Entrepreneurship Class - Mr. Sherpinsky Council Rock School District

 Effective business letters  The most common form of business writing is the business letter……..  Effective business memos

 Solicit business  Respond to customer questions  Negotiate purchases  Deal with suppliers We write business letters to

Understandable,Clear,andConcise

 Who it’s for  Who it’s from  Date  Subject A memorandum is a short written form of business communication that has a set format. Used for internal communications ONLY!!

 Telephone conversations  Meeting with customers and suppliers  Taking orders

REQUIRE EFFECTIVE SPEAKING SKILLS Speak clearly, and talk directly into the receiver Be cheerful. (Smile) 3. 3.Always speak politely and use names Think about what you are going to say before you make a call Take notes.

 Calculate the growth:  November Sales - $1000 ▪ Growth Factor – 20% ▪ Math: $1000 x 20% = $200  Averages  Add all relevant data then divide the sum by the number of data points ▪ Sales- $1000, $2000, $3000, $4000 Totals = $10,000 ▪ Data Points = 4 ▪ What is the 4 month average? ▪ $10,000 divided by 4 = $2,500

 Calculate the Yearly Profits:  Take profit earned times the number sold in the year ▪ Profit Calculation: $3.00 profit per item, 100 items sold in each month ▪ Math: ($3.00 x 100) x 12 = $3,600 in a year  Gross Profit  Item Sells for $500, but Costs $250 ▪ What is the gross profit on the $500 sale ? ▪ How much profit is there? ▪ $250/$500 =.50 which is 50%

1. Shake hands 2. Make eye contact 2. Make eye contact with the person you are meeting. 3. Show an interest. 4. Speak clearly. 5. Thank the person at the end of the meeting.

1. 1.Focus your attention on the person who is speaking Think about and try to understand what the other person is saying Ask questions to make sure you understand what the person is saying Take notes to confirm what you are hearing.

1. Purchase Orders 2. Invoices 3. Sales Tax 4. Sales Slips

 Purchase orders – used whenever goods and services are sold.  Record of the fact that a buyer has placed an order with a company.  Buyer and seller addresses, PO number, date of transaction, listing/quantity/cost/ total cost of each item purchased, and total amount due.

 Invoices are bills issued by the seller to the buyer for items purchased.  Contains the same information that the PO contains.

Cash$ Checks Credit sales Total receipts$ –Refunds21.47 Adjusted receipts$ –Opening cash50.00 Actual receipts$ To balance: Subtract refunds and opening cash from sales receipts

 Interest – earned on money invested or paid on money that is borrowed.  On money you invest in banks, and other savings institutions.  Simple interest – paid at the end of the year and only one time per year.  Compound interest – paid on investment and on interest earned at the compounding interval.

Investment  Rate of Interest  Int Earned p. 38 Paid 1 time at the end of the year.

Interest Rate  # of Qtrs  Int Earned Qtrly p st Quarter $100  0.75% = $ nd Quarter $  0.75% = $ rd Quarter $  0.75% = $ th Quarter $  0.75% = $0.77 $ (Compound) vs $ (Simple)

 Principal – amount of money borrowed in a loan.  Rate of interest – indicated in loan agreement.  Term – the number of years for which the loan is offered before full payment is due.

 Markup – amount added to the price to determine sales price.  Markdown – amount deducted from retail price to determine sales price.

1. Define the problem 2. Gather information 3. Identify various solutions 4. Evaluate alternatives and select the best option 5. Take action 6. Evaluate the action

 Before you can solve it you have to diagnose it.  Write down what it is and why it’s a problem.  Quantifying it is the best way to sort things out.

Information from:  records  industry data  customers  suppliers  employees  Involve Anyone who has information to help solve the problem or define.

POTENTIAL SOLUTIONS 1. DO NOTHING: 1. DO NOTHING: Live with it…absorb the cost. 2. Reprimand, counsel, and reinforce policy. 3. Supervise the issue more closely. 4. Alternative outside the box solutions.

 Costs versus benefits of various options.  Rank options or quantify potential outcomes.

 Do it.

 The action isn’t complete until you’ve evaluated the outcome of it.

generating a large number of fresh ideas.  Brainstorming is a creative group problem-solving technique that involves generating a large number of fresh ideas.  Informal, everyone volunteers possible solutions.  Ideas usually not analyzed or critiqued; evaluated at later time or event.

 Consensus is agreement among a group of people.  Good for preventing and resolving conflicts.  Find a way to resolve an issue that’s generally acceptable to those involved.  Builds trust among those involved and affected.