Press Release OREM, Utah – March 08, 2023 Download the Business Acumen Press Release: News Facts: While partnering with Acumen Learning, a Fortune 500 utility company learned how to make better business decisions using business acumen. This company faced various challenges specific to their industry due to strict government regulations. To overcome these obstacles, they enlisted the help of Acumen Learning to enhance their managers’ business acumen abilities. The utility company took the initiative to enhance its employees’ business acumen skills and understanding of the company’s operations. While there are several company-wide metrics in place, not all employees are familiar with them. To accomplish this initiative, all mid to upper-level managers attended the course to gain a better understanding of their own business and its operations. As part of this effort, the Performance Based Regulations (PBR) metric was thoroughly walked through during the course which is highly relevant to the utility industry. The business acumen course was perceived well and ranked highly among the other leadership development courses that have been offered at the utility company. The leaders walked away with a better understanding of the money-making process and how to better make business decisions. Acumen Learning has delivered customized business acumen courses to several companies on the Fortune 500 list, including 32 of the Fortune 50, further cementing its reputation as a top provider of business acumen training. Supporting Quotes: “Excellent. I really enjoyed all the integration with our company’s information. Very applicable and appreciate the customization (screenshots from our website, assets, HEI financial report).” “This course was very informative and gave me a better understanding of the utility consolidation of assets.” “I now have a much greater understanding of the financial jargon so commonly used at our company. It was very informative.” “Great course using our company’s own financial reports for the class.” “It has been clear to us in our 20+ years of working with every industry, every function, and in every geography, that every business needs smarter business people at all levels,” says Ben Cook, President of Acumen Learning. “Business acumen equips each individual with the knowledge, insights, and mindset to make business-savvy decisions, seize new opportunities, and drive sustainable success. In today’s complex and interconnected world, developing strong business acumen is not just a competitive advantage; it is an essential skill for thriving in any role or industry.” About Acumen Learning Founded in 2002, Acumen Learning's highly customized business acumen and sales training programs have helped organizations develop employees who are more engaged, efficient, and effective in their work. To further support its mission, Acumen Learning published, Seeing the Big Picture – Business Acumen to Build Your Credibility, Career, and Company, in 2012 which quickly became a #1 Wall Street Journal and a New York Times bestseller. More than 20 years later, Acumen Learning has been trusted by more than 200 organizations on six continents to help employees understand how their company makes money, and to take real steps towards improving that process.

Starting a new business with Business Acumen: In today's competitive business landscape, having strong business acumen is essential for entrepreneurs and business leaders. We like to think of business acumen as being able to see the broader picture and make smart decisions accordingly. The bigger picture refers to the broad spectrum of the business world, market trends, financial data, customer behavior, and industry insights. By developing and leveraging your business acumen, you can enhance your chances of success and drive sustainable growth for your business. Starting a business is no joke. Did you know that only 50% of businesses make it through the first 5 years? Use this guide to grow your business with business acumen. We will explore key strategies and practices that can help you harness your business acumen to take your business to new heights. 1. Invest in Continuous Learning: Business acumen is not a fixed skill; it requires constant learning and staying updated with the latest industry trends. Be sure to utilize your resources to enhance your knowledge of various business aspects, industries, and roles. Attend industry conferences, and seminars, and consider enrolling in relevant courses or programs. We have a great online course that is inexpensive, in depth, and relevant to any role, any industry, and any company. Read the book Seeing the Big Picture, it helps you understand business acumen while also applying it yourself and your own role. By continuously expanding your knowledge base, you'll be better equipped to make informed decisions and identify growth opportunities for your business. Get a demo of our building business acumen course. Learn How to Improve Your Business Acumen with Self Paced Online Training! Business acumen isn’t just about the financial make-up of companies, it’s about understanding the role you play in your business’s success. Where do you fit into your company’s money-making strategy — and how can you take your career to a higher level by becoming a business leader? Read the article below: 2. Understand Your Industry and Market: To succeed in business, you must have a deep understanding of your industry and target market. Stay informed about industry trends, technological advancements, and regulatory changes that may impact your business. Listen to your company's earnings calls and learn how the direction of the company determines your role and day to day tasks. By staying ahead of the curve, you can position your business for growth and maintain a competitive edge. Sign up for one of our Earnings Calls We offer training to all industries, all functions, in all areas of the world, for all types of companies. Here is an example of some of the insights you should be thinking about if you're in the streaming business. We also offer insights into the healthcare industry, retail industry, tech industry, etc. Check out our Youtube to see what we offer! 3. Develop Financial Literacy: Financial acumen is a crucial component of business acumen. Familiarize yourself with financial statements, cash flow management, budgeting, and forecasting. Monitor key financial metrics to assess your business's financial health and identify areas for improvement. If needed, consider working with a financial advisor or accountant to gain valuable insights into financial planning and optimization. By having a strong grasp of your business's financials, you can make informed decisions and allocate resources effectively to drive growth. Frequently Used Financial Acronyms: Are you ever worried you'll say something dumb in front of your CEO? Or even be caught in a conversation you actually don't know anything about? Familiarize yourself with some basic business definitions, so you can elevate your career and also impress your boss. 4. Put People First: We believe people are the lifeblood of any business. Without your customers or employees, you don’t have a business. It is critical to develop a customer-centric mindset by actively listening to your customers, soliciting feedback, and leveraging customer data to gain insights. It's also crucial to prioritize all stakeholders involved in your business, including employees and partners. Cultivate a people-centric mindset by actively engaging with your employees, valuing their contributions, and creating a positive work culture that fosters growth and innovation. By prioritizing the people involved in your business, you can foster a motivated and engaged workforce that delivers exceptional experiences and work accomplishments. Some of the best company’s we know, put their people first. Have you ever heard of Nordstrom? Costco? Starbucks? 