SWOT Analysis

3. Weaknesses

Your weaknesses are often known but ignored. A SWOT analysis should be the starting point for tackling underperformance in your business (see 6.2).

3.1 Poor financial management may result in situations where:

• Insufficient funds are available for investment in new plant or product development.
• All available security, including personal assets and guarantees, is already pledged for existing borrowings.
• Poor credit control leads to unpredictable cashflow.

3.2 Lack of marketing focus may lead to:

• Unresponsive attitudes to customer requirements.
• A limited or outdated product range.
• Complacency and a failure to innovate.
• Over-reliance on a few customers.

3.3 Management and personnel weaknesses are often hard to recognise, except with hindsight. Familiar examples are:

• Failure to delegate and train successors.
• Expertise and control locked up in a few key personnel.
• Inability to take outside advice.
• High staff turnover.

3.4 Inefficient production, premises and plant can undermine any business, however hard people work.

Typical problems include:

• Poor location and shabby premises.
• Outdated equipment, high cost production and low productivity.
• Long leases tying the business to unsuitable premises or equipment.
• Inefficient processes.