
Threats
What threats exist that might harm my business? What might lower my profit?
Competitor. A professional lawn care service might lower their prices to be more competitive with mine.
A competitor might decide to offer more services and some that I cannot offer such as pool maintenance
or deck and fence repair.
Homeowners Association. My parents said some neighbors are talking about forming a Homeowners
Association. If this happen they might decide to hire a company to care for all the lawn needs of the
neighborhood.
After brainstorming for ideas, place the summary of your SWOT in a table so you can easily view each section.
The table will look like this:
STRENGTHS
• Knowledge
• History
• Price
WEAKNESSES
• Size
• Time to Work
• Assets
OPPORTUNITIES
• Customers
• Service
• Additional Employees
THREATS
• Competitor
• Homeowners Association
May 04
Now you can print this table and keep it with you until you do your next SWOT analysis. Keeping this handy not
only reminds you of your strengths but also reminds you of your weaknesses, which is equally important.
Recognizing your “SWOT” personally and professionally will help your business grow and will help you grow as
an individual.
Form a habit of updating your SWOT analysis every month. Note how I place the date in the table. This will
remind me to write a new analysis after May 04 is complete.
Send your SWOT analysis to [email protected] and we’ll enter your name to win a free daily planner!
*The May 2004 Biz4Kids Mentor Article (LINK) “Conducting Brainstorming Sessions” details what is needed to brainstorm
successfully.