5. Embrace Innovation and Adaptability: In today's rapidly evolving business landscape, the ability to innovate and adapt is crucial for growth. Encourage a culture of innovation within your organization by empowering employees to think creatively and experiment with new ideas. Embrace emerging technologies and trends that can enhance your business operations, streamline processes, and improve customer experiences. Stay agile and be willing to adapt your business strategies as needed to stay ahead of the competition and seize new opportunities. Navigating Change with Business Acumen: Adapt to the Market with Corporate Agility: Use Business Acumen to Grow your Business Growing a business requires a combination of strategic thinking, industry knowledge, financial acumen, and a customer-centric approach. By developing and applying business acumen, entrepreneurs and business leaders can navigate challenges, identify growth opportunities, and drive sustainable success. Invest in continuous learning, understand your industry and market, develop financial literacy, cultivate a customer-centric approach, foster strategic partnerships, and embrace innovation and adaptability. By following these key principles, you can chart a path to growth and thrive in today's dynamic business environment. Remember, growing a business takes time and effort, but with the right mindset and business acumen, you can unlock the potential for long-term success. Ben Cook, President of Acumen Learning said it this way: "It has been clear to us in our 20+ years of working with every industry, every function, and in every geography, that every business needs smarter business people at all levels. Being great functionally is obviously vital but overlaying that functional focus with a business & financial lens can and should be the compass that guides individuals and organizations to navigate their ever-changing business landscape to ensure their functional decisions link to where their company actually needs to be going to succeed. It equips each individual with the knowledge, insights, and mindset to make business-savvy decisions, seize new opportunities, and drive sustainable success. In today's complex and interconnected world, developing strong business acumen is not just a competitive advantage; it is an essential skill for thriving in any role or industry." Building Business Acumen: Learn how to grow your business, improve your business acumen, and succeed in your career. Download the course overview for our Building Business Acumen Course: ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #financialacumen #financialstrategy #learninganddevelopment #HR#leadershipdevelopment #training #onlinetraining #businesssuccess #people #change #industry #financialcompetency

Why Business Acumen is Essential for Salespeople Salespeople are the lifeblood of any business, responsible for driving revenue growth and helping the company succeed in the marketplace. However, in order to be successful, salespeople must possess business acumen - a deep understanding of the customer's business, industry trends, competitors, and economic factors that impact the buying decision. Sales Executive Overview Did you know only 20% of salespeople successfully reach executives' expectations and create value? Get a free executive overview for sales and marketing: Smile and Dial vs. Prep with Steps Two primary sales methodologies are Smile and Dial and Prep with Steps. Smile and Dial involves making a large number of cold calls with minimal preparation, relying on quick thinking and improvisation to close deals. This method can be effective for salespeople who are comfortable thinking on their feet and have a strong personality, but it can also lead to burnout and low conversion rates. On the other hand, prep with Steps involves taking a more strategic approach to sales, researching each prospect thoroughly and preparing for each call in advance. This method can be more time-consuming but can also result in higher conversion rates and stronger customer relationships. The Importance of Business Acumen Regardless of the sales methodology used, business acumen is essential for success. Salespeople who possess strong business acumen can effectively communicate the value proposition of their product or service, anticipate objections, and provide solutions that align with the customer's business goals. In contrast, salespeople who lack business acumen may struggle to understand the customer's business and fail to communicate the value proposition effectively. This can lead to lost opportunities and a negative impact on the bottom line. Investing in Training and Development It is important for organizations to invest in training and development programs that help salespeople develop their business acumen. By doing so, they can equip their sales teams with the skills and knowledge needed to succeed in today's competitive marketplace. As Kevin Cope writes in his book "Seeing the Big Picture": "Sales is not about selling something; it's about helping someone. It's not about manipulating someone into buying something they don't need; it's about understanding someone's problems and working with them to find the best solution." This quote emphasizes the importance of understanding the customer's needs and problems, which is a key aspect of business acumen. By focusing on helping the customer rather than just making a sale, salespeople can build trust and establish themselves as valuable partners in the customer's business success. How to Prepare for a Sales Call Using Business Acumen Business Acumen is the Cause for Sales Success Ultimately, having strong business acumen is essential for salespeople to succeed in today's marketplace. By understanding the customer's business, anticipating objections, and providing solutions that align with their goals, salespeople can build strong customer relationships and drive revenue growth for their organizations. By investing in training and development programs that help salespeople develop their business acumen, organizations can set themselves up for success in the long run. Get a demo of our Business Acumen Training for Sales: ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #financetraining #businesstraining #financialstrategy #financialacumen #businesssuccess #sales #salestraining #salessuccess #smileanddial #prepwithsteps #salesmethodologies

