Entrepreneurial skills Preparing for Success
Communication skills – writing skills • Effective Business Letters • Key all formal correspondence. Send handwritten letters only when they are intended as personal letters. • Be sure to spell all names correctly and have the correct address. • Always date your business correspondence. • Use names and titles appropriately. • Be direct and positive.
Communication skills – writing skills • Effective Business Letters • Be persuasive and specific. Make sure the action you want from the reader is clear. • Avoid using fancy language. Use straightforward language that says exactly what you want. • Be polite. • Use appropriate closing. (Sincerely, Sincerely yours, Cordially, Cordially yours, Best regards) • Proofread for spelling and grammatical errors. http://www.office.xerox.com/small-business/tips/business-letter/enus.html
Business Letter assignment: • Type a letter to Ms. Haas persuading her to allow students to bring their own electronic devices to school to be used in the classroom. These would include computers, cell phones, iPads. Be sure to include an intro paragraph, a paragraph with 3 main points, and a summary or request for action paragraph. • OR • Type a letter to someone requesting some sort of action. Your choice. • GRADING • 15 points for each paragraph • Lose 1 point for every spelling error • 10 points for format
Letterhead assignment • Create letterhead for a fictitious business that you would like to start. Try to include your first or last name in the business name. • GRADING • 10 Points for creativity, including the use of smartart and/or graphics • 10 Points for including the name, address, phone number, and email
Communication skills- WRITING Effective Business Memos • A memorandum is a short written form of business communication that has a set format.
Memorandums (interoffice) • Should be clear, concise, persuasive, and positive. • Used to communicate company policies and procedures, assigning tasks, or motivating staff. • Also, used to congratulate employees or to announce changes in an employee’s status. • Emailing has often replaced these, but memos can be attached to the email. • Assign: Type a memo to your classmates describing what type of business you would like to start and why it would be successful. Remember to include 3 paragraphs. • GRADING • 15 points each paragraph • 10 points for formatting • Lose 1 point for each spelling error
Email etiquette • See Email Etiquette PowerPoint and Handout • ASSIGNMENT: Email me at firstname.lastname@example.org to tell me what grade you think you are going to earn in this class, how you will earn it, and why you will deserve it. Incorporate the traits that you have that are entrepreneurial and will help you earn a good grade. • GRADE • 15 points for 3 paragraphs • 10 points for formatting • Lose 1 point for every spelling and grammatical error
Speaking skills • Meetings with Customers and Suppliers • Shake hands and make eye contact with the person you are meeting. • Show an interest in what the other person is saying. • Speak clearly. • Do not be rushed or anxious to be somewhere else. (Schedule a different meeting time.) • Thank the person at the end of the meeting.
Assignment • Skits • Type a skit for each of the 12 scenarios. • Choose 1 scenario create a skit to be acted out in front of the class or video tape it to be shown to the class. You may use the Internet to research what should happen in this meeting or situation. Type the script, which may be used when acting. This should also be turned in after showing the video. • GRADE 10 points for acting 20 points for appropriate typed skit Communication Skits_Entrepreneurship
Speaking skills • Telephone Conversations • Speak clearly, and talk directly into the receiver. • Be cheerful. (Put a smile on your face. They will hear it.) • Always speak politely. Use proper language. DO NOT interrupt. • Think about what you are going to say before you make the call. • Take notes.
Speaking skills • Telephone Skills Assignment: This time you get to teach the class. In groups of 2 research telephone etiquette and telephone skills. Create a PowerPoint andvideo to teach the class what you have learned. Using demonstrations will definitely help your grade. GRADING Demonstrate 10 rules for telephone etiquette. 20 points Present information. 10 points Video 10 points
Communication skills • Listening • Focus your attention on the person who is speaking. • Think about and try to understand what the other person is saying. • Ask questions to make sure you understand what the person is saying. • Take notes to confirm what you are hearing. Assign: Why is it important for entrepreneurs to listen carefully?
