The next phase will help you assess the ideas and thoughts that you have outlined in the previous phase by dividing them into strengths, weaknesses, opportunities and threats (SWOT analysis). 

The strengths and weaknesses are internal, while the threats and opportunities refer to external (situations that are not under your control) that could have a negative or a positive impact to your business. 

Having in mind your business idea, try to put the following aspects in the SWOT Diagram below:

• The products or services that will be provided 
• The location of your business
• The geographic marketplace of your business (local level)
• The geographic marketplace of your business (international level – if applicable)
• Environmental factors that could have a potential impact in your business

Understanding your Target Audience 

• It’s important to have a clear understanding what is your target audience and where do they live. 
• Write down your answers to the statement above and try to think of ways to reach out to them. 
• Are there any data available that could help you understand your market audience? For example, are there any data about how your target audience behaves? Are there any data about their preferences within the context of the service and product that you aim to provide?  How much time are they typically spending on similar products or services? How much money are they willing to pay?

• A vision statement tells how you help people, or what values you are providing to them, and what you want to achieve. However, it doesn't include a plan for achieving those goals. 
• A vision statement is motivational and inspirational.