Published on February 19th, 2019 | by Jose Vasquez0
How to Make a SWOT Analysis for Your Startup Tech Company
A SWOT analysis can help you quickly evaluate the odds of success for your startup idea.
Before you can launch a startup tech company, you need to write a business plan, and even before that, you’ll need to determine whether your idea is feasible.
What exactly determines the feasibility of a startup idea? There are a few different ways to examine it, including studying the competition and calculating your profitability. However, one of the best first steps to take is performing what’s known as a SWOT analysis.
The SWOT Analysis
SWOT is an acronym that requires you to evaluate four key potential areas of your business:
- These refer to elements of your business that will give it an advantage over others like it. It could be that you’re able to sell to a demographic that hasn’t yet been targeted, or you could sell high-quality items for cheaper than a competitor.
- You also need to acknowledge your weaknesses. These are elements that give your business a disadvantage, and every business has some. It could be that you’re coming to market late in the trend, or that you’ll have a smaller distribution circle.
- These are key elements of your environment that could be exploited to win an advantage. For example, cheap, empty real estate in your hometown could be a perfect opportunity for you to expand, or establish multiple retail locations.
- These are key elements of your environment that could diminish your chances of success, such as declining sales in your industry overall.
Knowing these alone won’t be able to determine whether or not your idea can be a success, but they are a good start for your research. They should help you find out the main weaknesses of your business so you can compensate for them, and the main strengths so you can enhance them. Once you feel you have the SWOT analysis under your belt, you can start researching other areas of your business plan.
If you have a startup idea and you aren’t sure whether it has potential, contact me today for a free consultation!