How to Become a Business Analyst

Companies have to generate a profit in order to stay afloat. They do this by determining aspects like pricing, product offerings, promotions, and overall business strategy. By leveraging internal data, they have the potential to increase earnings and cut down on unnecessary expenses. That’s where business analysts come in.

Business analysts help companies stay competitive, and their work can save large sums of money. As more and more data is created through user actions, it’s imperative to use that information to maximize efficiency. It’s no surprise, then, that demand for management analysts is projected to grow 10 percent from 2022 to 2032, according to the U.S. Bureau of Labor Statistics (BLS).

In this article, we’ll answer questions like:

• What is a business analyst?
• What does a business analyst do?
• What is a business analyst salary?
• What are the required business analyst skills?
• How do you become a business analyst?

Keep reading to learn more about this exciting career path and how you can stand out when it comes time to start applying for business analyst jobs.

What Is a Business Analyst?

Business analysts possess a unique blend of skills in order to perform their duties successfully. Whereas a management analyst’s work focuses on the how and when of a business or project, a business analyst is focused on the why and how. They are strategic problem-solvers who derive insights from data to benefit business. They excel in gathering and analyzing company data to pinpoint needs and recommend tailored solutions. They are data analysts who leverage their skills to drive business objectives.

As a liaison between teams, business analysts rarely work alone. Rather, they collaborate across departments to eliminate redundancies and enhance productivity. Simply put, business analysts leverage their analytical abilities and deep understanding of business operations to empower organizations to achieve sustained growth.

Business Analyst Skills and Responsibilities

Because business analysts work so closely with data (also referred to as business intelligence), it’s important that they have experience with gathering, organizing, analyzing, and visualizing information. Tools like Tableau, Apache SQL, Excel, and Python can help accomplish these tasks more efficiently, giving business analysts more time to develop insights and make business recommendations.

Some of the key skills required for a business analytics job include:

• Data analytics
• Data modeling
• Data visualization
• Stakeholder analysis
• Computer science abilities such as cybersecurity analysis
• Agile methodologies
• Business process modeling
• Understanding KPIs and business metrics
• Planning and measuring business impact
• Artificial intelligence and machine learning

Business analysts use these abilities to conduct technical research, develop projects, analyze data, and present their findings to key stakeholders. In addition to technical skills, they should also bring a combination of interpersonal skills, such as strong communication, collaboration, problem-solving, and negotiation.

Business Analyst Job Outlook and Salary

Thanks to their specialized skill sets, business analysts are positioned for strong career growth in the next decade. They also stand to earn a salary more than double that of the national average. According to the BLS, the median annual wage for management analysts in 2023 was $99,410. 

Here’s a breakdown of the top industries that employ management analysts, along with their median annual wages:

• Professional, athletic, and technical services — $104,400
• Management of companies and enterprises — $99,730
• Finance and insurance — $96,450
• Government — $92,310

Keep in mind that earnings can vary widely by region, employer, and role. One of the best ways to position yourself for a competitive salary is by staying on top of industry trends and gaining the requisite knowledge to capitalize on them — such as through earning a business analysis certification.

Business Analyst Educational Pathways

Once you’ve determined that you want to pursue a business analyst education, it’s time to consider your professional goals and program expectations. 

For learners just getting started, it may be beneficial to follow a more traditional route and earn a formal degree. If you’re currently working in a different industry, you may be able to transfer skills and get up to speed on business analyst foundations through a short course. Business analyst professionals seeking to specialize or advance their career might find skill-specific classes or a business analyst certification program useful.

Below, we’ll cover some of the more popular avenues toward business analyst roles, such as:

• Data Scientist
• Management Analyst
• Business Analyst Manager
• Senior Business Analyst

Traditional Academic Options

Earning a degree in business, data science, or a similar topic can be a great option for learners pursuing secondary or postsecondary education. Some of the benefits of participating in a formal degree program include:

• Comprehensive skill development: Degree programs often lay a solid groundwork for a career in business analytics, starting with foundational topics related to conducting data analytics on business intelligence before moving on to advanced skills.
• Credibility and recognition: Obtaining a degree from a reputable institution communicates to employers that you can adhere to a particular standard of performance, which can help you stand out on the job hunt.
• Networking opportunities: Campus events, career fairs, and mentorship programs can facilitate important professional connections that can lead to internships and potential job offers for various business analyst roles.

Many degree programs offer the option to specialize toward the end of your studies. Looking at business analyst job descriptions and identifying roles you’re interested in can help steer your decision-making process. For example, a data scientist working in business analytics may place a stronger focus on statistical and technical abilities, whereas a business analyst manager may require a more broad understanding around various data-driven activities.

