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 Effective business letters Effective business memos

4. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 4 RULES FOR WRITING BUSINESS LETTERS 1. 1.Key all formal correspondence. 2. 2.Spell names correctly and have the correct address. 3. 3.Always date your business correspondence. 4. 4.Use names and titles appropriately. 5. 5.Be direct and positive. 6. 6.Be persuasive and specific. 7. 7.Avoid using fancy language. 8. 8.Be polite. 9. 9.Use an appropriate closing. 10. 10.Proofread for spelling and grammatical errors.

5. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 5 SPEAKING SKILLS Telephone conversations Meeting with customers and suppliers

6. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 6 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.

7. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 7 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.

8. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 8 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.

9. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 9 Lesson 2.2 MATH SKILLS Use basic math skills in business. Complete sales transactions. Calculate percentages for business purposes. GOALS

10. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 10 BASIC MATH SKILLS Addition and subtraction Multiplication Averages using division

11. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 11 SALES TRANSACTIONS Purchase orders and invoices Sales tax Sales slips Managing a cash drawer

12. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 12 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

13. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 13 PERCENTAGES Growth rates Interest earned Interest payments Exact interest method Ordinary interest method Markups and markdowns Discounts Due dates Last day for discount

14. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 14 Lesson 2.3 PROBLEM-SOLVING SKILLS Use the six-step problem- solving model. Recognize the importance of group decision making. GOALS

15. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 15 Problem Solving Once you own your own business, you will have to make decisions and solve problems every day. Many entrepreneurs make decision casually or base them on intuition As a result, their decisions are based on faulty assumptions or illogical thinking The BEST entrepreneurs use formal problem-solving mechanism to gather information and evaluate different options

16. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 16 The Problem Solving Process A formal problem solving method that helps business people solve problems in a logical manner. The model consists of 6 steps

17. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 17 USE A PROBLEM-SOLVING PROCESS 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

18. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 18 Identify the Problem Loretta has a problem Her employees are using the photocopier for their personal use. Despite the sign above the machine indicating that it is to be used for business only, Loretta constantly sees employees photocopying everything from recipes to cartoons.

19. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 19 Gather Information Once the problem has been defined, you need to gather information that could help solve it Relevant information may be obtained from company records, industry data and interview with customers, suppliers and employees

20. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 20 Gather Information Loretta needs to identify how many of his employees ignored the rules She found that 3 of her 13 employees accounted for almost all of the misuse She also talked with other business owners to see if they had similar problems and how they handled them

21. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 21 Identify Various Solutions Most problems can be solved in various ways Identify all possibilities before you settle on a particular solution

22. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 22 Evaluate Alternatives and Select the Best Option Consider all your options and alternatives and choose the one that will best solve the problem on hand

23. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 23 Take Action Once you have the best solution to the problem take action and implement the solution

24. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 24 Evaluate the Action The problem solving process is not complete until you have evaluated your action Did it solve the problem or not? If not, try another solution!

25. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 25 GROUP PROBLEM SOLVING Brainstorming Consensus-based decision making

26. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 26 BRAINSTORMING Brainstorming is a creative group problem-solving technique that involves generating a large number of fresh ideas.

27. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 27 CONSENSUS-BASED DECISION MAKING Consensus is agreement among a group of people. Best used to solve problems when different groups in an organization are affected. Used to prevent or resolve conflicts Used to build trust