What is a SWOT Analysis?

A SWOT Analysis is a simple yet powerful tool to look at your business. It stands for:

• Strengths: What your business does well.
• Weaknesses: Things your business can improve.
• Opportunities: Outside chances to grow your business.
• Threats: Outside problems your business may face.

By looking at these four areas, you can understand your business better and make good decisions for the future.

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Why is a SWOT Analysis Important?

A SWOT Analysis helps you:

• See what your business is good at.
• Find things to fix before they become big problems.
• Spot chances to grow your business.
• Get ready for problems that could come up.

It’s a helpful tool for deciding what to focus on first.

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How to Use This SWOT Analysis Document

1. Read Each Section Carefully Each part of the SWOT Analysis—Strengths, Weaknesses, Opportunities, and Threats—looks at a key part of your business. Think about how each part matches your business.
2. Think About Your Business Compare what’s in the document to what happens in your business. For example:
   
   • Do the strengths match what you see in your business?
   • Do the weaknesses sound right to you?
3. Pick Key Areas
   
   • Start by using your Strengths and fixing big Weaknesses.
   • Look at how to use Opportunities to reach your goals.
   • Plan how to handle Threats.
4. Make an Action Plan
   
   • For each section, list 2–3 things you can do to make your business better.
   • Examples:
     
     • Use a strength, like great customer service, to bring in more customers.
     • Fix a weakness, like a small product line, by adding more items.
     • Try an opportunity, like more demand for lessons, by starting beginner classes.
     • Get ready for a threat, like new competitors, by improving your store experience.
5. Check and Update Often A SWOT Analysis works best when you look at it often. Things change in the market, and so do your strengths, weaknesses, opportunities, and threats. Check your analysis every few months or when something big changes.

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Example SWOT Analysis:

How to Create a SWOT Analysis

1. Write Down Your Strengths
   
   • What does your business do really well?
   • Examples: Great staff, loyal customers, or high-quality products.
2. List Your Weaknesses
   
   • What could your business do better?
   • Examples: Low online presence, outdated tools, or limited product choices.
3. Find Opportunities
   
   • What outside things could help your business?
   • Examples: New trends, demand for your services, or local events.
4. Spot Threats
   
   • What outside things could hurt your business?
   • Examples: New competitors, higher costs, or changing customer needs.
5. Put It All Together
   
   • Write everything in four sections: Strengths, Weaknesses, Opportunities, and Threats.
   • Look for ways to use your strengths to fix weaknesses, grab opportunities, and handle threats.

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Practical Tips for Success

• Ask Your Team: Share the SWOT document with your staff and ask for their ideas. They might see things you miss.
• Think About Customers: Use the SWOT to make things better for your customers, like better service or more choices.
• Take Small Steps: You don’t need to do everything at once. Pick a few important things to start with.

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Summary

A SWOT Analysis shows a snapshot of your business right now. Use it to see where you are, where you want to go, and how to get there. The more you use it, the more your business can grow.