Online Courses and Business Analytics Certifications

Maybe you’ve already got a degree, or you simply don’t have the time or financial resources to commit to a traditional four-year undergraduate degree. Maybe you’re a data analyst who’s interested in becoming a business analyst, but you want to build your foundational knowledge and familiarize yourself with industry skills. Regardless of your situation and goals, an online course or business analysis certification can be a viable stepping stone toward a business analyst career.

Online courses will vary widely depending on their provider and syllabus, so it’s important that you do your research before choosing a program. Our Business Analytics Certificate Course covers important business analytics skills while teaching toward popular industry certifications. By the end of the course, learners don’t just walk away prepared to take the Tableau Desktop Specialist Certification Exam, they also receive a credential from the university signifying that they are a skilled business analysis professional.

Other factors to consider include whether the program offers academic and professional support, is taught on a flexible schedule, and includes feedback from industry professionals. Through our program, you can rest assured that you’ll have plenty of academic guidance and career advice from a team dedicated to your success.

Business Analytics Bootcamps and Training Programs

A business analytics bootcamp can be an excellent training ground for learners of all backgrounds. Business analytics professionals seeking to upskill or specialize in their work can benefit from intensive studies that accommodate their busy schedules. Alternatively, beginners can explore various business analytics topics before pursuing more traditional educational avenues through bootcamps and training programs.

Here are some pros and cons to consider:

It’s also important to remember that bootcamps don’t always lead to a business analyst certification. Make sure to review the curriculum and outcomes for each program to ensure that you are making the right choice for your goals.

Build on Business Analyst Skills

Obtaining your business analyst education isn’t the final step toward qualifying for industry roles. Employers often want to see a demonstration of your skills through applied projects, internship experience, and networking opportunities.

Projects and Business Analyst Internships

There’s no better way to learn than by doing, and an internship with professional business analysts can give you a glimpse into the daily tasks and responsibilities involved in this line of work. 

Internships give you firsthand opportunities to participate in common business activities, such as:

• Requirements gathering
• Data analysis
• Cybersecurity analysis
• Process mapping
• Documentation
• Testing and quality assurance
• Project management support
• Stakeholder communication
• Research and benchmarking
• Training and knowledge sharing

Internships are also a great way to explore various subfields and industries where you can apply your business analytics skills. The most important thing is that you enter the experience ready to learn and ask plenty of questions. You may receive solid career advice or find a mentor in a senior business analyst within the organization.

Networking and Mentorship

Regardless of your chosen profession, networking and mentorship are essential elements for career growth in any industry. Not sure where to start? Here are some tips:

• Search for and join relevant networking groups on LinkedIn and Facebook — even Reddit!
• Read through group posts and save those that apply to your own goals, noting thought leaders whose tips and insights resonate most strongly with you.
• Ask industry professionals, recruiters, and hiring managers about any common interview questions you can prepare for ahead of time.
• Attend local and virtual networking events and seek out mentors whose career paths match your desired journey.
• Start a personal blog and fill it with your own ideas, then share it to the groups where you can establish your own following.

The key to making networking work for you is being fearless about putting yourself in front of others. Everyone was a beginner at some point, and those who have taken the same career steps you plan to take yourself are usually happy to help others achieve their goals.

Self-Study and Continuous Learning

Business analytics will always be useful in helping organizations reduce costs and increase efficiency and revenue. The key to remaining useful is staying on top of the trends, tools, and technology that make their insights possible. For business analysts, that means continuously learning throughout your career.

Make these self-study methods part of your routine professional development:

• Attend business analytics workshops, seminars, and conferences
• Enroll in online courses such as our Business Analytics Certificate Course
• Read books, articles, whitepapers, and research papers to stay updated on industry trends
• Join groups like the International Institute of Business Analysis (IIBA) and attend local meetups
• Collaborate with colleagues to gain exposure to diverse perspectives and approaches
• Take on new projects that allow you to develop advanced business analytics skills
• Solicit feedback to identify strengths and areas for improvement
• Subscribe to industry publications to learn about the latest developments in computer science as they apply to various business analyst roles.

Develop Soft Skills

The BLS lists analytical, communication, interpersonal, problem-solving, and time management skills as the top qualities for business analysts. Below are exercises and activities that can help you develop these important soft skills.

