The recent Covid-19 Pandemic very clearly highlighted the value of having the 11 key business acumen skills you need in 2025 in order to survive in a very unpredictable market.
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What is Business Acumen?
In short, business acumen is a person’s ability to understand various business situations and deal with them effectively in a way that brings the best outcome for those situations.
Business acumen has also been defined as having a “fundamental understanding of how a business operates, then using that knowledge effectively to make logical business decisions.” (Source)
Commercial acumen is a collection of knowledge, technical skills, and soft skills that can be used to impact an organization and its employees in a positive way. It means having business sense, or being business savvy.
Business acumen is one of the most important capabilities, in fact a must-have skill, to possess in the corporate world, or in the workplace. It is a key driver of success in every aspect of an organization.
In this article, you’ll learn in more detail what business acumen exactly is (what specific skills you need), why it’s so important, and how you can develop it.
These are the 11 Key business acumen skills you need, in short:
⦁ Risk and opportunity management (ROM) skills
For a more detailed breakdown of these key business skills see below.
Why is it important to have business acumen?
Do you want to progress in your career?
Do you want your business to grow?
Without the key business skills that is unlikely to happen.
The reason you need business acumen, whether you’re an entrepreneur just starting out, an executive manager, or just a summer intern, is that business acumen directly affects your performance at work.
That is clearly seen from our discussion below of the 11 key skills for your business acumen.
Business acumen is the foundation of any organization, large or small. It is essential for building strong teams, to navigate through complex problems, and to execute successful strategies.
Just how important business acumen is to the well-being of an organization is emphasized by the fact that organizations employing people with strong business acumen are more likely to be the leaders of their industry in terms of growth, profitability, and market share. A study by the Economist Intelligence Unit (Source) showed that 65% of business leaders believed that a lack of business acumen limited their organization’s ability to successfully reach strategic goals.
FAQ. 10 Questions about business acumen answered
1. What are the specific hard skills necessary for developing business acumen?
To develop strong business acumen, possessing a set of robust hard skills is imperative. These skills provide the foundation for understanding complex business environments, making informed decisions, and driving organizational success. Here are the key hard skills crucial for cultivating business acumen:
Financial Proficiency
Understanding the financial workings of a business is at the heart of sound business acumen. This includes the ability to analyze basic financial reports and statements, which offer insights into a company’s economic health. Additionally, skills in financial modeling help simulate different financial scenarios and their impacts. Knowledge of essential financial metrics, such as gross profit margin and EBITDA, is vital for evaluating performance. Finally, preparing and implementing budgets adds the practical skill of aligning resources with strategic goals.
Strategic Planning
The capacity for strategic planning is another cornerstone. It involves solving intricate problems by leveraging a critical thinking mindset. This skill helps in developing actionable plans by assessing current resources and future needs. Knowledge of planning frameworks and analytical models aids in crafting innovative solutions, essential for prioritizing organizational objectives effectively.
Analytical Problem Solving
Analytical skills are indispensable in an era driven by data. Proficiency in collecting and interpreting data is necessary for making informed decisions. This includes technical analysis using tools like Excel, alongside research skills that ensure a comprehensive understanding of market trends. Cultivating numeracy and a keen attention to detail strengthens the ability to process and analyze information accurately.
Marketing Savvy
To complete the suite of hard skills, marketing expertise is essential. This involves a deep understanding of target audiences and the methods to tailor products and messaging accordingly. Mastery of search engine optimization can optimize online presence, while familiarity with various content marketing formats and channels ensures effective communication. Additionally, skills in email marketing and related technologies enhance engagement and conversion efforts.
Equipping yourself with these hard skills will bolster your business acumen, enabling you to navigate and thrive in diverse business scenarios.
2. What are the specific soft skills necessary for developing business acumen?
To truly enhance your business acumen, honing your soft skills is crucial. Often underestimated, these skills are the backbone of effective leadership and career progression. But what exactly are these skills that can propel you forward?
1. Leadership Abilities
Leadership goes beyond managing tasks; it’s about inspiring and guiding a team towards shared goals. Developing a leadership mindset can significantly boost your ability to drive projects and motivate colleagues. This includes setting clear visions, demonstrating ethical standards, and empowering others to contribute their best.
2. Problem-Solving Expertise
The ability to tackle challenges efficiently is indispensable in any business setting. Problem-solving involves critical thinking, creativity, and the capacity to predict outcomes. By enhancing this skill, you become an asset in navigating complex situations, making informed decisions, and adapting to change.
3. Communication Skills
Effective communication is key to any successful business operation. It encompasses listening actively, delivering clear messages, and understanding non-verbal cues. Mastering communication improves collaboration and helps you articulate ideas convincingly, whether in negotiations, presentations, or everyday interactions.