A Semiconductor Company on the Fortune 500 List has Partnered with Acumen Learning for Customized Business and Financial Acumen Courses Press Release OREM, Utah – February 14, 2023 Download the Business Acumen Press Release: News Facts: Acumen Learning has partnered with a semiconductor company on the Fortune 500 list to deliver customized business and financial acumen courses for its employees. The company is committed to employee development and offers a range of training and development programs to enhance the skills and knowledge of its workforce, including a variety of business-related training programs. Seeking to provide its employees with top-quality business acumen training, the company chose to work with Acumen Learning, recognizing its reputation as a leading provider of business acumen courses. The initiative aims to help directors and senior managers of the Fortune 500 company better understand the financial and business metrics that drive the company's success, and to provide them with the tools they need to make better business decisions. Acumen Learning's customized courses are designed to meet these objectives. The semiconductor company has given Acumen Learning's business acumen courses a perfect Net Promoter Score of 100 several times, indicating that the course is highly applicable, easy to understand, and has improved the skills of the company's leaders. Acumen Learning has delivered customized business acumen courses to several companies on the Fortune 500 list, including 32 of the Fortune 50, further cementing its reputation as a top provider of business acumen training. Supporting Quotes: “This was just the right amount of depth and breadth. It initiated critical thinking while making decisions and utilized quantitative frameworks while not being jargon-heavy.” “It emphasized how my role can contribute to the financial aspects of the company.” “Very good. Didn't know what I didn't know.” “The examples of actual companies were very helpful on how they fixed something seemingly little that helped the company’s bottom line.” “The course exceeded my expectations. Fundamentals of business finance explained excellently with simple examples.” “We were able to interpret the key performance indicators and develop effective strategies for the company,” says Monty Magleby, Senior Financial Consultant at Acumen Learning. “I was particularly impressed by the way the team was able to integrate these concepts into their work and make immediate improvements in their own roles. I'm confident that the tools and skills they developed during the training will continue to contribute to the company’s continued success." About Acumen Learning Founded in 2002, Acumen Learning's highly customized business acumen and sales training programs have helped organizations develop employees who are more engaged, efficient, and effective in their work. To further support its mission, Acumen Learning published, Seeing the Big Picture – Business Acumen to Build Your Credibility, Career, and Company, in 2012 which quickly became a #1 Wall Street Journal and a New York Times bestseller. More than 20 years later, Acumen Learning has been trusted by more than 200 organizations on six continents to help employees understand how their company makes money, and to take real steps towards improving that process.

What is ROA? ROA, or Return on Assets, is a word you've probably heard before. Knowing and understanding it will be beneficial in your business conversations and help you progress in your career. ROA is a very important measure that provides a ratio of net income divided by the total assets of a company. Why is this important? By having a ratio you can gain insight into what total assets were required to generate the profit at any company. In isolation, profit does not tell you what was required to generate that profit. For example, two companies can generate the same profit of $10 million. One company has $100 million dollars in assets and the other company has $10 million in assets. By being able to put it into a ratio format you can see what's the profit relative to the total assets available to the management team to generate that profit. What can you learn from the number itself? Well, the higher the ROA in general means the more efficient a company is at generating a profit relative to the assets that it has. The lower the ROA may indicative of challenges or opportunities for the company. Generally, the most important thing is how things are trending. Is it continuing to go up? Is it continuing to go down? And ROA can be a way for management to keep an eye on “are we purchasing the right assets to get the best return on our investments?” Now every measure has its strengths and weaknesses. And it's important to understand that the key strength of ROA is its simplicity of it. Typically, the common calculation is going to be net income divided by total assets, but some companies have some variations like using net income divided by average assets or using a modified net income. ROAs are perfect for comparing across companies and seeing trends, but what are the weaknesses? Well, the weaknesses are that not all assets are created equal, right? We get a total asset value but there's no insight into what kind of assets we're talking about. One company might have a lot of cash, it might have a lot of goodwill. Another company may be very heavy on capital equipment, facilities, locations, and plants. There's really no additional insight to that. So the simplicity which is its greatest strength is also its weakness, in that it doesn't really distinguish what kind of assets you have, how it's deployed, etc. A common question is: what is a good return on asset number? The answer in finance and accounting is always the same — it depends. It depends on so many different nuances, so many different factors. But in general, five percent or greater is going to be a good ROA. In some industries, that might be pretty weak. Again, it all depends. But a15 to 20 percent ROA is really strong. People often ask what are some of the other measures that are similar to ROA? There's a whole family of measures we refer to as the return on measures. They're typically a ratio of "what's the benefit?" Some common ones are return on invested capital, return on equity, return on capital employed. So to summarize return on assets — ROA — is net income divided by total assets. It gives you a great insight into the efficiency of a company and how well a company generates a profit relative to the assets that they have. ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #financetraining #businesstraining#financialstrategy #financialacumen #businesssuccess #balancesheet #ROA

