Charts of Accounts, Income Statement and Balance Sheet ENT630

The Accounting for Profitability website for Alicia Sisk-Morris, CPA was very helpful for understanding and developing core information for Charts of Accounts, Income Statements and Balance Sheets. A summary of information is listed below.

Charts of Accounts

A general ledger is the portion of the accounting system that contains the balance sheet and income statement and where transactions are recorded. A chart of accounts is a master list of all of the account names that a company has identified for recording their financial transactions in their general ledger. Line items categories are industry specific. The categories can have sub-categories to organize departments.

  • NetMBA suggests the following numbering system for your chart of accounts:
    • 1000-1999: Asset accounts
    • 2000-2999: Liability accounts
    • 3000-3999: Equity accounts
    • 4000-4999: Revenue accounts
    • 5000-5999: Cost accounts for goods sold
    • 6000-6999: Expense accounts
    • 7000-7999: Misc. Revenue (interest income, etc.)
    • 8000-8999: Misc. Expenses (taxes, etc.)

Brighthub.com notes that account numbers should be spaced out to allow new accounts to be added. Also, the types of accounts will be different according to type of business, years in business, and the organization structure. Below you will find addition charts that could be included.

  • Asset Accounts
    • 1000 Petty Cash
    • 1010 Cash on Hand
    • 1020 Business Regular Checking Account
    • 1050 Savings Account
    • 1100 Accounts Receivable
    • 1400 Prepayments
    • 1500 Equipment
    • 1550 Vehicles
    • 1600 Land
    • 1700 Depreciation, Equipment
    • 1800 Deposits

Liabilities

    • 2000 Accounts Payable
    • 2300 Wages Payable
    • 2600 Notes Payable

Equity Accounts

    • 3000 Market Shares
    • 3500 Retained Earnings

Revenue Accounts

    • 4000 Service Earnings
    • 4500 Product Earnings
    • 4600 Interest Income

Cost of Goods Sold

    • 5500 Product Cost
    • 5600 Labor Costs

Expenses

    • 6000 Marketing and Advertising
    • 6100 Bad Debts
    • 6500 Employee Benefits

Chart I- Charts of Accounts

SMALL BUSINESS
CHART OF ACCOUNTS
10000 – ASSETS
11000 – Cash
11100 – Primary Checking Account
11200 – Primary Savings Account
11300 – Money Market Account
12000 – Accounts Receivable
15000 – Fixed Assets
15100 – Furniture
15200 – Computer Equipment
15500 – Building
15600 – Tenant Improvements
20000 – LIABILITES
21000 – Accounts Payable
22000 – Credit Card Account
25000 – Mortgage / Long-term Debt
30000 – EQUITY
31000 – Beginning Capital
31100 – Beg. Capital – Mary Smith
31200 – Beg. Capital – John Smith
32000 – Contributions
32100 – Contributions – Mary Smith
32200 – Contributions – John Smith
33000 – Distributions
33100 – Distributions – Mary Smith
33200 – Distributions – John Smith
39000 – Ending Capital
39100 – End. Capital – Mary Smith
39100 – End. Capital – John Smith
39900 – Retained Earnings
40000 – REVENUE
41000 – Sales
41100 – Sales – Customer 1
41200 – Sales – Customer 2
50000 – EXPENSES
51000 – Salaries & Wages
52000 – Supplies
53000 – Utilities
53100 – Electric
53200 – Gas
53300 – Water
54000 –
55000 –
70000 – OTHER INCOME
71000 – Interest Income
80000 – OTHER EXPENSE
81000 – Interest Expense

Income Statement

The income statement is one of four primary financial statements. It is also referred to as the profit and loss statement, statement of operations or the P & L statement. It tracks profitability for a specific time period such as monthly, quarterly or annually. Income statements come in a single-step format using only one subtraction to calculate a net income or a multiple-step format using multiple subtractions in calculating the net income. Either step results in a net income calculation. The format will be determined by the business activities. AccountingCoach.com gives these basic elements which include:

  • Expenses and Losses
  • Expenses involved in primary activities
  • Expenses from secondary activities
  • Losses (e.g., loss on the sale of long-term assets, loss on lawsuits)

 

