Small Business Ownership and Common Problems: Know Opportunities and Threats

When it comes to being a good self-employed business person, it's essential that you know the opportunities and threats that you may face over the course of your career.

Aston had been a free agent Web developer for three years when John approached him about a job. John had a business idea to sell a particular product online, but he didn't have the funds to develop a Web site. John proposed that Aston build the Web site at no cost, but that Aston would receive a portion of the profits after the launch of the site.

Aston looked at John's business plan. John seemed to have credentials as the president of sales for a retail store. After several meetings, Aston and John decided to partner on the new site; Aston would build the site for free and earn 10% of the profits for five years

It took Aston three months to build the site, working almost around the clock as John offered ideas and made changes. Aston uploaded product images and descriptions, coded shopping carts and tools, and tweaked the design according to John's every desire. In the meantime, Aston turned down several high profile opportunities.

After Aston had finished the site, he waited for his first check. It never came. Shortly after the site launched, John bought a sailboat and decided to write a novel at sea. Aston, who had dedicated his time and resources to develop the site, took a risk and fell flat.

Leaders must be aware of threats and opportunities. Like Aston, many business leaders feel lured by partnerships and promises of fortune, just as they can sometimes feel threatened or pressured by competitors. When leaders start to question their mission, they tend to make hasty decisions that may harm the business.

As a leader, it is important to always keep your eyes open for opportunities for growth. However, in order to ensure that you make wise decisions, it may also be important for you to pull in a team of advisors or analysts to assess your risks - both internally and externally. Knowledge is the best defense against threats and can certainly help you identify opportunities that will help you succeed.

Often, clients will be slow to pay...or may not pay at all. Therefore, developing a long-term financial plan will help you stay afloat when clients don't pay or are slow to pay. Also, it's a good idea to have some knowledge of the legal system and contact information for a good attorney.It's a good idea to have some knowledge of the legal system.Often, clients will be slow to pay.Leaders must be aware of threats and opportunities.http://www.sba.gov/