what skills do entrepreneurs need?

34
LESSONS LESSONS ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING Chapter 2 Chapter 2 WHAT SKILLS DO ENTREPRENEURS NEED? 2.1 2.1 Communication Skills 2.2 2.2 Math Skills 2.3 2.3 Problem-Solving Skills

Upload: zachary-dean

Post on 03-Jan-2016

64 views

Category:

Documents


2 download

DESCRIPTION

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 Presentation

TRANSCRIPT

Page 1: WHAT SKILLS DO ENTREPRENEURS NEED?

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

Page 2: WHAT SKILLS DO ENTREPRENEURS NEED?

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.

Page 3: WHAT SKILLS DO ENTREPRENEURS NEED?

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.

Page 4: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 4

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.

Page 5: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 5

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)

Page 6: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 6

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

Page 7: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 7

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

Page 8: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 8

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.

Page 9: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 9

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.

Page 10: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 10

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.

Page 11: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 11

Lesson 2.2MATH SKILLS

Use basic math skills in business.

Complete sales transactions.

Calculate percentages for business purposes.

GOALSGOALS

Page 12: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 12

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?

Page 13: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 13

BASIC MATH SKILLSAddition and subtractionMultiplicationAverages using division

Page 14: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 14

SALES TRANSACTIONSPurchase orders and invoicesSales taxSales slipsManaging a cash drawer

Page 15: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 15

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

Page 16: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 16

PERCENTAGES Growth rates Interest earned Interest payments Exact interest method Ordinary interest method Markups and markdowns Discounts Due dates Last day for discount

Page 17: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 17

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%

Page 18: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 18

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%

Page 19: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 19

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 %?

Page 20: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 20

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

Page 21: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 21

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%

Page 22: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 22

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.

Page 23: WHAT SKILLS DO ENTREPRENEURS NEED?

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

Slide 23

Page 24: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 24

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

Page 25: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 25

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.

Page 26: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 26

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)

Page 27: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 27

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)

Page 28: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 28

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?

Page 29: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 29

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

Page 30: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 30

Lesson 2.3PROBLEM-SOLVING SKILLS

Use the six-step problem-solving model.

Recognize the importance of group decision making.

GOALSGOALS

Page 31: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 31

USE A PROBLEM-SOLVING PROCESSDefine the problemGather informationIdentify various solutionsEvaluate alternatives and select the

best optionTake actionEvaluate the action

Page 32: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 32

GROUP PROBLEM SOLVINGBrainstorming

Generating a large number of ideas

Consensus-based decision makingAgreement among a group of people

Page 33: WHAT SKILLS DO ENTREPRENEURS NEED?

ENTREPRENEURSHIP: Ideas in Action

Chapter 2

Slide 33

Warm-UpComplete the Chapter 2.2 Worksheet

(both sides)

Page 34: WHAT SKILLS DO ENTREPRENEURS NEED?

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?