Creating a SWOT diagram and utilizing the data is considered a crucial part of analyzing a business and business planning. SWOT is an acronym, which is symbolic for strengths, weaknesses, opportunities and threats

1. Why Create a SWOT? What Is the Purpose
of One?
Creating a SWOT diagram and utilizing the data is considered a crucial part of analyzing a
business and business planning. SWOT is an acronym, which is symbolic for strengths,
weaknesses, opportunities and threats. The internal factors and external factors are determined
for the business simply by using a SWOT diagram. Strengths and weaknesses fall under the
internal category, and opportunities and threats are considered external. A business venture or
project of any size may can be simply and properly analyzed by focusing on each of the four
factors.
They are considered to be specifically useful when a business or individual needs to come to the
correct decision on commencing or halting a business strategy or venture. The SWOT diagram
assists in laying out the pros and cons in a visual manner. Sometimes seeing the proof of a bad
decision or a good one is what it takes. If all the positives and negatives are clearly and visually
outlined, then deciding to move forward or not becomes markedly easier. The simplest design is

2. four boxes. Each box will be representative of one of the words in acronym, but the shape often
varies depending on the creator and preferred design.
The Simplest Way to Make the Simplest SWOT
First, it is important to determine the objective of the SWOT. Then, place the business strategy
or venture on the top of a page big enough to to fit absolutely everything on. After deciding on
the topic, create a grid by drawing a huge square, and it needs to be divided into four smaller
squares. The diagram’s structure is now ready to be labeled. The top and left square gets labeled
as strengths. The square at the top and right gets labeled as weaknesses. The square at the bottom
and left gets to be the opportunities square. The final square at the bottom and right is the threat
square to finish off the SWOT acronym on the diagram.
After the diagram’s structure is created and appropriately labeled, then it is time to start adding
factors to the appropriate boxes, and it is usually best to add them in a bullet form. The elements
of a SWOT can be anecdotal, qualitative, empirical and quantitative. Finally, start analyzing the
SWOT. If the good points outweigh the bad or vice versa, then the number of points will sway
the decision.
Jonah Engler is a financial expert from NYC who loves to keep up with the latest political news.