Why Understanding the Business Side Makes You a Great Product Manager

I still remember a day early in my product management journey that changed how I looked at my role.
It was a Thursday — release day. The tech vendor had pushed a build late, QA was chasing bugs, and I was preparing to update my business head about a delay.

Before I could even start explaining, he asked me,

“Kunal, I understand the tech delays — but how much revenue impact will this push cause if it goes live next week instead of tomorrow?”

I froze for a second.
I had the sprint chart open, not the revenue dashboard.
That moment hit me hard — I knew everything about what was being built, but very little about what it meant to the business.

That day changed my entire approach to product management.

From Building Features to Driving Impact

When I first became a Product Manager, I thought my job was to manage roadmaps, write user stories, and make sure features shipped on time.

But soon I realized — a shipped feature is not success.
Success is when that feature actually moves a business needle — revenue, engagement, retention, or efficiency.

At one point, while managing our assisted sales platform, I noticed all issued policies were tagged under a single channel. It seemed minor at first, but it made business reporting a nightmare.
We couldn’t see which channel — store, call center, or sister company — was actually performing better.

By simply rethinking the channel structure and defining clear data ownership, business teams could see insights they’d never had before.
No new code, no flashy feature — yet the business impact was massive.

That’s when I truly understood — product management is not about building more, it’s about building what matters.

Speaking the Language of Business

Over time, I learned something most PMs discover the hard way —
the way you talk to your dev team and the way you talk to your CEO are two completely different languages.

To the tech team, you talk about APIs, dependencies, and sprints.
But to business stakeholders, those words don’t mean much.

They want to know:

• How does this improve our conversion rate?

• Will it reduce acquisition cost?

• What’s the ROI?

Once I started framing my updates around outcomes instead of outputs, conversations changed.
People started listening.
Because I was no longer talking about “features”; I was talking about “impact.”

That’s when I realized — understanding business is what earns you a seat at the table.

Why Business Acumen Sharpens Product Thinking

When you understand your company’s business model, every product decision becomes clearer.

You no longer chase “cool ideas.”
You prioritize based on what drives growth, saves cost, or improves experience.

For example, during one quarterly review, there was a request to revamp the design of the product comparison page. But data showed that users weren’t even reaching that screen — the drop-offs were happening two steps before.

Instead of redesigning, we simplified the journey. Conversions jumped.

That’s not a design win.
That’s a business win led by product thinking.

Making Better Trade-Offs

Understanding business also teaches you how to say “no.”
Not everything can or should be built — even if it sounds exciting.

I’ve had moments where stakeholders wanted to add complex calculators or cross-sell modules just because a competitor had them.
But when we analyzed the actual numbers, those features didn’t move the revenue needle for our user base.

As a PM, that’s when your real job begins —
to align everyone back to the “why.”

The Turning Point

Looking back, I think that Thursday meeting was one of the best things that happened to me.

It pushed me to understand not just how our platform worked — but how the business worked.
I started spending time with finance, sales, and operations.
I learned how revenue flowed, how acquisition costs were tracked, and how retention metrics were calculated.

And the more I learned, the better my product decisions became.

Because when you understand why something matters,
you automatically build better what and how.

Final Thoughts

A great Product Manager isn’t just a bridge between business and tech —
they’re the translator who ensures both sides win.

When you know how your company makes money, what drives growth, and what limits it, you stop being just a product owner.
You become a business partner.

So the next time you’re managing a release, don’t just check your JIRA board.
Open the revenue dashboard too.
Because great products don’t just solve user problems —
they solve business ones too.

📩 If you’d like to discuss product thinking or your transition into PM roles, feel free to reach out at kunalchavda99@gmail.com.
Let’s keep solving business problems with technology.