Why Communication Skills Are Important For Entrepreneurs: 5 Solid Reasons

Why are communication skills important, you ask. Well it can make your business five times as successful as it is now. Let’s see why.
Entrepreneurs can manage and run a team much more efficiently if they learn about the art of communication. Many times, good communication skills can make or break your career. And schools and colleges don’t understand one thing that how important are communication skills. If they could, entrepreneurs wouldn’t have so much trouble making deals.
We all have to learn through experiences which is great but don’t you think it would be way easier if we already were taught a little bit about developing good communication skills.
But better late than never. Today we are going to learn why are communication skills so important, especially for entrepreneurs. So ready to have a successful business.

What are good communication skills?

Good communication skills are the abilities that assist you to become effective at sharing information with others.
While some communication skills come naturally, you need to develop other essential skills to be able to leave a mark on the people with whom you converse.
Good communication skills are one of the top most favoured skills for almost all businesses.

employees having a discussion
Photo by Ivan Samkov

Interesting statistics about good communication skills

  • Workplace communication statistics show that 86% of employees and executives face the lack of effective communication as the main cause for workplace failures. On the other hand, teams who communicate effectively may increase their productivity by as much as 25%.
  • The number of people working solely from home has risen from 29% pre-pandemic to 57%. And working from home has had a profound effect on communication.
  • Over a third of people (33%) say communication has become more of a challenge in the past 12 months.
  • Over a quarter (26%) of people feel that the way businesses communicate – both internally and with customers – has deteriorated during the past year because of lack of social interaction.
  • Communication facts and statistics show that 69% of employees would work harder if they felt appreciated by their employers. They would also be 4.6 times more motivated to produce quality work if they felt like their voice mattered.

These statistics clearly show that by just changing the way you or your employees communicate can be such a major game changer.

A good leader is the one who can effectively and efficiently communicate.

Read how you can become a good leader in no time.

The 7 C’s of good communication skills

1. Clear– The message should be clear. If what you are saying is not clear to the other person, it would just waste both of your time.

2. Concise– Keep it short, effective and efficient.

3.Correct– The shared information needs to be factually and grammatically correct.

4.Complete– Nobody trusts and likes someone known for providing incomplete information.

5. Courteous– Respect and appreciate your audience for giving a part of their valuable time.

6. Coherent– The message should structured properly so that it can be understood easily.

7. Concrete– It should be genuine with facts.

Related: Why Self Discipline is the key to success in life: 6 Absolute Reasons

Why communication skills are important
Credit: Canva

The importance of good communication skills

1. Creates better relationships

Not only just for businesses and entrepreneurs but for your personal relationships too.
If you listen carefully to your associates or loved ones and give a good feedback, they will also feel heard. They would not have trouble expressing their concerns and it will be the healthiest relationship you can ever have.

2. Provides clarity

Being clear about your message is absolutely necessary while running a business.
You could loose so much time and hence money if your message is not loud and clear.
According to communication expert, Debra Hamilton, miscommunication can cost a company of 100 employees (or less) $420,000 per year.
The easier and better your employees and colleagues understand your message, the more successful your business would be.

Recommended: 6 Must Required People Skills For Every Entrepreneur

3. Building trust

Effective communication helps develop trust with others. Since you can listen to others and understand where they are coming for, they would value your opinion more. They will also feel more comfortable while taking help and constructive criticism.
Your trustworthy nature will extend to your teammates and develop a stronger indestructible team.

4. Prevents or resolves problems

You see how we need a mediator whenever we are in a big conflict with someone.
An effective communicator knows how important it is to prevent or resolve conflicts.
Good communication is a foundation for developing a long term relationship, business and otherwise.
If you are aware of the good communication skills, you wouldn’t need a mediator and will develop good healthy relationships throughout your life.

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5. Enhances productivity

When all the team members know their roles, they would obviously work the exact way you want them to.

This would save both their and your time. So in a given time, they would be more productive saving you a lot of time, energy and money. And anyway, even if you are not running a business. Wouldn’t you want to make the best of your day or even life? Life is so short to be wasting in doing things with no significant value.

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6. Promotes engagement

This can bring a lot of creative ideas to the table and we all know how important creativity is for businesses to thrive. Since the whole team knows they would be heard and can speak their mind without any judgement from others, they would be more engaged with the work and the other members.
According to a recent study exploring the psychology of employee engagement, only 15% of adult employees are engaged with their employers. By prioritising effective communication, you can increase engagement, and thus boost satisfaction, among your team members.


Why are communication skills important

I hope now you know why communication skills are so important for entrepreneurs. You need to know how to communicate effectively to all your team members, stakeholders and potential stakeholders that touch the business.

Remember, a successful business is not built by one person but a strong team. So learn the art of developing good communication skills for building a billion dollar business.