Business Acumen: How to Develop Strong Business Acumen

Business acumen skills are those that generate strong business sense and business savvy. Business acumen may include financial literacy, budgeting skills, supply chain comprehension, financial forecasting, leadership skills, communication skills, strategic planning, talent acquisition, and problem-solving abilities. You can build up your business performance skillset through concerted business acumen training.

To imagine business acumen in action, picture a top-level executive reviewing company financial statements. If this executive possesses business acumen, they examine the company’s cash flow and profitability (or lack thereof) and can adjust an existing business model to meet those financial realities. If the business is thriving, the executive can ramp up company goals and take on new initiatives. If the company is flailing, the executive can refocus business goals to boost profitability and improve the brand’s bottom line. Because the executive possesses business acumen, they can easily transition from numbers on a page to strategic thinking and tangible business decisions.

Companies and business schools offer tools for building business acumen. Consider using these tools to improve your knowledge of business issues and your instinct for making business decisions.

1. 1. Business simulations: Some organizations offer business simulations, presenting people with theoretical business scenarios that test their financial literacy and decision-making skills. These simulations are the effective equivalent of a flight simulator that trains pilots to fly an actual aircraft.
2. 2. Leadership development seminars: Many business students and fledgling workers find that business acumen is inherently baked in with leadership development. For this reason, many leadership trainings spend a healthy chunk of time on the skills that contribute to business acumen: problem-solving, strategic management, talent acquisition, communication, and financial literacy.
3. 3. Studying the market: Understanding the global market forces that affect your business strategy can help you plan for the future and make better in-the-moment decisions. Stay up to speed on industry trends, and make a habit of reading financial news.
4. 4. Mentoring: Find someone with more experience in your field who can serve as a mentor and counsel you as you grow in your career. Learning from the business acumen of those who came before you allows you to build your business on a foundation of sound wisdom.

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