4 Types of Business Communication and How to Set Up Them on Your Team

13 May, 2022 | Read in 5 minutes

Business without communication is like planning something sure to fail. Communication is one of the most crucial tools in a business. So, you should know about types of business communication.


Communication in business is like Hogwarts and magic, inseparable. Business without communication is like planning something sure to fail. Communication is one of the most crucial tools in a business.

Communication might be difficult in companies with many teams and employees. Communication skills are crucial if you communicate with people in other companies. You must feel it too, right? That is why effective business communication is the key to the company's success.

Unfortunately, most people don't understand how to perform effective communication in the workplace. According to Smart research, 60% of companies do not have adequate internal communication. As a result, they prefer to remain silent and avoid interacting with their coworkers.

You don't want that to happen in your company, do you? So, try reading this article!


What is Business Communication?

Business communication is a two-way process of sharing information between employees. Either inside or outside the company. Effective business communication is part of achieving the company's goals. It also covers the values embedded in the company.

When employees have practical communication skills, they can have better interactions. On the other hand, if business communication fails to work correctly. The following issues may arise in the company, for example:

  • Misunderstanding
  • Misrepresentation of information
  • Trigger the emergence of a prolonged conflict
  • Business processes are messy
  • Loss of trust

These problems arise for several reasons, such as:

  • Dishonest in conveying information
  • A lot of confidential information 

Business communication is definitely different from daily communication. Communication in business is always goal-oriented. So if business communication fails, most business also fails. Business communication serves to explain the company's values. These policies apply to the company, company regulations, and work processes to employees.


4 Types of Business Communication along with Examples

Business communication is usually used to ease the interaction between employees and managers. Therefore, the type of business communication is different. There are 4 types of business communication:


1. Internal downward business communication (from manager to a subordinate)

Internal downward business communication flows from higher to lower hierarchies. This type of communication might be in the style of a memo, a letter, or a verbal directive.

Leaders must ensure that internal downward business communication is clear and professional. Clear and professional does not mean communication has to be rigid. The leader can modify it as needed so that it is more casual.

An example of this type of communication is a company memo. It can be about work safety procedures or new regulations in the company.


2. Internal Upwards Business Communication (from subordinate to manager)

Internal upward business communication comes from entry-level to managers or individuals above managers. Generally, internal upward business communication measures whether the company has good communication.

Surveys, feedback, forms, and monthly reports are included in internal business communications upwards. An obvious example is a monthly report from the Marketing team. Created by employees to submit to the manager.


3. Internal – Lateral Communication

Internal lateral business communication is communication that occurs between employees in the company. This type of communication can be carried out by employees of one division to different divisions. Employees can communicate in various ways, such as email, WhatsApp, or direct communication.

Lateral internal communication is effective in increasing employee productivity and engagement. An example of this type is a division helping each other make monthly reports.


4. External Business Communication

The following business communication is external business communication. According to the name, this type serves communication with individuals from other companies. It could be partners, vendors, customers, and clients.

A prominent example of external business communication is a marketing letter or email. The letter must be clear, professional, straightforward, and enjoyable to read.

Luckily for all, now it's not like it was in the Hogwarts era. Where to communicate, do not have to send letters through birds.


Technology makes all communication easier and feels like magic. Plus, millennials and GenZ have dominated many companies, making business communication more accessible. Now ‘long-distance’ business communication is getting faster and closer through virtual working space.

A virtual office that is specially designed to ease business communication. From real-time communication to project management, all are available in one place. Unfortunately, not all virtual working spaces have all those features. One of our recommendations to support corporate business communication is VirtualSpace.

VirtualSpace has many features to support enterprise business communications, such as:

• Chat platform
• Files sharing
• Project management
• Apps integrations
• Information and data documentation

And many other features. You can access and install VirtualSpace for free on your laptop or smartphone!


How To Set Up Business Communication Process on Your Team

Now back to the fundamental question. Many people will ask how to set up a business communication process? Try doing the steps below!


1. Conduct an audit of the current state of business communications

The communication audit aims to find how the company's business communication is built. To identify what problems are hindering the business communication process. Then you find the solution.

You don't have to find the solution by yourself. Involving the employees in finding solutions can be a great way to start. So that every employee knows what the problem is and how to solve it.


2. Combine several different communication methods

Business communication in the company does not always have to be face-to-face. Combine several communication methods to find the most suitable way for your company. Some of the communication methods include:

• Video call team
• Voice call team
• Chat forums
• Survey
• Face-to-face meeting


3. Do Documentation of the Process

The final step of business communication setup is to record the communication process. This documentation process will make it easier for all employees. Also, the new employees will understand how business communication runs in the company.


The most crucial thing about business is the communication in it. Without effective business communication, the business will definitely not grow and develop. All elements in the company play an essential role in building good business communication. One of them is the communication tools used.

The best-recommended tool to support your business communication is by using VirtualSpace. It is a seamless platform to ease your business communication process. It is faster and you can access it from anywhere around the globe. Go register now!

Ready to grow your business with VirtualSpace?

One platform to manage and organise your teams, tasks, projects, and more.


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