See Chart II-Income Statement

ENT Company Income Statement
ENT Company
Month ending October 31, 2016
Financial Statements in U.S. Dollars
Revenue
Gross Sales/ Earned 10000
    Net Sales 10000
Cost of Goods Sold
Beginning Inventory 2000
Add: Purchases 1000
Direct Labor 300
Inventory Available 3300
Less: Ending Inventory
    Cost of Goods Sold 3300
   Net Income   Gross Profit (Loss) 6700
Expenses
Advertising 200
Commissions 500
Insurance 150
Equipment 600
Rent 1500
Utilities 350
    Total Expenses 3300
    Net Operating Income 3400
Other Income
Gain (Loss) on Sale of Assets
Interest Income
    Total Other Income 0
    Net Income (Loss) 3400

Balance Sheet

The balance sheet, also known as the statement of financial position, shows the financial condition of the company at the end of a specific date in time. It is a “snapshot” or “moment in time” that shows the company’s assets (items of financial value), liabilities (items of debt owed), and stockholder’s or owner’s equity (book value of the company). Reports are usually reviewed monthly, quarterly and yearly depending on board meetings.

John Tracy explains in the article Connecting the Income Statement and the Balance Sheet that the income statement and the balance sheet are connected. A sale increases an asset or decreases a liability, and an expense decreases an asset or increases a liability. Therefore, one side of every sales and expense entry is in the income statement, and the other side is in the balance sheet. You can’t record a sale or an expense without affecting the balance sheet.

See Chart III- Balance Sheet

ENT Company
Balance Sheet
  Year end Dec 31, 2015
Sales revenue                                                                               110,000
(Less sales returns and allowances)
Service revenue                                                                                 70,000
Interest revenue
Other revenue
                                                          180,000
   
Advertising                                                                                   1,000
Bad debt
Commissions
Cost of goods sold                                                                                 65,000
Depreciation
Employee benefits
Furniture and equipment
Insurance
Interest expense                                                                                   4,200
Maintenance and repairs
Office supplies
Payroll taxes
Rent
Research and development
Salaries and wages                                                                                 55,000
Software
Travel
Utilities
Web hosting and domains
Other                                                                                 17,460
                                                          142,660
Net Income Before Taxes                                                                                 37,340
Income tax expense                                                                                 14,936
                                                            22,404
{42}
   
Income from discontinued operations
Effect of accounting changes
Extraordinary items
                                                            22,404

Resources

10 Free Sample Income Statement Templates. (n.d.). Retrieved November 27, 2016, from https://www.sampletemplates.com/business-templates/income-statement-template.html

Chart of Accounts. (n.d.). Retrieved November 26, 2016, from http://www.netmba.com/accounting/fin/accounts/chart/

Chart of Accounts, Income Statement, and Balance Sheet. (n.d.). Retrieved November 29, 2016, from http://www.siskmorriscpa.com/chart-of-accounts-income-statement-and-balance-sheet/

Connecting the Income Statement and Balance Sheet – dummies. (n.d.). Retrieved November 26, 2016, from http://www.dummies.com/business/accounting/connecting-the-income-statement-and-balance-sheet/

Income Statement (Profit and Loss Statement) | Explanation | AccountingCoach. (n.d.). Retrieved November 25, 2016, from http://www.accountingcoach.com/income-statement/explanation/1

Sample Chart of Accounts – Free Template for Download. (2010). Retrieved November 26, 2016, from http://www.brighthub.com/office/finance/articles/72875.aspx

Personal and Business Credit Issues that may impact funding

Since a start-up has not established a credit score, lenders rely on the credit history of the owner. Your personal credit score directly affects your ability to secure capital. “Studies show that many small business owners borrow personally to finance their business operations, further intertwining small business borrowing and owner personal credit.” (Brown) Management of personal credit is a mirror of how one will handle business credit. Brown also quotes, “According to Small Business Trends, the power of personal credit scores to predict small business loan repayment, the legal structure of many small businesses, and small business owners’ use of personal guarantees and personal borrowing to finance business operations, all link small business owners’ personal credit to their companies’ access to capital.” Capital, which is essential for starting, building, sustaining and expanding the business, often diminishes within the stages of growth and development consequently, causing major set-backs or even shut-downs. “Bootstrap” or self-funding, coupled with borrowing money from close sources like family and friends is often the entrepreneur’s first line of finances. (Wasserman, 2012, pg. 26) Angel investors are often sought because they seek no return on the investment. It is a gift, but this line of financing can only go so far without a strategic plan. Credit is imperative in business growth and development.

