How do I assess the strengths and weaknesses of my business?

One of the most common methods of assessing the strengths and weaknesses of your business is to conduct a SWOT analysis, where SWOT stands for strengths, weaknesses, opportunities and threats.

Strengths

Essentially, this defines your company’s competitive advantage. Some questions to answer include:

• What does your business do well?
• What resources do you have access to (human, financial, intellectual property)?
• What are you known for in the market?
• What is it about your business that your competitors cannot match?

Weaknesses

This looks at the areas where you and your business need to improve. Some questions to answer include:

• What doesn’t your company do well?
• What don’t customers like about your products or service?
• Where are the pressure points in your business?
• What do competitors do better than you? 

Opportunities

This sets out the areas where you could grow your business in the future. Some questions to answer include:

• What are the trends in your industry that could create opportunities (technology, demographic or social changes, regulation)?
• What new products do your customers need?
• What products would complement your current offering?
• What geographic areas could you target?

Threats

These are external and internal factors that could create problems for your business. Some questions to answer include:

• Do you lack the resources to grow your business?
• Are your competitors threatening your business in any way?
• Are industry trends such as changing technology or regulations a threat to your business?
• Are you vulnerable to an economic downturn or other economic changes?