Have you already developed a business idea and already know which legal form is the right one? Great! However, that alone is not enough. You should also have a thorough understanding of the strengths and weaknesses of your business. Read here how a well-founded SWOT analysis can help you with strategic planning and your business plan.
What is a swot analysis?
SWOT analysis is a tool that helps you with strategic planning. SWOT stands for "strengths, weaknesses, opportunities, threats" - i.e. strengths, weaknesses, opportunities and risks. Can you assess products, behavior and developments before you even start a company? One can. With the help of a SWOT analysis, which also includes the opportunity-risk analysis, the potential and weaknesses of your business idea can be revealed ( company analysis ) and the external framework conditions that significantly influence the success of your company, your product or your service ( Environment analysis ). Thanks to a SWOT analysis, you can identify the following aspects early on ,
- in which areas your company is particularly strong,
- in which areas it has weaknesses or catching up to do and how the market
- in which you move, looks concrete - ie which positive and negative influencing factors you have to take into account.
- Where are your competitive advantages ?
- Where is the potential for growth ?
- What entrepreneurial risks or dangers are looming that you should be aware of right from the start?
- What areas or niches should you focus on?
- On the other hand, which segments can you neglect?
- Which target group do you want to address? A target group analysis also helps here .
- Which marketing channels are the right ones?
- Where do you want to be in one, two or five years ?
How does a SWOT analysis work?
1. Gather Information
- Economic conditions
- Technological Developments
- Legal requirements
- Social and political peculiarities
- Customer requirements
- the planned product or service,
- your core competencies,
- your expertise,
- special services,
- Customer relationships (planned or existing),
- Partnerships or cooperations (planned or already existing),
- finance as well
- essential business processes (planned or already existing)
2. Create SWOT Analysis
Where are the strengths? Where are the weaknesses?
- What unique selling points do you have? What are you really good at? What is your company likely to do better than the competition?
- In contrast, what do you find difficult? What is your company or product missing compared to the competition?