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WHAT SKILLS DO ENTREPRENEURS NEED?

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

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WHAT SKILLS DO ENTREPRENEURS NEED?

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  1. Chapter 2 WHAT SKILLS DO ENTREPRENEURS NEED? 2.1 Communication Skills 2.2 Math Skills 2.3 Problem-Solving Skills

  2. Chapter 2 Journal • What skills do you have that would be useful as an entrepreneur? Explain how these skills would be useful as an entrepreneur.

  3. Chapter 2 WRITING SKILLS • Effective business letters • Rules 1. Key all formal correspondence. 2. Spell names correctly and have the correct address. 3. Always date your business correspondence. 4. Use names and titles appropriately.

  4. Chapter 2 Writing Skills • Effective business letters • Rules 5. Be direct and positive. 6. Be persuasive and specific. 7. Avoid using fancy language. 8. Be polite. 9. Use an appropriate closing. 10. Proofread for spelling and grammatical errors.

  5. Chapter 2 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)

  6. Chapter 2 WRITING SKILLS • Effective business memos • Memorandum (memo) • Short written form of business communication that has a set form • Interoffice Memo • Memo from one person in a company to another

  7. Chapter 2 Proper Format for Memo • Start on line 13 (allow for a 2” top margin) • Tab twice after the To: • Tab once after (From, Date, and Subject) – Double space the headings • Single space the body • Double space between paragraphs

  8. Chapter 2 SPEAKING SKILLS • Telephone conversations • Tips 1. Speak clearly, and talk directly into the receiver. 2. Be cheerful. 3. Always speak politely. 4. Think about what you are going to say before you make a call. 5. Take notes.

  9. Chapter 2 Meeting with Customers and Suppliers 1. Shake hands and make eye contact with the person you are meeting. 2. Show an interest in what the other person is saying. 3. Speak clearly. 4. Do not appear rushed or anxious to be somewhere else. 5. Thank the person at the end of the meeting.

  10. Chapter 2 LISTENING SKILLS 1. Focus your attention on the person who is speaking. 2. Think about and try to understand what the other person is saying. 3. Ask questions to make sure you understand what the person is saying. 4. Take notes to confirm what you are hearing.

  11. Chapter 2 Lesson 2.2MATH SKILLS • Use basic math skills in business. • Complete sales transactions. • Calculate percentages for business purposes. GOALS

  12. Chapter 2 Math Skills: complete the following • Convert 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?

  13. Chapter 2 BASIC MATH SKILLS • Addition and subtraction • Multiplication • Averages using division

  14. Chapter 2 SALES TRANSACTIONS • Purchase orders and invoices • Sales tax • Sales slips • Managing a cash drawer

  15. Cash $348.62 Checks 154.20 + Credit sales 218.98 Chapter 2 BALANCING THE CASH DRAWER Total receipts $721.80 – Refunds 21.47 Adjusted receipts $700.33 – Opening cash 50.00 Actual receipts $650.33

  16. Chapter 2 PERCENTAGES • Growth rates • Interest earned • Interest payments • Exact interest method • Ordinary interest method • Markups and markdowns • Discounts • Due dates • Last day for discount

  17. Chapter 2 Figuring Growth Rate • Sales from one period compared to sales in a different period • Example: July sales: $26,533; August Sales: $26,710 • Subtract 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%

  18. Chapter 2 Average Monthly Growth • Take 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%

  19. Chapter 2 Math Problem • Calculate the growth rate: Month Sales Growth % Jan $28,521 ------------ Feb $28,784 Mar $29,122 April $29,341 Total Average monthly growth rate %?

  20. Chapter 2 Projecting Sales • Use average monthly growth to project sales into the next year • So…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 $26,171.78 • March = 26,171.78 x .015 = 392.58 + 26,171.78 = $26,564.36 • April = $26,962.83

  21. Chapter 2 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 price • Place an item for sale at $45 when original price was $69.95…markdown % = 69.95 – 45 = 24.95 / 69.95 = 36%

  22. Chapter 2 Mark-up/Mark-down Problems • How 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.

  23. Chapter 2 Warm-Up • Calculate the growth rate: Month Sales Growth % Jan $5,982 ------------ Feb $7,635 Mar $7,409 April $9,275 Total Average monthly growth rate %?

  24. Chapter 2 Interest • Amount 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

  25. Chapter 2 Interest • Compound Interest • Paid on the principal amount you deposit and on the interest your money earned. • Can be compounded annually, semi-annually, quarterly, monthly, or daily • The more often the interest compounds the more interest your money earns.

  26. Chapter 2 Interest • Compound Interest • Example: $100, APR = 5%, Compounded Quarterly for one year • First you must figure out the quarterly interest • 5% / 4 = 1.25% • Now you can compound your interest • 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)

  27. Chapter 2 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)

  28. Chapter 2 Solve • Invest $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?

  29. Chapter 2 Warm-Up • Solve for Simple Interest: • Invest $5,000 at 6%APR for 2 years • Invest $12,525 at 4 ½ % APR for 1 year • Invest $350 at .5%APR for 4 years • Invest $785 at 3 ¼ % APR for 1 year • Invest $935 at 2.75% APR for 5 years

  30. Chapter 2 Lesson 2.3PROBLEM-SOLVING SKILLS • Use the six-step problem-solving model. • Recognize the importance of group decision making. GOALS

  31. Chapter 2 USE A PROBLEM-SOLVING PROCESS • Define the problem • Gather information • Identify various solutions • Evaluate alternatives and select the best option • Take action • Evaluate the action

  32. Chapter 2 GROUP PROBLEM SOLVING • Brainstorming • Generating a large number of ideas • Consensus-based decision making • Agreement among a group of people

  33. Chapter 2 Warm-Up • Complete the Chapter 2.2 Worksheet (both sides)

  34. Chapter 2 Journal • Why is a good telephone manner important for an entrepreneur? Why can listening be more important than talking?

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