The financial crisis that occurred when the housing bubble burst in 2008, changed the face of liberal lending. This financial “perfect storm” created market instability – “a dramatic change in the ability to create new lines of credit, which dried up the flow of money and slowed new economic growth and the buying and selling of assets.” (Guina, 2016) Who was left in the struggling to gain footing in the aftermath of the storm- banks, businesses, you and me. “Millions of small businesses had their lines of credit reduced or revoked, with many loans being called in before their due dates. In the first six months of 2009, 38 percent of small businesses reported a decrease in their lines of credit or credit card limits, according to the National Small Business Association.” (Fay) It shook the core of our economy and drove the US into a recession. What that meant for the business owners was strict credit scrutiny. “Startup businesses face credit problems as lender closely examine both personal and business finances prior to approving loans. Startup business owners must provide a financially sound business plan and have a clean credit history prior to applying for business loans. Lenders will look at the owner’s debt to credit ratio, credit score and past credit history before a loan approval.” (Zoldak)

Experian reports that credit scores range from 300-850, where 300-549 is considered as very poor, anything above 800 is excellent. An average good score is in the high 600-750 range. Everyone should check their credit report annually from https://www.annualcreditreport.com/index.action . This free annual report compiles data from the three main credit reporting agencies-Equifax, Experian, and Transunion. This report not only shows your credit standing, but it allows you to follow your progress and gives you early detection of information reported incorrectly.

A decline in credit worthiness morphs from many life events. The average person’s goal in life is not to have bad credit. Something happens that changes the one’s ability to maintain their lifestyle. Canadian financial consultants, Ginsberg Gingras suggests these causes of financial problems:

  • Loss of a job
  • Decreased income
  • Separation or divorce
  • Illness
  • Work-related accident
  • Student debts
  • Lack of familiarity with the consequences of using credit
  • Victim of fraud
  • Gambling problems
  • Alcoholism
  • Drug Addiction

Any one or combination of these factors will cause a personal credit score to plummet. All create the inability to pay personal debt. Personal debt management speaks to how a person will manage business debt. You are the same person. A bankruptcy, unpaid taxes or a felony can also contribute to the downward spiral of a life event. Your ability to recover will give an advantage in starting to rebuild personal credit and establishing business credit.

One may think that a life event like job loss is a great time to start a business, but is it? JD Roth asks, “Can your emergency fund last until your business is profitable?” Your financial responsibilities are not suspended. Your credit must stay worthy through the transitions. Launching your new business should be planned not forced. Roth also suggests, “While you are searching for your next job, I think it would be a great idea to devote some of your free time to further developing your ideas for a business. Then once you’ve obtained your next job, re-established yourself financially, built-up excess savings, and determined the proper time to enter the market, you can begin to implement the idea with confidence and a much faster road to success.” The road to incredible success is obtainable after termination. Steve Jobs, Oprah Winfrey, Walt Disney, Mark Cuban and Thomas Edison just to name a few are testaments to this truth.

David Balovich, in his article What Causes Businesses To Fail?shows that industry consultants give five reasons why businesses fail: loss of revenue, management/operational issues, lack of capital, economic conditions and credit/debt issues. For credit issues he states, “Many businesses for too long have relied on access to easy credit in the forms of lines of credit, loans and home equity lines of credit to finance their businesses. Small to mid-size businesses are now struggling as a result of tighter lending, high-rate credit cards, reduced lines of credit and maturing loans.” All of these issues flow back to housing crisis. He further explained, “…from the credit professionals’ perspective the two primary reasons a business fails are poor management and economic conditions. Poor managerial experience: including not following the business plan, weak internal controls, poor execution, hiring the wrong people, poor delegation skills, poor communication skills, ineffective time management.” Economic conditions are usually something that is beyond managements’ control. Good management practices, however, can permit management to respond to those opportunities and challenges that the economy, good or bad, is constantly presenting.”

He concludes with, “The good news about managerial shortcomings is that management has control over them and they can be corrected. The bad news is that management will sometime overlook these shortcomings and find fault elsewhere never admitting that they were to blame for the failure of the business.”

As we have seen, personal and business issues emerge in many forms from life events to lack of business planning. But credit worthiness can be restored. There are alternative funding strategies when your personal credit is damaged. Maggie McCormick offers several ways in her article, Starting a Business With Bad Personal Credit.

