Do You Know Your SWOT?

The key to survival—whether it be in the "real" world or the business world—is to know your SWOT (Strengths, Weaknesses, Opportunities, and Threats).

According to the U.S. Small Business Association, roughly 50% of all businesses fail within their first year. There is no shortage of “Top Ten Reasons Why Businesses Fail” lists so I won’t go into that here, and I’m sure you could name many of the main culprits—poor management, lack of capitol, insufficient marketing, flawed business plan, etc.—without having to run a search or buy a “How to Succeed in Business” book. What I will talk about is how to avoid the common (and sometimes harder to find) missteps, mistakes, and missed-the-boat opportunities that can determine if your company sinks or swims.

If you’re one of the “lucky” ones who makes it to Day 366, don’t think for a nanosecond that you’re out of the water and are now one of Darwin’s success stories. Far from it. The truth is, your battle for survival has just begun. You’ve figured out how to stand on your own two legs, but now you need to learn how to not get knocked down.

"In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment." ~Charles Darwin

No matter how unique, innovative, creative, or “original” your product, there will always be competition that is vying for your customers. And you know what—that’s a good thing. Competition triggers our will to exist and reminds us that it is truly survival of the fittest. 

The key to survival—whether it be in the “real” world or the business world—is to have as much information as possible. Not only about your opponent, but about yourself. That’s where SWOT comes in.

SWOT is an acronym (another handy tool created by man to boost efficiency and increase curability) that stands for Strengths, Weaknesses, Opportunities, Threats.

SWOT provides the guidelines for critically assessing what you’re doing right, what you’re doing wrong, who or what can take you down, and what you can do to get—and stay—ahead of the pack.

And it’s not just Darwin who subscribes to this theory.

Strengths

“He who knows others is wise. He who knows himself is enlightened.” ~ Lao Tzu

In most cases bragging is looked upon as a bad thing. For this exercise it is highly encouraged. It’s important you have a clear recognition of the places where you and your business excel, but not just to give yourself a pat on the back. It’s crucial that you are aware of what you do best. Pediatricians don’t perform heart transplants, Shaquille O’Neal doesn’t shoot three pointers, and Quentin Tarantino doesn’t make G-rated movies. Why? Because they all know what they can do well and play to their strengths.

Key “Strength” Questions

• What’s the best part of what I do, and what do I do best?
• Why do people engage with my product?
• What gives me the greatest sense of accomplishment?

Weaknesses

“Our strength grows out of our weaknesses.” ~ Ralph Waldo Emerson

Bad news—you’re not perfect. Good news—that means you can always improve. Better news—the worse you are at something, the more room for improvement! This isn’t a “glass half full” perspective, it’s just the reality of things. Negatives can be turned into positives, but first you need to figure out what they are. Before you start making your list of shortcomings, make sure you’ve got your old pal Honesty by your side and kick Humility out to the curb. There’s no room for excuses, partiality, and beating around the bush. Without a 100% forthright and straightforward audit, you’ll never be able to optimize your business, and more importantly, survive.

Key “Weakness” Questions

• What can I do better?
• In what areas do I receive the most complaints (from consumers or employees)?
• Am I spending money on something that isn’t necessary?