How to Become a Business Analyst
What Does a Business Analyst Do?
Steps to Becoming a Business Analyst
Skills Needed to Become a Business Analyst
Business Analyst Salary and Job Outlook
FAQs: How to Become a Business Analyst
Are you considering a career as a business analyst? If you are, this guide has got you covered! In it, we’ll go over how to become a business analyst, what business analysts do, their career outlook, and more!
Becoming a business analyst is an excellent career choice for individuals who enjoy problem-solving and are interested in helping companies achieve success. This career is not only rewarding but also in high demand, as almost every industry needs business analysts!
To learn more about how to join this profession and excel in it, read on!
What Does a Business Analyst Do?
Let’s start with the basics: what does a business analyst do?
Business analysts are mainly responsible for identifying inefficiencies in businesses and recommending solutions to improve their performance. The exact roles of these professionals include:
- Identifying and communicating with key stakeholders
- Communicating between various departments
- Gathering, reviewing, and analyzing business data, such as KPIs, financial reports, and other key metrics
- Using data analytics tools to identify patterns, trends, issues, and insights
- Assessing options for process improvement
- Creating solutions to meet business needs
- Assisting in project management activities
- Managing changes to business processes by creating training manuals and communicating with affected parties
- Maintaining documentation regarding various projects, processes, and operations
- Identifying and creating long-term business goals and developing plans to achieve them
Joining this career can offer you a high degree of flexibility because various industries require business analysts. You’ll often also have the option of working remotely or in person. Some of the most popular sectors that business analysts enter are:
- Finance and Banking: to analyze financial data and identify ways to improve profitability
- Information Technology: commonly in software development companies or IT consulting firms to test, evaluate, and recommend new ways to enhance software and IT processes
- Healthcare: to organize and analyze patient data, streamline processes, identify ways to save costs, and improve patient outcomes
- Retail: to identify trends and patterns in sales data, revenue growth, and customer behavior to identify opportunities for improvement
- Manufacturing: to optimize production processes, manage supply chains, reduce costs, and improve quality
- Government: to analyze data regarding demographics, behavior, consumption, and other factors to help develop policies to improve services and outcomes
- Non-profit: to assist with the development of strategies for fundraising, outreach, and impact
Business analysts may work for a single company or as independent consultants, providing their expertise to multiple clients simultaneously on a contract basis.
Steps to Becoming a Business Analyst
Now that you know what this profession entails, the next step is to learn how to become a business analyst.
There isn’t just one path to join this profession. Often, people start working at a company in an entry-level position and progress as they gain expertise and experience. However, these are the general steps people to take to become business analysts:
Step One: Obtain a Bachelor’s Degree
Most business analyst positions require a minimum of a bachelor’s degree, and many employers prefer candidates who have a degree in a related field, such as business administration, finance, economics, or even computer science.
It’s also recommended that you minor in communications or information technology to best prepare for the field.
Bachelor’s degree programs typically take four years to complete. Regardless of the college you get into, ensure you take courses involving mathematics, statistics, finance, accounting, and business.
It may even be helpful to take a few psychology classes to understand human behavior better if you’re planning on working in a field like healthcare or retail.
Step Two: Join Internships
While pursuing your bachelor’s degree, focus on developing your analytical, problem-solving, and communication skills, as these are essential for success in the field. Consider participating in internships, co-op programs, or other experiential learning opportunities to gain practical experience and make connections in the industry. Additionally, seeking guidance from a business mentor can provide valuable insights, help you navigate career decisions, and expand your professional network.
Step Three: Consider a Master’s Degree
While a graduate degree is not required to join this field, having one can bolster your credentials and lead to more career opportunities, higher salaries, and advanced roles. Around 36% of business analysts hold a master’s degree, so it’s worth looking into!
The most popular master’s degrees business analysts pursue are MBAs or Master’s in Business Analytics. These degrees take one to two years to complete.
Step Four: Gain Work Experience
After completing your degree(s), you’ll be expected to gain work experience before qualifying for business analyst positions. Many entry-level business analyst positions require one to three years of experience in a related field.
