6 Reasons why communication is important in business.

6 Reasons why communication is important in business

To paraphrase the famous saying, money talks, and BS walks. Having money doing the talking, and being able to engage in financial speaking, are valuable assets in the business world.

However, clear and effective communication with all components of the business cycle, from suppliers to vendors, investors, and customers, is critical to becoming an established household entity.

For those who struggle to communicate effectively in their business deals or for those looking to improve production processes, these 6 reasons why communication is important in business can help to communicate to the world why your business is important.

Communication saves money.

At the end of the day, a business survives because it brings in more money than it spends. All businesses are dependent on a supply chain for supplying materials needed for production or just for operations.

Being able to clearly communicate with equipment or materials suppliers can ensure that your business is acquiring the best possible materials at the best possible price.

When starting a relationship, being clear with your goals and your desire for a reciprocal, mutually-beneficial relationship helps to establish a foundation to build on; since material suppliers are businesses also, your support can lead to bringing in other customers.

Further, establishing an open line of communication can allow suppliers to help you with troubleshooting equipment malfunctions, saving costs down the road. 

At the end of the day, personal rapport and mutual sincerity for success go a long way to establishing an effective business relationship.

6 Reasons why communication is important in business
6 Reasons why communication is important in business. 2

Communication builds a reliable network.

No business is an island. Every business needs a dependable investor and a supportive network. Being clear, engaging, and honest about your business goals can help to incorporate investors into your business network.

Investors are looking for ways to make reliable investments, so being forthright and engaging about the mutual relationship you are trying to establish and the benefits your business can bring can gain you a solid footing that can reap benefits for both parties.

Finally, even the savviest entrepreneur needs some guidance. Being approachable, teachable, and sincere about your growth strategies can attract similar businesses or established business leaders willing to mentor you through the various obstacles you might encounter.

Communicating your goals clearly is the first step to establishing a supportive network that can broaden your business’s customer base while expanding its production capabilities. 

Communication ensures that production goals are met.

Unless you start out as a global conglomerate and are capable of meeting all production goals in-house, most production requires coordination with different suppliers for different components.

Being able to clearly communicate your specifications can be the difference between having a reliable, quality product and an erratic, undesirable one.

It’s always a good idea to have everything down in writing, whether to relay content via an email or a memo, submit blueprints or spreadsheets, or send invoices.

Starting the relationship with an in-person interview or phone call and continuing to touch base until production goals are met is also important, as many businesses have multiple clients while also experiencing lag times of their own.

The key isn’t to pester your collaborators but to express a sincere interest in staying updated on production goals. 

Communication keeps your team motivated. 

Just as no business is an island, most businesses require a certain level of teamwork to achieve their production goals. Having clear, well articulated and occasionally revisited goals is imperative to keep all team members engaged and aligned with the same strategic mission.

More importantly, creating an open line of communication attracts input from all team members and ensures that any and all valuable ideas are vetted during the production process.

Since innovation is key to any business, and innovation can come from the most unlikely sources, keeping communication constant and provocative can help to constantly generate ideas to improve the business.

Most importantly, creating an engaging, continuous line of communication helps team members to feel respected and stay motivated during stressful production times or when challenges are encountered.

Communication helps to keep the team together, and teamwork makes the dream work.

Communication generates customer support.


At the root of effective marketing is presenting an idea as clearly as possible to generate as much support as possible.

A business that can clearly communicate what it is trying to sell, why it is a benefit to customers, and why it’s a quality product is more likely to generate customer support and greater sales.

The key to this process is making communication as engaging as possible. Communication takes many forms, and written advertisements, videos, and blogs that are tastefully tailored to a business’ respective goals help to ensure that clients are stimulated to keep coming back for more.

Amid all of this, constantly ensuring customers that their needs are respected and that they will be met helps to grow this network further so that the business constantly has community support to weather any obstacles.

Communication makes the process a lot less stressful.

Burnout is one of the principal causes of business failure.  When stress levels become too great, the business can’t sustain itself (it is called a livelihood, after all).

When communication is clear and effective, ensuring that materials and supplies are acquired reliably and affordably, when team members are motivated and engaged in production, and when customers are satisfied and constantly returning, then a business has the capacity to constantly generate revenue.

When there’s a breakdown in any of these lines of communication, businesses can falter and succumb to the many other factors that can end a business.

Communication is therefore the core of how a successful business operates. Being able to clearly communicate your goals in person, in writing, or through digital means can help to establish your credibility while effectively meeting your business goals.

With these 6 reasons why communication is important in business, you can keep your business conversation going and going.

Jenny Fischer

Jenny Fischer

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