Business communication describes the many tactics and strategies for sharing information among leaders, managers, stakeholders, employees, and team members. A company’s business communication tools might include written communication, such as memos and instant messaging, or even body language and [nonverbal communication](https://www.masterclass.com/articles/important-types-of-nonverbal-communication). 

Business communication may involve face-to-face meetings and digital forms of communication, such as email, phone calls, or messaging apps. Business leaders and team leaders can use effective business communication strategies to streamline external and internal business communication and improve [decision-making](https://www.masterclass.com/articles/decision-making-styles).
A company might use one of the four main types of business communication to share knowledge. Often, these communication methods apply to <a href='https://masterclass.com/articles/robin-robertss-tips-for-public-speaking' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/robin-robertss-tips-for-public-speaking","linkCopy":"public speaking","category":"automated-link"}' automatic='true'>public speaking</a>, virtual meetings, and many forms of business writing. The four types are:

1. __External communication__: External communication is any information or messaging for those outside of the company. This might include customers, contractors, vendors and manufacturers, or partner companies. A company's external business communication might include public relations work with journalists or developing customer relationships through marketing. 
2. __Horizontal communication__: Also known as lateral communication, horizontal communication is when information moves among departments with the same hierarchy status in a company. This would include a single team within a larger group communicating with each other to solve a problem or the marketing team meeting to brainstorm. 
3. __Downward communication__: When a company’s leaders send information to direct reports and other employees, they are using downward communication. For example, [stakeholders](https://www.masterclass.com/articles/stakeholder-explained) might send out memos or email newsletters to keep employees informed of leadership decisions. 
4. __Upward communication__: When a company’s manager delivers information to a higher-level executive, they are using upward communication. Employees use this method of communication to share knowledge with leaders, which also helps the top-level managers remain informed of employee updates.
A strong business communication strategy can be a large part of a company's success. Strong business communication skills and strategies can:

- __Improve customer relationships__: Many types of business communication involve speaking to a group of people outside of the company, including customers and clients. Having a strong communication strategy for marketing or public relations can improve customer satisfaction and increase sales.
- __Increase employee engagement__: When communication in a company is clear and simple, employees can focus their attention on their work. Poor communication can sometimes lead to misunderstandings, confusion, and frustration. Clear methods of communication between different departments can prevent high employee turnover as everyone feels that they are part of the team.
- __Streamline the flow of information__: Part of a strong communication strategy is establishing communication channels for both downward communication to employees and upward communication to managers and leaders. This can save time and energy for employees to get information out in a reasonable timeframe, resulting in fewer bottlenecks in projects and more opportunities for teamwork.
Get the [MasterClass Annual Membership](https://www.masterclass.com) for exclusive access to video lessons taught by business luminaries, including Howard Schultz, Chris Voss, Robin Roberts, Sara Blakely, Daniel Pink, Bob Iger, Anna Wintour, and more.
Business communication includes the methods a business uses to share information with internal employees and external audiences. Having a strong business communication strategy can streamline workflows between coworkers and improve company culture. Read on for more on the different types of business communication and why they are important for small businesses and entrepreneurship.

Business communication includes the methods a business uses to share information with internal employees and external audiences. Having a strong business communication strategy can streamline workflows between coworkers and improve company culture. Read on for more on the different types of business communication and why they are important for small businesses and entrepreneurship.

Business Communication: 4 Types of Business Communication

Business communication describes the many tactics and strategies for sharing information among leaders, managers, stakeholders, employees, and team members. A company’s business communication tools might include written communication, such as memos and instant messaging, or even body language and <a href='https://www.masterclass.com/articles/important-types-of-nonverbal-communication' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/important-types-of-nonverbal-communication","linkCopy":"nonverbal communication","category":null}'>nonverbal communication</a>. Business communication may involve face-to-face meetings and digital forms of communication, such as email, phone calls, or messaging apps. Business leaders and team leaders can use effective business communication strategies to streamline external and internal business communication and improve <a href='https://www.masterclass.com/articles/decision-making-styles' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/decision-making-styles","linkCopy":"decision-making","category":null}'>decision-making</a>.

What Is Business Communication?

A company might use one of the four main types of business communication to share knowledge. Often, these communication methods apply to <a href='https://masterclass.com/articles/robin-robertss-tips-for-public-speaking' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/robin-robertss-tips-for-public-speaking","linkCopy":"public speaking","category":"automated-link"}' automatic='true'>public speaking</a>, virtual meetings, and many forms of business writing. The four types are:<ol class="mc-m-4"><li class="mc-my-4"> 1. External communication: External communication is any information or messaging for those outside of the company. This might include customers, contractors, vendors and manufacturers, or partner companies. A company&#39;s external business communication might include public relations work with journalists or developing customer relationships through marketing. </li><li class="mc-my-4"> 2. Horizontal communication: Also known as lateral communication, horizontal communication is when information moves among departments with the same hierarchy status in a company. This would include a single team within a larger group communicating with each other to solve a problem or the marketing team meeting to brainstorm. </li><li class="mc-my-4"> 3. Downward communication: When a company’s leaders send information to direct reports and other employees, they are using downward communication. For example, <a href='https://www.masterclass.com/articles/stakeholder-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/stakeholder-explained","linkCopy":"stakeholders","category":null}'>stakeholders</a> might send out memos or email newsletters to keep employees informed of leadership decisions. </li><li class="mc-my-4"> 4. Upward communication: When a company’s manager delivers information to a higher-level executive, they are using upward communication. Employees use this method of communication to share knowledge with leaders, which also helps the top-level managers remain informed of employee updates. </li></ol>

4 Types of Business Communication

A strong business communication strategy can be a large part of a company&#39;s success. Strong business communication skills and strategies can:<ul class="mc-m-4 list-styled"><li class="">Improve customer relationships: Many types of business communication involve speaking to a group of people outside of the company, including customers and clients. Having a strong communication strategy for marketing or public relations can improve customer satisfaction and increase sales. </li><li class="">Increase employee engagement: When communication in a company is clear and simple, employees can focus their attention on their work. Poor communication can sometimes lead to misunderstandings, confusion, and frustration. Clear methods of communication between different departments can prevent high employee turnover as everyone feels that they are part of the team. </li><li class="">Streamline the flow of information: Part of a strong communication strategy is establishing communication channels for both downward communication to employees and upward communication to managers and leaders. This can save time and energy for employees to get information out in a reasonable timeframe, resulting in fewer bottlenecks in projects and more opportunities for teamwork. </li></ul>

Importance of Business Communication

Get the <a href='https://www.masterclass.com' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com","linkCopy":"MasterClass Annual Membership","category":null}'>MasterClass Annual Membership</a> for exclusive access to video lessons taught by business luminaries, including Howard Schultz, Chris Voss, Robin Roberts, Sara Blakely, Daniel Pink, Bob Iger, Anna Wintour, and more.

Want to Learn More About Business?

Business communication includes the methods a business uses to share information with internal employees and external audiences. Having a strong business communication strategy can streamline workflows between coworkers and improve company culture. Read on for more on the different types of business communication and why they are important for small businesses and entrepreneurship.

Business communication includes the methods a business uses to share information with internal employees and external audiences. Having a strong business communication strategy can streamline workflows between coworkers and improve company culture. Read on for more on the different types of business communication and why they are important for small businesses and entrepreneurship.
