In the business world, being business savvy pays off, literally. The good news is that you don’t have to be born with any special business abilities. You can develop your business savvy through curiosity, education, experience and trial and error.
What Is Business Savvy?
Business savvy, or acumen, is not a set of ephemeral ideas or gut instincts. It’s the ability to make sound business decisions that produce the best possible outcomes.
5 Proven Ways to Improve Your Business Acumen
1. Study Your Market
Do you know who your ideal buyer is? Does your product or service solve a problem your target audience has? What are your customers’ buying habits? Who are your competitors and what are they doing? What’s your competitive edge? Incredibly, many people go into business–or join companies–without asking and answering these and other critical questions.
2. Put Yourself in Your Stakeholders’ Shoes
Assess your business from your customers’ perspective. Imagine yourself learning about the product or service for the first time through a marketing campaign, shopping for it and using it, then having to contact customer service. Analyze the entire experience. Does it enhance or damage your brand?
Do the same exercise with your employees. What is it like to work for you? What are the best and worst parts of the job? Is the pay enough? Is the company culture helping or hindering employee engagement and productivity? How can you, the employer, do better? Provide a safe environment for your employees to offer feedback, and use it to improve your operations, brand and products or services.
3. Think It Through
Business acumen involves thinking through the consequences of every business decision down to the last possible outcome. Many poor business decisions have unintended consequences that stem from shortsighted decision-making. When faced with a challenging business decision, make sure you evaluate all of the potential risks and gains.
Consider not only short-term goals but also the long-term success of your company. Then make a calculated choice for the path that delivers the most benefit with the least downside.
4. Accept Failure and Keep Going
Business savvy people aren’t afraid of failure because they see it as an opportunity for growth. Each failure turns into lessons and new skills. Not ever failing shows an unwillingness to take risks, and you can’t win without risking failure. The more you try, the more you risk failing, but also the more opportunities you have to succeed.
5. Educate Yourself
You can’t always acquire business savvy at the job. You have to seek knowledge on your own. Stay informed by reading news, books and articles related to your industry and/or occupation. Sign up for relevant business classes, conferences or workshops. Grow your network. Make connections with business savvy people and learn from them.
Final Word
Developing your business acumen takes time and effort, but it’s worth it. Being business savvy will give you an advantage over your competitors and make your job and career more rewarding.