Ways to develop analytical skills for business analytics

• Engage in activities that require critical thinking, such as solving puzzles or evaluating data. Question assumptions and consider alternative perspectives to draw logical conclusions.
• Solve problems by breaking them down into smaller components, then conduct analyses to identify issues and make informed decisions.
• Study real-world scenarios to understand how analytical skills are applied in different contexts.
• Develop an attention to detail by paying attention to nuances in data, information, and observations. This can make you better at spotting significant patterns or anomalies.

Ways to develop communication skills for business analytics

• Practice active listening by giving your full attention to the speaker, maintaining eye contact, and focusing on understanding the speaker’s message to ensure comprehension.
• Strive for clarity and conciseness in your communication. Organize your thoughts logically, use straightforward language, and avoid unnecessary jargon.
• Pay attention to your nonverbal cues, such as body language, facial expressions, and gestures. These can impact the way your message is received by others.
• Develop strong presentation skills by practicing public speaking, using visual aids, and structuring presentations in a clear and engaging format.

Ways to develop interpersonal skills for business analytics

• Practice empathy by putting yourself in others’ shoes. This can help you understand different perspectives, feelings, and needs.
• Establish rapport with colleagues and clients by being approachable, friendly, and respectful.
• Learn effective conflict resolution skills to address disagreements and disputes constructively, and find mutually beneficial solutions.
• Be adaptable and flexible in your interactions with others to accommodate different preferences and personalities in dynamic work environments.

Ways to develop problem-solving skills for business analytics

• Take time to thoroughly understand and break down problems into manageable sub-tasks.
• Gather relevant information to inform your problem-solving process. Conduct research, consult experts, and analyze resources.
• Evaluate the pros and cons of each solution you generate, considering potential risks, trade-offs, and consequences associated with each option.
• Monitor the progress and outcomes throughout the implementation process to ensure that you are achieving the desired results.

Ways to develop time management skills for business analytics

• Practice methods to prioritize tasks based on importance and urgency, then use a calendar or planner to create a structured schedule.
• Set deadlines for tasks and projects, breaking each one down into smaller milestones and tracking progress to stay on target.
• Minimize distractions that can derail your focus and productivity. Limit multitasking, set boundaries around communications, and create a conducive work environment.
• Delegate tasks that can be done more effectively by others. Make sure to clearly communicate expectations to ensure tasks are completed to satisfaction.

Business Analytics Specializations

Business analytics professionals who have gained requisite industry experience may decide to specialize their work. There are plenty of advantages to specialization, which can allow you to deepen your expertise in a particular area and become more marketable when seeking out advanced roles.

If you enjoy the data-driven aspects of business analytics, you may be interested in a data visualization and interpretation specialization. In these types of roles, you’d be responsible for:

• Communicating complex data insights in a visually compelling and accessible manner.
• Extracting actionable insights from large and complex datasets quickly and accurately.
• Creating visually engaging dashboards, reports, and presentations for your organization.

Business analysts who prefer studying trends and predicting outcomes may be suited for a statistical analysis and modeling specialization. This type of work entails:

• Uncovering patterns and trends within data to forecast future outcomes.
• Analyzing historical data and predicting trends to support strategic planning.
• Assessing and mitigating risks to maximize opportunities for organizational success.

You may instead be interested in gleaning insights that help your organizations connect with customers and increase sales. In a market research and customer analysis specialization, you may be tasked with:

• Analyzing customer data and market trends to develop targeted campaigns.
• Identifying market gaps to meet customer demands and stay ahead of competitors.
• Segmenting customers based on various characteristics to drive long-term profitability.

These are just a handful of the possible specializations within business analytics. As you progress through your education and career, you will be exposed to a variety of professional paths to emulate. Other subspecialties include predictive analytics, financial analytics, supply chain analytics, and natural language processing (NLP).

Apply for Jobs

The final step toward becoming a business analyst is applying for jobs. When crafting your resume, pay attention to the terms and skills included in each listing and tailor your materials to the positions you’re applying for. In today’s job market, many companies use bots and filters to sort through applications, and using relevant terms can increase your chances of being seen.

Your cover letter is your chance to discuss your relevant work experience, which doesn’t necessarily have to be formal. If you’ve worked on projects or applied your skills through a business analytics bootcamp or internship, discuss your role and how the project helped advance your knowledge.

Our Business Analytics Certificate Course prepares learners for the job search with career services including:

• Resume and cover letter tips
• LinkedIn profile optimization
• Small group workshops
• Career coaching
• Practice interview questions

Gain Business Analyst Skills in as Little as 10 Weeks

If you want to use information to help businesses generate revenue and streamline operations, becoming a business analyst can be a rewarding career path. Gain important skills and get the support you need to succeed as a business analysis professional with our Business Analytics Certificate Course.