What Makes an Enterpreneurs

Entrepreneurs - the fastest growing area of our economy. What makes these strange people, risk takers and wealth generators tick? Why do entrepreneurs take risks, endure pain, fatigue, and embarrassment? What makes them run? Is it money, fame, rock and roll or sex?

None of the above!

Entrepreneurs might want and enjoy those rewards but what drives them and what distinguishes them from an overachieving employee or salesperson is the desire to create. That's it. Are you an entrepreneur? Do you pass the test? Many overachievers are not entrepreneurs.

Leonardo Da Vinci, Thomas Edison and the Wright Brothers were entrepreneurs. They had dreams to create new horizons for humanity. A vision, inspiration and most importantly the belief that, "I can do that", is the defining image of an entrepreneur.

How do you motivate an entrepreneur? Tell them, "It can't be done". Entrepreneurs love an impossible challenge. They will prove you wrong. It took Edison 10,000 attempts to create a light bulb that burned for several seconds. That persistence is the essence of an entrepreneur.

Not everyone who starts a business is an entrepreneur. Some do it out of desperation, or until they get a real job. They might become entrepreneurs one day, but they must move their mind set from 'I can't do that' to one of 'can do'.

What Does It Take to Succeed as an Entrepreneur?

The ability to learn what is needed to make your dream come true - and to acquire and apply those lessons and skills. Successful entrepreneurs go past the dream stage. Many have the potential to be successful. They have dreams, great ideas and they may even be right. But imagine if Edison quit after 1,000 attempts. He could rightly rationalize that it couldn't be done. After all who would expect him to try 1,000, 2,000 or even 5,000 times? It took 10,000. Nobody cares about the failures. The results count. We now have light bulbs.

George Cohon, senior Chairman of McDonalds Canada & McDonalds Russia, endured 14 years of negotiation and posturing to open the first McDonalds restaurant in Russia. It was the most successful grand opening they ever had. They served over 30,000 customers that first day. But it took 14 years of running around, being nice to Soviet bureaucrats and pleading with his board to get there. Cohon had no idea it would take so long but he knew he could do it. I suspect that Bill Gates was not motivated by money. The power of effecting change and growth is more intoxicating. Money is only a wonderful by-product. That is what sets entrepreneurs apart.

Entrepreneurs are dreamers. They see things that others can not. They want to create change and growth. They believe in themselves. They want to control their destiny. Successful entrepreneurs seek out, acquire and practise the skills they need to succeed. Successful entrepreneurs do what they have to, to get to where they want to be.

Article Source:
http://www.bestmanagementarticles.com
http://entrepreneurship.bestmanagementarticles.com

About the Author:
©BMA George Torok is an entrepreneur, radio show host www.BusinessInMotion.ca and bestselling author of "Secrets of Power Marketing". www.PowerMarketing.ca He delivers inspirational keynote speeches and practical seminars to organizations who want to grow by showing them how to improve their thinking and communication skills. You can contact him at 800-304-1861 or visit www.Torok.com

Read More...

Lease Financing

Leasing is a super financing alternative if you are seeking funding to obtain business equipment. Finance companies, banks, and many firms that sell high-priced equipment will lease to you.

When you lease an item, the lessor retains ownership of it. You use the equipment by virtue of the monthly payments you will be required to make. You can often purchase the equipment at the end of the lease term for its market value or less.

A great advantage to leasing is that it may be allowed to be "off the balance sheet." This means that leases can be disclosed as balance sheet footnotes. They do not appear as debt even though they represent an ongoing company liability. This may sound like financial doublespeak, but it's not. Let's say a supplier is considering whether or not to extend credit to you, or a bank is weighing a loan proposal you have submitted. The lease commitment will play a relatively minor role in evaluating your debt burden.

Banks also tend to consider their total exposure when lending to small businesses. If you have obtained lease financing through a third party, they are more likely to lend you funds than if all of your borrowing needs have been met through them. This is very important if you have a relatively small business, because most banks expect you to use them exclusively for traditional lending but may not care if you use a nonbank source for lease financing. In any case, though, do keep your bank informed regarding any significant lease commitments you are considering prior to actually signing any agreements.

Sumber : BusinessTown.Com

Read More...

Components of the Accounting System

Think of the accounting system as a wheel whose hub is the general ledger (G/L). Feeding the hub information are the spokes of the wheel. These include :

# Accounts receivable
# Accounts payable
# Order entry
# Inventory control
# Cost accounting
# Payroll
# Fixed assets accounting

These modules are ledgers themselves. We call them subledgers. Each contains the detailed entries of its specific field, such as accounts receivable. The subledgers summarize the entries, then send the summary up to the general ledger. For example, each day the receivables subledger records all credit sales and payments received. The transactions net together then go up to the G/L to increase or decrease A/R, increase cash and decrease inventory.

We'll always check to be sure that the balance of the subledger exactly equals the account balance for that subledger account in the G/L. If it doesn't, then there's a problem.

Differences between Manual and Automated Ledgers

Think of the G/L as a sheet of paper on which transactions from all four categories of accounts-assets, liabilities, income, and expenses-are recorded. Some of them flow up from various subledgers, and some are entered directly into the G/L through a general journal entry. An example of such a direct entry would be the payment on a loan.

The same concept of a sheet of paper holds for each subledger that feeds the general ledger. A computerized accounting system works the same way, except that the general ledger and subledgers are computer files instead of sheets of paper. Entries are posted to each and summarized, then the summary is sent up to the G/L for posting.

Organization of the Accounting Department

Organize your small-business accounting system by function. Often there's just one person there to do all the transaction entries. From an internal control standpoint, this isn't desirable. Having too few people doing all the accounting opens the door for fraud and embezzlement. Companies with more people assign functions in such a way that those done by the same person don't pose a control threat.

Having the same person draft the checks and reconcile the checking account is a good example of how not to assign accounting duties. We'll talk extensively about internal control later. However, for now, small businesses often can't afford the number of people needed for an adequate separation of duties. The internal control structure that we'll install in your new accounting system helps mitigate that risk through mechanics and procedures rather than expensive people.

Assignment of Duties

Here's your first assignment: Figure out who is going to do what in your new accounting system. The duties and areas of responsibility we need to assign include :

# Overall responsibility for the accounting system
# Management of the computer system (if you're using one)
# Accounts receivable
# Accounts payable
# Order entry
# Cost accounting
# Monthly reporting
# Inventory control
# Payroll
# Internal accounting control
# Fixed assets

In many cases the same person will do many of these things. However, these are the areas we'll be dealing with in setting up the accounting system. The person you assign to be in overall charge of the system should be the one who is most familiar with accounting. If you are just starting your company, you might want to think about the background of some of your new employees. At least one should have the capacity to run the accounting system.

If you find it difficult to determine someone's expertise in a field with which you are unfamiliar, here are some solutions :

1. Have them interviewed by an expert. Your own CPA will probably be glad to interview a few for you.
2. Carefully check references from past jobs. Ask detailed questions on exactly what they did in the accounting function. Compare the answers with what they say they did.
3. Ask them some accounting questions. It may sound odd that you (of all people) should be asking such questions. However, even if you can't judge the technical merit of the answers, you can get a feel for how comfortable they are with the subject and the authority with which they answer.

Sumber : BusinessTown.Com

Read More...