what skills do entrepreneurs need?
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WHAT SKILLS DO ENTREPRENEURS NEED?. 2.1 Communication Skills 2.2 Math Skills 2.3 Problem-Solving Skills. Journal. What skills do you have that would be useful as an entrepreneur? Explain how these skills would be useful as an entrepreneur. WRITING SKILLS. Effective business letters - PowerPoint PPT PresentationTRANSCRIPT
LESSONSLESSONS
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 2Chapter 2WHAT SKILLS DO ENTREPRENEURS NEED?
2.12.1 Communication Skills
2.22.2 Math Skills
2.32.3 Problem-Solving Skills
ENTREPRENEURSHIP: Ideas in Action
Chapter 2
Slide 2
JournalWhat skills do you have that would be
useful as an entrepreneur? Explain how these skills would be useful as an entrepreneur.
ENTREPRENEURSHIP: Ideas in Action
Chapter 2
Slide 3
WRITING SKILLSEffective business letters
Rules1. 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.
ENTREPRENEURSHIP: Ideas in Action
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Writing Skills Effective business letters
Rules5. 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.
ENTREPRENEURSHIP: Ideas in Action
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Proper Format Start on line 13 (or allow 2” from top)
Current Date Quadruple space
Letter address Double space
Salutation Body Paragraph is single spaced
Double space between paragraphs Quadruple space after complimentary close
(allows for signature)
ENTREPRENEURSHIP: Ideas in Action
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WRITING SKILLSEffective business memos
Memorandum (memo)Short written form of business communication
that has a set form
Interoffice MemoMemo from one person in a company to
another
ENTREPRENEURSHIP: Ideas in Action
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Proper Format for MemoStart on line 13 (allow for a 2” top
margin)Tab twice after the To:Tab once after (From, Date, and
Subject) – Double space the headingsSingle space the body
Double space between paragraphs
ENTREPRENEURSHIP: Ideas in Action
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SPEAKING SKILLS Telephone conversations
Tips1. 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.
ENTREPRENEURSHIP: Ideas in Action
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Meeting with Customers and Suppliers1.1. 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.
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LISTENING SKILLS1.1. 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.
ENTREPRENEURSHIP: Ideas in Action
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Lesson 2.2MATH SKILLS
Use basic math skills in business.
Complete sales transactions.
Calculate percentages for business purposes.
GOALSGOALS
ENTREPRENEURSHIP: Ideas in Action
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Math Skills: complete the followingConvert to a decimal:
3% 25% 12.5% 7.25%
Convert to a percent:.145 .76 .006 .09
Solve: You purchase the following: 2 posters @ $9.95 each; 4 markers @$0.89 each; and 1 ink cartridge @ $29.95; Sales tax = 6.5%; what is your total? If you were to receive a 5% discount what would your total be?
ENTREPRENEURSHIP: Ideas in Action
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BASIC MATH SKILLSAddition and subtractionMultiplicationAverages using division
ENTREPRENEURSHIP: Ideas in Action
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SALES TRANSACTIONSPurchase orders and invoicesSales taxSales slipsManaging a cash drawer
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Cash $348.62Checks 154.20
+ Credit sales 218.98
BALANCING THE CASH DRAWER
Total receipts $721.80– Refunds 21.47
Adjusted receipts $700.33– Opening cash 50.00
Actual receipts $650.33
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PERCENTAGES Growth rates Interest earned Interest payments Exact interest method Ordinary interest method Markups and markdowns Discounts Due dates Last day for discount
ENTREPRENEURSHIP: Ideas in Action
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Figuring Growth RateSales from one period compared to
sales in a different periodExample: July sales: $26,533; August
Sales: $26,710Subtract July sales from August:
$26,710 - $26,533 = $177
Report this in a percentage (take August increase divided by total sales in July)$177 /26,533 = .00667 or .7%
ENTREPRENEURSHIP: Ideas in Action
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Average Monthly GrowthTake your total monthly growth divided
by the number of months (look at example on page 37)Total growth is 6.2% (or .062) over a total
of 5 months….062 / 5 = .0124 or 1.2%
ENTREPRENEURSHIP: Ideas in Action
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Math ProblemCalculate the growth rate:Month Sales Growth %Jan $28,521 ------------Feb $28,784 Mar $29,122 April $29,341 Total Average monthly growth rate %?