  • Set up your business as a separate legal entity. Register with your local government, sign up for a Federal Employer Identification Number and register for a Duns & Bradstreet number [provides business credit history]. This allows you to start creating business credit.

 

  • Bootstrap your business using your own funds. Do what you can to reduce your start-up costs. Learn to do things on your own so that you don’t have to pay someone else to do it. Use your own money to pay for the things that you need.
  • Purchase equipment and supplies on store credit from a company that reports your credit activity to the bureaus. Since the goods that you buy secure the loan, this is easier to get then other types of small business funding.
  • Apply for a credit card. At this point, you may have a bit of positive credit history that allows you to get a business credit card with a small limit. If you cannot, then put down a deposit on a secured business credit card so that you can start to build credit.
  • Use PayPal as a payment processor. A traditional merchant account will look at your credit score when making a decision of whether to approve you or not. PayPal allows you to accept credit cards from anywhere you have an Internet connection without a credit check.
  • Build a client base to start generating income. When you have income coming in, lenders will view you favorably.

 

In his article What Causes Businesses To Fail?, CM Brown believes that there are other factors that contribute to credit worthiness for a business such as bank deposits, credit card sales and credit partners.

  • Bank deposits – A business with regular bank deposits can put its cash flow to work with revenue-based loans. This program is based on the deposits going into the business bank account on a monthly basis. Typically, a business can obtain a business loan equal to 10% of its annual gross deposits regardless of having bad credit. Another benefit of this program is the time it takes to get funded, which is approximately seven business days. Keep in mind the loan term can be as long as 18 months with this program, with rates slightly higher than a traditional bank rate. It requires no collateral, financials or tax returns. Repayments are made in small increments every day via ACH from the business bank account.
  • Credit card sales – This type of funding program, known as a merchant cash advance, provides businesses with upfront cash in exchange for a portion of future credit card sales. For businesses that have regular monthly credit card sales but struggle with bad personal credit, a merchant cash advance may be a viable option. However, be very selective on what merchant cash advance provider you select. Some providers can cost as high as 38% while others can be as low as 12%. In addition, when it comes to repayment, the majority of merchant cash providers take a fixed percentage of your daily credit card receipt volume until the advance you took is paid back. Other business cash advance providers may offer a fixed monthly installment payment for its repayment method.
  • Credit Partner – Using a business partner(s) as a credit partner for obtaining lines of credit in the form of business credit cards can be a viable solution to overcome a personal credit challenge. A business partner who has strong credit scores is the best place to look. You may also want to consider someone who may be interested in participating in your business as a potential credit partner. This method does bring risk to the credit partner because they are cosigning with the business to obtain funding. However, these types of unsecured business credit cards will not appear on the personal credit reports of the cosigner unless they go into default.

 

The credit score is just as important as the source of funding when it comes to starting a business. Unforeseen circumstances, live events, or economic factors can all contribute to a fallen credit score. But your credit score is not the only factor in achieving credit worthiness. Your business plan, partnerships and other credit relationships can help your achieve your goals and dreams as an entrepreneur.

Resources:

Balovich, D. (210, December 7). What Causes Businesses To Fail? Retrieved November 25, 2016, from http://www.creditworthy.com/3jm/articles/cw12710.html

Brown, C. M. (n.d.). How Your Personal Credit Score Affects Small Business Lending. Retrieved November 21, 2016, from http://www.blackenterprise.com/small-business/how-your-personal-credit-score-affects-small-business-lending/

Causes of financial problems. (n.d.). Retrieved November 21, 2016, from http://ginsberg-gingras.com/en/understand/causes-of-financial-problems

Fay, Bill (n.d.). Obtaining Credit for a Small Business – Manage Debt & Build Credit. Retrieved November 20, 2016, from https://www.debt.org/small-business/obtaining-credit/

Guina, R. (2016, October 11). The 2008-2009 Financial Crisis – Causes and Effects. Retrieved November 25, 2016, from http://cashmoneylife.com/economic-financial-crisis-2008-causes/

McCormick, M. (n.d.). Starting a Business With Bad Personal Credit. Retrieved November 21, 2016, from http://smallbusiness.chron.com/starting-business-bad-personal-credit-4694.html

Roth, J. D. (2016, May 25). Starting a Business After a Job Loss. Retrieved November 25, 2016, from http://www.getrichslowly.org/blog/2009/05/17/starting-a-business-after-a-job-loss/

Wasserman, Noam. (2012) The Founder’s Dilemmas. Princeton, NJ: Princeton University Press.

