SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis is a technique that many companies use during strategic planning; basically an organized way to evaluate where to focus time, money and energy to improve productivity and growth. A SWOT analysis can be a valuable tool for setting milestones or approaching a venture investor, because it demonstrates a solid understanding of your company performance and the factors influencing productivity.
To do the analysis, start by brainstorming each of the four categories in terms of your business operations. Narrow the list in each category to the main items, and assess each individually with respect to their effects/implications on the organization. Finally assess the strengths and weaknesses in terms of how they relate to external opportunities and threats. Strengths that can be applied to external opportunities are areas of potential growth, while weaknesses that lead to external threats are areas that need to be addressed.
For some ideas of what might qualify as strengths or weaknesses, consider what venture investors look for in a company.