What is DEI? Diversity, equity, and inclusion (DE&I) has become an increasingly important aspect of modern business, as companies recognize the need to create a more inclusive and diverse workforce to better serve their customers and stakeholders. However, to effectively lead DE&I efforts, leaders must possess strong business acumen. Utilizing Business Acumen for DEI Efforts: Business acumen is the ability to understand and navigate the complex landscape of modern business, including financial management, strategic planning, and effective communication. These skills are essential for leaders of DE&I, as they must balance the needs of the business with the needs of a diverse workforce, stakeholders, and customers. Financial management is one of the most important aspects of business acumen for leaders of DE&I. Leaders must be able to understand and analyze the financial implications of their DE&I initiatives, as well as how these initiatives fit into the broader financial strategy of the company. This includes understanding the costs associated with hiring and retaining a diverse workforce and the potential returns on investment in DE&I initiatives. Leaders must also be able to communicate these financial implications to stakeholders, including investors, employees, and customers. In addition to financial management, leaders of DE&I must also possess strong strategic planning skills. They must be able to develop and implement effective DE&I initiatives that align with the company's overall strategy and goals. This includes identifying key performance indicators (KPIs) and metrics to track the success of their DE&I initiatives and monitoring and adapting these initiatives over time to ensure they are meeting the needs of the business and its stakeholders. How to Effectively Communicate: Effective communication is also a crucial aspect of business acumen for leaders of DE&I. Leaders must be able to communicate the importance of DE&I initiatives to all levels of the organization, from the executive team to front-line employees. This includes developing effective messaging around DE&I, as well as creating training programs and resources to educate employees about the importance of DE&I in the workplace. Leaders must also be able to communicate the impact of their DE&I initiatives to stakeholders, including investors, customers, and the broader community. The Importance of Diversity, Equity, and Inclusion: Business acumen is a crucial skill set for leaders of DE&I. It enables leaders to balance the needs of the business with the needs of a diverse workforce, stakeholders, and customers, and to develop and implement effective DE&I initiatives that align with the company's overall strategy and goals. By possessing strong financial management, strategic planning, and communication skills, leaders of DE&I can drive positive change and create a more inclusive and diverse workplace that benefits everyone involved. ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #financetraining #businesstraining #financialstrategy #financialacumen #businesssuccess #diversity #equity #inclusion #DEI

Succeeding in Sales We've taught the 5 Driver Business model to hundreds of companies for years to help employees break down what every company is thinking about. Now, we're teaching it through the lens of sales. These are crucial ideas to understand if you want to be successful in the sales world. Business Acumen: The 5 Drivers At the core of developing business acumen is this fundamental mental model called the five drivers. Those five drivers are cash, profit, assets, growth, and people. People are in the center of this model. Business Acumen: Sales Edition This is a mental model that executives use to determine their strategy, priorities, and choices and can help you as an employee understand the financial implications of those choices. All of the drivers are interdependent of one another. For example, if a business has to make a decision on what to do with its cash, does it invest and make an acquisition that expands its growth driver? Or does it invest in assets that allow it to expand its product portfolio and manufacturing capacity? These five drivers are also really important as a mental model for sales teams. If you want to understand your customers' world, priorities, challenges, and industry, you first need to know how this five-driver model looks and acts differently for them than it might be for you. Because as you start to understand their business, you can position your products and solutions better to what they are most focused on. If you're going to go and sell to a customer where growth is #1 — driving top-line, driving market share, getting new products to market, expanding geographically — then your products and solutions have got to better align to that narrative. However, if they're really focusing on profitability, and driving what we call operating leverage on the P&L, driving more and more cost efficiencies, then your products and solutions are going to have to be talked through a very different lens. Knowing which of those is more important to them is really vital to be a better business partner. You need to be able to speak to how your products and solutions fit with the core of their business. If you knew nothing more than what was the trend of their revenue growth, and what was the trend of their profit growth, then you've got a pretty good sense of what's likely happening in that business. For example, if they're driving revenues but not driving profits, that's a great sign of market share and differentiation and competitive advantage they have in their markets and they're gaining more and more customers. The problem is those sales and revenues are not translating to the bottom line. Meaning their costs are growing at a faster rate than sales. They're likely going to be a little more cost-sensitive because their costs have been going up faster than sales. Now flip that around. If you go in and you're going to go sell to a customer and their profits are growing but their sales are not, what does that mean? If their revenues are flat but their profits are up, their costs have been going down over time. The challenge is, they're not growing the top line. They're not winning market share, they're not winning versus their competition. They're managing their costs well, but they really need you to better align your products and solution to help them drive more of their top line by getting into new markets and customers. Get a demo of our business acumen training for sales: Business Acumen: Adapting your Sales Approach by Industry When you adapt your sales approach to what your customers are dealing with and thinking about, that is a great demonstration of having good business acumen. Let's do a quick dive into how these five drivers may look and act differently in different industries. If you're going to sell into big retail firms, like the Walmarts and Krogers and Targets of the world, their issue is that they typically don't carry a lot of cash because most of their cash is tied up in inventory and physical assets. Their margins tend to be pretty thin because they don't have a lot of pricing power, and they don't have a lot of cash because the cash is typically tied up in their inventory. Also, they really need more and more return on their assets and faster and faster inventory turns to help them grow and generate enough cash flow for them. Now that's retail. Now let's take a whole other view of this, let's think about pharmaceutical companies, right? They tend to carry a lot of cash, their margins are really high, but they don't have a lot of fixed assets. They have a lot more intangible assets. Patents, licenses, and trademarks. Now they carry a lot of cash because they have to invest in years of product development and research. When they finally get a product to market, they need to make sure they price well above their costs. If you think about the five-driver model in different industries, you'll just see that it starts to shape and morph in different ways. Knowing how this five-driver model applies to your biggest customer is