September 16, 2022
How to Turn Business Weaknesses Into Strengths
Mike Michalowicz
Author, Profit First
As an entrepreneur, the temptation to compare your company to others can be irresistible. You might look around and wonder if you’ve made the right choices or if you’d be better off following industry trends.
When business owners start making comparisons, they can end up feeling like they’ve mostly found ways in which they don’t measure up. But what if you instead considered that list as a set of strengths?
Running a small business can certainly pose many challenges. However, small businesses have a number of hidden advantages, some of which may first appear as weaknesses, but can be reframed to spark innovation and growth.
"Struggle can result in innovation.
Being cash-poor can spur us to find
a better way to manage our processes
and expenses."
6 Business Weaknesses and Strengths
1. No one knows you.
Whether you’re a small or midsize business, you’ll likely lose the name recognition game in comparison to larger category leaders.
So how can the lack of name recognition be an advantage? It can position you to serve your category in a unique way. For example, most shoppers recognizes big box store names, but that may not be their destination for niche products or specialty gifts. Find your specific differentiator, celebrate it, and use it to stand out.
2. You lack resources to grow.
I know first-hand how terrifying it can be to need cash. I’ve struggled to pay bills, and I’ve wrestled with wanting to achieve more and lacking the resources to make it happen.
But struggle can inspire innovation. Being cash-poor can spur us to find a better way to manage our processes and expenses, and these strategies can become strengths we stick to in order to grow ourselves and our businesses.
3. You’re new to the industry.
When you enter an industry as an outsider, prospective customers may be skeptical. But here’s the awesome thing: you can be the rule breaker that offers a better way to do things. When you aren’t mired in old ways of thinking, you may be better positioned to develop a revolutionary solution that excites and inspires people.
4. Expert employees are beyond your budget.
You may not be able to hire people who are industry experts for every role. But in some cases, hiring the right person with the right attitude and values can be as beneficial as having someone with a specific skill set. You can train someone in your process as long as they are a fit for your company’s culture. Additionally, by considering remote candidates, you can greatly expand your talent pool to find the right fit.
5. A specialized product means a high price point.
If everyone else's products in the category are cheaper than yours, you may feel anxious. But being more expensive isn’t necessarily a bad thing.
Being the top-drawer option can actually mean you’ve created a profitable business model. Specialists may be able to charge more money and turn a profit more easily than companies who fail to specialize enough.
6. Technology is not your biggest strength.
I know many business owners who fret about their inability to build their own websites or understand fintech and other technological concepts and tools. While I could do some of the IT work for my businesses, I don’t, and I don’t think you should worry about your tech shortcomings.
You can hire people who know more than you for a fraction of what it would cost you to try to absorb all the latest tech options and information. Having a specialist handle your company’s tech needs can free you up to do the big-picture work that can be far more valuable to the future of your business.
The Takeaway
In order to turn business weaknesses into strengths, start by running a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) for your business. Next, review, analyze, and reframe the weaknesses as opportunities to grow. Make it your goal to hire a team to compensate in the areas where you’re lacking in order to stay focused on the bigger picture.
Photo: Getty Images
