Even if you are not directly a business owner it is absolutely necessary that you understand how a business works. Perhaps you have a very important role at your job, without you, the company wouldn’t be what it is, just like a good web developer is quite important in a tech company. However, the problem arises when these professionals have to attend meetings with executives and managers where there is a lot of discussion about the business side of things.
This is a situation where the developer could contribute and offer their perspective based on their hands-on experience developing the product. Still, they can’t because they do not have the required business acumen. It is nearly impossible for them to articulate their thoughts because they lack the business lingo and almost all of the terminology seems completely foreign to them. This is unfortunate for the business because many talented professionals could significantly contribute to such meetings but are not given any appropriate introduction to the world of business management.
Luckily, just like any skill, business acumen can be trained. Here is a deeper look into what business acumen really is, and why it is so important for everyone.
Learn the financial fundamentals
One of the most important things to understand about every business is how you handle finances and funds. Everything about finances revolves around metrics. In business meetings with the stakeholders and executives, there is a lot of talk about numbers and values. This might seem intimidating to someone who is just doing their job, with no former business and financial management training. Some of these metrics include net income, customer lifetime value, creating budgets, and adopting cost-cutting techniques. Most of these discussions really do have to include all of the members of a company because only with the combined perspective from everyone is it possible to create effective financial strategies and approaches for the future.
Luckily, everyone can easily get on board by training their business acumen. Every employee now has the chance to experience what it really looks like to manage a business with the use of a learning platform that can simulate any realistic business scenario, including the company’s finances. In time, this will ensure that everyone is on the same page and is sharing the same lingo related to managing finances.
Try to comprehend the business model
If there is one thing to know about your company apart from what it sells, then that is the business model that it employs. This is a foundational element in improving your business acumen. This includes various nuances that your company has to go through on a daily basis in order to generate revenue. This might include familiarizing yourself with the way the company handles the supply chain.
A software developer might be in charge of making a digital product, however, they also need to understand other external aspects of the business. They should be able to understand how the company negotiates with their clients about implementing new features into a product. In order to do the best job possible, they should be able to meet their client’s needs somewhere in the middle. This is because, more often than not, a client might request something that is completely impossible to implement into software. This also involves the understanding of how a company handles the handover of deliverables and manages user testing.
Your customers have something to say
In order to be able to deliver the best product possible it is important to really listen to your clients. Client interaction is not a one-way street and it definitely needs to include everyone in the company. This is because most successful companies such as Apple were founded on the idea that every part of the process should be customer-centric. That is why this huge tech giant was able to deliver some of the most iconic products in the world.
Mentorship is everything
The key idea behind developing your business acumen is that you are going to be able to learn business skills from a mentor and then become a mentor yourself. A company can improve significantly if everyone acquires fundamental business skills as well, no matter their job title. This is a great self-sustainable method for creating a highly collaborative work environment where people can rely on one another while learning some of the most important business concepts relevant to their part of the work. This is a great business mindset to have.
Read more
In case you are working from home, but still want to keep up with the latest business trends relevant to your line of work, you will want to read more about this topic in your free time. One of the ways you can do this is by choosing a couple of business development books. The great thing about this is that you do not necessarily have to read every book from cover to cover, but rather learn about some of the key concepts.
Strengthening your business acumen is a great way to contribute more to your workplace, which can benefit everyone in the company. There are a couple of things you can do to sharpen these skills; learn the financial fundamentals, understand your company’s business model, listen to your customers, develop mentorship skills and read more.
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