If you haven’t ever conducted a SWOT analysis to try and identify the strengths and weaknesses of your business, you may have overlooked some important information.
A small business has a distinct competitive advantage over a large corporation in a number of ways. Although at first glance, it may seem that large businesses fare better in many areas due to their greater economies of scale and big marketing budgets, a small business can use its size to great benefit in a number of ways.
Small businesses are generally far more flexible than larger firms. They can react quickly to any type of change, whereas in a large business change is often a very slow process that requires approval from various levels of management before it can be implemented. A small business can respond within hours or days to changes in fashion, demographics, or the actions of their competitors. This should definitely be listed as a strength on the SWOT analysis.
The needs of a customer can be better met by a small business. Entrepreneurs often know their customer base extremely well and can modify their product or service or create new ones as a response to customer demand. They can receive valuable feedback on the strengths and weaknesses of their product line without the need for formal market research.