The entrepreneur who knows his strengths and weaknesses has a great advantage when starting his business, since this will allow for a more realistic planning.
It is advisable to use a system that allows the businessperson to determine both his strong and weak traits. As businesses also have strengths and weaknesses, the strategy known as SWOT is very useful.
SWOTstands for strengths, weaknesses, opportunities and threats:
- Strengths: attributes of the person or company that are helpful to achieving the objective.
- Weaknesses: attributes of the person or company that are harmful to achieving the objective.
- Opportunities: external conditions that are helpful to achieving the objective.
- Threats: external conditions which could do damage to the objective.
Examples of personal strengths include a positive attitude, good communication skills, specialized knowledge, responsibility and capacity to adapt to change. Business strengths include a personalized and flexible customer service, convenient hours of operation, affordable prices and a good location. A good reputation is always an important strength to consider.
An increase in demand, new technologies and continuing education courses provide opportunities to improve as a person and as an entrepreneur. Opportunities should be used to diminish weaknesses.
Personal weaknesses include the tendency to procrastinate and inadequatecontrol over emotions. The lack of financial resources, an inadequate accounting system, and poorly trained personnel are weaknesses in the company.
The main threats to a business are those competitors that offer similar products or emerging businesses that offer attractive or economic updates and services. Another threat to consider in these times is the general economic situation.
In summary, good entrepreneurs must be able to acknowledge their weaknesses and those of their business, be aware of potential threats, and explore the opportunities available to increase the strengths that will lead them on the road to success.