Reading about SWOT is one thing. Seeing one filled in makes it click. So here's a worked example for an imaginary company: a ten-person software agency that builds web apps and mobile apps for small and mid-sized businesses. It isn't a real company, and the details are made up to show how the exercise works.
The question we're asking: "How should we grow over the next twelve months?"
Strengths
- Senior developers who stay. Most of the team has been here for years, so clients deal with the same people from project to project.
- Fast first version. The team has a repeatable way of getting a working prototype in front of clients within a few weeks.
- Strong referrals. Most new work comes from past clients recommending the company.
- Clear communication. Clients get a short update every week and a demo every two weeks.
Notice these are specific enough to check. "Good developers" would be useless, since every company says it.
Weaknesses
- Half the revenue comes from two clients. If one leaves, the company is in trouble.
- No marketing, just referrals. Growth depends on word of mouth, which is slow and unpredictable.
- Little work after launch. Projects end and income drops, because there's no maintenance or support offer.
- The owner does all the selling. When they're busy delivering, new leads go cold.
Weaknesses are uncomfortable to write, which is why they're valuable. Any one of these could end the company, and none of them is about the quality of the code.
Opportunities
- Small businesses are digitising. More local companies want booking, ordering and stock tools instead of spreadsheets.
- AI features are in demand. Clients are asking about chatbots and automation, and few small agencies offer them well.
- Competitors are chasing big accounts. Some mid-sized agencies have moved up-market, leaving smaller clients underserved.
- Remote work is accepted. The company can serve clients in other cities and countries.
Threats
- AI tools make simple builds cheaper. Clients may try to build basic apps themselves or pay less for simple work.
- Low-cost freelancers. Price pressure on straightforward projects keeps rising.
- Rising costs of hiring good developers. Salaries are going up, and experienced people get approached by recruiters.
- Platform rule changes. App store policies and cloud pricing can change with little notice.
Connecting the boxes
This is where the example becomes useful. Here are some connections:
Strength + Opportunity. Fast prototyping plus small businesses going digital suggests a fixed-price starter package for small clients: a working first version within a few weeks.
Strength + Opportunity. Senior developers plus demand for AI suggests building a small AI automation offer, such as chatbots and document processing, and showing it with two or three pilot clients.
Weakness + Opportunity. No work after launch plus small businesses needing ongoing help suggests a monthly support and improvement plan. That turns one-off income into steady income.
Weakness + Threat. Two clients paying half the revenue plus low-cost competition is the dangerous one. If either client leaves or finds a cheaper option, the company takes a serious hit. It's the first thing to fix.
The action plan
From dozens of possible ideas, the team picks four:
- Launch a monthly support plan and offer it to every past client. Owner: head of delivery. Target: within two months.
- Reduce dependence on the two big clients. Aim to bring in several smaller ones over the year. Owner: the founder.
- Start simple marketing: a few case studies and a regular blog. Owner: a named team member, a couple of hours a week.
- Pilot an AI automation service with two friendly clients before promoting it more widely.
Each has an owner, a deadline and a reason, and all four trace back to a specific cell in the SWOT. That's what makes it useful.
What to take from this
The strengths and opportunities weren't the interesting part. The value came from the weaknesses and the way they combined with outside threats. And without the follow-up actions, it would be four tidy lists in a drawer.
Try it with your own business: pick one question, run the exercise for an hour, and end with three actions.
