07.19.06
Common SWOT Analysis Mistakes
SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is a method of assessing a business, its resources, and its environment. The SWOT process centers on the internal strengths and weaknesses of your company, staff, and products/services. It also examines external opportunities and threats that may have an impact on your business, such as market and consumer trends, changes in technology, legislation, and financial issues.
A SWOT analysis allows you to identify your core activities and pinpoint what you do well, and why. It will also direct you towards where your greatest opportunities lie, while highlighting areas where changes need to be made in order to make the most of your business. When performing a SWOT analysis avoid making these common mistakes:
Maintaining too narrow of a focus
The large and obviously glaring issues will probably engage your attention, but you need to dig deeper and look at every aspect in your business no matter how small it may seem to you.
Neglecting input from others
Sometimes our perspective regarding our business may not be as objective as we need it to be. Seeking out the input of others provides us with valuable insight into things we may not have considered. Other people’s perspectives are always valuable to a SWOT analysis.
Performing an analysis only once
Your business is always changing, and hopefully, always growing. So, if your business is always evolving so should your strength, weaknesses, opportunities and threats. Therefore, you need to view your SWOT as a work-in-progress, returning to and “tweaking” it on a regular basis.
Reliance on as an “end-all” strategy
A SWOT analysis is just one segment of your overall business strategy. It is a useful guide, not a major decision-making tool. Be sure to keep it in perspective as it relates to the bigger picture.