a vital first step in having great business acumen. Business Acumen: Adapting Your Sales Approach by Stage Once we've understood the five drivers and how those five drivers might change and adapt by industry, I think it also may be important to understand how these five drivers change by business stage. The life cycle of a business. Initially, it's about trying to get a product to market, getting the right people, and having enough cash to fund innovation. As you get to a later stage, it's about operating efficiency, standardization, generating goods, and stable cash flow that then allows you to fund new products expand, innovate, and grow. Understanding what stage your customers are in better allows you to then position your solutions in a language that they care most about. Business Acumen: Knowing Your Customer If you're selling to customers who are large and publicly traded and may have their financials available publicly, the first thing we'd suggest you do is to go to their investor relations page or any news that's highlighting their executives' latest messaging and financial metrics. You'll get a sense of how often they're talking about growth as opposed to how often they're talking about their profit margins or profit trends. They may be talking a lot about their products and new product development. Maybe they'll speak on assets the most. Use the five-driver model as a lens to understand the messages that their executives are sharing. Next is their financial statements. If you could only look at their income statement (also known as the P&L) and see if their revenues are growing and how that relates to their profits. Ideally, their CEO is seeing revenues growing and profits growing faster, but if they're not that means they're dealing with some kind of challenge that you can help them with. And now if they're not a publicly traded company, what do you do then? You may want to go look at their competitors and get a sense of what's happening in the industry. That's a way to at least understand your customer a bit better. Being able to use these tools and learn the art of communicating their priorities helps you really understand what the other side of the table cares about. Once you master this art, you'll be better able to position your products and solutions to their business strategy needs. We invite you into this journey of building your business acumen. Get our best-selling book, Seeing the Big Picture: ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #sales #salesstraining #salessuccess #financialstrategy #financialacumen #credibility #succeed #success #relationships

How to Succeed in the Food Processing Industry Using Business Acumen Business acumen is essential for success in any industry, including food processing. A strong understanding of financial management, market trends, and operational efficiency can help companies in this industry stay competitive and profitable. The Food Processing Industry The food processing industry involves transforming raw agricultural products into food and beverage products that are ready for consumption. This includes everything from cleaning and sorting raw ingredients to processing, packaging, and distributing finished products. Some recognizable companies in the food processing industry include PepsiCo, Kraft Heinz, Nestle, Tyson Foods, and General Mills. The food processing industry is an essential part of the global food system and plays a critical role in providing safe and nutritious food to consumers around the world. Test your Business Acumen with this Quick Quiz: Optimize Production One way that business acumen can help food processing companies is by optimizing production processes. By analyzing data and identifying areas where production can be streamlined or costs can be reduced, companies can improve their bottom line and pass on savings to customers. For example, implementing lean manufacturing principles can help companies reduce waste and increase efficiency, leading to greater profitability. Change Management with Business Acumen Another way that business acumen can benefit food processing companies is by helping them navigate changes in consumer demand and market trends. By monitoring industry developments and understanding consumer preferences, companies can stay ahead of the curve and adapt their product offerings as needed. This might involve launching new products, entering new markets, or revamping existing products to better align with changing consumer tastes. Get a Demo of our Business Acumen Training: Nestle and Blue Bottle Coffee A great food processing company we all love and are familiar with is Nestle. Nestle's acquisition of Blue Bottle Coffee back in 2017 is a great example of applying business acumen knowledge and strategies in the food processing industry. They recognized that specialty coffee was becoming increasingly popular among consumers and that Blue Bottle had a loyal following of customers who appreciated their high-quality, artisanal coffee. By acquiring Blue Bottle, Nestle was able to expand its product portfolio and tap into a growing market segment. This move demonstrates how a company with strong business acumen can capitalize on industry trends and stay ahead of the competition. Get our best-selling book, Seeing the Big Picture: Food and Beverage Industry Challenges: Like all businesses, food processing companies can benefit greatly from a strong understanding of business acumen. By optimizing production processes, staying ahead of market trends, and adapting to changing consumer preferences, companies in this industry can stay competitive and achieve long-term success. There is so much growth to be had in the food processing industry! Continue Your Learning with Applying Business Acumen: Download the course overview for our Applying Business Acumen Course ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #financialstrategy #financialacumen #foodprocessing #foodandbeverage #industry

The Benefits that Business Acumen Can Bring Employing people with strong business acumen can greatly benefit a company. In an overall sense, they are more likely to be effective leaders, be more adaptable, and can effectively navigate changing business environments. Employees with business acumen may also be better able to identify cost-saving opportunities and drive efficiency within the organization, which can improve the bottom line. Listed, are several specific metrics that you may notice when an employee exudes business acumen: Test your Business Acumen with this 10 Question Quiz: Improved financial performance: 1. Employees with business acumen are better equipped to make informed decisions. They will have the ability to see the big picture of the organization and understand how different parts of a business fit together to drive financial performance. 2. Having good business acumen can help managers understand the financial risks and rewards associated with different courses of action. This can help them avoid making decisions that could put the company's financial health at risk, while still taking risks that have the potential to generate rewards. 