5 Key Steps To Conduct An Effective SWOT Analysis

Why conduct a SWOT analysis?

A SWOT analysis is conducted to help you determine any weaknesses and strengths within your company that you could address through business planning initiatives or business strategy.

Additionally, it can be used as a way to identify opportunities for growth within your company. A SWOT analysis also helps you determine which areas of your business need further development to become more profitable or efficient at what it does best.

When should a SWOT analysis be conducted?

A SWOT analysis can be used before you decide to take any kind of firm action, whether you’re evaluating new projects, revising internal policies, looking at possibilities to pivot, or changing a plan in the middle of its implementation. Sometimes it seems sensible to do a general SWOT analysis to assess your company’s present environment and make any necessary operational improvements. The research can highlight the key areas in which your company is operating at its best as well as where processes require improvement.

You may gain a complete view of your company by taking the time to create a comprehensive SWOT analysis. From there, you can figure out how to strengthen or get rid of your company’s deficiencies while maximizing its strengths.

A SWOT analysis should undoubtedly involve the firm owner, but it is frequently beneficial to incorporate other team members as well. Ask a range of team members for their opinions, and then discuss any contributions in an open forum. You will be able to assess your company effectively from all angles thanks to the team’s comprehensive knowledge.

Conducting a Customer Service SWOT analysis

You most likely performed a SWOT analysis when you created your business plan. However, did you realize that you might utilize this tool to examine a certain subject, like customer service? It makes sense to do a SWOT analysis to evaluate how you’re doing given that providing outstanding service and being detailed oriented may be the deciding element for a small business’ success. Consider how a SWOT analysis might be used to improve customer service.

How To Conduct A SWOT Analysis

There are several steps you need to take in order to conduct a SWOT analysis effectively. The following five key steps will help you complete a thorough SWOT analysis:

Step 1: Assemble the Right Team

Your team will be the driving force behind your SWOT analysis. Members of your group with different perspectives can add further detail to your SWOT analysis and ensure that each section is explored from all angles. The more team members you have contributing to the creation of the SWOT analysis, the more depth your report will have with actionable results. 

You’ll need people skilled in different types of thinking to help you create a comprehensive analysis. The team should include members from sales, marketing, finance, production, and other departments. Work with teammates that have a deep understanding of the market and where you are positioned within your industry. Ask questions and leverage the knowledge of those around you.

Step 2: Identify the Company’s Strengths and Weaknesses

You can identify your strengths and weaknesses by recognizing which assets help you achieve your business goals, and which hold you back. These two elements are internal metrics that should reflect the strengths your company does well and can leverage for an advantage, as well as internal weaknesses that are present or forming that need to be addressed before becoming detrimental to company success. A good SWOT analysis will help you determine how to improve on your weaknesses and capitalize on your strengths to achieve your business goals.

Step 3: Determine External Opportunities for Growth

The external opportunities for growth section of your SWOT analysis for your organization will be the most essential part of your analysis.

Why? Because growth comes from taking advantage of the opportunities that come your way. That includes everything from new markets and products to partnerships with other companies and even acquisitions. Where can your company look to expand, grow their market share, or shift into another space? 

Step 4: Recognize Outside Threats to Your Plan

It’s important to understand where your company is positioned in the market, and where threats may arise within your area of operation. Is your business largely reliant on the success of others? Are there any start ups entering the space that could threaten your position? Is AI effecting common workflows in your industry? These are all questions to consider when assessing threats during your analysis.

Once you have done that, you can use your SWOT analysis to create a plan of action for tackling these issues to earn more revenue.

Step 5: Put It All Together in an Actionable Plan

This stage is where the rubber meets the road. If you haven’t already, you’ll want to take all your findings and put them into a comprehensive plan that your job team can execute immediately to help you take advantage of any potential opportunities.

We recommend that you make this plan as specific as possible so that it’s easy for you to follow through. However, it’ll be difficult to accomplish anything if you’re unclear about what exactly needs to be done and when.

Leverage Your SWOT Analysis for Success

While a SWOT analysis can be considered a good exercise, it can also help point out glaring issues and gaps your business might be facing in their current position. This collaborative assessment lends itself to actionable items that you and your team can work through to improve your team’s status and overall company success. Lean into your strengths, work to solve or at least improve your weaknesses. Capitalize on opportunities, and stay mindful and prepared for growing threats. Updating this analysis every six months to a year to monitor your progress and refine the overall mission of your team’s current trajectory.

Has your SWOT analysis led to the need to hire? Connect with a member of our team today to learn how we can help strengthen your team. We take the time to understand your unique hiring needs and find top talent to elevate your business processes. Start hiring today!