During this point in time in the North American markets, not only are large corporations at risk of financial failure, but also small businesses. One of these small businesses is Dorinha Jeans Wear, owned by Dorinha Reynolds herself. Although she only has a small business, rather than a corporation, she caused quite a stir in 2001 with her designer label, and has now decided to have a relaunch for 2009. As an entrepreneur herself, the advice she gives to other aspiring entrepreneurs is to “Get off your duff, and take a chance” and try to not think of the possible risks of failure.
http://www.canada.com/vancouversun/news/business/story.html?id=feec0f55-6f38-4f48-a669-56a030c35fd8
Because Dorinha only owns a small business, many of her transactions and bookkeeping are much less complex, when compared to a large corporation. For example, when it comes to financial statements such as income statements, she would most likely use a single step format, instead of a multistep format. This is because she does not have shareholders and board of directors, who may want to be specified on what types of revenues and expenses are made and used in a period. Although there is a small difference between the different income statements, it is important her business makes enough gross profit, in order to cover all her costs. As she continues to follow the accounting cycle, it is crucial she notices the trends her business is having, and know when it is time to lower prices, decrease wages, increase prices, make lay off, etc.
One thing that was shocking to me was the advice she gave to aspiring entrepreneurs. I agree that it is important to take some chances when starting a business, but you must have some discretion to the risks. During the beginning stages of opening a business, you do not want to put yourself in a position where you can lose almost everything you own, especially when you are not financially stable. This is especially a bad time to start a business, with this current financial crisis. She says to not procrastinate in starting a business, but at the same time, it is better to be safe than sorry.
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I agree with Dorinha that taking chances can make your business prosper more than if you just stick to doing ordinary business because you're afraid of failure of taking risks. However, it would be selfish if you just take risks blindly. Before taking chances, you should consider your options and weigh the outcomes to see if it would be worth the risk. Sometimes you are more likely to fail than succeed, in which case you shouldn’t take the chance. You should also think about if the risk you want to take will violate the law. If you think it may, it’s better to find out for sure or not to take the chance at all.
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