Perform a SWOT Analysis – Overview

Purpose of the SWOT Analysis

Financial leaders play a critical role in managing the structure and strategic direction of an organization. Conducting a SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) enables financial decision-makers to assess both internal capabilities and external influences, allowing for the development of targeted strategies to improve financial performance, operational productivity, and overall business resilience.

Too often, business owners, CEOs, and financial leaders focus exclusively on internal metrics—overlooking the broader economic, political, and competitive environment. This limited perspective can lead to missed opportunities for growth or failure to identify emerging risks.

By stepping back and taking a strategic view—evaluating both what’s happening inside the company and what’s evolving outside—financial leaders can make more informed, forward-thinking decisions.

What Is a SWOT Analysis?

A SWOT Analysis is a strategic planning framework used to evaluate the key factors that influence an organization’s ability to achieve its goals. It breaks down into four components:

• Strengths – Internal attributes that give your company a competitive edge
  
• Weaknesses – Internal limitations that may hinder performance or growth
  
• Opportunities – External conditions your company can leverage for advantage
  
• Threats – External risks that could negatively affect the business
  
  

This tool is useful for both new and established businesses. Startups use it to anticipate potential challenges and identify advantages before launching. Established companies rely on SWOT to adapt to environmental shifts, improve operations, or refine strategic priorities.

Connecting SWOT with PESTEL Analysis

To effectively complete the Opportunities and Threats sections of your SWOT analysis, it’s helpful to use the PESTEL framework. This model outlines six macro-environmental factors that can impact a business:

• Political
  
• Economic
  
• Social
  
• Technological
  
• Environmental
  
• Legal
  
  

By identifying and evaluating these external forces, you gain clarity on emerging risks and trends—empowering better strategic decisions.

We will explore how to incorporate PESTEL insights into your SWOT during the data-gathering phase.

Pro Tip: Think Like a Consultant

As you move through the SWOT analysis process, approach it as an objective third party. Pretend you’re an external consultant evaluating the company for the first time. This mindset can help reveal blind spots and uncover fresh perspectives that might otherwise be missed.

SWOT Analysis Template

Download the SWOT Analysis Template here. Then use this spreadsheet as we walk through how to perform a SWOT Analysis.