A SWOT analysis is a simple tool to help you to determine your service’s strengths, weaknesses, opportunities and threats. This involves examining the present strengths and weaknesses of the venture as well as the potential opportunities and threats to such a business.
A SWOT analysis allows you to look at the strengths and weaknesses of your business so that you can plan to make the most of your strengths and address any weaknesses. It also helps you to think longer term about what opportunities may arise for your business and what threats may be damage your business.
A proper SWOT analysis of a childcare service requires an examination from the perspective of potential customers. You might find that having a few colleagues, or even customers, do the SWOT analysis with you is helpful and gives you valuable different perspectives on your business.
Strengths
Childcare business owners should identify strengths, which might include a recognisable name brand, an extremely well-qualified staff, an above-average physical facility and solid finances characterised in part by a competitive schedule of fees. 
Weaknesses
A childcare business may have weaknesses relative to competitors, such as a relatively small physical facility, previous financial or legal issues, and lack of experience. Other important and costly requirements can be recruitment and training of qualified and trustworthy employees.
Opportunities
The childcare business owner should take a close look at trends in the market and review key items to determine areas of opportunity. Possibilities include an expanding potential customer base due to an influx of younger residents in the area, a strengthening economy, or a location convenient for commuting workers.
Threats
Threats may include the lack of financial backing; the popularity of many established competitors; or the possibility of other new childcare businesses within the same locality.
Example of a SWOT Analysis for Childcare
