SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. As you research your business idea, think about these four areas and jot down your thoughts and ideas under each category.
Strengths could include price point you could charge, your idea is unique, low start-up costs, you already know how to do it, you have ideas on how to market, you have an “in” with a core client type,
Weaknesses might be: you’d have to buy equipment in order to get started; you don’t know everything you need to know, there’s a lot of competition, your idea is so unique no one else is doing it; you can’t charge very much, so you have to work a lot in order to make money;
So, how do you know what the opportunities might be? First, do you know of anyone else who is doing that same thing? Do you know if they are successful? If not, don’t worry, we’ll find out more in the market research step. If you think someone else might be doing it, get online and do a search. See how many local results you get. Make a note of the number. You might want to jot down their phone numbers, addresses, the owner’s name, and website address.
Threats might include things like: my mortgage won’t get paid for 3 months; too much competition; not in the right area; need a business license or special training; starting costs are high. Threats need to be identified so that you can take steps to minimize their impact.
