What is a SWOT Analysis?

A SWOT analysis is a tool that helps people plan a new business. It includes four parts: Strengths, Weaknesses, Opportunities, and Threats.

Strengths are things you are good at. For example, someone starting a barber shop may be fast, friendly, and skilled with clippers. A flower shop owner may be creative and good at arranging flowers. Some people are also good at managing money or budgeting.

Weaknesses are things that are harder for you. A barber might not have many customers yet or might struggle to track payments. A flower shop owner might be unsure how to price arrangements or forget to follow up with customers who don’t pay on time.

Opportunities are chances to grow. A barber shop near a busy street may bring walk-in clients. A flower shop near a wedding hall might get more large orders. You may also find support programs or grants for small businesses.

Threats are problems that could get in your way. A barber shop may face too many nearby competitors. A flower shop may have rising supply costs or customers who cancel at the last minute.

Doing a SWOT analysis helps you find where you are strong and where you might need help. If you are not good with money, you can work with an accountant. If customer service is hard for you, you can take a class or ask someone to support you. This is how you build a stronger plan.