4. Emotional Intelligence
Emotional intelligence is the cornerstone of managing relationships with empathy and understanding. By recognizing and managing your own emotions, you can better interpret and respond to the emotions of others. This skill fosters a harmonious workplace and aids in resolving conflicts amicably.
5. Adaptability
In a rapidly evolving business world, adaptability is a valuable skill that ensures sustainability. Being open to new ideas and ready to pivot strategies when necessary demonstrates resilience and a forward-thinking approach, both essential for long-term success.
Enhancing these soft skills will not only refine your business acumen but also position you as a more competent and valued professional.
3. Why is creative thinking considered a valuable skill in business?
The Value of Creative Thinking in Business
Creative thinking is often regarded as a cornerstone of business success due to its power to ignite innovation and solve complex problems. In an ever-evolving market, the ability to think creatively is not just desirable but essential.
Fueling Innovation
At the heart of every groundbreaking product or service lies creative thinking. Companies like Apple and Google thrive by fostering environments where innovative ideas can flourish. Creative minds challenge the status quo, creating solutions that transform the ordinary into the extraordinary. This kind of thinking propels businesses forward, ensuring they remain competitive in an increasingly competitive world.
Enhancing Efficiency
Creative thinking also enhances efficiency by inspiring unconventional approaches to old problems. By reimagining processes, businesses can streamline operations, reduce costs, and improve productivity. For example, Toyota revolutionized manufacturing with its lean processes, a result of innovative problem-solving that has been widely adopted across industries.
Problem Solving
In the business world, challenges are inevitable. Creative thinking empowers professionals to navigate these challenges by considering a wider range of solutions. Instead of relying on traditional methods, businesses benefit from fresh perspectives that can turn obstacles into opportunities. This flexibility is crucial when facing unpredictable market dynamics or consumer demands.
How to Cultivate Creative Thinking
Cultivating creativity involves stepping outside one’s usual spheres. Engaging in diverse experiences, such as networking with varied individuals, can spark novel ideas. Tackling unfamiliar tasks and experimenting with different concepts further expands one’s creative capabilities. Encouraging a questioning mindset also fosters an environment where creativity can thrive.
In summary, creative thinking is invaluable in business due to its role in driving innovation, enhancing efficiency, and addressing complex challenges. By nurturing this skill, individuals and organizations position themselves for success in today’s dynamic business world.
4. What are the reasons why you might lack business acumen?
Why You Might Lack Business Acumen
Feeling a bit lost when it comes to business savvy? You’re not alone. Understanding why you might lack business acumen is the first step to sharpening your skills. Here are some common hurdles you might face:
1. Lack of Interest in the Business World
If you’re not genuinely interested in your industry or the broader business environment, it’s tough to develop the necessary acumen. Passion fuels learning, and without it, gaining insights becomes a chore.
Solution: Find an aspect of your business that captivates you. Dive into podcasts, articles, or talks about topics that spark your curiosity. Interest can motivate you to explore and understand the intricate workings of your company.
2. Absence of Curiosity
Curiosity is the driving force behind learning and innovation. Without it, your understanding remains surface-level, affecting your ability to make informed decisions.
Solution: Cultivate curiosity by asking questions and seeking opportunities to learn. Whether it’s shadowing a colleague or attending a seminar, actively engaging with diverse experiences enhances your knowledge base.
3. Narrow Focus on Your Role
Focusing solely on your job responsibilities can blind you to the interconnectedness of various functions within your organization. This silo mentality hinders comprehensive business understanding.
Solution: Broaden your perspective by engaging with team members from different departments. Participate in cross-functional meetings or events to gain insights into how other roles contribute to the organization’s goals.
4. Limited Exposure to Broader Business Trends
Being unaware of market trends and industry changes means missing out on potential growth opportunities.
Solution: Stay informed by subscribing to industry newsletters, following thought leaders on social media, or setting up Google Alerts for relevant topics. Remaining updated helps you anticipate changes and adapt proactively.
By recognizing these barriers and actively working towards overcoming them, you can develop stronger business acumen, making you a more effective and strategic player in your organization.
5. How can you cultivate a deeper understanding of your organization’s business model?
How to Cultivate a Deeper Understanding of Your Organization’s Business Model
To truly grasp your organization’s business model, you need to delve into its core components and see how they intertwine. This process involves several steps that can broaden your insight and enhance your strategic impact.
1. Analyze Key Business Areas
Begin by gaining a clear overview of four critical areas:
- Strategic Vision and Execution: Understand the mission and long-term goals.
- Financial Literacy: Familiarize yourself with financial reports and metrics.
- Marketing Strategies: Learn about customer engagement tactics and branding initiatives.
- Operations: Dive into supply chain logistics, production methodologies, and personnel management.
2. Engage with Different Departments
Expand your perspective by interacting with colleagues from varied departments. If your expertise lies in finance, spend time learning about marketing strategies or operational challenges from other team members. This cross-functional knowledge will solidify your grasp of the overall business operations.
- Facilitate Communication: Managers can promote knowledge sharing by organizing interdepartmental meetings.
- Promote Cross-Training: Encourage employees to participate in training sessions that reveal the responsibilities and challenges of different roles.
3. Keep Up with Industry Trends
A broader understanding of the industry is essential. Stay ahead by regularly consuming industry news and updates. Resources like The Wall Street Journal and Fortune offer insights into competitive dynamics and market trends.
- Competitor Insights: Examine what competitors are doing differently or similarly.
- Leadership Perspectives: Follow influential industry leaders for their take on emerging trends and shifts.
4. Listen to Customer Feedback
Finally, tune into customer voices to understand how your organization meets their needs and expectations. Customer feedback can offer invaluable perspectives on:
- Perceived Value: What do customers appreciate or wish to see improved?
- Emerging Trends: Keep an eye on evolving preferences and demands in the market.
By immersing yourself in these steps, you can develop a nuanced understanding of where your organization stands in the industry landscape and how it delivers value to its stakeholders.
6. How do all the various functions within your organization work, both individually and together?
Understanding how the different functions within an organization work individually and together is crucial for effective operations and achieving common goals. Here’s a comprehensive breakdown:
Individual Functions
- Human Resources (HR)
- Manages recruitment, onboarding, and employee development.
- Ensures compliance with labor laws and promotes a healthy workplace culture.
- Facilitates performance assessments and career progression.
- Finance
- Handles budgeting, accounting, and financial reporting.
- Provides strategic insights to guide investment and cost-cutting measures.
- Ensures compliance with financial regulations and manages risk.
- Marketing
- Develops and executes strategies for reaching potential customers.
- Analyzes market trends and competition to position products effectively.
- Manages branding, advertising campaigns, and digital marketing efforts.
- Operations
- Oversees production, supply chain management, and logistics.
- Focuses on optimizing processes to enhance efficiency and reduce costs.
- Monitors product quality and facilitates continuous improvement initiatives.
- Sales
- Engages with customers to drive revenue and expand market reach.
- Negotiates contracts and manages customer relationships.
- Works closely with marketing to target potential leads.
- Customer Service
- Provides support to customers and resolves issues.
- Gathers feedback to improve products and services.
- Strengthens customer loyalty through excellent service.
Collaborative Functions
- Cross-Departmental Collaboration
- HR works with all departments to align talent with organizational needs.
- Finance collaborates with sales and marketing to allocate budgets and forecast revenue.
- Marketing and sales team up to create effective promotional strategies and close deals.
- Operations and customer service coordinate to ensure quality product delivery and customer satisfaction.
- Strategic Meetings and Planning
- Regular inter-departmental meetings to set objectives and review performances.
- Joint planning sessions for launching new products or entering new markets.
- Use of collaboration tools like Slack and Microsoft Teams to foster communication.
Integration Across the Organization
- Unified Company Vision
- All departments are guided by the company’s core mission and values.
- Leadership establishes long-term strategic goals that require combined efforts.
- Technology and Data Sharing
- Deployment of integrated software systems like ERP (Enterprise Resource Planning) to streamline operations.
- Shared databases ensuring all teams can access up-to-date information for decision-making.
This harmonized structure ensures that while each function operates autonomously, they are interconnected and collectively drive the organization toward success.
7. What are some common mistakes that can hinder your learning of business acumen?
Understanding business acumen is crucial to career growth, yet common pitfalls can derail your progress. Let’s explore three mistakes that might be hindering your business learning journey and how to overcome them.
Lack of Interest in Business Dynamics
A genuine interest in the mechanics of business is essential. If you find yourself disinterested, it can impede your learning. To ignite your enthusiasm, start by exploring areas of a business that intrigue you, even if they fall outside your immediate responsibilities. This might involve investigating how different departments interact or uncovering fascinating aspects of an industry that you’re passionate about. By connecting with areas that resonate with you, learning becomes an engaging activity rather than a chore.
Absence of Curiosity
Curiosity is a driving force behind learning and problem-solving. Without it, you might miss out on deeper insights and innovative solutions. Foster your curiosity by challenging the status quo and asking “why” questions. Dive into the unknown and seek out learning opportunities that push your boundaries. Curiosity often opens new avenues for growth and understanding, essential components of developing strong business acumen.
Tunnel Vision on Your Role
Focusing solely on your immediate role can limit your perspective, hindering the development of a broad business understanding. To counteract this, consciously expand your knowledge beyond your day-to-day tasks. Engage with colleagues from different departments, attend cross-functional meetings, or participate in organization-wide discussions. These activities will enrich your knowledge of how various functions contribute to the organization’s success, broadening your view and enhancing your business acumen.
By being aware of and addressing these common mistakes, you can better position yourself to develop strong business acumen, paving the way for success in your career.
8. How does your organization deliver shareholder value?
To deliver shareholder value, an organization focuses on several key strategies that drive growth and ensure sustainable returns. Is the following true of yours?
Strategic Innovation
We continually invest in research and development to create innovative products and services that meet market demands. By staying ahead of industry trends, we capture new opportunities and maintain a competitive edge.
Customer-Centric Approach
Our dedication to understanding and exceeding customer expectations fuels loyalty and drives revenue. Through personalized experiences and responsive service, we enhance brand reputation and foster long-term relationships.
Operational ExcellenceMaximising Operational Efficiency: Cost-Effective Strategies for Small Businesses
Efficiency is at the core of our operations. We optimize processes to reduce costs without compromising quality. This approach maximizes profit margins and allows us to reinvest in growth opportunities.
- Lean Management: Streamlining processes to eliminate waste.
- Data-Driven Decisions: Utilizing analytics to guide strategic choices.
Financial Stewardship
We maintain a strong balance sheet and prudent fiscal management. Our disciplined capital allocation ensures that investments yield high returns while preserving cash flow stability.
- Dividend Policies: Offering attractive and sustainable dividends to shareholders.
- Share Buybacks: Enhancing shareholder value through strategic repurchase programs.
Sustainability and Social Responsibility
We prioritize sustainable business practices that benefit the environment and communities. By integrating ESG (Environmental, Social, and Governance) principles, we mitigate risks and attract socially-conscious investors.
Strategic Partnerships and Alliances
Collaborating with other industry leaders expands our capabilities and market reach. These partnerships open doors to new technologies and customer bases, driving further growth and diversification.
Through these comprehensive strategies, our organization consistently enhances shareholder value, ensuring prosperity for our investors now and in the future.
9. What should an organization’s goals and objectives be, and how can they be achieved?
Understanding and defining an organization’s goals and objectives is critical for success. They serve as a roadmap, guiding every decision and action. So, what do these goals look like, and how can they be realized?
Clear Definition of Goals
First, it’s essential to set clear and measurable goals. Ask yourself:
- Are the objectives aligned with the core values of the organization?
- Do they address the needs of the customers or clients?
- Are they specific enough to provide direction but flexible enough to adapt to changing circumstances?
Strategic Planning
Next, implement a strategic plan. This involves:
- Conducting a thorough market analysis to understand your environment.
- Identifying competitive advantages and areas for improvement.
- Setting timelines and milestones to measure progress effectively.
Collaborative Efforts
Achieving goals requires team collaboration:
- Facilitate open communication across departments.
- Assign responsibilities aligning with individual strengths.
- Foster an inclusive culture where ideas are encouraged and valued.
Monitoring and Adaptation
Finally, regular monitoring and adaptation are crucial:
- Use performance metrics to evaluate progress.
- Be willing to adjust strategies based on feedback and outcomes.
- Encourage continuous learning and innovation to tackle new challenges.
By defining clear objectives, devising strategic plans, fostering teamwork, and adapting to change, organizations can effectively achieve their goals and objectives, driving long-term success.
10. How does an organization make a profit?
Understanding how your organization generates profit is key to grasping its overall business model. Here’s a detailed look into the process:
Revenue Streams
- Product Sales: Organizations often sell goods directly to consumers or other businesses. These products can range from physical items like electronics to digital downloads such as software.
- Service Offerings: Companies may provide services, which can include consulting, repairs, or other forms of assistance that add value to customers.
- Subscriptions: Businesses can establish recurring revenue by offering subscription-based models, providing ongoing services or products for a regular fee.
Cost Management
- Production Costs: Keeping production costs in check, whether it’s through efficient manufacturing or smart sourcing of materials, directly influences profitability.
- Operational Efficiency: Streamlining operations by adopting technology or improving processes helps reduce overheads, thereby boosting profit margins.
Pricing Strategy
- Competitive Analysis: Setting prices that are competitive yet profitable requires a deep understanding of the market and consumer expectations.
- Value-Based Pricing: Charging based on the perceived value of a product or service ensures that customers feel they’re getting their money’s worth, which can justify higher prices.
Market Expansion
- New Markets: Entering new geographical markets or demographic segments can open up additional revenue channels.
- Product Diversification: Introducing new products or variations can attract a broader customer base and increase sales.
Customer Retention and Acquisition
- Loyalty Programs: Creating incentives for repeat customers ensures a steady revenue stream and reduces the costs associated with acquiring new customers.
- Marketing and Advertising: Effective campaigns that increase brand visibility attract new customers and generate more sales.
By focusing on these areas, an organization can strategically drive profit, ensuring sustainability and growth.
11 Key business acumen skills you need in detail
Listed here are some of the most important skills you need in business, particularly in leadership roles.
⦁ Risk and opportunity management (ROM) skills
A key way of enhancing your business acumen skills is to fully understand the consequences of decision-making.
Generally, to every situation there is a compromise and therefore it is often difficult to actually make decisions, particularly when under pressure to perform. The ability to assess various prospects and risks is part of the decision-making process. They become more manageable when you can comfortably weigh your choices and potential outcomes to choose a path that delivers the most benefit to your organization or business. (To read a more detailed post on crisis management, click here.)
How do you define risk and opportunity?
- Risk: A potential problem, or threat, that affect the performance, schedule, cost, and financial objectives or a project or program
- Opportunity: A potential improvement that could affect the performance, schedule, cost, and financial objectives or a project or program
Here are the top 6 risk management skills you need:
1. Industry and market knowledge
2. Good understanding of the technicalities of your business
3. Personal stress management, being able to perform and to make sound decisions whilst under stress
4. Strategic thinking and problem-solving skills
5. Good grasp of business finance
6. Communication and negotiation skills
⦁ Leadership skills
One important component of business acumen is leadership and management skills.
Any business with poor leadership is guaranteed to have issues that will hamper its growth, if not doom it to fail. Leadership and management skills are not just important for individuals in leadership positions but also for any employee. These are skills that employers actively look for in new recruits.
Strong leadership skills will allow the person to inspire and motivate the work force. It will help build respect among the staff. It will help them understand the needs of employees and what to do to meet those needs, resulting in a more cohesive and efficient work environment which is conducive to greater productivity and lower staff turnover.
(You can read a more in depth discussion of the vital skills you need to be a successful leader here.)
Top 10 leadership skills included in a person’s business acumen ‘portfolio’ include:
⦁ Having a sense of commitment
⦁ Being trustworthy, honest and reliable
⦁ Able to manage time effectively
⦁ Good organizational skills
⦁ Having a positive attitude
⦁ Being self-motivated
⦁ Being innovative
⦁ Having integrity
⦁ Being able, and willing, to delegates
⦁ Being able to motivate and inspire others to perform the best of their ability
⦁ Interpersonal skills
Interpersonal skills are crucial for friction-free, effective co-operation within teams of workers.
Interpersonal skills are the skills we use every day when we communicate and interact with others. These skills are strongly associated with emotional intelligence, being able to manage our emotions and attitudes for the greater good.
Empathy is a great example of an interpersonal skill. Being empathetic helps you understand business decisions from the perspective of others and to understand business situations as a whole. You can increase your empathy by understanding different personality types and how to get the most out of them.
What are the top 15 interpersonal skills you need as part of your business acumen?
1. Self-confidence
2. Workplace etiquette
3. Work ethic
4. Positive attitude
5. Relationship management
7. Receptiveness to feedback
8. Collaboration
9. Listening
10. Body language
11. Negotiation
12. Assertiveness
13. Patience
14. Self-confidence
15. Empathy
Unleash the Power of Learning with our Edureka’s Master Courses. Click HERE for more info.⦁ Financial acumen
Financial acumen refers to an individual’s financial knowledge and understanding, the ability to understand processes related to financial skills, such as reporting, budgeting, and forecasting.
It is the ability to make good judgements and quick business decisions, based on the available financial information of the business.
Those with financial acumen are able to see the impact a decision will have on the financial health of a team, department, or organization.
A very simple example of having financial acumen: A business owner with financial acumen understands that paying for regular maintenance reduces the risk of expensive repair and replacement bills.
As a ‘business savvy’ person you must understand what drives cash into and out of the business, as well as how to maximize profits and minimize losses. A person with financial acumen has decent understanding of bookkeeping and accounting, how to create and manage financial reports, as well as cash flow management. For more on this subject, see my article “The Ultimate Guide to Financial Management: Strategies for Success In Business Finances“.
Good financial acumen skills needed by all in business include:
⦁ To be able to analyse the company’s financial report and statements
⦁ To be able to understand financial performance metrics
⦁ To be able to prepare budgets and to implement them
Included too are:
⦁ Credit and debt management
⦁ Cost control
⦁ Pricing strategy creation
⦁ Strategic thinking ability
Strategic thinking is another key skill within business acumen.
Strategic thinking refers to a person’s ability to think on a big and small scale, long and short term, and into the past and the present. It is an ability to gather data, learn from the past, and create a vision for the future; to create strategies to reach company goals, having foresight and awareness of what could potentially happen in the future. It may also include the ability to challenge the conventional thinking about the fundamental drivers of a business.
To truly harness strategic thinking for business acumen, one must delve into strategic planning and prioritization. This involves the ability to solve complex problems using critical thinking skills, understanding current resources, and developing an actionable plan for the future. Engaging with different planning frameworks and analytical models is crucial for ideating new solutions, enhancing your capacity to prioritize, adapt, and remain flexible.
What do good strategic thinking skills include? They include:
⦁ The skill to prioritize
⦁ To be able to adapt
⦁ To be flexible
⦁ To be able to develop a strategic action plan
These skills are fundamental not only to strategic planning but also to comprehending your business on a deeper level. By integrating these capabilities, you ensure that your strategic initiatives align with organizational goals, thereby strengthening your overall business acumen.
Why are these skills necessary for an organization?
These skills are crucial because they enable organizations to set priorities, allocate resources efficiently, and chart a clear path toward achieving strategic goals. This ensures that the organization remains focused and adaptable in a dynamic business environment.
How do these skills contribute to a deeper understanding of the business?
By engaging in strategic planning and prioritization, individuals develop a comprehensive understanding of their organization’s inner workings. This deepens their insight into how different elements of the business interact and contribute to overall success.
What practical tools and frameworks are involved in strategic planning?
Strategic planning often requires the use of various frameworks and analytical models. These tools help in generating innovative solutions and structuring the planning process, providing a systematic approach to tackling complex problems.
How do strategic planning and prioritization utilize current resources?
Strategic planning involves evaluating and leveraging existing resources effectively to create actionable plans for future growth. This ensures that an organization can maximize its current capabilities and assets while preparing for upcoming challenges and opportunities.
⦁ Market orientation
People with strong business acumen have a deep understanding of the market in which their business operates.
Being market orientated, or having a market perspective, means that you know your target audience – what they want and need, their buying patterns and power. Based on this knowledge you can create products and services that cater for the needs and desires of your audience / market.
A simple example: If a restaurant owner finds out that most of his customers are interested in eating burgers, he will try to create and serve them as per their demands and not try to convince them to try a pizza instead.
If you’ve ever watched the program Dragon’s Den, you’d know that one of the questions the “dragons” will always ask is “Who’s your nearest competitor?” Followed by “What can you offer that they don’t and that makes you better?”
Being market oriented it is absolutely vital that you know and understand these points. Market orientation allows you to make decisions that ultimately draw in more customers and increase sales.
These are the 5 marketing orientations:
⦁ The product orientation
⦁ The production orientation
⦁ The sales orientation
⦁ The marketing orientation
⦁ The societal marketing orientation
⦁ Ability to focus
The ability to focus is a challenging skill to master because in every business there is so many distractions. In order to make your team and your business successful you need to be able to sort through the noise and to focus on what makes a difference to your business.
For instance, if you are aiming is to increase the number of visitors to your website, you could get bogged down trying to create the perfect layout and design for your site rather than concentrate on what actually impacts the number of visitors to your site – like search engine optimization (SEO).
The ability to focus also enables you to achieve more any given day because you prevent your time from being wasted by tasks that aren’t driving success to your business.
Here are 7 steps to improve your ability to focus:
1. First you need to assess the current strength of your mental focus, identifying what areas you need to improve in.
2. Eliminate distracting factors – turn off the radio or tv, find a quiet spot to work, use positive thoughts to fight off distracting worries.
3. Concentrate your focus. Though many believe they are good at multitasking it is actually not possible to focus properly on more than one thing at a time. To the opposite, multitasking actually cuts down on productivity. So, give your full attention to one thing at a time.
4. Be present. It is pretty much impossible to focus well if you’re thinking about the past or worrying about the future instead of being tuned into the present moment. Being present in the here and now keeps your attention sharp and hones in your mental resources on what really matters at the time.
5. Practise mindfulness. Research has shown that those who practise mindfulness have higher levels of concentration and focus than those who don’t. They are able to stay on task for longer, they switch between tasks less frequently, and are able to perform their work more efficiently than others.
6. Take a break. The longer you try to focus on a particular subject or matter the harder it becomes to remain focused and as a result your performance begins to suffer. So, when immersing yourself into something that will require a prolonged period of concentration, make sure you schedule in regular short mental breaks.
7. Practice, practice, practice. Improving your mental focus is not a quick thing. It takes practice to strengthen your concentration skills. Keeping in mind the benefits of doing so may help you to stay motivated in your efforts to improve. By building your mental focus you will be able to accomplish more in your life and work and you’ll be able to concentrate on things in life that truly matter, things that bring you joy, satisfaction, and success.
⦁ Analytical skills
Having business acumen also means having good analytical skills.
Analytical skills refer to a person’s ability to gather, collect and analyse data; to deconstruct information into smaller categories in order to draw conclusions. This important skill involves taking in new information and mentally processing it in a productive manner.
Analytical thinking allows you to see problems or scenarios from different angles so that you are better able to devise strategies to deal with these. Analytical skills are closely linked with problem solving and decision-making skills.
7 must have analytical skills within business acumen include:
⦁ Complex problem-solving skills
⦁ Having technical skills
⦁ The ability to do thorough research
⦁ Good numeracy skills
⦁ Attentiveness to detail
⦁ The ability to make wise, and even difficult, decisions
⦁ The ability to think critically
⦁ Marketing skills
To give your business the best chance of success, you need marketing skills as part of your overall business acumen.
These skills are especially important those in leadership and managerial positions.
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What are marketing skills?
At its core, marketing is about communicating to an audience. So having marketing skills means being able to express yourself and convey concepts to others in a clear, engaging way. Off course, before trying to market anything successfully you also need to be able to analyse your target audience – what are their needs and preferences? Then identify the most important features of a marketing campaign.
Public speaking and writing skills are essential in order to effectively communicate your marketing strategies.
As part of a strong business acumen, good marketing skills include both soft marketing skills and hard marketing skills. What are they?
Soft skills are quite broad and widely applicable, and are necessary in many different careers. Hard skills are more focused on technical abilities and familiarity with specific tools and strategies.
The top 16 Soft Marketing Skills include:
⦁ Research skills
⦁ Creativity and problem-solving skills
⦁ Attention to detail
⦁ Interpersonal skills
⦁ Cross team collaboration skills
⦁ Adaptability Gig Economy Business Opportunities: Thriving in the Age of Flexibility
⦁ Learning attitude
⦁ Organization skills
⦁ Know how to set goals, strategies, and tactics
⦁ Being an attentive listener
⦁ Being persuasive
⦁ Google Analytics knowledge
The top 14 Hard Marketing Skills include:
⦁ Writing skills (content and copy writing)
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⦁ Research
⦁ SEO / SEM
⦁ CRM
⦁ Social Media data analysis
⦁ Email marketing
⦁ Website management
⦁ Technology skills
⦁ Understanding the basic principles of design
Marketing skills enhance your business acumen by equipping you with the ability to effectively analyze and reach your target audience. Understanding key concepts like search engine optimization and various marketing channels enables you to pivot your products and services strategically. Additionally, mastering technology skills and email marketing ensures that you stay competitive in the digital age.
The Centre of Excellence offer an Internet Marketing Strategies For Business Diploma Course. Through this internet marketing course you will learn the many ways to market a business online and how each element works independently and together.
⦁ Problem-solving skills
Problem-solving skills are yet another important component of a strong business acumen.
These skills refer to a person’s ability to handle unexpected or challenging situations at work in an effective way. It means to have the skill to find solutions to difficulties using generic or ad hoc methods in an orderly manner.
Strong problem-solving skills enables you to work out the source of a problem and to come to a viable solution. Good problem-solving skills are valued by most employers. In fact, anyone within the company can benefit from having strong problem-solving skills.
Your business acumen should include these 9 important problem-solving skills: (Click on them to learn more)
⦁ Team-building skills
⦁ Research skills
⦁ Dependability
A person with strong problem-solving skills can…
1. Recognise that there is a problem
2. Analyse and identify the root cause of a problem
3. Describe the problem understandably to others
4. Develop possible solutions
5. Implement the solutions
6. Measure the results
It has been said that being able to solve problems effectively separates great leaders from the average ones.
⦁ Communication skills
Communication skills have already been mentioned several times as part of the different aspects of a strong business acumen.
The ability to communicate effectively is beneficial to employees of all levels as this enables them to function more effectively in their positions. Good communication skills enable you to understand others and to be understood yourself. For a more in depth discussion on how to improve public speaking and communication skills, read my post “43 steps to improve your public speaking skills in 2024“.)
Developing strong communication skills goes beyond just knowing what they are. Here are some tips to help you enhance these skills:
- Actively Listen: Engage with those around you by truly listening to what they have to say. Listening is as crucial as speaking in effective communication.
- Observe Non-Verbal Cues: Pay attention to body language and facial expressions in professional settings. These cues can provide additional context to verbal communication.
- Practice Speaking and Writing: Whether you’re preparing for a presentation or drafting an email, practice is key. The more you practice, the more confident you will become.
- Seek Feedback: Ask your peers for feedback or advice to gain insights into your communication style and areas for improvement.
15 of the most important communication skills, in terms of business acumen, include:
⦁ Listening skills
⦁ Presentation skills
⦁ Clarity
⦁ Friendliness
⦁ Concision
⦁ Active listening skills
⦁ Nonverbal (written) communication
⦁ Confidence
⦁ Empathy
⦁ Respect
⦁ Honesty
⦁ Open-mindedness
⦁ Feedback
By incorporating these strategies and understanding the key communication skills, you can enhance your business acumen and improve interactions in any professional setting.
How can you develop strong business acumen?
Now that you know what business acumen is, it must be comforting to know that anyone can learn the skills to obtain strong business acumen!
There are many ways to develop business acumen:
Through personal mentoring, through experiential learning through business simulations, and even through board games!
