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:
Not enough 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A limited or outdated product range.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. Typical 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Outdated equipment, high cost production and low productivity.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.