What is Business Communication and Why It is Important

Interpersonal Skills

iSkillBox Learning

Mon, 19-Sep-2022

Communication is such a natural element of our day-to-day lives that we don’t give it much thought. While some may be great speakers, not all have the same skill set. 

In a business set-up, effectiveness plays a key role. You will have to equip yourself with crisp and efficient business communication to ensure you enjoy seamless growth. So, what is business communication? It is a process of sharing information within the workspace or business information outside the company. Today, we will walk you through everything you must know about business communication and how you can upgrade your skills!

What is Business Communication - Overview

Workplace communication statistics show that 86% of employees and executives cite the lack of effective collaboration and communication as the main causes for workplace failures.

Business communication is the process of sharing business-related information between people within the organization or outside the company to meet the business goals and to promote its aims and activities that aid an increase in profits and your own growth. 

Effective business communication helps you manage and correctly interact with your team to ensure you can guide them toward the main goals. 

What are the types of business communication

When it comes to business communication, there are four main types. They include;

Internal Upward Communication: This communication is when a conversation between a subordinate to a manager within the company. 

Internal Downward Communication: This is the opposite of internal upward communication. Here, the conversation flows from the manager to the subordinate inside the company. 

Internal Lateral Communication: This is the communication that takes place between the employees within a company. 

External Communication: This is the business communication that occurs with external partners outside the company related to the business. 

Characteristics of effective business communication

Do you think you have what it takes to ace business communication? Let’s take a look at the top characteristics of the same.


One of the first steps in business communication is to induce clarity in it. Sometimes, it just so happens that people receive emails or messages from their bosses and it ends up leaving them baffled as they are unable to comprehend the meaning behind it. So, the one thing you can do when it comes to written communication is to keep things precise, straightforward, and minus jargon because making sentences too complicated can make them harder to understand sometimes. 


In Business Communication, efficiency is imperative. Let’s take an example here. You own a social marketing firm, and there is an urgent requirement for a social media post for this new client. Now, sending an email doesn’t seem like the fastest way to get the job done. Instead, you can just give your subordinate a call or walk into their office. This way, you will be clearly able to communicate the specifications of the job, and there won’t be any back-and-forth necessary. 


Business communication should be logical and must be presented in a proper manner. For instance, let’s say you are working on a social media post for a big brand. You have received the brief from the client. So, the first thing you need to do is understand what is being said and then pass it on to the necessary department logically, so that they are able to make sense of what is being told to ensure the best results. 


Finally, when it comes to business communication, being courteous is a necessity. It is important to make sure you always use a polite and professional tone. 

What is the importance of business communication

When there is effective business communication within the company, it helps seamlessly run your business. Let’s look at all the main aspects of business communication. 

Efficient Functioning 

Whether you run a small organization or a big one, good communication leads to good business. When everyone can convey things efficiently, things move smoothly and everyone can give their best because there is a sense of clarity. 

Proper Decision Making 

To ensure you reach your desired goal, it becomes essential to make certain decisions now and then. However, the quality of the decision is based on the information conveyed to you, along with all the data, facts, and available figures. Also, once the decision has been made, proper communication becomes vital to effectively reinforce it. 

It Helps You Grow 

Let’s say you have come up with a great plan for the growth of your organization. You have reached the decision after a lot of research on your end, and you know it is going to work. But here, proper business communication becomes essential. If your employees don’t clearly understand what they are supposed to do, they won’t be able to do a good job, and your plan will not work as it is supposed to. 

Helps Curb Organizational Conflicts 

In a company, everyone works at various levels, and different roles and conflicts can arise anywhere and anytime. But, when there is effective business communication in place, everyone is courteous and polite with one another. It also develops understanding and awareness of the other person’s thoughts. 

Employees Are Motivated 

When there is ideal business communication in place, people can understand their job role better. And if there are any issues, honest communication brings back motivation. 

For instance, let’s say you have been working as an associate for a year now. For a few months now, you have been taking up more and more projects to show your potential to your boss. Now, you think it is time for a promotion. You go and speak with your boss, and they assure you they will soon give it to you. But even after weeks, there is no news, and this demotivates you, and you end up doing “not so great” at work or even start looking for opportunities elsewhere. 

When there is effective business communication, there is an honest conversation. You know exactly what you will get and when. So, it keeps you motivated and helps you to do better for the organization. 

Now you know what exactly business communication is and why it is important, it is time to enhance your business communication skills. To make it easier for you, we bring you a comprehensive business communication course, which you can check here. This course will let you grow in your career and help you build a strong network with your conversational skills!