It is okay to have so many ideas, especially as a creative. You get instantly inspired to start something and then wonder if you are on the right path. How do you know if your idea is worth pursuing or not? There is no magic remedy to solve this problem, but there are techniques you can apply, and one such method for selecting an idea from the bunch you have is to carry out a SWOT analysis.
What does SWORT mean?
SWOT stands for your Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are internal factors. Something that has to do more with you than with someone else. While opportunities and threats are often those elements that are beyond your control. SWOT is a strategic planning technique every entrepreneur should master and employ as often as possible, especially when they get stuck.
- Strengths: characteristics of your idea that gives it an advantage over similar idea.
- Weaknesses: attributes of your idea that disadvantage it to other similar ideas or existing ideas.
- Opportunities: elements in your environment that your idea could exploit to its advantage.
- Threats: factors in your environment that could cause trouble for ideas.
Before you can carry out a SWOT analysis, you will need to have substantial information. You must understand the market in which you intend to carry out your idea. Conduct Market and competitor research before you begin Analysing your ideas using the SWOT technique. After you have enough information, start your evaluation by exploring your “strengths”, and here are two significant questions to ask.
- Do you have excellent knowledge about your idea, or would you need to hire someone with good knowledge?
- What makes your idea more unique compared to others already doing this business.
Think of more characteristics that can give you an advantage over others in the same market.
Explore SWOT – Weaknesses.
Let’s take a look at Weaknesses. You must analyse factors based on internal elements and characteristics. Something that has to do more with you than with someone else.
In what areas do you need to improve? Is it in expertise, funds, access, network, resources, etc? Specify only those areas within your control. SO government regulation cannot be a weakness, but it would rather be a threat. Do you understand?
Analyse opportunities and threats.
Let us analyse the opportunities and threats using these 5 factors categories. There are definitely more categories, but these are major and can help you stay on the right track.
- Demand for your idea: On a scale of 1 to 10, how high will you rate the need for your idea in your market?
- Legislations: Are there government standards or legislations that will determine if you can start, continue and grow your business? Do you need a long process of certification? Is it expensive? Can you afford it?
- Human resources and network: Do you need others to carry out an essential part of your idea – RELIABILITY OF WORKERS?
- Competitors reach: Are there also strong competitors getting into this sector? Is that going to be a threat or an opportunity?
- Scaling opportunity: How would you decide to scale your idea?
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We hope we have been able to throw some light on how to use the SWOT technique. Let us know how we can support you and share your results with the TRIBE. Our JoadreTRIBE app publishes new templates and tools that help you develop your idea. Coming soon is our SWOT card. Remember to join the tribe and download your free templates.
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Thank you for reading to the end.
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Joadre
