Acronyms can be the bane of a business owner’s existence. From "PNL" to "A&P," it seems every function has its own acronym and if you’re in the know, you use them all with aplomb. We're about to throw another one at you: SWOT.
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT Analysis is a common tool used by businesses of all sizes and types to really examine not only their current situation, but external factors as well.
Additionally, SWOT Analyses are valuable for businesses facing some type of decision, whether it's a major or minor one. From deciding to partner with a new vendor to adding employees to closing an office location, SWOT can help businesses clearly outline the positives and negatives of such a choice.
What Is a SWOT Analysis?
SWOT Analyses are a listing of all of the different strengths, weaknesses, opportunities and threats that currently face your business whether internal or external. Primarily, strengths and weaknesses are measured by comparing your organization to whatever you’re evaluating, be it another company, an opportunity, etc. Opportunities and threats are measured against external factors for both your company and what you’re comparing it to.
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