1. LESSONS ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 WHAT SKILLS DO ENTREPRENEURS NEED? 2.1 2.1Communication Skills 2.2 2.2Math Skills 2.3 2.3Problem-Solving Skills

2. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 2 Lesson 2.1 COMMUNICATION SKILLS Develop good skills for writing, speaking, and listening. GOALS

3. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 3 WRITING SKILLS – Business Correspondence Effective business memorandums Short form of communication Used for interoffice communication Can be hand delivered, emailed, faxed Effective business letters Most common form of business correspondence a certain level of formality is required

4. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 4 RULES FOR WRITING BUSINESS LETTERS 1.Type all formal correspondence. - only personal letters are handwritten 2.Spell names correctly and have the correct address. - letter effect is greatly reduced with misspelled names 3.Always date your business correspondence. - spell out the date, i.e. March 13, 2010 4.Use names and titles appropriately. - use formal titles: Mr., Mrs., Ms., Dr. 5.Be direct and positive.

5. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 5 RULES FOR WRITING BUSINESS LETTERS 6.Be persuasive and specific. - make sure the purpose of the letter is clear 7.Avoid using fancy language. - if you don’t know the meaning don’t use the word 8.Be polite. - no matter what the purpose; you catch more flies with honey 9.Use an appropriate closing. - make sure it matches the letter content 10.Proofread for spelling and grammatical errors. - a single mistake can ruin the best letter

6. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 6 SPEAKING SKILLS Telephone conversations Meeting with customers Meeting with suppliers

7. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 7 TELEPHONE TIPS 1. 1.Speak clearly, and talk directly into the receiver. 2. 2.Be cheerful. 3. 3.Always speak politely. 4. 4.Think about what you are going to say before you make a call. 5. 5.Take notes.

8. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 8 MAKING THE MOST OF PERSONAL CONTACTS 1. 1.Shake hands and make eye contact with the person you are meeting. 2. 2.Show an interest in what the other person is saying. 3. 3.Speak clearly. 4. 4.Do not appear rushed or anxious to be somewhere else. 5. 5.Thank the person at the end of the meeting.

9. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 9 LISTENING SKILLS 1. 1.Focus your attention on the person who is speaking. 2. 2.Think about and try to understand what the other person is saying. 3. 3.Ask questions to make sure you understand what the person is saying. 4. 4.Take notes to confirm what you are hearing.

10. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 10 Lesson 2.2 MATH SKILLS Use basic math skills in business. Complete sales transactions. Calculate percentages for business purposes. GOALS

11. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 11 BASIC MATH SKILLS Addition and subtraction Multiplication Averages using division

12. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 12 SALES TRANSACTIONS Purchase orders and invoices Sales tax Know what it is Texas = 6.25% state + 2.0% local Know when to charge it http://www.window.state.tx.us/taxinfo/sales/que stions.html http://www.window.state.tx.us/taxinfo/sales/que stions.html Sales slips Cash registers usually issue Managing a cash drawer Cash vs Credit

13. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 13 Cash$348.62 Checks154.20 +Credit sales218.98 BALANCING THE CASH DRAWER Total receipts$721.80 –Refunds21.47 Adjusted receipts$700.33 –Opening cash50.00 Actual receipts$650.33

14. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 14 PERCENTAGES Growth rates Sales for one period compared to a different period Can be used to project sales

15. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 15 PERCENTAGES Interest payments Interest is the amount charged for borrowing money Principal is the amount borrowed Rate of Interest is the % charged Term refers to the length of time a loan can be repaid Interest methods Exact interest method Amt x Rate x (Time/365) = Total Interest Ordinary interest method Amt x Rate x (Time/360) = Total Interest

16. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 16 PERCENTAGES Markups Amount added to the cost to give retail price Markdowns Amount deducted from retail price to give discount price Discounts Reduction in a retail/whole sale price of G/S Given to employees or customers

17. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 17 Lesson 2.3 PROBLEM-SOLVING SKILLS Use the six-step problem- solving model. Recognize the importance of group decision making. GOALS

18. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 18 USE A PROBLEM-SOLVING PROCESS Define the problem “What is wrong?” Gather information “What can help solve the problem?” Identify various solutions List all possible

19. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 19 USE A PROBLEM-SOLVING PROCESS Evaluate alternatives Determine the best solution Take action Implement the solution Evaluate the action Did it solve the problem? Possibly the most important step

20. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 20 GROUP PROBLEM SOLVING Brainstorming a creative group problem-solving technique that involves generating a large number of fresh ideas. Consensus is agreement among a group of people