Communication

Communication is the clear exchange of information and ideas. It runs in two directions: an entrepreneur sends messages out, and listens to the replies that come back.

Who an entrepreneur communicates with

• Colleagues and staff — briefing the team on a job and agreeing who does which task and when, so work is coordinated rather than repeated or missed.
• Customers — explaining what a product does, answering questions and sorting out complaints.
• Other stakeholders — suppliers, banks and investors all need to understand what the business wants from them.

Communication is not only speaking. It also covers written reports and statistics, marketing and advertising, body language, gestures and listening.

Good communication in practice

• Marketing and advertising — a clear description of a product in a poster or social media post helps customers see why they should buy it.
• Reports and statistics — sales figures set out neatly let an investor see at a glance that the business is growing.
• Body language and gestures — steady eye contact and calm listening during a pitch or a complaint make the entrepreneur seem trustworthy.

For example, a student running a weekend bike repair service writes a simple price list, posts a photo of a mended brake, and stays calm while a customer explains why a late repair annoyed them. The customer understands the delay and books again.

Why it helps the business succeed

A new product idea is only useful if the entrepreneur can share it clearly, both with the people who will make it and with the customers who will buy it. Good communication builds relationships, coordinates work so nothing is wasted, and persuades stakeholders to say yes — for instance, convincing a supplier to allow payment in 30 days.

Poor communication harms a business: a vague message leads to mistakes, wasted money, missed deadlines, lost customers and damaged relationships with people the business depends on.