What is entrepreneurship? As defined in http://www.businessdictionary.com, entrepreneurship is the capacity and willingness to develop, organize and manage a business venture along with any of its risk in order to make a profit.
An entrepreneur is an individual who, rather than working as an employee, runs a business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes (http://www.investopedia.com/terms/e/entrepreneur.asp).
As shown in the above diagram, entrepreneurship is striking a balance between insanity and reality and is defined by purpose. Having a purpose when starting out your entrepreneurship is vitally important as it provides you with the drive and determination to persevere during tough times and as a guiding and directional light for making business decisions.
Embarking on the entrepreneurship journey is never easy and takes tremendous courage as it is fraught with uncertainty, challenges and failures. However, the joy, satisfaction and rewards (financial or otherwise) when your business gains traction will be priceless! As the saying goes, the possibility of striking big in a nine-to- five job is probably very remote （工字不出头）.
Is there any good time to start your entrepreneurship journey? Well, some say that it’s better to start young as you have less financial burden and if you fail, you have ample time to pick up, move on and start another venture. Others are of the view that if you start later, you would have gained some experience and could utilize this to advantage despite shouldering some additional burdens (e.g. house, car, family and what-have-you). So, if you are still confused about when to start out, there is no such thing as a good time – you can do it whenever you are ready. You just have to take action! Do your homework and research, use your passion to drive your dreams, always think positively and never be caught up with all the negativity (e.g. you will fail, it will never work, it’s too difficult, others have already done this, etc.). No one wants you to be successful more than you, yourself!
Entrepreneurship And Accounting
Being an entrepreneur and from talking with other entrepreneurs, one of the obstacles an entrepreneur wannabe faces is having an understanding of accounting. An entrepreneur is sort of like a Jack of All Trades and having some basic understanding about accounting will be beneficial to guide business decisions. As an experienced accounting and finance professional of more than 18 years, with knowledge in WordPress, WordPress Security and Social Media, I am passionate about partnering budding and newly-minted entrepreneurs in the journey. To empower entrepreneurs with some basic accounting knowledge, I will be doing some short tutorials on accounting concepts and terms, starting with the basic concept of debit and credit.
Your accounting books will always balance because debits equal credits and if the books are not balanced, then something has went wrong in the process and further investigations are warranted to find the discrepancy. In accounting terms, debit is represented by DR and is shown as an entry in the left-hand side of a T account. A credit is represented by CR and is shown as an entry in the right-hand side of a T account.
For example, if you spend $1,000 in cash to purchase a computer, then the double entry in the books will be:
DR Asset (Computer) $1,000
CR Cash $1,000
As an entrepreneur, having some basic knowledge about accounting should be sufficient as you can employ someone to do the full bookkeeping or outsource it. Hope you will enjoy the short video tutorial on debits and credits below and stay tuned for more accounting terms and concepts.