What are The Strengths and Weaknesses of A Small Business Enterprise?
There is nothing in this world that is perfect, not even your small business or the big business of your competitors. Yes, the so called big names in your industry are not perfect, they just understand and employ a secret that may be oblivion to you. And that secret is that they set aside time to analyze the strength and weakness of their business.
This helps them to discover the areas they can improve on in their business so that they can get better. Do you now know the secret? The secret is not being perfect but constantly improving on your business and making it better. One of the ways to do this is by analyzing the strength and weakness of your business because it is what is measured that can be improved on.
The Importance of Analyzing the Strengths and Weaknesses of Small Scale Business
Analyzing the strength and weakness of your business entails exploring both the characteristics of your business that are beneficially to its growth and also the ones that are detrimental to its growth. The essence of this analysis is to help you discover what you do well and how you can do it better.
And also, to help you identify what you have not been doing right, why you’ve not been doing it right and how you can improve on it. It also gives you the better understanding of your business, as a small business that is just starting to grow, there are many hidden potentials that you can exploit to your advantage.
However, you can only take advantage of what you are aware of. Analyzing the strength and weakness of your business helps you uncover these hidden potentials so that you are able to maximize them.
How do you Analyze the Strength and Weakness of your Small Business?
1. Be Sincere
The first thing is that you must be ready to be very thorough and sincere with your analysis, so that you are able to fully identify the strength and weakness of your business.
2. Ask Brainstorming Questions
The next thing to do is to brainstorm and ask some questions that will help you to identify the strengths and weaknesses of your business. It is better to do this brainstorming together with a team that knows about your business so as to get a bird’s eye view of the whole view.
As your team can help you recognize some of the things that are oblivion to you. At the brainstorming session, ask questions that will help you identify your strengths. Some of the questions to consider includes:
• What are the characteristics of your business that allows it to be more effective than that of your competitors?
• What are those striking things that makes your business different from your competitors?
• What experiences do you have that gives your business an edge over your competitors?
• What do people including your customers commend about your business?
3. Using Competitors
In order to effectively analyze the strength of your business, you must compare the strength of your business with that of your competitors, if what you are doing is better than what they are doing, then you can identify that thing as your strength.
But if you do what they are doing the same way they are doing it, you should not consider it as a strength.
After identifying the strengths of your business, you should also brainstorm together with your team to look out for the weaknesses of your business. You can do these by asking these questions:
• What are the things that you ought to be done in your business that you are not doing?
• What are the things you are currently doing that you can do better?
• What are the resources lacking in your business that is impeding its growth?
• What are your customers complaining about?
4. Using Customer’s Feedback
Another way to get a bird eye view analysis of the strength and weakness of your business is to ask your customers questions about their dispositions to your business. You can do this by conducting a survey using a questionnaire that contains questions you would like them to answer about your business.
You can also ask them the question one on one or send it to their email. Just choose the method that is best suitable for you.
5. Using Leverage
After identifying the strength and the weaknesses of your business, the next thing to do is to strategize on how to leverage on your strengths and how to improve on your weaknesses. Then create an action plan to work out your strategies.
So, as a small business owner, if you are really serious about the growth and profitability, then you should develop the habit of analyzing the strength and weakness of your business periodically so as to keep improving on it.