Entrepreneurs become the most successful people in the economy. Every business starts with an entrepreneur, and many that succeed do so through self-evaluation. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis helps you judge the feasibility of an idea or company. For entrepreneurs, this allows you to decide if your idea is really worth pursuing. It helps build your company by recognizing where you need work and where you excel.
“SWOT analysis is a general technique which can find suitable applications across diverse management functions and activities,” says Chartered Management Institute as reprinted in "Entrepreneur" magazine. It is most appropriate in the early stages of marketing planning.
Utilizing SWOT analysis examines strengths, weaknesses, opportunities and threats. The company’s core competencies that make up its strengths include proprietary technology and market position. Weaknesses are company conditions that may lead to diminished performance such as obsolete equipment or heavy debt. Outside conditions that may prove advantageous to a company, such as a specialty niche skill, are opportunities.
SWOT analysis is a methodical process. You must make sure to limit the number of issues considered in each category to select the most important ones. It starts with a list of all the issues that affect your business: internal, external, real or perceived, pragmatic or objective. The goal is to avoid evaluating, just write down everything you can think of. Next, you sort them into the SWOT categories. Natural Entrepreneur states: “sort each category first by relative importance, and then by reality.” Make sure you have proof for every claim and that you do not pass the blame for an internal weakness to an external threat.
The SWOT analysis provides a framework. It pushes you to analyze a situation and work together with your complete staff to develop the best strategies and tactics to move your business forward. It promotes group participation and provides a basis for assessing core capabilities
Some opponents suggest that SWOT analysis is only an overview that is not suitable for today’s dynamic business world. If done improperly, SWOT can be ineffective. If employees generate very longs lists or fail to prioritize, the process becomes excessively time consuming.
For more you can check Animated Video Cost