SWOT analysis and how it can help your business grow

A SWOT analysis helps you see your business from the market’s perspective, organise your thoughts, and prepare for challenges. But it is not a substitute for a full strategy. This guide shows how to create a step-by-step SWOT plan and turn insights into real actions.

What is a SWOT analysis?

A SWOT analysis is a framework for evaluating the potential of any project and shaping ideas for growth. It starts with identifying internal and external factors that influence success. These factors fall into four groups, which make up the acronym:

• Strengths — what sets your product apart from competitors, the qualities that make customers value you.
• Weaknesses — areas where you lag behind the market, lose money, customers, or loyalty.
• Opportunities — growth points you can use: industry changes, unmet customer needs, new technology, or partnerships.
• Threats — obstacles to growth and performance, such as strong competitors, regulatory changes, staff turnover, or reputational risks.

The findings are usually organised in a table.

When is SWOT analysis useful?

SWOT is most valuable when big decisions are on the table, such as:

• Launching a new product
• Entering a new niche or region
• Reviewing your long-term strategy
• Deciding whether to scale up operations
• Preparing to attract investors or a strategic partner

At such moments, SWOT helps capture the bigger picture rather than isolated fragments.

How to run a SWOT analysis: Step-by-step

Define the goal

Clarify what you want to achieve, for example, whether it makes sense to open a new branch, create a new Halloween bonus offer for https://www.betamo.com, or change brand positioning.

Keep in mind: SWOT doesn’t solve tactical issues. It won’t tell you how to optimise logistics, speed up deals, or reorganise your warehouse. It’s too high-level for such tasks. It’s also ineffective if your company relies on assumptions rather than solid data — you’ll end up with a nice-looking but empty chart.

Gather data

For a SWOT analysis to be useful, it must rest on facts, such as:

• Unit economics and financial reports
• Customer feedback and speech analytics
• Competitor reviews and expert interviews

Build a team

Ideally, participants should include not just the owners but also employees who deal with customers or manage the product. A well-rounded session usually involves the CEO, a marketer, a sales manager, an analyst, or a facilitator. This ensures a broader perspective instead of a purely managerial view.

For solopreneurs, a mastermind group of peers can serve the same purpose.

Fill out the SWOT table

Here are guiding questions for each block:

Strengths

• Why do customers choose us, and what do they mention in positive reviews?
• Do we have unique features that competitors don’t know about?
• Why do clients recommend us to others?
• Which products or services generate the most sales, and why?
• Which channels bring in the most customers?

Examples: strong customer service, quick support, a recognisable brand, or proprietary know-how.

Weaknesses

• Why do customers prefer competitors?
• Which stage of the sales funnel do we lose clients?
• What are the most common complaints?
• What are our main expenses, and why?
• What do we avoid telling partners?

Examples: limited production capacity, higher-than-market prices, slow logistics, or a complicated app interface.

Opportunities

• What industry trends are emerging?
• What changes in consumer behaviour do we notice?
• What new tools could we start using?
• Could competitor actions somehow benefit us?

Examples: a competitor leaving the market, simplified tax rules, affordable new tech, or a fresh fashion trend.

Threats

• What new products will we compete with?
• What competitor actions could harm us?
• Which economic trends might increase risks?
• What legal changes could complicate operations?
• What global events negatively affect our market?

Examples: new brands, substitute products, outdated technology, or currency fluctuations. Importantly, the same event can be both a threat and an opportunity.

Build a decision matrix

This table examines how different factors interact and suggests concrete steps for project development. Crossing internal and external factors creates four combinations to analyse.

Turn insights into action

Once the table is complete, the real work begins — making decisions.

After gathering data, hold a team session. Start by identifying what matters most to customers and impacts the business. Then sort ideas by resource intensity. Prioritise simple, quick-win actions that deliver fast results.

To stay focused, focus these steps:

• Record your conclusions in an idea map.
• Rate each idea by two criteria: impact and complexity.
• The result should be an action plan: first implement high-impact, low-effort ideas; next, pursue resource-heavy but promising ones. Everything else can wait.

Assign responsibilities: who does what, by when, and with which resources. Revisit the matrix in 3-6 months to see what worked and what needs adjustment.

When SWOT analysis falls short

SWOT won’t be effective if:

• You skip the data. Writing “good service” under strengths adds little value. A better option would be “average support response time: 2 minutes” or “4.9 rating on Google Maps.”
• You treat it as a strategy. SWOT is just a snapshot of the current situation. It won’t tell you which customer segment to target, what needs you’re solving, or how to escape direct competition.
• You don’t act on it. Without connecting factors and choosing directions for growth, SWOT is just a brainstorming exercise. The point is not to list ideas but to select and implement the best ones.
• You’re in crisis mode. SWOT is useless when you need an immediate response — for example, during a financial crash or when a key employee leaves. By the time the analysis is done, the problem may have escalated.