Using a SWOT Analysis
Your next step should be to assess each idea that you have outlined. One of the best ways to do this is a SWOT analysis. SWOT stands for the strengths, weaknesses, opportunities, and threats (in this case, of your potential company). The strengths and weaknesses are usually considered to be internal, while the opportunities and threats are generally external to the company. This analysis helps you ask yourself, “Where are you now?” This gives you an opportunity to take stock of the overall situation before committing to a particular idea.
Make sure that you are ready to spend a bit of time when you undertake a SWOT analysis so that you are producing an accurate description of your business idea. Be sure to gather accurate data, do research, and consult experts in your field. Once you’ve done a first draft of your SWOT analysis, have a trusted mentor, coach, or consultant review and analyze it.
A SWOT analysis is often organized using this type of matrix:
Advanced Types of SWOT Analyses
After you’ve chosen a business idea, you can analyze specific segments of it using the SWOT process. Here are some ideas: