1. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 WHAT SKILLS DO ENTREPRENEURS NEED? Communication Skills Math Skills Problem-Solving Skills

2. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 2 COMMUNICATION SKILLS Develop good skills for writing, speaking, and listening.

3. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 3 WHY MIGHT YOU WRITE BUSINESS LETTERS? Solicit business Respond to customer questions Negotiate purchases Deal with suppliers

4. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 4 GOOD BUSINESS WRITING Communicates ideas clearly. Is concise and coherent. Gets results by being positive and persuasive.

5. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 5 RULES FOR WRITING BUSINESS LETTERS 1. 1.Type 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. 5. 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.

6. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 6 WHY ARE SPEAKING SKILLS IMPORTANT? How you present yourself will have a major impact on the people with whom you deal. »Telephone conversations »Face-to-face meetings with customers and suppliers

7. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 7 TELEPHONE TIPS 1. 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.

8. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 8 MAKING THE MOST OF PERSONAL CONTACTS 1. 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.

9. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 9 LISTENING SKILLS 1. 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.

10. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 10 MATH SKILLS Use basic math skills in business. »Addition and subtraction »Multiplication »Averages using division Complete sales transactions. Calculate percentages for business purposes.

11. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 11 WHAT BUSINESS APPLICATIONS USE PERCENT CALCULATIONS? Growth rates Interest payments Exact interest method Ordinary interest method Markups and markdowns Discounts Due dates Last day for discount

12. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 12 What are the Six Steps of the Problem-Solving Process? Define the problem. Gather information. Identify various solutions. Evaluate alternatives and select the best option. Take action. Evaluate the action.

13. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 13 Define the Problem Write down what the problem is. Identify why it is a problem. Quantify as many parts as possible.

14. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 14 Gather Information Company records Industry data Interviews with: »Customers »Suppliers »Employees

15. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 15 Identify Various Solutions Most problems have more than one solution. All possibilities should be identified before a final solution is chosen.

16. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 16 Evaluate Alternatives & Select the Best Option Sometimes alternatives can be quantified by costs and benefits. Sometimes alternatives have to be ranked because they can’t be quantified.

17. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 17 Take Action Once the best alternative is chosen, the solution must be put into effect.

18. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 18 Evaluate the Action The problem-solving model is not complete until the implemented solution is evaluated. It may be that even a well-thought-out solution does not work.

19. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 2 Slide 19 Group Problem Solving Brainstorming »Creative group problem-solving technique that involves generating a large number of fresh ideas Consensus-based decision making »Agreement among a group of people