In short
A SWOT analysis is a simple review of your business. SWOT stands for Strengths, Weaknesses, Opportunities and Threats: what you do well, what holds you back, what you could take advantage of, and what could hurt you.
Many of the business owners I work with share a similar story. They have spent years, often decades, in large organisations. They know their industry inside out, they are well connected and respected, and they have spotted a gap that their experience is perfect for. So they take the leap and set up on their own.
Then comes the hard part. Knowing an industry and knowing how to build a business are two very different things. They know they need help, but not always what kind. Others come to me further down the line: a major client has gone, a new competitor has appeared, or growth has stalled and they are not quite sure why.
Wherever they are on that journey, I almost always start in the same place: the good old SWOT.
What is a SWOT analysis, and why do I start with one?
A SWOT analysis sorts everything you know about your business into four boxes. Two look inside the business, at things you can control. Two look outside, at things you can only prepare for and respond to.
| Helpful | Harmful | |
|---|---|---|
| Inside the business (you control it) | Strengths: what you do well, and what gives you an edge | Weaknesses: what holds you back, or what is missing |
| Outside the business (you respond to it) | Opportunities: changes or openings you could take advantage of | Threats: changes or risks that could hurt you |
It is very simple, almost basic, but it is the foundation for everything else you build, and something you can keep referring back to.
What is a SWOT analysis used for?
It is most useful before a big decision, such as launching a business, adding a new service, writing a business plan or deciding where to put your time and money next year. It is also worth revisiting whenever something significant changes around you.
Why do so many SWOT analyses go nowhere?
If the SWOT is so simple, why doesn’t it help everyone? In my experience, there are two common mistakes.
The first is to fill in the boxes, then cling to the opportunities and ignore everything else. Opportunities are the exciting part, but they are only worth chasing if the business underneath can deliver them.
The second is to treat the SWOT as the finished product: you do it, you park it, and that’s that. Without a step that turns the findings into actions, nothing moves. It is also easy to be too kind to yourself. What you think is a strength might turn out to be a weakness, and that only comes out when someone asks you the awkward questions.
How should you approach a SWOT analysis?
I never rush it. With clients, I typically spend three or four hours in conversation before we have a SWOT we can work with. We start with their ambitions, how they like to work, why they believe the opportunity is real and what is happening in their industry. Only then do we start filling in the boxes.
Along the way, I keep asking “why?” When you start unpicking what someone believes about their business, a lot more comes out. I push for specifics, too: “strong network” is a start, but “direct access to decision makers in my three target sectors” is something you can actually use. And we look well beyond the business itself. In recent years I have seen clients’ sectors hit by conflict, extreme weather and supply problems, none of which they could control, and all of which affected their customers.
What does a typical SWOT analysis look like?
The details vary from client to client, but for the founder-led businesses I work with most often, the picture is remarkably consistent. Here is a typical SWOT analysis example from a specialist consultancy.
| Strengths | Deep, first-hand knowledge of the industry, from the people doing the work to the corporates at the other end. A strong network with direct access to decision makers. A clear focus on a few target sectors. Credibility that clients trust. |
| Weaknesses | No defined processes or way of delivering projects. Knowledge and relationships all sit with the founder. Services not yet packaged into clear offers. No CRM, sales pipeline, marketing plan or brand. |
| Opportunities | Becoming the recognised specialist in a growing niche. Thought leadership: articles, media comment and speaking. Rising demand for their kind of expertise. Partnerships with complementary firms. |
| Threats | Volatility in their clients’ markets, from weather, conflict and policy changes. Economic uncertainty making clients delay spending on advice. Larger consultancies moving into the niche. |
None of it is usually news to the business owner. But seeing it laid out tends to make one thing very clear: their biggest asset and their biggest risk are the same thing. Them. Their knowledge and relationships are the reason clients come to them, and the reason the business can’t yet grow beyond them.
That realisation changes the conversation. Many start out thinking they just need to launch. The SWOT takes us back to basics: how the work will flow, who will do what, how they will manage relationships, whether they need rules of engagement or NDAs when talking to contacts, and, most importantly, what exactly they are selling.
How do you turn a SWOT analysis into a plan?