3. Exuding business acumen can help managers communicate more effectively with their colleagues and stakeholders. By being able to clearly explain the financial implications of different decisions, managers with good business acumen can build credibility, which can help secure the financial support the company needs to grow and succeed. Better decision-making: 1. Employees with business acumen may be more adept at analyzing financial data and making strategic decisions, which can lead to improved business outcomes. 2. Business acumen can help employees understand the impact of their decisions on other parts of the organization. For example, an employee with good business acumen may be able to see how a decision in one department could affect the performance of another department, and make decisions accordingly. Get our best-selling book, Seeing the Big Picture: Higher customer satisfaction: 1. Employees with business acumen may be better equipped to understand the needs and preferences of customers, which can lead to improved customer service and higher levels of customer satisfaction. 2. Having good business acumen can help managers and employees understand the implications of different pricing strategies. A manager with good business acumen may be able to identify pricing strategies that can generate more revenue while still providing customers with a high level of value. Why should a company care about its employees exuding business acumen? A company should care about the business acumen of its employees because it can lead to improved financial performance, increased efficiency, better decision-making, higher customer satisfaction, and a stronger and more capable workforce. Having employees who exude business acumen can help a company foster a culture of efficiency and effectiveness. By understanding the financial implications of different decisions, employees with good business acumen can help the company identify inefficiencies and make better use of its resources, which can drive greater productivity. Investing in the business acumen of employees can be a valuable way for a company to develop its talent and build a strong team. Providing training and development opportunities can help employees build their skills and knowledge, making them more valuable to the company. Not only will they feel valued, but they’ll have increased job satisfaction and loyalty. This can ultimately lead to a more engaged, motivated, and productive workforce, which can have a positive impact on the company's bottom line. Attend a preview of our course by our CEO, Kevin Cope: Business Acumen 101 Every business needs smarter business people. Business acumen goes far beyond finance and definitions. It is thinking about business through the lens of 5 fundamental categories. Cash, Profit, Assets, Growth, and People. Business acumen is zooming in on your company with these specific metrics in mind and asking these questions: - Are you focusing on these 5 things? - How well is your company doing in each category? - What areas need improvement? How were your answers? If the answer was not good, be careful - these five drivers can make or break your organization. For a deeper dive, head to the link below. ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #financetraining #businesstraining #financialstrategy #financialacumen #businesssuccess #returnonbusinessacumen #L&D

Defining Business Terms with Business Acumen Utilizing business acumen helps you to understand these business metrics. CAPEX and OPEX may sound similar but are most definitely different. We want to clarify the differences so you’re able to make smarter business acumen decisions within your company. First, what does each mean? When you hear CAPEX, your executives are talking about capital expenditures. When you hear OPEX, your executives are speaking about operating expenditures. Test your Business Acumen with this 10 Question Quiz: How does a company spend its money? In business, you've got all sorts of ways in which you spend money. Capital expenditures and operating expenditures are how you are spending that money. Operating expenses refer to your day-to-day expenses such as labor and utility costs and can sometimes be referred to as period costs. Capital expenditures are when you invest your cash into long-term investments. These would be items like buildings, equipment, vehicles, and even intangible assets such as software and patents. Anything you invest in that will be used for longer than a year is going to end up being capitalized. When a company determines how they're going to spend their money, they have their period cost. Those are the budgets that they set up every single year for their operating groups. How does business acumen help you? Operating expense is the easiest to find. You're going to see it on the income statement. To find it, you first must calculate all your period costs (revenue minus labor, operating, cost of goods sold, overhead costs, and selling expense) which are found on the income statement. Capital expenditures are where we're going to take our extra money and invest it to grow and expand our business. Capital expenditures are on the balance sheet. If your company builds a new building, that will appear on the balance sheet as an asset. Over time assets actually depreciate in value which shows up on the income statement — what they call depreciation and amortization. Predominately, when you think of capital projects or capital investments, start on the balance sheet. How Timing Differentiates Capex and Opex: The difference between capital expenditures and operating expenditures is timing. Any purchases or investments you make that are greater than a year period of time are going to be capitalized. Anything less than a year period of time — or what we call your period cost stuff like labor, overhead expenses, utilities, etc. — are going to be your short-term expenses. That's going to be your operating expenses. In business, you need to know where you're spending your dollars. Basically, as you look at CAPEX versus OPEX there are two different types of budgets or two different allocations of dollars that you’ve got to be tracking towards. There are capital budgets or operating budgets. You'll be asked, "are you going to expense this as an operating expense or a CAPEX?" Understanding how you should allocate those dollars or those expenses and record them so it gets the information that our executives want is vitally important in any business. How can you set yourself apart? The more you understand the difference between capital budgets or capital expenditures being long-term investments versus your day-to-day expenses, and make sure you're allocating them well, the more you'll be set apart as a manager within the organization. You'll be seen as someone who truly understands what we're trying to do as a business and how to expense those dollars. Defining Asset Strength and Asset Utilization: Do you want to excel in your career? Continue your education with more business definitions: ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #financetraining #businesstraining#financialstrategy #financialacumen #businesssuccess #businesssuccess #CAPEX #OPEX #capitalexpenditure #operatingexpenses

