If you conduct an honest and truthful evaluation of your business with a SWOT analysis then you will be able to identify the weaknesses that could have a negative impact on your success.
A small business can learn a lot from a SWOT analysis. This will then allow you to start working out a strategy to overcome your weaknesses.
The rate of small business failure, particularly in the first few years of trading, is staggeringly high. This is why it is crucial to use a SWOT analysis to find weak areas of your business that – if left unchecked – may eventually lead its closure.
A common weakness of many small businesses is a lack of entrepreneurial experience. This often causes the owner to make poor business decisions that have unfortunate consequences. To overcome this, try to get as much help and advice as you can when starting your first business.
Other weaknesses that you may identify from a SWOT analysis can be things like a poorly located business, a badly managed stock inventory or insufficient capital. These are all problems that will hold back your business and either delay its growth or lead to its failure, so it is important to acknowledge them as soon as possible.