What is a SWOT?

A SWOT helps you plan a business. It has four parts: Strengths, Weaknesses, Opportunities, and Threats.

Strengths – things you do well.

Example: A barber is fast and friendly. A flower shop owner makes beautiful flowers.

Weaknesses – things that are hard for you.

Example: A barber has few customers. A flower shop owner does not know good prices.

Opportunities – chances to grow.

Example: A barber shop on a busy street gets more people. A flower shop near a wedding hall gets big orders.

Threats – problems that can stop you.

Example: A barber shop has too many other shops nearby. A flower shop has high prices for flowers.

A SWOT shows what you are good at and what you need help with. You can ask for help or learn new skills. This makes your plan better.

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.

A value proposition is a short message that tells customers why they should choose your business. It explains what you do, who it helps, and what makes you different.

For a food business: “We serve hot lunches in 10 minutes for downtown workers.” Or: “We sell handmade pupusas for pick-up and delivery.”

For a flower shop: One business might say, “We create custom wedding flowers and offer consulting to help couples choose the perfect design.” Another might say, “We sell affordable, pre-made bouquets for birthdays, thank-yous, and everyday gifts.” The first shop may need a physical location for consultations. The second can operate through a simple website or social media.

For a barber shop: “We offer quick, no-appointment cuts for busy families.” Or: “We provide quiet grooming services with high-end products for professionals.”

Your value proposition helps you make business decisions. If you say you’re fast, you must be quick. If you say you’re affordable, you must keep costs low. This message builds trust with your customers.

A revenue stream is how your business earns money. It includes what you sell, how much you charge, and how often you get paid.

In food businesses, revenue can come from single meals, large catering orders, or weekly meal plans. Some food sellers use delivery apps or offer special pricing for offices.

Flower shops have different models. A wedding-focused shop might earn income from full event packages and private consultations. These jobs are larger, require deposits, and may include rental fees for vases or setup services. Another flower shop might focus on everyday buyers by selling $15 pre-made bouquets through Instagram, offering quick delivery without a storefront.

Barber shops might charge per cut, offer a discount after 5 visits, or sell monthly grooming memberships. Some earn extra money by selling hair products.

Planning your revenue stream helps you know where your money comes from, what pricing works best, and how to manage your time.

Monica worked for many years as an electrician for a small local contractor. She put in new wiring, fixed broken outlets, and added lights in houses and stores. The job was steady, but she often thought about starting her own business. She liked the idea of choosing her own customers and deciding which jobs to take.

One Saturday, she sat at her kitchen table with a notebook. She wrote down the things that could help her and the things that might make it harder. She was quick at solving problems, had good relationships with her customers, and knew the rules for safe electrical work. She could work on new buildings and older homes. But she sometimes waited too long to do her paperwork, had trouble keeping track of her spending, and found it hard to give prices right away when customers asked.

She also thought about what was happening in her town. A new housing area was being built, more people were working from home and needed upgrades, and the city was giving money to help women start businesses. Old co-workers said they would tell people about her. At the same time, bigger companies with more workers, higher prices for supplies, bad weather, and customers who might cancel could all cause problems.

After thinking it over, Monica wrote a short message to share with customers: “I offer clean, reliable electrical work for homeowners who want quick service and no surprises.” She planned to earn money from quick repair jobs, big projects that need a deposit, and monthly safety checks for landlords. Closing her notebook, she felt ready to take the next step.

Monica is developing her business plan. She already wrote a basic value proposition, listed ways to earn money, and completed a SWOT chart. Now she wants to explore new ideas with help from AI.

To do that, she must write AI prompts that use what she knows to get helpful feedback. A strong prompt shares clear information and asks a specific question. Good prompts use your own work—your SWOT, your revenue stream, or your value message—and ask the AI to improve it or suggest ideas.

### Prompt Example 1 – Using SWOT

“Monica’s strength is her strong skills in home repair. Her weakness is poor time management. What kinds of business services would match her strengths and not require a lot of scheduling or paperwork?”

### Prompt Example 2 – Using Revenue Stream

“Monica wants to offer monthly safety checkups for landlords and one-time repairs for homeowners. What are some creative ways to organize these services so she has steady income?”

### Prompt Example 3 – Using Value Proposition

“Here is Monica’s value: ‘I offer clean, fast electrical work for busy homeowners.’ What services and marketing ideas match this value?”

### Prompt Example 4 – Connecting All Three

“Here is Monica’s SWOT, value, and revenue ideas. Can you help turn this into a list of 3 service packages she could offer to customers?”

AI tools are powerful, but they only work well if you give them good input. Use what Monica has already created to build helpful prompts that lead to useful business ideas.