To truly master business acumen, start by understanding yourself. Take personality assessments like the Myers-Briggs Type Indicator or the DiSC Assessment to gain insights into your thinking and behavior patterns. Reflect on your past experiences and how you approach challenges. This self-awareness is crucial in tailoring your learning journey.
Diverse Learning Resources
Books are an invaluable resource. They offer different perspectives and help solidify your understanding of business fundamentals. Consider starting with titles like:
- Seeing the Big Picture by Kevin Cope
- What The CEO Wants You to Know by Ram Charan
- Traction by Gino Wickman
Magazines such as Business Insider, Forbes, and Entrepreneur are excellent for staying updated on industry news.
Next, dive deep into your organization’s workings. Familiarize yourself with its business model, strategy, and operations. Understand how different departments like marketing and finance collaborate to create value. Engage with colleagues from various functions to gain diverse perspectives and insights.
Leverage the wealth of resources available to you. Books like “Seeing the Big Picture” and “The Hard Things About Hard Things” offer valuable business insights. Stay updated with industry trends by reading magazines and online articles. Enroll in courses on platforms like Udacity or LinkedIn Learning to expand your knowledge.
Networking and mentorship can greatly enhance your learning. Attend events and connect with industry leaders to gain new insights. Seek out mentors who can guide you in understanding their roles and strategies.
Learning how to run a business is challenging. Just by working a corporate job doesn’t automatically mean that you acquire the knowledge that leads to success in business. The truth is, a lot of people work for many years at a position without advancing in their career. So how can you obtain skills that lead to business success?
Demonstrate that you have business acumen! It is a powerful means of growing your business or advancing your career. We’re not talking about “gut instincts” or having good ‘business sense’. Rather, having a set of definite skills and an approach to business that increases your chances of achieving your goals.
Examples of people with strong business acumen are business leaders such as Lee Iacocca and Steve Jobs.
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Actionable Steps
Demonstrating that you have business acumen is a powerful means of growing your business or advancing your career. We’re not talking about “gut instincts” or having good ‘business sense’. Rather, having a set of definite skills and an approach to business that increases your chances of achieving your goals.
Incorporating these resources and strategies will set you on a path to developing strong business acumen, making you more adept and credible in your professional journey.
What role does mentorship play in developing business skills?
Mentorship plays a crucial role in developing business skills. A mentor can offer valuable guidance and share their experiences, helping you navigate your career path and understand complex business strategies.
How can networking contribute to building business acumen?
Networking is a powerful tool for enhancing business acumen. By attending industry events or company gatherings, you can meet professionals who provide new insights and knowledge that can inform your business decisions.
What online platforms offer courses on business topics?
Websites like Udacity and LinkedIn Learning offer a wide range of courses tailored to specific business topics, allowing individuals to deepen their understanding and acquire new skills.
What magazines are useful for staying updated on industry news?
Magazines such as Business Insider, Forbes, and Entrepreneur are excellent resources for keeping abreast of the latest industry trends and news, offering a broad perspective on the business world.
What books can help build business acumen?
Several books can serve as valuable resources for developing business acumen. Noteworthy titles include “Seeing the Big Picture” by Kevin Cope and “What The CEO Wants You to Know” by Ram Charan. These books provide insights into building credibility and understanding the mechanics of a company.
In Conclusion: Elevate Your Business Acumen – One Step at a Time
Business acumen isn’t something you’re born with – it’s something you build. Every decision you make, every challenge you overcome, and every skill you refine brings you one step closer to becoming a sharper, more strategic leader. And let’s be honest: in today’s fast-moving world, the ability to think critically, anticipate challenges, and make smart business decisions isn’t just an advantage – it’s a necessity!
But here’s the thing: developing business acumen isn’t about consuming endless information. It is about applying what you learn. Whether you are improving your financial literacy, refining your strategic thinking, or mastering the art of effective communication, it is the small, consistent actions that compound into real expertise.
The best part? You don’t need to have it all figured out today. Business acumen is a journey, not a finish line. The key is to stay curious, embrace learning, and surround yourself with people and resources that challenge you to grow. Stay open to new experiences, whether that’s diving into financial reports, testing a new marketing strategy, or negotiating a deal outside your comfort zone.
So, where do you go from here? Start small. Pick one business acumen skill from this list and commit to improving it. Read a book, take an online course, seek mentorship – whatever helps you gain real-world insight. The more you sharpen these skills, the more confident, adaptable, and successful you’ll become in your business journey.
And if you ever feel stuck, remember: every great entrepreneur, leader, and innovator started somewhere! Keep learning, keep evolving, and watch how your business acumen transforms not just your career – but your entire future.
👉🏼 Want more insights on business strategy, decision-making, and entrepreneurial growth? Stay connected with me here on Krislai.com!
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