What is a Good Credit Score? (2016). Retrieved November 26, 2016, from http://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/

Zoldak, A. (n.d.). Startup Business Problems. Retrieved November 21, 2016, from http://smallbusiness.chron.com/startup-business-problems-2391.html

Run with the Pack

Your service or product should always be your conversation. You are your biggest fan. Who knows the everything about it? Who knows how it can solve a problem they don’t even know they have yet? Who is the face of it? That person would be the creator. You gave birth to the creation, therefore you are not only marketing it, but you are marketing yourself as well. Investors are not just banking on the product; they are also banking on you. In his book, It’s a Jungle in There, Steven Schussler suggests that when you approach someone about partnering with you as an investor, they are considering several factors “You [the investor] would access the commercial value of the what the entrepreneur was proposing…; …be interested in that person’s commitment to her idea, her sense of dedication to what she was proposing, and the ‘sweat equity’ she was willing to invest in making her dream a reality.” (2010, pg. 110) The product or service is not on line, you are. Everything about you should sing and your passion should be oozing all over the place. Schussler believes, “By immersing yourself in your concept or idea certainly tells a potential investor you’re committed to achieving your objective.” (pg. 110) What is your presentation and is it a lasting one to compliment your next big thing.

Part of being a successful leader is the ability to move people to act. Peter Economy chose “inspire action” as his top choice in 7 Traits of Highly Effective Leaders. “Try to paint a vision of the future that inspires your people to do whatever it takes to get there. The best leaders also clear away the organizational roadblocks that constrain employees’ natural creativity and initiative, unleashing a tremendous amount of energy in the process.” Even though he is talking about leading a team, potential investors will become part of the team. You are an artist painting a detailed not abstract picture that inspires them to write a check or share some of their air. Also offering truths about your roadblocks could prove to be beneficial. The potential investors may offer solutions so that you do not have to reinvent any wheels. Building strategic partnerships allow you to “join forces” with a business or person that has already created value in a particular market. (Schussler, 2010, pg.103) Joining forces looks like “…strategic partnerships to facilitate the creation of a product or service, enhance its quality, and improve your profit margin at the same time.” (pg. 105)

You may have the lone wolf mentality when you step out in the venture, but running with a pack (successful business owners, executives or investors) can advance your dream into a bigger reality with a bigger payoff in the end.

Sources:

Economy, P. (2013). 7 Traits of Highly Effective Leaders. Retrieved November 20, 2016, from http://www.inc.com/peter-economy/7-traits-highly-effective-leaders.html

Schussler, Steven. (2010) It’s A Jungle In There. New York: Sterling Publishing Co. Inc.

See a Need, Fill a Need

The title quote from Robots’, the “…2005 American computer-animated science fiction dystopian comedy film,” chief inventor named Bigweld, anchored in my heart. (Wikipedia) Not just because my daughter had me watch it with her for what seems like once a month for the past 4 years, but it spoke to the incubating entrepreneur inside of me. I believe we all were created with purpose and to solve problems. Each of us in our own unique way has the abilities which contribute to functioning and flow of our space (community, state, or country). It lies dormant until stimulated by desire or need. Steven Schussler calls it “enhancement gaps-the difference between what you are seeing and what you could create to make what you are seeing better by providing some product or service.” (2010, pg. 65) These enhancement gaps are fuel to an entrepreneur’s soul. I see it as a catalyst for change and the awakening of a new venture. In other words, “…observing your surroundings to see what you can do to make things better is a surefire formula for turning a profit.” (Schussler, 2010, pg. 69)

This fuel feeds my desire to start an afterschool and summer program for kids in grades 3-5. I am not satisfied with the service I pay for each year. I have also found that at each grade level my daughter needs something different. But what will make the program I start different? I needed to discover a difference that will compel parents to invest in their children with my program call KIDZ KINGDOM. Discovery comes in the form of Research and Development. Schussler believes, “Research and development is the most direct route to that destination called excellence, the place every entrepreneur should want to call home.” (2010, p. 76) Each year I try different programs or I hope that last year’s program has improved, but I have found the results to be basically the same. I fill out surveys, but without tangible results. I know what I want as a parent, so I sought to find what other parents want besides a safe environment to play and learn; mostly play of course. They want something difference that has a foundation in learning, scholastically and with personal growth.

