SWOT is a miniature form for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a systematic way of doing business or these are the factors for any start-up plan which help in measuring the overall performance of the business, these are the factors help to know what the need of the business is and also for the evaluating the competitors and make business owner in a smarter and more precise way of thinking which make sure in the positive growth of the business (GURL, 2017).
SWOT has four parameters in which the first two parameters are strengths and weaknesses which are from a business point of view because these factors are internal factorsand influenced by internal factors of business like how team performs your business criteria reputation of the owner which means these depends on owner’s characters. The other two parameters are Opportunities and Threats which means these factors are external factors and influenced by external bodies which are not in your business it means that they are not in control of the organisation so can’t be changed accordingly like other successful businesses and competitors. Organisations have to adapt them for their sake of survival and existence and also for growth.
As an entrepreneur, before you start any start-up or business so you should make a perfect SWOT analysis because these factors impact the growth of a business positively or negatively before starting a business the SWOT factors should be in mind.
The first factor of SWOT is Strength, this is an important factor as this gives the motivation to do well as an entrepreneur what are the unique features that my business will have that affect your company in positive growth.
The second factor is Weaknesses this is also an important factor that I should about the weakness of my business and where it is lacking behind by knowing this I can improve and work on my business(GURL, 2017).
The third factor is Opportunities which means what are opportunities which are present in the market so that I can use these opportunities and make my business model accordingly and take advantage of the situations from which you are getting opportunities.
The last and the fourth factor of SWOT is Threat this also an important factor which means that we should keep in mind that what are the external factors that can be a threat to the business, like are my customer will be happy with a particular product and if there any regulations of the government that can affect our business (Teoli, et al., 2019).
GURL, E. (2017). SWOT analysis: A theoretical review.
Teoli, D., Sanvictores, T., & An, J. (2019). SWOT analysis.