Threats impede the success of every business. No business is immune. Not one. Wow, I’m not sure if this should be reassuring or not – it’s just the nature of being in business. One of the most recent common threats for a business is a data breach. Everyone is spending a great deal of resources on this particular threat.
As a Business Owner, you understand that no matter how well you tend to your business, there is always something which could impede its success. As the leader of your business, an important aspect of being a good steward of YOUR Business is to mitigate as many threats as possible.
Recently, I heard a Small Business Attorney, Melissa Mortensen, address mitigating business risks. She was excellent in her wisdom-sharing of how certain risks are critical for you to address, while other may be impractical. What’s a impractical risk example? A comet coming into our atmosphere and landing on your business. Yes, you may be able to create some shield to protect your business, but at what cost? That’s the impractical side. However, she shared areas which we could manage risk quite effectively and efficiently.
Recently I have written several posts for a SWOT Analysis Series:
Click here to read a SWOT Analysis Overview and why businesses should conduct them.
Click here to read about Strengths and Weakness (the “S” & “W” of SWOT).
Click here to read about Opportunities (the “O” of SWOT).
Today we discuss the value of understanding how external Threats impact your business. It’s important to remember that a good SWOT Analysis identifies your Strengths, Weaknesses, Opportunities, and Threats. That’s all. SWOT Analysis is an awareness exercise. It identifies areas which your business’s performance is satisfactory or unsatisfactory.
One of the concepts of SWOT which is often misunderstood is this is a situational analysis. Thus, once your S,W, O, and Ts are identified, then you are able to start developing appropriate strategies and actions as to how you will respond to situations. If you have a well defined action plan to address an unsatisfied customer, a computer virus, how to give a refund, or the economy tanking, you will be able to effectively conduct business while tending to these and many other issues.
BRILLIANT BREAKTHROUGHS BIG QUESTION: Do you have a list to identify YOUR External Threats to YOUR Business? There are endless external threats waiting to be identified!
– New government regulations
– Your preferred vendor going out of business
– Minimum Wage increases
– Costs increases
– Your current technology is no longer being supported
– Competitors dropping prices or moving into YOUR Marketplace
– Changing credit limitations
BRILLIANT BREAKTHROUGHS BIG TIP: Remember external threats are different from weaknesses. Weaknesses are internal situations which you can control, minimize, or omit. Threats are external and you find yourself being impacted by them. Your response to threats is your best chance to minimize their negative impact.
A client was having a large fundraiser which included an outside barbecue in the early months of summer. What they didn’t count on was the foul weather that day! There was an unusual storm which dropped the temperature by 30 degrees and dumped buckets of water upon their barbecue. There wasn’t a back-up plan as to how the food was going to be grilled and another option for people. After all the work that was put into it, it wasn’t successful. Yet had they considered potential external threats, they may have had a plan to immediately activate and the event still could have occurred with great success.
SWOT Analysis Workshop Update:
As promised, this week I am putting the finishing touches on a brilliant SWOT Analysis Workshop to Assist Business Owners Simplify Success. Stay tuned for more details!
Please feel free to comment on potential threats to YOUR Business’s Success.
THANKS FOR ALLOWING ME TO HELP YOU IMPROVE YOUR BUSINESS!
If you want to discuss this strategy or something you need assistance with,
please call Maggie (262) 716.7750 for YOUR No-cost Consultation.
p.s. If YOUR Business functions in the state of Wisconsin. Please consider speaking with Small Business Lawyer, Attorney Melissa Mortensen of Mortensen Law Firm, LLC. She is brilliant and will do her best to help you identify and mitigate potential weaknesses and threats of YOUR Business.