Business Sense

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