Defining Strengths and Weaknesses in Your Business Plan

To determine the strengths and weaknesses of your business plan, you need to know how to look at the specifics. Here are the things that you need to check with your business plan:

The basic thing that you need to do is identify the strengths and weaknesses of your business and cross-reference them in the business plan that you are trying to create.

First of all, list the possible strengths and weaknesses of your business. For these, you can think about your business budget. Do you have enough to be able to finance all that you might possibly need? Or maybe, do you still need to borrow from a bank? This will greatly sidetrack your plans if your application is not approved or if you do not get the amount that you need.

Another aspect which should be considered is your knowledge of the business. Do you have enough experience in this field to be comfortable enough to withstand the pressure? Or maybe, are you still a beginner with little experience, and with only a few ideas in management?

You also need to become aware of your competitors. You should know how they operate, what their future plans might be, and in what way you might be able to compete. Not knowing the projections of the actions of other businesses that you consider your competition will serve as a weakness, as you might get left behind or go towards an entirely different direction, one that does not provide you many customers.

The planned location of your business will also matter. If you are able to choose one that is considered at the heart of the traffic of people and commerce in your area, you can be sure that your location will be considered a big strength. But, if you are going to put up a business that is located at the outskirts of the city when it is supposed to be near to most people, that will only be a disadvantage. Therefore, you will need to revise your plan to better suit your business expectations.

There are a lot more aspects that can either be strengths or weaknesses. To make sure that you do not miss any one of them, you need to list each one at the time you have identified them. For your convenience, your list should be readily classified into strengths or weaknesses. It will be easy to set them apart as strengths will be the things that will make your business successful while the weaknesses will be the ones that will probably make it fail.

After you have listed them down, go back to your business plan, determine the weaknesses, and do your best to correct them. If you see that you still need more money to finance your business, you may consider taking loans, or if you see that the location of your establishment is not accessible enough, you can find another place while you still can.