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Projecting SalesUse average monthly growth to project
sales into the next yearSo…if average monthly growth is 1.5% and
December sales are $25,785…what will January, March, and April sales be?Take $25,785 x .015 = 386.78, so January
projected sales are $26,171.78March = 26,171.78 x .015 = 392.58 +
26,171.78 = $26,564.36April = $26,962.83
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Markups and Markdowns Markup
Amount added to cost price to determine sale price.Add 25% markup to item cost of $12 (12 x .25 = 3, $12 + 3 =
$15 which will be the sale price)OR if you sell an item for $25 that cost you $17 What is the
markup? 25 – 17 = $8 The percentage markup is $8/17 = 47%
Markdown Amount deducted from the retail price to determine the
sale pricePlace an item for sale at $45 when original price was $69.95…
markdown % = 69.95 – 45 = 24.95 / 69.95 = 36%
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Mark-up/Mark-down ProblemsHow much markup is there on an item
that you purchase for $45 and sell for $54? (both the dollar and percent)
How much markup is there on an item that you purchase for $56 and sell for $72?
What is the markdown on an item that originally sells for $27.50 and is discounted to $19.
ENTREPRENEURSHIP: Ideas in Action
Warm-UpCalculate the growth rate:Month Sales Growth %Jan $5,982 ------------Feb $7,635 Mar $7,409 April $9,275 Total Average monthly growth rate %?
Chapter 2
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ENTREPRENEURSHIP: Ideas in Action
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InterestAmount earned on money invested or paid
on money borrowed.Simple Interest
Paid at the end of the year and only one time per year on the average balance
I (Interest) = P(principal) x R (rate) x T(time)Example: Invest $100, APR is 5% for 1 year
100 x .05 x 1 = $5
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InterestCompound Interest
Paid on the principal amount you deposit and on the interest your money earned.Can be compounded annually, semi-annually,
quarterly, monthly, or dailyThe more often the interest compounds the
more interest your money earns.
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InterestCompound Interest
Example: $100, APR = 5%, Compounded Quarterly for one yearFirst you must figure out the quarterly interest
5% / 4 = 1.25%
Now you can compound your interestQ1 = 100 x .0125 = 1.25Q2 = 101.25 x .0125 = 1.27Q3 = 102.52 x .0125 = 1.28Q4 = 103.80 x .0125 = 1.30 (Total = 105.10)
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Compound Interest Interest earned on principle and any interest earned.
Can be compounded annually, semi-annually, quarterly, monthly, or daily
The more often the interest compounds the more interest your money earns.
Example: $100 invested at 5% APR compounded quarterly for one year. First you have to adjust your APR to quarterly interest
.05 ÷ 4 = .0125 Q1 = 100 x .0125 = 1.25 Q2 = 101.25 x .0125 = 1.27 Q3 = 102.52 x .0125 = 1.28 Q4 = 103.80 x .0125 = 1.30 (Total = 105.10)
ENTREPRENEURSHIP: Ideas in Action
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SolveInvest $1250 at 3.5% compounded
semi-annually for one year. What is the interest earned at the end of one year?
Invest $1250 at 3.5% compounded quarterly for one year. What is the interest earned at the end of one year?
Invest $800 at 6% compounded annually. What is the interest earned at the end of two years?
ENTREPRENEURSHIP: Ideas in Action
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Warm-UpSolve for Simple Interest:
Invest $5,000 at 6%APR for 2 yearsInvest $12,525 at 4 ½ % APR for 1 yearInvest $350 at .5%APR for 4 yearsInvest $785 at 3 ¼ % APR for 1 yearInvest $935 at 2.75% APR for 5 years
ENTREPRENEURSHIP: Ideas in Action
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Lesson 2.3PROBLEM-SOLVING SKILLS
Use the six-step problem-solving model.
Recognize the importance of group decision making.
GOALSGOALS
ENTREPRENEURSHIP: Ideas in Action
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USE A PROBLEM-SOLVING PROCESSDefine the problemGather informationIdentify various solutionsEvaluate alternatives and select the
best optionTake actionEvaluate the action
ENTREPRENEURSHIP: Ideas in Action
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GROUP PROBLEM SOLVINGBrainstorming
Generating a large number of ideas
Consensus-based decision makingAgreement among a group of people
ENTREPRENEURSHIP: Ideas in Action
Chapter 2
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Warm-UpComplete the Chapter 2.2 Worksheet
(both sides)
ENTREPRENEURSHIP: Ideas in Action
Chapter 2
Slide 34
JournalWhy is a good telephone manner
important for an entrepreneur? Why can listening be more important than talking?