If you’ve asked some members of your target audience about your idea, you’ve already done some testing. However, how does your idea and your business compare to other businesses?
Use a “SWOT Analysis” to help determine the answer to that question. “SWOT” stands for “Strengths, Weaknesses, Opportunities, and Threats.”
Strengths – advantages, uniqueness, factors that make you the “best”
Weaknesses – disadvantages, limitations, what you could improve, where you could lose money
Opportunities – chances to improve, companies and people you can work with
Threats – external trouble you can’t control (ex. The government or climate change), obstacles you face, what your competition is doing
Write down some of the strengths, weaknesses, opportunities, and threats to your business. This will help you figure out where your competition might beat you, or where you can add a new product line and grow.
Sometimes it’s easier to think about some examples of these four different areas if you fit them into a grid, like this: