How To Determine The Strength And Weakness Of Your Business

Know your game before making a bet if you intend to win. This basic mantra is applicable to all situations whether it's the recipe of a new dish you intend to experiment with or it's about your business. It is only the definite knowledge about all the intricacies that can help you achieve the highest.

Knowing the precise strengths and weaknesses of your business is extremely crucial, especially in the present era, marked by cutthroat competition. All the key decisions including investments, portfolio management, financing, product diversions, promotions, etc., are largely dependent upon your business's capabilities and shortfalls. The way to success is by deploying your strengths to the best and at the same time working out on your weaknesses. However, this obviously implies, exact understanding of both the fundamentals.

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However, the whole fact again boils down on the 'How to' question. I understand the importance but suggest a way to do it. Do I require a specialist to perform the task for me or can I undertake the entire exercise all by myself?

Well, I would suggest a right mix of both the alternates. It is your business, so your involvement is necessary, but expert opinion always helps so seek professional guidance.

Prerequisite1: Have an open mind and accept your shortcomings.

Prerequisite 2: Involve all - opinions are important - there are many who know their specific line of operations better than you do. Your employees are experts in their field. Trust them.

If these two aspects are accounted for, the remaining task becomes much easier.

To start with the exercise, divide the entire business into few broad categories and analyze them. The bifurcation could be among different departments or could be in different categories like manpower, material capacity to produce and grow product specifications and other supporting functions like marketing, research, etc.

Workforce, at a very fast rate is appearing among the statements as an asset, so you must ensure that it's an asset to you. Keep a check on the turnover, absenteeism and employee morale. Make sure that you are not always dealing with increasing politics or adverse unionism. They must be a company's strength.

Material capacity to produce and grow has important implications on your firm's capacity to sustain and compete in the end. Make sure that you create a reserve in the end. If it's not already created, it will serve as a huge weakness.

Product specifications refer to the features and services offered, especially in comparison to the competition. In the long run, the uniqueness and the ability to customize each requirement is all that matters. Make sure to add the innovative touch to your offerings for them to be strengthened.

Last, but extremely important, are the supportive functions like research and marketing, which if ignored, weakens your base itself.

All these and many more aspects deserve a closer look for the promised success. So nurture your business in the right direction by understanding the systems well.

How To Determine The Strength And Weakness Of Your Business