Watch the video version of this episode on YouTube - https://youtu.be/a6XqkUfZJNs 

Transcript

Welcome to Business Kickstart! Our mission is to help you build your personal business toolbox and in the process inspire you to embark on your own entrepreneurial journey. Your business toolbox consists of knowledges, skills, resources, and strategies needed to start and run your own business. 
A SWOT analysis is a useful tool for evaluating the potential of a business idea. 

It helps to assess the internal and external factors that could affect the success of the business and provides insights into its viability. 

Let’s explore the acronym SWOT and discuss how each element applies to evaluating a business idea.

S = Strengths
Internal positive attributes and advantages that a business possesses that provide a competitive edge

W = Weaknesses
Internal negative attributes and disadvantages that may hinder progress or provide a competitive disadvantage

*Strengths and Weaknesses are considered internal factors since they relate to aspects that are within the control of the business or organization.

O = Opportunities
External factors or trends that present the potential for growth

T = Threats
External factors that could pose challenges or risks to the success of a business.

*Opportunities and Threats are considered external factors since they are derived from the outside environment and cannot be directly controlled by the business.

Let’s explore the SWOT analysis for a physical product

Example 1
Business idea: A new piece of exercise equipment designed to produce a superior calf stretch.

Strengths

• Equipment offers unique features and functionality that distinguish it from current calf stretching devices
• Simplified ease of use limits patient errors and increases compliance
• Premium materials and design ensure appeal to individuals and commercial gyms

Weaknesses

• High production and material costs
• Large order quantities to make unit costs reasonable
• Lack of brand recognition compared to established equipment brands

Opportunities

• Increasing trend of home workouts
• Collaboration with fitness and personal trainer influencers
• Commercial gym sales (volume, customization options)

Threats

• Development of low cost alternatives
• Changing fitness trends
• Supply chain disruptions

Let’s explore the SWOT analysis for a PT service.

Example 2
Business idea: A new cash-based concierge physical therapy practice.

Strengths

• Personalized care customized to individual patient needs
• Strategic location in densely populated affluent area near numerous fitness centers
• Existing relationships with physicians and area personal trainers

Weaknesses

• Heavy reliance on physician referral may limit patient acquisition
• Public perception and trust issues
• Potential to experience revenue instability

Opportunities

• Growing demand for direct access physical therapy services
• Clear and definitive pricing structure
• Affordability for individuals with high deductible health plans

Threats

• Economic downturn creating affordability issues
• Competition from insurance-based clinics and other niche practices
• Recruiting and retaining highly skilled physical therapists

Summary
Thoroughly analyzing the four components of a SWOT analysis – Strengths, Weaknesses, Opportunities, and Threats – can help clarify where a business stands and provides a foundation for strategic decision making. Assigning a level of importance to each item in the SWOT analysis allows individuals to focus on the specific areas that will have the greatest impact on the success of the business.

Action - Time to SWOT!

1. Take out a piece of paper and a pen.
2. Divide the paper into four quadrants labeled Strengths, Weaknesses, Opportunities, and Threats
3. Begin a SWOT analysis for your hypothesized business

The SWOT analysis can continue to evolve over time as your business concept and the market conditions change.

Activities like the SWOT analysis are critically important thought exercises that allow your business ideas to constantly evolve. 

And there you have it, another dose of PT-preneurial inspiration to fuel your journey. Check out more inspiring stories from PTs and PTAs our there making waves by listening and subscribing to our podcasts on your favorite streaming platforms. And, don’t forget to rate and review this podcast. Thanks for listening!