I am grateful for the journey into entrepreneurship with this degree. It is allowing me the opportunity to “incubate creative concepts before implementing them…” (2010, pg.81) I will be able to put all my ducks in a row and allow for new streams of interest to flow into this new venture. My need offering will be the summer school portion of the program. In my county, kids only attend summer school if they fail a subject. KIDZ KINGDOM summer school program will be for those who were promoted to the next grade. It will give them an opportunity to continue to learn during the summer with an added bonus of specialized play. It will offer science, math, arts, reading, technology, and sports and recreation. My daughter is in musical theater during the school year and she wants to be a fashion designer. So her summer bonus tracks will consist of design, dance, voice, and acting plus swimming. The need I desire to fill will provide for an awesome summer!

Schussler suggests that we, “…find new and impactful ways to attract attention to [the] product, and make it fun.” (2010, pg. 90) I believe this a la carte summer program will not only impact their beginning and end of grade test scores, but it will substantively impact the development of their dreams, gifting and heart desires. I truly believe that research and development, focused marketing and feedback will support annual robust cohorts to the program. Evaluation and assessment in conjunction with progressive improvement will bring incremental added value for the program, the kids and the community.

Sources:

Robots (2005 film). (n.d.). Retrieved November 20, 2016, from https://en.wikipedia.org/wiki/Robots_(2005_film)

Schussler, Steven. (2010) It’s A Jungle In There. New York: Sterling Publishing Co. Inc.

More options, More partnerships and More multi-level investments-Multitasking

I was once told that I was like a Swiss Army Knife. According to defintions.net, this multifaceted tool is “a brand of multi-function pocket knife or multi-tool having a blade and various tools such as screwdrivers and can openers.” They were referring to the fact that I was could multi-task vey well. Multi-tasking feels like a juggling act sometimes, where I am not just working with like objects. Similar objects give you the same diameter, weight and overall feel. But when you are working with different things at the same time, you have a talent or special skill and Steven Schussler agrees. In It’s A Jungle In There, he shares, “Entrepreneurs often have three or four or five things going on simultaneously. It’s a disservice to tell them that they should be focused, because they are focused, but are thinking on multiple levels.” (2010, pg. 42) These multiple levels contribute to brain stimulation. For me it’s like playing one of those brain games. It keeps my mind sharp or some may say scattered.

What we have tagged as multi-tasking is … “now rapidly morphing into something that TRENDWATCHING.COM has dubbed HYPERTASKING: multitasking moving beyond the desktop and ferociously invading all aspects of daily life.”

Here are some interesting facts given by TRENDWATCHING.COM to support the alternative term…

  • BIGresearch claims 70 percent of media users consume more than one medium at a time. Of those who listen to radio, 53.7 percent are online, 46.9 percent are reading a newspaper and 17.7 percent are watching TV. Of those watching TV, 66.2 percent are online and 74.2 percent are reading a newspaper.
  • A well-known, yet still evolving example of people doing everything at the same time, and still keeping control of their work, home, and life: Starbucks’ partnership with T-Mobile, offering Wi-Fi hotspots in most of its cafes, thereby enabling HYPERTASKING customers to check email, look up data, meet up with friends, organize a business meeting; all away from the office or cramped living space.

Think about how many places have free Wi-Fi now. It’s the norm and we actually frequent lunch areas that have it. Free Wi-Fi equals an increase in sales. People are so connected to their electronic devices. We can’t imagine living without them. My Optometrist recently told me that they are having in teach the younger general to blink because their eyes are glued wide open to their cell phones. I knew I was not blinking enough when on my computer, but I never imagined it had gotten this bad, but yet it allows us to keep our rhythm as we are out and about.

For the entrepreneur, multi-tasking is a ways of life. Schussler believes “… my multitasking behavior allows me to give investors greater choice when it comes to investing in our projects. This kind of thinking offers more choices to business partners.” (pg. 43)

TRENDWATCHING.COM also believes,

“ If you’re a marketer or a manager, start thinking in HYPERTASKING terms whenever you’re trying to dream up new (or adapt existing) products and services to more versatile, on-the-go, in-control consumers busy doing many things at once. Or come up with innovative marketing and advertising campaigns that play to today’s multi-channel media consumption.”

