The Importance of Good Communication To A Business

by Michael Griffiths | Apr. 01, 2013

Capital, excellent products, caring employees, a good business plan, effective marketing, supreme customer service, loyal clients and good business relations - all of these are essential to attaining success as a small business. But all of these can fail at the snap of a finger, when good communication within any organization does not exist.

Communication plays a huge part in the success of any endeavour. The ability to communicate well is essential in boosting overall performance. Why so?

Good communication skills are essential to managing the performance of your team. With it, you can relay all orders and instructions to others, and not have the fear of being misinterpreted. No blotched job orders or wrongful interpretation of the proper work procedures.  Especially during times of higher workplace stress, like downsizing, communication could spell the difference between being understood by the ones who will be laid off, and a possible labor case. Also, good communication will appease people, and not make them think that they are to blame for the downfall of the business.

Good communication is important to the favourable handling of customer complaints. It is essential in keeping any negative word-of-mouth issues to an absolute minimum. Remember - all your hard work and care for a hundred satisfied customers can be negated by one really erroneously-handled complaint. The scary thing about bad communication is that it has the ability to destroy relationships that is quite difficult to build. It can damage your reputation, which can never be redeemed.

Good communication skills are a key part of managing individual employee performance. Good communication skills enable business owners to give the proper feedback worthy of each employee - whether it be favorable or not. It spells the difference between causing employees to maintain their pride, or making them lose their self-esteem. Keep in mind that whatever is said can no longer be taken back.

Good communication skills also help when you are dealing with suppliers and clients. All your desires, orders, delivery schedules, complaints, positive feedback, product quality can all be affected if you don't have good communication skills. You are able to relay what you want., when you want, and you also have the ability to interpret well whatever other people say to you. Communication is essential to negotiation - which is yet another important aspect of the supplier- owner business process.

Good communication is important to business marketing. Honing your communication skills will help you determine which materials, content and marketing approach are appropriate and they will enable you to give clearer and more convincing sales pitches. Notice how some marketing collaterals are good, save that the way content was said made it seem so ineffective? Good communication is essential to determining what works and what does not - and makes you discern how to properly address your desired target market.

Team morale tends to be higher in a workplace where communication is good. When a culture of open communication is established within and office, it makes it easy to work with each other. It even helps make work a joy, and not a bane. There are some businesses which have managed to maintain a family-like atmosphere, where employees are raring to tackle hard tasks, and even go out after work hours together. That would really be nice and pleasant., wouldn't it?

Good communication means that you are honest with developments within the business. If things are working well, inform your people: if they're not, then let them know too. It's hard not to know how things are going - if employees are doing their jobs right, if clients are happy with the service. Especially when your business is going through a tough time, communication is all the more needed. Don't spring news of business closure to everyone and catch them all off-guard. Keep everyone in the know, because each one does his/her part in helping the business survive. Do the kind thing.

Basically, your skills as a communicator are felt in nearly all of your business dealings. Knowing how to properly relay information is the key to survival in the business jungle.

About Michael Griffiths

Connecting Women In Business helps women business owners generate more leads, clients and increase profits with more networking, business insights, tips and tricks on marketing, growth, business and accountability strategies. We invite you to get your free social media tactics ebook when you visit


About Chia-Li Chien

Chia-Li Chien

Chia-Li Chien, CFP®, CRPC, PMP; Chia-Li “like JOLLY,” Succession Strategist of Value Growth Institute, dedicated to helping private business owners increase their company equity value. She is the award-winning author of the books Show Me The Money and Work toward Reward and a faculty of the American Management Association. Her blog and newsletter was named a Top Small Business Resource by the New York Times You’re the Boss blog. Contact her at or (704) 268-9378 .

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