SWOT Analysis

What is a SWOT analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It's a strategic framework that evaluates four dimensions of your business. Strengths and Weaknesses are internal — what you control. Opportunities and Threats are external — what's happening in your market.

Invented in the 1960s at Stanford, SWOT remains the most widely used tool for strategic planning worldwide. From startups to multinationals, everyone uses it because it's simple, visual, and actionable.

How to do a SWOT in 4 steps

Step 1 — Strengths: List what sets you apart. Your expertise, network, technology, location. Be honest and specific. "Good team" isn't enough. "3 senior developers with 10 years of fintech experience" is a real advantage.

Step 2 — Weaknesses: The hardest part. Lack of funding? No brand awareness? Team too small? Identify your real weak points without complacency.

Step 3 — Opportunities: Look at your market. Favorable new regulation? Consumer trend? Competitor closing? Opportunities are waves — you need to see them to surf them.

Step 4 — Threats: New competitors? Technology change? Economic crisis? Threats are risks you can't control but must anticipate.

Real example: SWOT of a coffee shop in Lagos

Strengths: Premium location downtown, specialty coffee imported directly, Instagram-worthy ambiance. Weaknesses: High rent, no online presence yet, team limited to 3 people.

Opportunities: Coffee culture booming in Nigeria, tourism growing, no specialty chain in the neighborhood. Threats: International chains expanding, rising green coffee prices, competition from traditional cafes.

In 5 minutes, you have a clear picture of your situation. You know what to strengthen, correct, seize, and monitor.

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