In this tutorial I explain what is a swot analysis in a business plan. Many people find this concept to be foreign sounding, confusing and intimidating, but it is quite simple. Swot stands for strengths, opportunities, weaknesses, and threats. It is a nice way to examine the pros and cons of a particular business direction. When you decide on a business strategy, you can do a swot analysis to help you determine whether it is something that will be truly beneficial to your business in the short and long term.
SWOT Analysis Example
Let’s go over an example of performing SWOT analysis for a business strategy decision of my own business. Let’s say that the decision is to start a YouTube channel for my business. At the time of writing this, I have already started and ran a YouTube channel for over a year so this is a decision that I already made. So let’s go over the key points I considered (or SWOT analysis) when I made the decision to start my YouTube channel.
The strengths of this decision were that I already help entrepreneurs, and my videos would be on topics that I already know a lot about. Another strength was that I was going to be able to get my YouTube channel to grow if I funneled my app users to subscribe to the channel, and watch my videos. The weakness was that I would dis-focus my efforts and stress my resources even more than they were already stressed. The opportunity was that I would get exposure to potential hundreds of millions of YouTube users, which is quite amazing. And the threat is that I fail, waste time and have this project hurt my business.by