Communication Flow for Small Businesses

Communication is key. Without it, people won’t understand each other. But you also need to understand the communication flow.

Communication is any transmission of a message from the sender to the receiver. It can take place through various types of channels, and can flow in many different directions. In a company, communication is divided into external and internal communication.

External communication is directed towards stakeholders outside the organisation. This can be other businesses, your target audience or other parties such as the bank, government or creditors.

Internal communication remains within a business. It is aimed at anyone in the organisation, such as employees, managers, shareholders or departments. In other words, it can be downward, upward, horizontal, or diagonal.

Types of Communication

Downward Communication

This type of communication is vertical, delivering information from the top down. When visualising the company structure, owners will always be at the top, followed by mid-level managers or department heads, and finally, the other staff at the bottom.

Downward communication flows from the top down and relies on the chain of command to transfer information to the correct lower-level employees. It usually transmits experience, knowledge, authority or directives.

Upward Communication

Communicating upwards mostly relies on transmitting information from the bottom of the company towards the top. Again, this flow of information operates within the chain of command, passing information on like climbing up a staircase. The information includes requests, proposals, complaints, reports and feedback.

The most effective communication is two-way communication, so where this type of communication is welcomed and encouraged, cooperation, trust and support are gained.

Horizontal Communication

Also called lateral communication, horizontal communication happens amongst peers. This can look like workers within a team collaborating on a task, managers sharing information to algins across departments, or coordinating. However, because it can be either formal or informal, it can occur during meetings or casual exchanges.

Diagonal Communication

Although previously not as common as it is now, diagonal communication takes place between different structural levels and increases the efficiency of certain tasks. Usually, it manifests itself in cross-functional teams in an attempt to find the shortest distance possible between two people.

External Communication

External communication is delivered in the form of press releases, product promotions, marketing materials, reports and official documents such as invoices or proof of payments in the case of a supplier.

Improve Communication Within Your Small Business

Communication can easily be improved if leadership prioritises it. The best news, however, is that this doesn’t need to break the bank. By leveraging technology and making vital resources more accessible, your business can foster excellent communication.

Be a Good Listener

Being a good, active listener is the first step towards improving communication. As a business owner, it is important that you set the tone for listening and communicating within your business. While listening, you need to practice understanding the details of the conversation, responding appropriately, and remembering the information that is communicated. When conversations happen in written format, ‘listening’ will turn into ‘reading’, so you may understand the message more effectively.

Remove all distractions during a conversation, and try to communicate through nonverbal cues that you are following the conversation.

Make Information Accessible

Basic information that every employee needs to know should be easily accessible. This can include:

• Employee protocol and benefits plan
• Operational workflows and processes
• Style guides and branding documents
• Training materials and tutorials
• Marketing collateral and templates
• The organisation’s mission statement and vision plan
• Any other information for employees or the company at large

All employees should be able to return to certain information, and all new employees should be taught how and where to access it. This practice also enhances accountability and transparency.

Leverage Innovative Technology

Making important information available means that you can effectively leverage technology to provide shared access, such as cloud storage or an internal company portal.

Additionally, remote employment, telecommuting, virtual offices, or any other type of work-from-home engagements are made possible through technology.

Find a Dedicated Internal Communication Platform

One dedicated communication platform for communicating with teams about work means that employees keep their work and personal communication separate. Most platforms offer many tools that help teams work together. These include document sharing, video conferencing, text messaging, and many more.

Create a Feedback Loop

Feedback is part of communication. Even once a message has been transmitted, feedback follows via a response or reaction. It is also essential for improving.

Feedback can be collected within a company through employee surveys, but remember to keep an open mind. Additionally, information from external sources, such as customers, not only shows how to improve external communication, but also where employees might need more customer service training.