Strengths and Weaknesses of a Business Enterprise

In business there is always a possibility of failure. All entrepreneurs must aim to reduce or lessen this possibility. To realize this, every would-be entrepreneur must periodically study the strengths and weaknesses as well as the opportunities and threats which the enterprise will be exposed to.

The strength of the business may be on the patience and determination of the entrepreneur to pursue his/her objectives to keep the business going no matter how small the profit could be at the start of the enterprise. Belief in working on the strong points of the business will definitely help to further improve the performance of the enterprise.

The entrepreneur may use the following points to evaluate the enterprise in gauging its strengths:

• Are needed materials available and cheap enough for the company to profit from the operation?
• Is there enough working capital to keep the business going?
• Is there available expertise to maintain the quality of the products/services?
• Is there a strong demand for the products or services?
• Is the company easy to manage?
• are the operating expenses within the means of the business enterprise?
• Is the working capital adequate enough in order that the company will not be drained of resources?

The entrepreneur must also assess the business enterprise for possible weaknesses? He/she has to take time to identify the problems causing the failures and try to figure out solutions of each problems.

The following questions should be persistently answered to identify business problems:

• Is the business properly managed?
• Are the marketing strategies effective?
• Is the production low when the demand is high?
• I the packaging attractive and provide convenience to the consumers?
• Is there proper management of capital?
• Is the design attractive?
• Is the size of the product appropriate?
• Is the product or service at reasonable coat?
• Is there expertise and technical know-how?
• Is there understanding of consumer demands and acceptance?

A would be entrepreneur should always have an eye for opportunities. He/she must be sensitive to his/her environment through collecting information from various sources and by reading newspapers to be aware of the climate of the business sector.

The following opportunities are what an entrepreneur should take advantage of:

• Products not yet in the market
• Increased consumer demand of product
• Observe product in the locality
• Presence of government support
• continuous product development

To ensure the success of the operation, an entrepreneur must be aware of the factors that may hinder the product or service to be patronized and these are the following:

• Increased cost of operation
• Shortage of raw materials
• Too many competitors
• Unfavorable government control