This is the step most people skip, and it is where the real value lies. I use a TOWS matrix, which sounds technical but is simple: you pair the boxes, and each pairing suggests a different kind of action.
| Pairing | The question to ask | What it often means in practice |
| Strengths + Opportunities | How can we use what we are good at to take this opportunity? | Use the founder’s credibility to build authority: articles, events, speaking and press. |
| Weaknesses + Opportunities | What do we need to fix before we can take it? | Turn general expertise into a handful of clear, packaged offers that clients can buy. |
| Strengths + Threats | How can our strengths protect us? | Lean on real, practical experience, which larger firms moving into the niche can’t match. |
| Weaknesses + Threats | Where could a threat exploit a weak spot? | Write down the methods, build simple systems and a steady sales pipeline, so the business doesn’t depend on one person alone. |
One lesson comes up again and again: knowing lots of people is not the same as having authority. Many of my clients talk to people in their industry every day and see them at events, but chatting with someone doesn’t give you authority. That has to be built.
From the pairings, we agree a short list of priorities, in order. For founder-led businesses it often looks something like this: define the offers, build the founder’s profile and the company’s, turn knowledge into repeatable methods, win the first flagship clients, and put the basic systems in place.
We then break each priority into steps that fit the budget, because when you are launching a business, cash flow is everything. In leaner months we might simply keep LinkedIn and events ticking over; when there is more to spend, we move on to the website or the sales process. We often build two profiles, not one: the founder’s personal profile and the company’s. The founder is the face of the business, but the larger organisations they want to work with need to see a business, not just one person.
What does progress look like after a SWOT?
Progress rarely happens overnight, but when every step ties back to the SWOT, clients can see it. I have seen businesses launch to a good reception and press coverage, founders invited to speak at more and higher-profile events, and first clients signed with retainers.
Offers almost always change along the way, and that is exactly what should happen. A SWOT is not a one-off; it is a foundation you keep coming back to.
What clients tell me they value most is having someone dig deep into their business without being an expert in their sector. Time and again, someone will stop and say, “I hadn’t thought about that.” An outsider who isn’t afraid to ask the simple questions is often what unlocks a SWOT.
How do you make your own SWOT analysis count?
Whether you are getting started, preparing to launch or planning your next stage of growth, here is how to make your own SWOT count:
- Block out proper time. Set aside half a day, not twenty minutes at the end of a busy one. A rushed SWOT will only tell you what you already think.
- Find someone to challenge you. Ask a colleague, adviser or trusted business contact to keep asking “why?” Their questions will uncover far more than your answers alone.
- Be specific, and be honest. Rewrite vague points until they are something you can act on. Then test each strength: could it also be a weakness, for example if everything depends on you?
- Look outside your business. List the changes in your sector, economy and customers’ markets over the past year, and how each could affect you.
- Keep it short. Aim for four or five points per box. If everything is a priority, nothing is.
- Pair the boxes. For each TOWS pairing, write down one action. Then choose your top three and put them in order.
- Fit the plan to your budget. Break your first priority into small, affordable steps, and keep the basics going in quieter months.
- Book a review. Put a date in the diary, three to six months from now, to revisit your SWOT and see what has changed. [link: quarterly review post]
Free SWOT analysis template
Our free template takes you through each step: the four boxes with prompt questions, a page for the TOWS pairings, and a simple plan for your top three actions, with an owner and a date for each.
The SWOT kit for growing businesses
Free 4-page PDF, no sign-up needed
Need a sounding board?
If you are starting out, getting ready to launch or looking to grow, and would value a fresh pair of eyes on your business, I would be happy to talk it through. Sometimes the most useful thing is simply someone who will ask the questions you haven’t thought to ask yourself.
Call to action: Download the template, or talk to your local Regional Director on 0330 223 7580.
Frequently asked questions
Strengths, weaknesses, opportunities and threats. Strengths and weaknesses are inside your business, where you have control; opportunities and threats are outside it, and you prepare for and respond to them.
Longer than most people allow. Set aside half a day, ideally with someone who will question your answers. For a new business, a few hours of conversation before you fill in the boxes is time well spent.
Revisit it every three to six months, and do it again in full before any big decision or when something significant changes around you.
Yes, and it is often most useful for a one-person business, where the owner is both the biggest strength and the biggest risk.
A SWOT lists what you find. A TOWS matrix pairs the boxes, for example strengths with opportunities, to turn those findings into actions.