The Secret to Sales Success: Business Acumen As a salesperson, you are the frontline of your company's revenue. Your success is a critical factor in the success of the business. To be successful, you need more than just the ability to sell; you need business acumen. In this article, we will explore what business acumen is, why it is essential for salespeople, and how you can develop it. What is Business Acumen? Business acumen is the ability to understand and apply fundamental business principles to make informed decisions that drive business success. It includes a deep understanding of the organization's strategy, its products, and its customers, as well as the economic and market forces that drive the business. Business acumen also requires an understanding of financial statements and how the organization generates revenue and profits. In short, it is the ability to see the big picture of the business and to make decisions that align with its overall strategy. Why is Business Acumen Important for Salespeople? Salespeople with strong business acumen are better equipped to understand their customer's needs and offer solutions that meet those needs. They can identify opportunities to sell more products and services and create deeper relationships with customers, leading to increased revenue and customer loyalty. Additionally, salespeople with strong business acumen are better able to communicate the value of their products and services to customers, creating more successful sales. They understand the competitive landscape and can position their products and services to stand out from the competition. Salespeople with strong business acumen are also valuable assets to their companies. They can identify new market opportunities, assess risks, and make informed decisions that drive the business forward. They understand the financial implications of their decisions and can use financial data to create sales plans and forecasts. Test your Business Acumen Skills: Take this quick quiz to test your business acumen skills and see how you compare to your peers! How Can Salespeople Develop Business Acumen? Developing business acumen requires a commitment to learning and staying up-to-date on industry trends and best practices. Here are a few strategies for developing business acumen: 1. Read business books and articles: There are countless books and articles available that can help salespeople gain a deeper understanding of business principles. Our favorite book for developing business acumen include "Seeing the Big Picture" by Kevin Cope. As Kevin Cope writes, "Business acumen is not a function of intelligence. It is a function of curiosity, the willingness to learn, and the ability to see the big picture." 2. Attend industry conferences and events: Attending conferences and events can provide opportunities to learn from experts in the field and to network with other professionals. Salespeople can gain insights into emerging trends and best practices and make connections with potential customers. 3. Seek feedback and mentorship: Seeking feedback from managers, peers, and mentors can help salespeople identify areas where they need to improve their business acumen. Mentors can offer guidance and support in developing new skills and making informed decisions. 4. Analyze financial data: Salespeople can develop their financial acumen by analyzing financial data such as revenue reports, profit and loss statements, and balance sheets. They can use this data to identify trends, forecast future revenue, and make informed decisions. The 5 Business Drivers of Sales: At the core of business acumen there's this fundamental mental model that we use, that we call the five drivers. And the five drivers is a model that every CEO and every executive of every business, public or private, US/outside the US, every industry, that every business and every executive fundamentally thinks about. Those five drivers are cash, profit, assets, growth, and people. People right in the center of this model. So this is a mental model that executives use to determine strategy, priorities, and choices and what are the ripple effect financial implications of those choices. Being able to use these tools that are available for you and the art of being able to question and probe into where their priorities are, starts to help you really understand what the other side of the table really cares about. And then better position your products and solutions to that language is a real art. We invite you into this journey of this art and science of building your business acumen. Real-Life Example of Business Acumen Skills: Jeff Bezos A great example of a business leader with impressive business acumen skills is Jeff Bezos, the founder and former CEO of Amazon. He is widely regarded as one of the most successful entrepreneurs of our time. He founded Amazon in 1994 as an online bookstore and transformed it into one of the largest e-commerce companies in the world. Much of his success can be attributed to his strong business acumen. He is known for his focus on the customer experience, which has helped to create a loyal customer base and drive sales. He famously declared that "the most important single thing is to focus obsessively on the customer." This customer-centric approach has led Amazon to develop new services such as Prime, which offers fast and free shipping, streaming of movies and TV shows, and other benefits. Prime has become a significant driver of Amazon's growth, with over 200 million members worldwide. Because Bezos has a deep understanding of business acumen, he is able to assess the company's business model and the competitive landscape in which it operates. He is not afraid to take risks and make bold decisions. Bezos also understands the financial implications of his decisions and has a keen eye for identifying cost-saving opportunities. For example, he famously introduced the "two-pizza rule" for meetings, which limits the number of people in a meeting to those who can be fed by two pizzas, to encourage smaller, more efficient meetings. Overall, Jeff Bezos is an excellent example of someone with impressive business acumen skills. His ability to identify new market opportunities, make bold strategic decisions, and focus on the customer experience has helped Amazon to become one of the most successful companies in the world. Salespeople can learn from his example by developing a deep understanding of their company's business model, identifying new market opportunities, and focusing on the needs of their customers. The Benefits of Business Acumen for Sales: One big challenge of senior executives is individuals coming to sell them. They don’t want somebody showing them all of their gadgets. What they need is need somebody who can come in, understand their business as well as they can, and then help them see how their products or service can drive towards their goals. And that's what business acumen allows us to do. It helps that individual or sales person move from a sales, product, or service expert to a business expert who happens to sell. And that's where that transition happens. We're not a methodology company, we're not teaching sales methodology, we're not teaching sales platforms or technology. ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #financialstrategy #financialacumen #sales #salessuccess #businesssuccess #salestips