Multitasking, hypertasking or whatever you want to call it, for an entrepreneur, equates to more options, more partnerships and more multi-level investments. “The future belongs to us multitaskers, so get on with all those things you were doing with a smile on your face.”(Schussler, pg. 43)

Sources:

Definitions.net- Swiss army knife. (n.d.). Retrieved November 19, 2016, from http://www.definitions.net/definition/swiss% 20army%20knife

HYPERTASKING | An emerging consumer trend and related new business ideas. (n.d.). Retrieved November 07, 2016, from http://trendwatching.com/trends/HYPERTASKING.htm

Schussler, Steven. (2010) It’s A Jungle In There. New York: Sterling Publishing Co. Inc.

Guts to Climb Your Pole – Risk-Taker

“If you want to be a successful entrepreneur, you have to be a risk-taker.” (Schussler, 2010, pg. 9) Whether there is victory or a do-over, you must step out of your thoughts, step out of your dreams and go for it! We were created to solve problems. And your creative passions hold answers to problems people don’t even know they have yet because you have not walked it out of your head. Potential means that you have done nothing. Why, because potential requires an action and an end result. That end result it what separates the entrepreneur from the successful career person. Schussler suggests, “A successful businessperson operating in a corporate environment is like an acrobat doing all kinds of elaborate tricks on a high wire. Sure it’s impressive, but he’s got a safety harness on.” (pg. 9) How many of those brilliant ideas feed someone else’s dream because of fear. We all want security- job security to take care of our family; relationship security to build healthy families and support circles; and financial security to not only live but to enjoy life.

When it is time forfeit the safety net and just walk the wire without the fancy antics? Schussler says, “Entrepreneurship is like performing a steady walk across two forty-foot-high platforms. It doesn’t have to involve fancy footwork; it can be just moving gingerly along the taut wire….What makes the performance impressive is that lack of a safety net.” (pg. 10) Your taut wire walk is impressive because of the guts it took to just walk out on your dreams. Schussler states that you need “passion, ambition and talent” to climb someone else’s pole, “but you need guts to be in business for yourself. “ (pg. 9) You need guts to climb your own pole.

Take a look at this video of an 83 year old gentleman climbing a pole. His age, the height of the pole, nor the difficulty were not factors. I think it was his passion, ambition and talent.

https://www.youtube.com/watch?v=XPB1znA0mXU

If you call yourself and entrepreneur, you are saying, I am a risk taker. Dictionary.com defines you as a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and RISK. Taking risks leads to success when you make the do-overs count. Julie Zeilinger has compiled 7 Reasons Why Risk-Taking Leads to Success for women, as views from successful women who “put it all on the line.”

    • Great, otherwise unforeseen opportunities often come from risk-taking-reframe risk as an opportunity to succeed
    • Taking risks shows confidence and helps you stand out-present yourself as a leader and not a follower satisfied with status quo
    • We learn from risks — and those lessons may lead us on an important, new path-external opportunities and internal growth
    • Success won’t fall in your lap — you have to pursue it- active pursuit
    • You don’t achieve your dreams by playing it safe-open you up to a world of possibilities you have yet to consider
    • Embracing risk-taking helps you overcome a fear of failure-eliminate this major roadblock because failure isn’t the end but usually the beginning
    • Taking a risk doesn’t mean doing so haphazardly-it doesn’t occur in a vacuum

Lucille Ball, Oprah Winfrey, Vera Wang, and J.K. Rowling all failed before succeeding. So jump! Our passion is such a spring board and the harder we jump on it the more we will be propelled. You will either fly or make the perfect dive into the life you want. Failure is not an option.

Dictionary.com – The world’s favorite online dictionary! (n.d.). Retrieved November 05, 2016, from http://www.dictionary.com/browse/entrepreneur

Schussler, Steven. (2010) It’s A Jungle In There. New York: Sterling Publishing Co. Inc.

Zeilinger, J. (2013, August 13). Seven Reasons Risk-Taking Leads to Success. Retrieved November 5, 2016, from http://www.huffingtonpost.com/2013/08/13/seven-reasons-why-risk-taking-leads-to-success_n_3749425.html