Essential business management skills

To succeed as a manager in any industry, it’s important to develop business management skills. This knowledge can empower managers to lead and motivate teams, direct projects, manage budgets and resources, and ensure that an organization runs efficiently and effectively.

Why develop these business management skills?

What are those essential skills, how can managers build them and when should they start? Understanding the skills, whether pursuing a business management career  or another professional path, can be as helpful as technical knowledge.

Even better is the fact that cultivating many of these business manager skills can begin at any time. School, work and mentorship all offer opportunities to hone and develop the skills that make managers effective. Professional growth and opportunities that teach skills in business management also offer value and improved productivity to a company along the way. 

10 essential business management skills

Often called “soft skills” in business management, many abilities that help in a business manager's career aren’t always taught in training programs or on the job. Yet they’re essential in many industries. Managing employees, making short- and long-term business decisions and plans, and sharing information with external and internal audiences all require these kinds of skills. 

Here are several skills that are useful for business management.

1. Communication

Communicating clearly, concisely and effectively is one of the most critical business management skills.   Communication skills help managers share a vision and goals with a team, set timelines, provide feedback, give presentations and write reports.

In addition, effective communication skills lay the foundation for building relationships, whether that’s finding things in common with potential business partners or working to resolve conflicts between employees. Some roles also require communication skills to persuade and inspire people, such as discussing progress with clients and communicating with customers to buy products and services.

2. Leadership

Leadership is another skill needed for business management, especially for top executives  and senior managers. Those in leadership roles need to inspire and motivate their teams to achieve company goals. Good business leaders can build relationships, delegate tasks, provide mentorship, foster collaboration and make difficult decisions.

They can also use leadership in a variety of circumstances — not just when managing employees. For example, leadership skills can be essential when building a company culture and strategic vision, developing and launching new products, and creating coaching and growth plans for teams.

Leadership skills can be learned through experience, education or training. Earning a business degree or General Management Certificate can help you develop the theoretical foundation to understand different leadership styles and how to put them into practice.

One of the best ways to hone leadership skills is through on-the-job experience. As a manager takes on more responsibility within an organization, they’ll have opportunities to try different leadership techniques and learn what works best.

3. Problem-solving

Business involves challenges and obstacles. That’s why problem-solving skills are critical. The ability to identify problems, brainstorm solutions and make decisions that positively impact a company’s bottom line is indispensable.

Problem-solving skills can be used in all facets of a business, including:

• To assist in solving budgeting issues
• To solve production issues that impact efficiency; this could mean creating a coaching plan for employees performing below standard or creating new processes for everyone to follow
• To solve customer complaints that affect satisfaction levels and overall reputation

Not every situation is black and white. Problem solving skills help managers to be comfortable with ambiguity and make decisions in the face of uncertainty. Creative thinking, critical analysis and sound judgment are key components of problem-solving.

4. Decision-making 

The importance of decision-making in management cannot be understated — it’s among the core business management skills. Each decision ladders up to a specific goal, so it’s necessary to be clear about that goal before moving forward.

For example:

• If the goal is to increase profits, a manager might decide to cut costs by reducing headcount or changing suppliers.
• If the goal is to improve customer satisfaction, a manager might decide to increase spending on customer service or invest in new product development.
• If an employee isn’t meeting performance expectations, a manager might decide to provide coaching or assign new projects.

Of course, not all decisions are obvious. Managers often face decisions that carry a negative consequence no matter how they decide. It’s critical to consider the risks involved, maintain big-picture vision and make decisions that ultimately move a business forward.

5. Strategic thinking and planning

Strategic thinking is the ability to think long term and plan for a business’s future, taking into account trends while considering the present situation.

This skill involves setting goals, analyzing the competition and making decisions to achieve a desired outcome. It’s also essential to be able to adapt a strategy as the business landscape changes and new opportunities or threats arise.

For example:

• A business owner might set a goal to grow their company by 10% over the next year. To achieve this, they would need to analyze their current situation, understand their competition and make strategic decisions about marketing, product development and other areas.
• A manager might also need to be strategic when it comes to adapting their business model to a changing marketplace, such as challenging economic conditions or an evolution in customer preferences or expectations.
• Business managers may need to be strategic about which technologies, equipment and other resources make the most sense to invest in for present and future needs.

6. Negotiation skills

Negotiation is a business management skill  that is critical for managers who want the best possible deals for their company. Negotiating effectively can lead to cost savings, improved terms and conditions and more favorable contracts.

For example, a business manager might need to negotiate with suppliers to get better prices for raw materials. They may need to negotiate with a landlord for lower rent or a longer lease. Terms of contract worker employment often requires negotiation.

Successful negotiators need to think on their feet, understand the other party’s motivation and stand firm on what is desired. But it's most important to find common ground and reach an agreement that benefits both parties.

7. Conflict management

When conflicts arise, it’s crucial to defuse the situation, communicate effectively and find a resolution everyone can agree with. This can help prevent damage to relationships that can impact productivity and revenue.

Conflict management can be used in a variety of circumstances, including:

• Mediating a conflict between employees
• Resolving a dispute with a vendor
• Helping an unhappy customer find remediation

Conflict management skills can help you in a variety of roles and situations both professionally and personally.

8. Public speaking 

Public speaking is an essential skill for workplace success as it allows managers to communicate effectively with their team, clients and stakeholders. Moreover, strong public speaking skills can help build confidence and credibility. They can also be helpful when giving presentations or pitching ideas to potential investors.

Public speaking includes skills such as effective communication, message delivery and audience engagement. Successful public speakers can capture and hold an audience’s attention while clearly delivering a message. Managers need to use this skill in a variety of circumstances, including possibly delivering a keynote speech at an industry conference or leading everyday meetings.

Public speaking skills are taught in business bachelor’s degree programs that offer communication courses. Joining a public speaking club is another consideration.

9. Financial literacy

One of the more technical skills in business management, financial literacy refers to understanding and using financial concepts to make sound decisions. This skill is vital for business managers as it can help inform decisions about budgeting, investing and other financial matters. A manager may need financial literacy in the following circumstances:

• To develop a budget for their department
• To make decisions about pricing and investments
• To understand and interpret financial statements

To improve your financial literacy, consider pursuing a Bachelor of Science in Management or financial management courses.

10. Time management

Time management refers to knowing how to plan, organize and prioritize  time to achieve specific goals. This skill is necessary for managers as it helps improve productivity and prevent burnout — not just for themselves but for their employees as well. By learning to manage time efficiently,  managers can setrealistic goals and deadlines,  create schedules and routines to meet company needs and goals, and avoid procrastination .

Great ways to manage time more effectively include keeping work areas organized, breaking down tasks into smaller goals, using a daily planner and taking advantage of project management platforms. Time management apps are also available to help stay on track.

How to improve business management skills

These skills can lay a foundation for good professional habits and support career success, whether an individual is looking to start a business  or climb the corporate ladder. Knowing how to improve skills without much business experience can help candidates stand out in the job market. There are several ways to do so:

• Get a professional mentor and observe how they integrate these skills into their work.
• Ask a mentor or co-worker for feedback on what to improve.
• Consider online courses to develop and hone specific skills.
• Earn a business degree that includes management skills training.

Improve your business management skills with degrees and certificates

University of Phoenix offers several online business degree programs  and certificates to prepare students with business management skills:

• Bachelor of Science in Management 
• MBA 
• Doctor of Business Administration  
• Associate of Arts with a concentration in Business Fundamentals 
• General Management Certificate (Undergraduate ) 
• Certificate in Leadership and Management  

Contact University of Phoenix for more information.