Small Business Terms: SWOT Analysis

by Emily Retherford

0 min read

SWOT analysis is a report generated by a business to evaluate its strengths, weaknesses, opportunities, and threats. The results are used to provide direction, implement strategic planning, and evaluate future financial budgets. In addition, the analysis can be used as a risk mitigation tool as threats can be minimized as weaknesses are addressed.

Strengths and weaknesses are internal components a business must self-evaluate to know. Alternatively, opportunities and threats are external factors. These represent what is occurring in the industry and how the company is relatively positioned. Taken as a whole, a SWOT analysis compares what the company is best at doing with what is available.

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