SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a strategic planning technique that can provide an organization or a person with significant insight regarding favorable or unfavorable factors (both internal and external) that affect their business or project. It is a tried-and-true tool of strategic analysis that has been used by many types of organizations, such as commercial enterprises, nonprofit organizations, government entities and individuals, to help them evaluate their current strategic position and how to develop in a positive direction. SWOT analysis is also extremely helpful for startup companies as part of their business planning process. It will help define and communicate the business strategy, so that you start off on the right foot and the team knows the direction that it is heading.