Using Business Acumen to compare customer acquisition vs. customer retention. Brent Barclay, a Senior Financial Consultant at Acumen Learning, breaks down the cost of acquiring a customer and the cost of keeping a customer. Losing a customer can be extremely expensive, hurt your team morale, and take time and energy to replace. Here is a transcript of this video: Acquisition Vs. Retention Costs For many people - as I look at customers it seems pretty intuitive that it's probably easier to sell to a customer you've already had vs. trying to sell to new customers. One of the things they'll talk about is the cost of acquisition — and it's quite high. Some will say it's somewhere between 5-7 times the cost to get a new customer as it would to sell into an existing customer. So from a business acumen perspective, recognizing that all your investment dollars going toward marketing of new customers and trying to do acquisition, well what if I took some of those dollars and really had a robust retention program. Really understanding my customers. Aligning what they're trying to accomplish to the solutions that I have available – which means they want to continue to buy from us for multiple years and multiple experiences. In the end that's a great way to get a greater return on your investment dollars. Now you end up having to have both. You can't just do one without the other. That being said often we spend so much time on the customer acquisition we don't emphasize, we don't put as much budget towards customer retention and really that's the place where you can really expand and succeed as a business. Balancing Acquisition and Retention for Businesses And many of these consulting, training, development companies, a big emphasis is your existing customers. That's where the lion's share of your dollars come in. In fact, it can be harder for small businesses to get new customers and so you end up focusing a lot on those existing customers. And sometimes in small businesses it flops the other way. Where you spend so much time on your existing customers, you're not working enough on the new new. And so if you happen to lose one of your key customers because of turnover or whatever changes may happen, you end up kind of putting yourself in a tough situation. So, for small businesses you get a large customer you're just trying to keep up with the pace. But you cannot forget about "I got to also invest in trying to get new customers." So there's really a balance that you've got to consider. But absolutely for small businesses, the lifeblood of small businesses is their existing customers and that retention of those relationships. So, one of the big costs of not keeping your customers, obviously you now don't have the revenue in future years. There's a term that they talk about call the customer lifetime value. It's all the dollars they spend with you. If I have a customer spending $100,000 over 10 years, my customer lifetime value is a million dollars. So it's not just what you would get this next year, maybe a hundred thousand, but if I lose that customer in 10 years that would have been a million dollars of value I've lost. And so recognizing that there's a value of these long-term relationships. Download the course overview for our Building Business Acumen Course: The Importance of Customer Lifetime Value Now you see this a lot in subscription businesses, right? If I'm a SAAS company and my model is all about subscription, I have to focus on those existing customers. It cost me a lot to get them up and running but every year after that, that's a low cost and it's a high profitability for the future. So, you really want to be good and SAAS companies spend a lot of time with that. But sometimes service companies, consulting companies, etc. we get so busy with working with certain groups that we forget the value of that lifetime customer. As you look at customers buying from you, new customers about 5 - 25% will actually buy from you. 25% would be very high. Of all the customers you talk about 25% of them buy, and it's usually on that lower end. Versus, if I'm selling into existing customers about 60 - 70% of them will actually buy something from you. So, it's much easier I you have that good relationship, you understand what they're doing and what they're working towards, it's much easier to sell into those organizations. The Value of Business Acumen and Long Term Relationships I'll give you an example. Just recently I was doing a year in review. I was talking with an existing customer and all I did was share an opportunity. What I thought might be the next step based upon their training and development goals and objectives. There was no question. "Yeah we absolutely want to do those." Earnings call debriefers is what I was selling. It was a great opportunity for us to immediately there's trust there, there was confidence there, which meant "yeah I want to add those to next year." Versus somebody brand new, I would need to sell multiple pieces for them to see the value of that. So, selling into existing customers you'll have a much greater close rate than you will with new customers. Get a Demo of our Business Acumen Training for Sales: Business Acumen Aids in Understanding Your Customers Business So, one of the things I think is real valuable in our Building Business Acumen for Sales Professionals, is this idea of understanding their strategy, understanding what their key metrics, what are they trying to accomplish. One of the greatest ways to improve retention is to truly understand their business — be able to speak to their key metrics and measures, their strategies. Now all of a sudden instead of me just selling features advantages of benefits of my product, I'm selling solutions to their goals and objectives. You switch your role. Instead of a transactional sales individual you become a partner. You're part of my team. You understand what I'm doing and you're helping me make a business case as to why, in our case, a partnership with Acumen Learning can really drive to your profitability, your cash flow, or your goals and objectives. Use Business Acumen to Be a Partner So I think that's the real differentiator, is the more you understand about your customer's business and if you can help them align your products or services to their goals and objectives, you're no longer a sales individual. You're their partner. Treating Your Employees like Internal Customers: Just as customer retention is important, so is employee retention. According to the University of Minnesota Human Resource Management Group, an employee who is paid $8 per hour can cost a company upwards of $4,000 to replace. This may not sound too bad. But a 100 person organization that provides an average salary of $50,000, could have turnover and replacement costs of $660,000 to 2.6 million per year. And this is using the turnover rate of 26% which is what it was in 2017. The percentage is almost 33% for 2021 according to the Bureau of Labor Statistics. Treat your employees just as well as you'd treat your customers! Applying Business Acumen To continue your learning, download the course overview for our Applying Business Acumen Course: ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #learninganddevelopment #leadershipdevelopment #financialstrategy #financialacumen #customers #employees #customeracquisition #customerretention #employeeretention #losingacustomer