What is business sense-Running a business is a comprehensive management effort to run a professional company or business and achieve desired business goals. Business leadership is required to achieve the goals of a business both in terms of profit and other purposes chosen by the business leader. From the past, we can expand our understanding of business problems, add skills to apply that knowledge, and increase confidence to take appropriate action.
What is business sense?
Business acumen also requires a thought process that focuses on critical factors. Someone with business acumen will be able to think critically and rationally and be used to assess the consequences of actions that you can take and the need for action, such as continuously monitoring the situation and making adjustments if things don’t go according to plan.
Business acumen can be learned, not just from innate or hereditary traits. One can develop business acumen based on business experience and education, formal education combined. Such as, B. needs to understand personality development, personality development, and the application of management processes (leadership process) in analysis and decision-making.
Business acumen is more related to understanding the business as a whole. If the entrepreneur or leader of a company needs to understand the exact nature of his business, what are the previous challenges, and how should he manage situations that cannot build a brand or market in a competitive market? A person with business acumen can make the right decisions at the right time for the organization’s benefit and guarantee increased profitability. Spotting successful business opportunities before similar companies can help generate high sales and profits. Business acumen also includes identifying potential threats to the organization and taking preventative measures to deal with them.
Business Sense experience
Someone may have relevant business knowledge, but without qualified skills and experience, that person will encounter obstacles or difficulties applying their understanding of the business. And when that happens, it might be useless or futile because it cannot generate any profit for the individual or even the group or organization. Therefore, the ability and knowledge to act in business are essential.
So the role of experience is significant. Experience can shape someone or give you the confidence to take the right actions. You cannot guarantee results even when the facts or circumstances are unclear or unknown and desired. The point about the bottom line is also important to note, as business acumen can be something other than directly or exclusively related to profits.
Transactions are divided into two types according to their purpose: dealings with a profit target and commerce without a profit target. And business acumen applies to any business, whatever the company, organization, and purpose.
Who has business sense?
Business acumen is not only possessed by CEOs, people who work in the finance department, and related employees. Everyone in this world, without exception, can have business acumen. Even an employee or small business owner can have business acumen. And anyone with business acumen can promote or advance related business in that person’s company or location. This ability or knowledge is one of the assets that a person must have, especially in critical times like today.
Someone with business acumen usually has a good growth mindset that can be useful and help their business grow. This person is generally intelligent enough to understand their customers’ or business partners’ wants and needs and the opportunities that lie ahead. A commercially versed person can assess all situations well and make quick decisions that have to do with the business itself.
The following is a set of skills and traits that describe a person with business acumen skills:
- Can communicate well and clearly with all levels of people in any department and earn the respect of those around him.
- Ability to collaborate across departments or divisions or work creatively to identify and solve existing problems.
- Being able to know and understand things that can be used as drivers for profitability and business growth and what it takes to make a business successful, from the big picture to each business function to the individual Performance and its impact on the business
- Be aware of external threats and how to adjust internal processes to deal with them. Understanding how the market is changing and the drive to make the necessary business decisions in companies to face challenges head-on.
- Can be a self-starter around him, taking the initiative when necessary, especially when under pressure. And also have a motivating leadership style to inspire all employees to perform their duties to the best of their ability and align with company goals.
- Able to quickly change strategy and goals to take advantage of disruptions in the business market.
- Have the ability to support and guide strategic implementation.
- Have basic business knowledge, such as B. Business Strategy, Cash Flow, Matrix, Financial Reports, and Business Performance.
- Understand business functions: sales, marketing, operations, logistics, human resources, and finance.
Why is business acumen critical?
Business acumen is excellent for business. A person who can understand and visualize how to drive success truly will make any business successful. Your thought process on bringing business products and services to the business market is so innovative and open that it can have a tremendous impact. Their enthusiasm and ability to change strategies are also great, allowing them to make business operations more efficient and influence most people in the company or line of business. Business acumen can produce a profitable business in terms of revenue growth and branding.
Aside from benefits to the company or scope of business, this business acumen can also positively impact someone. The job description of any corporate leader looking for a new CEO will inherently contain criteria that include business skills, business acumen, and the ability to drive and advance all areas within the company to reach their maximum capabilities. “Everyone likes a winner” The result is that individuals can work toward a successful career and earning potential.
How to get business acumen?
Business understanding can be acquired and developed in many ways, From daily one-on-one tutoring to brain-stimulating board games to experiential learning through corporate simulations. Each brings opportunities for businesses and individuals. We can also gain or sharpen business acumen from technological innovation. Technological innovations over the past ten years have also given business simulation a broad breadth in the business market, providing unprecedented learning tools with particular applications.
Businesses can use the simulation to assess a wide range of team and individual skills, from knowledge and understanding to applying learning in the development and execution of business strategies. As the simulation runs, operational actions are tested against internal and external market forces, giving individuals and management a real-time picture of what is working well and what is not. Challenging experiential learning using gamification techniques inspires a competitive spirit and encourages collaboration.
The benefit of business simulation is that it allows individuals to better understand their business world in the most natural way, where their skills and understanding are developed. The hope, and most importantly for business, is that mistakes are only made in simulations and not in the real world. Enterprise simulation offers flexibility and scalability according to individual business requirements.
How will good business sense affect me?
Business acumen is part of business language, how a company can operate, how to make money, and ensuring that you can make decisions that align with business strategy. If you have a business understanding, you will better equip yourself to create a more meaningful impact in your organization because you will be more proficient in presenting your ideas and seeing the effects of those ideas on the overall organization or scope of the business.
Business acumen has nothing to do with long-term success.
Ray Reilly, a professor of business administration at the University of Michigan’s Ross School of Business, advises companies and is surprised how few executives know what business acumen is and why it’s essential. He describes someone with business acumen as someone who understands the important things they need to know to make decisions, organize complex and seemingly disjointed data, and respond positively to events when they don’t turn out as expected.
A person with a deep understanding of business acumen will set the context for their workday, so others don’t put it for them. If business people are adequately prepared when encountering the unexpected, they can set the course for dealing with those problems.
For the strategy to stay on track, everyone involved in its. execution must master those skills or risk dysfunctional rules reigning supreme. More than ever, millions of dollars are lost, and companies shut down when business acumen outside the C-suite is not emphasized.
Who Needs Business Acumen?
At this critical time, not only CEOs or executives need business acumen, but almost all walks of life. They start with the lower-middle-class entrepreneurs, through the middle- and upper-middle-class entrepreneurs, to ordinary workers. Because nearly all walks of life experience pressures related to business and wealth.
These burdens include:
- The increasingly extreme and unpredictable nature of changes in the external and internal environment.
- Decisions are made at lower levels in the organization or business unit.
- Organizational structures are becoming increasingly complex, with outsourcing, extended supply chains, and more.
- Speed of decision-making, often with limited and incomplete information.
Success at an individual level depends not only on technical skills but also on the ability to understand the broader context of an organization.