Small Business

9 Reasons Why Communication is Important in Business

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By Next Insurance Staff
Jun 2, 2020 min read

Interaction with other human beings is fundamental in society and virtually unavoidable. 

It is up to you to be as easy to communicate with or as demanding as you would like. However, in the business world, there is only one way to translate your dream into success- You must effectively communicate it. 

Whether it be with your business partner, new employee, customer, even your business insurance provider, you must get your point across somehow to get to the next level. 

Effective communication in business is not only helpful, but it is essential for small business growth and stability. Despite its commonplace nature, many business owners overlook or mismanage this vital tool, which can potentially derail the entire operation. 

What Happens When a Business is Incommunicado?

The general structure of a company begins to crumble without effective communication in a business environment:

  • Basic tasks fall to the wayside
  • Schedules become disorganized
  • Roles and functions are not assigned
  • Employees are frustrated and restless
  • Clients feel neglected and lose interest

Why is Communication Important in Business?

Every aspect of a company or brand depends on it! 

From internal affairs to scouting for new business, interaction with another individual or party is a part of daily culture. Excellent business communication is crucial to maintain healthy workplace relations between the employer and employees. It is also just as necessary to create and maintain lasting relationships between company and clientele. 

Business communication skills include:

  • Verbal communication over the phone or in-person
  • Written communication via e-mail, chat, or text
  • Collaborating and working with a team for a common goal
  • Active listening and problem solving
  • Networking and negotiating

It does not matter how big or small your company is; you will benefit from assessing how your business communicates internally and externally. Here are a few steps you can take to improve your business communication for success. 

Set Clear Goals and Expectations

If you have a clear vision of your company’s goals, you are off to a great start. 

However, you must communicate these goals in the best way so that all parties involved are on the same page and can carry out what is necessary to complete objectives. 

By doing this, your employees will know what you expect of them and what challenges they may face along the way. Everyone will understand what they are working towards and do so efficiently, which will improve overall work performance.

Build a More Dedicated Team

Open communication in the workplace will help create a more cohesive team that can flow from one project or challenge to the next. 

When employees feel like they are valued and that their opinion matters, they will contribute more and have a better attitude doing it. Increased efficiency and productivity will result. 

Also, if the team unit is secure, employees will become loyal not only to each other but to the company itself. They are less likely to jump ship when problems arise. If there is an issue, you already have the lines of communications open to put out the fires as the spark. 

Earn Trust and Loyalty of Clientele

The same goes for how you communicate with potential and existing clients. If you use effective communication strategies, you will earn their trust and loyalty over time. 

That means you must anticipate their needs and keep reaching out to them after the initial handshake or sale. Follow up to make sure they are still happy, and if not, find solutions to the various hiccups that can happen after an initial business transaction or decision. 

Companies who show clients that they understand them, know their needs, and want to help, are more successful every time. 

Improve Customer Service

There is nothing worse than getting negative feedback about your customer service. It only takes one of these unhappy experiences to turn a loyal client against a brand forever. 

Be sure your team understands the importance of business communication in customer care. How they react and attempt to solve customer issues will directly impact the company positively, and just as easily affect it negatively. 

The truth is, so many companies fall short in this department due to poor communication on the company’s end. The best brands are those known to take care of their customers well after purchase.  

Ensure Transparency

Not every unhappy client will get on the phone to let you hear about it (although we all know many will do just that!).

Transparency and effective communication will help you manage client expectations and reduce negative reviews by teaching you how to deal with angry customers and solve problems. 

Same with your workforce. If you are upfront and open, your employees will be more likely to voice unhappiness or concerns in certain situations that could otherwise bring down the entire team. In turn, they will be more inclined to trust upper management’s decisions in the future.  

Small Business communication

Get More Referrals

What is the easiest way to get new business? Have a good rapport with existing customers! 

If you shine in their eyes, they will recommend you to colleagues, write a glowing review, or leave positive feedback on your website. 

It all starts with how well you communicate from the beginning and how you maintain that communication throughout the business relationship.  

Reinforce Rules and Regulations

Being transparent in business communication is paramount to ensure that people are following policy. 

Whether it’s an employee that must use a specific process to complete a task or a client who signed an NDA for a business dealing, you must initially communicate well the intent of your brand and the policies you wish to enforce.

Written communication of some form that explains your business policy, as well as expectations of employees and clientele, is beneficial for consistency across the board. Not to mention, it provides a legitimate reference point if ever you need to reiterate a particular procedure, rule, or general conduct guidelines.  

Stay Organized

The critical function of a manager is to relay information from the higher-ups to their team. It could be as simple as a notice of a company-wide meeting or news on an upcoming project to get ready. 

If the manager doesn’t deliver the right information or doesn’t understand it himself,  it won’t take long for a total communication breakdown.

Make sure employees, as well as managers,  have all the information they need to coordinate with each other and different departments to accomplish shared goals efficiently. 

Revamp Business with New Ideas

What better way to grow a business than to do it organically and in-house? 

Ask employees what they think! If you give them opportunities to voice opinions, they will feel comfortable sharing thoughts, ideas, and information that will be beneficial to the team, clients, and the company and brand as a whole. 

Now that You Know, It’s Time to Grow!

Effective business communication is the foundation of good business practice. 

If you execute your brand’s goals with good intentions, adequately relay what you expect out of employees, show customers you have solutions, you are well on your way to success. Just keep those lines of communications open, and your business will thrive.

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By Next Insurance Staff
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