Business Sense is the knowledge and understanding of the financial, accounting, marketing and operational functions of a business. It is the ability to plan and make sound, timely decisions that result in the business meeting their objectives. The two objectives of a business are to make a profit and to satisfy the customer/client.
Business Sense characteristics:
A strong understanding of the business world and an organization’s market and environment, backed by a ready grasp of what the company needs to do to succeed.
It is not a single skill, but a set of competencies, knowledge, and awareness of multiple aspects of a business that can lead a business to prosperity.
Having Business Sense requires knowledge, education and experience. It is not something easily acquired, but it can be taught and improved on.
A person with good Business Sense will:
Be able to gather essential information for correct decision making
Focus on the key objectives.
Be able to recognize the options available for solving problems.
Select the right approach to overcome the problems.
Make correct decisions and take actions to accomplish short and long term objectives.
Business Sense means seeing the entirety (big picture) of your business and understanding all the ways it can make a profit and satisfy the customer/client. Knowing how to put systems in place that can increase efficiencies, profitability and growth.
Article written by John Costen, CPA, CGA, CFP
Another great blog post! It has very important points for business owners to consider when creating, growing and expanding their businesses!