The average person spends • 9% of his or her time writing, • 16% reading, • 30% speaking, • and 45% listening.
Barriers to listening • Physical Distractions- sounds • Personal Barriers – attitudes and feelings • BAD LISTENING HABITS • Criticizing the Speaker • Interrupting the Speaker • Pretending to Listen – do you rehearse what you are going to say or form a rebuttal • Reacting Emotionally • Creating Distractions – swinging hair, tapping pencil, leg bouncing • Daydreaming
Active listening • Involves giving positive feedback to a speaker by maintaining eye contact, smiling, and nodding. • Take notes • FIRST STAGE – DECODING- Your brain must make sense out of the message that is heard. • SECOND STAGE – LITERAL MEANING – Your brain must figure out what the message means. • FINAL STAGE – REAL MEANING – During this stage you are evaluating and judging the speaker and message.
Math skills • The Basics Total Sales - Total Expenses = Profit • Addition • Subtraction • Multiplication • Division • EXCEL Spreadsheets • Assign: Complete the math worksheets.
Math skills • Sales Transactions Purchase Orders
Math skills • Sales Invoice
Math skills • Growth Rates • Calculating sales growth – sales from one period are compared with sales in a different period How did sales at the pharmacy grow in August? August sales – July sales = August increase $26,710 - $26,533 = $177 Aug. increase / July sales = Percent increase $177 / $26,533 = .00667, or .7% Show the math for the increase from November to December.
Math skills • Average Monthly Growth Rate Total Monthly Growth / Number of Months = Average Monthly Growth Rate .0061 / 5 = 0.0122, or 1.2%
Math skills Interest Payments • Interest – an amount charged for borrowing money. • Principal – the amount borrowed • Rate of Interest – the percent that is the basis for interest earned or paid. Usually stated in terms of a year. • Term (Time) – The number of years for which the loan is extended. • Principal X Rate X Time (stated in terms of a year) = Simple Interest • $25,000 X .095 (9.5%) X 5 years = $11,875 • Total Paid Back to Bank is $25,000 + $11,875 = $36,875 • How much simple interest would you pay a year on a $30,000 loan at a rate of 8.25%%
Math skills Markups • Markup – an amount added to the cost price to determine the sales price (it must cover expenses and earn a profit You own an office supply store that sells desk lamps. Purchase price = $14 To cover your expenses and make a profit you need to add a markup of 35%. $14 X 0.35 = $4.90 Markup $14 + $4.90 = $18.90 Selling Price Purchase Price of Item is $40, Markup Needed is 40%, What is the selling price? $40 x .4 = 16+40 =$56
Math skills • Markdown – an amount deducted from the retail price to determine the sales price. • To unload last year’s file cabinets, which sold for $149.95, you decide to reduce their price to just $99.95 each. • How large a percentage markdown are you offering? • Calculate difference between the original price and the sales price. $149.95 - $99.95 = $50.00 • Then calculate what percentage that difference represents of the original price. $50 / $149.95 = 0.33 or 33 % What is the markdown for a computer that was sold for $500, but reduced to $420. 500-420=80/500=.16, or 16 %
Math skills • Discounts- a reduction in the price of a product or service. Sometimes given for buying large quantities or paying in short period of times. Retail Price X Discount Percent = Amount of Discount $54.99 X 0.15 (15%) = $8.25 Retail Price - Amount of Discount = Amount Received $54.99 - $8.25 = $46.74
Problem-solving skills • Define the Problem • Gather Information • Identify Various Solutions • Evaluate Alternatives and Select the Best Option • Take Action • Evaluate the Action
Problem-solving skills • Brainstorming – a creative group problem-solving technique that involves generating a large number of fresh ideas. • All of the the ideas are written down and are not analyzed or critiqued at this session. • Consensus – agreement among a group of people, finding a solution everyone agrees to accept