SWOT Profile - Threats

The fourth area to consider in producing a SWOT profile for your business is the threats to your survival as a company. Strengths and weaknesses are focused on the internal aspects of your endeavor, while opportunities and threats look at the external influences.

As you consider potential threats, think about how difficult it has been for you to acquire customers. Losing them is a major threat to your survival. Are you providing the services your clients expect, or exceeding them? Are uncontrollable costs pricing you out of the market, and costing you customers? Has your product line become obsolete?

Threats can come from many directions - new products brought to market by competitors, consumers reacting to new technology for receiving advertising messages (texting, for example), employees trying to undermine your business without your knowledge, or something as simple (and complex at the same time) as major road construction limiting the ability of clients to reach your location.

The key to identifying potential threats to your business is that, in doing so, you can also identify the solutions to the problems each of these threats pose to your survival. It's better to know what can prevent the fire rather than try to fight it when it breaks out. This is also an opportunity to bring in professional help to counsel you and your team on what threats there may be, and how you can respond to them effectively.