The primary objective of a SWOT analysis is to help you develop a full awareness of all the factors involved in making a business decision.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis is a technique for assessing these four aspects of your business. You can use SWOT Analysis to make the most of what you've got to your company's best advantage. And you can reduce the chances of failure, by understanding what you're lacking, and eliminating hazards that may otherwise catch you off guard.
You should employ a SWOT analysis before committing to any company action, whether you're exploring new initiatives, revamping internal policies, considering opportunities to pivot, or altering a plan midway through its execution. Sometimes it's wise to perform a general SWOT analysis just to check on the current landscape of your business so you can improve business operations as needed. The analysis can show you the key areas where your organization is performing optimally, as well as which operations need adjustment.
Don't make the mistake of thinking about your business operations informally in hopes that it will all come together cohesively. With a formal SWOT analysis, you can see the whole picture of your business. From there, you can discover ways to improve or eliminate your company's weaknesses and capitalize on its strengths.
