How to do an SME SWOT Analysis

Running a small business in South Africa means you’re used to thinking on your feet. Your brain very rarely switches off, and it's all about juggling multiple tasks - everything from finding funding and growing your customer base, to keeping the lights on.

But even in the hustle, you need moments to pause and reflect.

One of the smartest things any business owner can do, especially when preparing for funding, is a SWOT analysis. It’s simple and surprisingly effective at helping you see what’s working and where the real growth potential lies.

Here’s your FundingHub guide to what a SWOT analysis is, and how you can do your own.

What is a SWOT Analysis?

A SWOT analysis breaks your business down into four key areas:

Strengths: What you do really well.
Weaknesses: Where you’re struggling or vulnerable.
‍Opportunities: What external factors you can use to grow.
‍Threats: What outside forces could hurt your business.

Think of it as taking an X-ray of your business — but instead of bones, you’re looking at your competitive edge, your risk areas, and your big bets.

Why every SME should do a SWOT

Most small business owners know their business inside out — but it’s easy to get stuck in the day-to-day. A SWOT analysis gives you a structured, high-level view that helps you:

• Get funding-ready: Know what lenders or investors will ask — and have the answers.
• Grow smarter: Spot new opportunities and avoid costly mistakes.
• Plan strategically: Make decisions based on reality, not gut feel alone.
• Understand your value: Be clear on what makes your business special — and how to sell that.

Whether you're a Cape Town coffee roastery, an e-commerce startup in Joburg, or a mobile mechanic in Durban — a SWOT analysis works across every sector.

How to Do a SWOT Analysis

You don’t need a consultant or an MBA. All you need is a pen and paper (or a spreadsheet), and a little bit of honest reflection. You can do this alone, with your team, or even with a mentor.

Here’s how to tackle each section:

✅ Strengths: What makes you awesome?

Ask yourself:

• What do customers consistently praise us for?
• What do we do better than the competition?
• Do we have any unique products, skills, or resources?

💡 Examples:

• You’ve built a loyal local customer base through word-of-mouth and great service.
• You’re one of the few caterers in your area offering halaal, vegan and gluten-free options.
• Your custom furniture workshop sources local, sustainable wood — and customers love your eco-conscious brand.

⚠️ Weaknesses: Where are the cracks showing?

Ask yourself:

• What do we avoid because it’s too hard or costly?
• Where have we lost customers or money?
• What would competitors say we need to improve?

💡 Examples:

• You rely heavily on one supplier, and when they’re late, you’re stuck.
• Your delivery turnaround is slow because you’re doing everything manually.
• Your business has no online presence, not even a Google listing.

👉 Note: Be honest here. Weaknesses aren’t a bad thing — they’re just areas to improve.

💥 Opportunities: What can we take advantage of?

Ask yourself:

• What trends are emerging in your industry?
• Are there gaps in your market?
• Is there funding or support available that we’re not tapping into?

💡 Examples:

• More South Africans are shopping online, maybe it’s time to list your products on Takealot or set up your own e-commerce site.
• Government is offering SME grants or energy subsidies, and your business might qualify.
• Load shedding solutions (inverters, backup power) are in demand, and you sell them.

🛑 Threats: What’s out of your control but could hurt your business?

Ask yourself:

• Are there rising costs or changing laws that could impact us?
• Who are our biggest competitors and what are they doing better?
• Are our customers’ needs changing?

💡 Examples:

• Your rent is going up — and your profit margins are already tight.
• A big-name franchise is opening nearby and offering lower prices.
• Interest rates are rising, and customers are spending less on non-essentials.

🔎 Pro Tip: Be Specific

Vague statements won’t help you plan. Instead of saying “we need more customers,” write: “we rely on one major client for 80% of revenue, risky if they leave.” Specific insights = specific actions.

📈 Turning SWOT Into Action

Once you’ve filled out your SWOT grid, the real value comes from asking:

• How can we double down on our strengths?
• How can we fix or manage our weaknesses?
• Which opportunity should we go after first?
• What steps can we take to reduce the impact of threats?

Example:
Your SWOT reveals that while your bakery’s quality is top-notch (strength), you're only open during office hours (weakness). With more people working hybrid or from home, there's an opportunity to test a weekend delivery service (opportunity), especially before a large chain bakery moves into the area (threat).

This kind of thinking is how you future-proof your business.

💬 Don’t Just File It, Use It

A SWOT analysis isn’t something you do once and forget. It’s a tool you should return to every quarter or whenever things change — like launching a new product, applying for funding, or expanding your services.

And if you’re applying for funding through FundingHub, having a clear SWOT analysis can show lenders or investors that you’ve done your homework and that you’re building from a place of insight, not guesswork.

Need funding to turn your next big opportunity into action?

At FundingHub, we help South African SMEs compare business finance options in minutes — from working capital and asset finance to bridging loans and invoice discounting.

Do your SWOT. Then do your funding. We’ll help with the second part.