SWOT is normally used with for established companies but I am recommending it for start-up companies.

S.W.O.T. Strengths Weakness Opportunities and Threats. (earlier blog 8.7.2017)

It’s very possible if start-up companies did a S.W.O.T analysis before they started their company then maybe they wouldn’t start in business.  This may save themselves money and headaches.

If they decide to move forward with the company after the S.W.O.T. analysis they will be better prepared.

Let’s take a cupcake business for example.

Are their strengths their own opinion or do outsiders agree?

Does everyone else think they make great cupcakes?

Identifying weaknesses honestly may prepare them to get financial or marketing advice.

The person may be great at making cupcakes, but charging the right amount, or advertising their business effectively may be their weakness

Threats.  The price of cocoa and sugar may increase due to tariffs. A new strip mall for the neighborhood may have a bakery.

Opportunities.

You have to make sure the opportunities are valid to open a business.

Is there enough traffic?  Are you at the right location to get people to stop in and buy a cupcake?  Do you specialize in Birthday and Wedding cupcakes?  Are you in a professional building and have a captive audience of foot traffic that makes it convenient to buy cupcakes in their building when it is cold, raining and/or snowing?

Do a S.W.O.T analysis for your new business to make sure you are successful.