One useful process for establishing the viability of your business idea is to run a SWOT Analysis, which is a classic method of listing: Strengths, Weaknesses, Opportunities and Threats in a clear visual matrix.
We’ll guide you through the process
How do you write a SWOT Analysis for a Business Plan?
On a piece of paper list:
Strength Attributes
Why is your business going to succeed over anyone else’s? Will you compete on cost, or offer a superior product? Do you have particular marketing skills, exceptional staff, or better access to market?
Weaknesses
What might prevent your business from succeeding? Which aspects will competitors do better? The more clearly you understand your weaknesses, the better your chances of shoring them up.
Opportunities
What makes your business idea right for this moment in history? Are markets changing? Have regulations shifted? If there a pain point felt by your consumers which you can help with? This section of the SWAT is about better understanding the external environment into which your prospective business will launch.
Threats to success
Along with opportunities, the good business person must always consider potential threats. No matter how much you plan, any business operates with a level of uncertainty because the world is always changing. In this section consider what those changes might be, and how they could affect you.
What Can be Learned from a SWOT Analysis?
The key thing to remember about SWOT Analysis is that each section is intimately connected. Strengths create opportunities, weaknesses can be converted into strengths, and threats can be neutralised.
Conclude your analysis with the creation of an action plan outlining clear steps for moving forward.