WHAT SKILLS DO
ENTREPRENEURS NEED?
2.1 Communication Skills
2.2 Math Skills
2.3 Problem-Solving Skills
Chapter 2
1
Lesson 2.1
COMMUNICATION SKILLS
GOALS
• Develop good skills for
writing, speaking, and
listening.
WRITING SKILLS
• Effective business letters
• Effective business memos
RULES FOR WRITING
BUSINESS LETTERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Key all formal correspondence.
Spell names correctly and have the correct address.
Always date your business correspondence.
Use names and titles appropriately.
Be direct and positive.
Be persuasive and specific.
Avoid using fancy language.
Be polite.
Use an appropriate closing.
Proofread for spelling and grammatical errors.
SPEAKING SKILLS
• Telephone conversations
• Meeting with customers and suppliers
TELEPHONE 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.
MAKING THE MOST OF
PERSONAL CONTACTS
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.
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.
Problem Solving Steps
1) Define the problem—What is the problem?
2) Gather information—Speak to people, check
records, etc.
3) Come up with various solutions—Do it yourself
or use consensus building or brainstorming
4) Evaluate your solutions—List the good and bad
for each possibility and rank them
5) Take action—Do the best solution
6) Evaluate the action—Did your solution work or
do you need to try something else
Consensus Building
• Used when two or more different groups of
people are affected.
– For example: salespeople and office staff or
designers and seamstresses
Brainstorming
• is a creative group problem-solving
technique that involves generating a large
number of fresh ideas.
Math Calculations
• Profit
– Sell 25/month, make $2 profit per item what
is yearly profit?
• 25 x $2 x 12 months=$600
– Or sales for the year are $2000, expenses for
the year are $1400, what is yearly profit?
• $2000 sales - $1400 expenses= $600 profit
Growth Rate
• Total Growth Rate
– November sales were $4000, December sales were
$4500, what is the growth rate?
• December $4500 – November $4000 =$500
• Growth $500 / November $4000 =.125 or 12.5%
• Average Monthly Growth Rate
– October growth rate 1.6%, November growth rate
2%, December growth rate 1.3%, what is the
average monthly growth rate?
• .016 + .02 + .013 = .049
• .049 / 3 months = .016 or 1.6%
Projected Sales
• Average monthly growth rate is 1.5%, and
December sales were $25,000, what is the
projected January sales?
– December $25,000 x monthly growth rate .015 =
$375 growth
– $375 growth + December $25,000 = $25,375
Markup/Markdown
• Cost $5, marking product up 40%, what’s
selling price?
– $5 cost x .40 markup = $2 markup
– $2 markup + $5 cost = $7 selling price
• Original selling price $8, lower price to $6,
what’s the markdown percentage?
– $8 original - $6 sale = $2 markdown
– $2 markdown / $8 original =.25 or 25%
Selling Prices
• Selling price $16.50, sales tax rate 7%,
what is tax? What is final sale?
– $16.50 x .07 = 1.155 or rounding to $ & ¢
$1.16 tax
– $16.50 + $1.16 = $17.66
Interest Rates
• Simple Interest
– $400 in savings, 3% interest, what is the
interest for the year?
• $400 x .03 = $12
Interest Rates
• Compound Interest
– $400 in savings, 3% interest, what is the
interest for the year compounded
semiannually (2 times per year), what is
the interest for the year?
• $400 x .03 = $12 for a year
• $12 x ½ a year = $6
• $400 + $6 = $406
• $406 x .03 = $12.18 for a year
• $12.18 x ½ a year = $6.09
• $6 for first half of year + $6.09 for
second half of year = $12.09
Cash Drawer
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Start with $100
Get checks of $75
Give refunds of $30
Have credit card sales of $90
Have cash sales of $80
What is the actual receipts?
• 100 + 75 – 30 + 90 + 80 – 100= $115