SWOT Profile - Weaknesses

When you draw up a SWOT profile for your business, the strengths and weaknesses are focused more on the internal workings of your business, while the opportunities and threats are directed toward the external influences.

Since we've covered your business strengths in an earlier blog, this one is more about the weaknesses in your business. Identifying weaknesses is often the most difficult aspect of compiling a SWOT profile because it requires that you be open and honest with yourself about your business venture.

If you are having cash flow problems, for instance, you need to take a hard and sometimes painful look at what might be causing the problem. Are you having a hard time collecting from your customres? Are those receivables beyond the 60 day range? Perhaps expenses are running higher than you've budgeted, too. These could be bare spots in your business landscaping that need to be re-worked, seeded again, and nurtured back to health.

Other potential weaknesses could be in your sales force, management, or other personnel areas. Again, while you may want to avoid dealing with an issue if it involves your employees, it's important to do an honest assessment. Banks want to know your management team is capable of making tough decisions, and sticking with them. Consider how consistent your sales force is in reaching its monthly objectives. Does someone need to be let go? Do you need more representatives or larger territories? Evaluate your management team in terms of whether every member is pulling his or her weight, or needs a re-orientation or additional training. Include yourself in the evaluation.

Remember, your people are the front line with your customers. Does your business have curb appeal? Could your overall customer satisfaction ratings be improved? How well do you know your customers? You may have marketing myopia and be missing a fabulous opportunity to grow your business. Don't leave it to chance, plan for it!

Other areas to consider: How is your location? Is it easy for consumers to find you, either in person or online? Are your products obsolete? Do your services need to be updated?

It's healthy to step back occasionally, assess your weaknesses, and take steps to make those weaknesses strengths. Napoleon Hill wrote that you should concentrate on your strengths and hire your weaknesses. We're able to help with both.