3 Financial Acumen Skills You Cannot Afford to Ignore
Think back on a time when you purchased a car. It was a big investment. Being able to negotiate a better price was only possible when you had information. When you drove away, did you ask yourself if you had made a good decision, or did you have buyer’s remorse? Most people have had both good and bad experiences finding the right set of wheels.
Also, when it comes to our own personal finances, sometimes we can’t seem to figure out where all our money goes. But over time, with some basic knowledge and experience, we get a handle on it and learn to track expenses or work within a budget.
The same is true at work. Picture yourself in your next staff meeting, and the boss wants to discuss the budget. If you’ve had some exposure to accounting, finance, or business acumen, you’ll not only be able to understand what she’s talking about, you can contribute to the meeting in a meaningful way.
When you can demonstrate your strong sense of business acumen, you are likely to be noticed. You’ll also make your work more enjoyable. Furthermore, if you know financial metrics like sales, cost of goods, profit, and cash flow, you’re on your way to having better business skills.
DO 3 THINGS TO BOOST YOUR FINANCIAL ACUMEN
- Be agile and adaptive to change. Technology in almost every field is ever-evolving. It's okay not to be the smartest person in your company, or for that matter, the most tech-savvy, but you've got to know what's happening with regards to technology in your field.
- Discover how your company makes money. Employees are more interested in their company when they understand how it works. In my industry, for example, We divide our operations into several segments: upstream, which includes exploration and production endeavors, midstream, which includes transportation to refineries, and downstream, which includes refining and marketing activities. I always want to learn more about how those highly-specialized operations work and generate income.
- Ask a lot of questions. Some people are afraid to ask questions. Those questions, if asked and answered, will clarify expectations, encourage mentoring, and create learning and development experiences. Discover the moving parts of your industry.
PEOPLE ARE THE MOST IMPORTANT PART OF ANY BUSINESS
Businesses expect great things from people who get hired and become employees. They all want brilliant, loyal people who can innovate, affect sales, control expenses, and influence customers to be loyal to their brand.
In today's competitive business environment, growth is necessary. The kind of growth to which I am referring is to the top line of the income statement (sales), and the most growth that makes it all the way to the bottom line of the income statement (profit). Companies, that grow their profitability, experience many benefits; happy customers, improved employee morale, more cash to invest in assets, more profit for owners, and better pay for employees.