The two recommended jobs that students seek out to gain this hands-on experience include becoming quality assurance engineers or software developers. Both of these jobs involve assessing clients’ needs, using that information to create new prototypes, and refining existing and new products for efficiency.
Some companies also provide formal on-the-job training programs and mentoring. These programs can be an excellent way to gain experience and develop skills while getting your feet wet in the field.
Step Five: Develop Your Technical Skills
Business analysts require strong technical skills to work with large datasets, analyze reports, and derive actionable insights. They should be proficient in database management, understand how to use data analysis tools such as SQL and Excel, and have a good grasp on programming languages such as Python or Java.
Business analysts also need to be familiar with data visualization tools to create reports and presentations that communicate their findings to stakeholders. While you can develop the majority of these skills as you gain experience in related fields, you should also work on them during your spare time.
There are numerous online courses, some of which are free and others not, that can help you develop these technical skills. The International Institute of Business Analysis (IIBA) can also help you find training resources. Consider taking on projects on the side that can help build your resume and prove your interest in the field.
Step Six: Consider Certification
This step in becoming a business analyst is not necessary but can advance your career and make you a more competitive applicant. The three core certifications that business analysts pursue are:
- The Entry Certificate in Business Analysis (ECBA): for junior analysts just beginning their careers
- The Certification of Capability in Business Analysis (CCBA): for mid-level business analysts
- The Certified Business Analyst Professional (CBAP): the highest-level certification for seasoned professionals
All of these certifications are offered through the IIBA. According to recent studies conducted by the IIBA, certified business analysts earn 25% more than their non-certified counterparts.
Step Seven: Stay Up-to-Date With Trends
The field of business analysis is constantly evolving, with new tools, techniques, and practices emerging frequently. It’s essential to stay up-to-date with industry trends to remain competitive and effective.
You can do so through your own research, attending workshops, joining forums, or pursuing additional courses or certifications to stay informed about new tools as they emerge.
Skills Needed to Become a Business Analyst
To ensure you become the best business analyst possible, hone the following skills:
- Analytical Skills: to interpret data, identify patterns and trends, and make informed decisions based on that analysis
- Problem-Solving Skills: to find areas that require improvement, analyze the root causes, and develop solutions to address those problems
- Communication Skills: to communicate effectively with stakeholders at all levels of the organization, including executives, managers, and end-users and explain technical concepts in simple terms
- Technical Skills: you’ll require a good understanding of software development processes, programming languages, and data analytic tools
- Project Management Skills: to manage projects effectively, including developing project plans, refining processes, and managing resources
- Time Management Skills: you must know how to prioritize tasks and manage your time effectively to ensure that projects are completed on time and within budget
- Interpersonal Skills: to work effectively with others, including team members, stakeholders, and end-users, and build trust with their clients
- Leadership Skills: you may be responsible for leading project teams or managing stakeholders, so you must be able to motivate your team to reach the company’s goals
These are just eight of the key skills needed to become a successful business analyst. To ensure you thrive in your career, it’s essential you continue to develop these skills and stay current with industry trends.
Business Analyst Salary and Job Outlook
The final factor to discuss when exploring how to become a business analyst is their salary and job outlook. As we’ve already explained, business analysts are vital parts of almost every industry. They ensure businesses run smoothly by improving their productivity and profitability. As such, they are in high demand.
According to the US Bureau of Labor Statistics, there is a projected 11% job growth in this field, which is much faster than the average. Additionally, these professionals are well-compensated for their expertise, with a median annual salary of $93,000.
Business analysts are paid the highest in New York, where they make an average of $120,730 a year, however there are more than double the job openings per year in California.
FAQs: How to Become a Business Analyst
In this guide, we’ve covered the basics of this lucrative and in-demand profession. For any remaining questions about how to become a business analyst, read on to find your answers!
1. How Long Does it Take to Become a Business Analyst?
The timeline to become a business analyst depends on several factors, including the education you pursue and your experience. All business analysts must obtain a bachelor’s degree in a business-related field, which typically takes four years to complete.
Then, you can also gain a master’s degree if you wish to become a more competitive applicant. This will add one to two years to your timeline.
Once you’ve completed your education, you will have to gain at least one to three years of hands-on experience in the field before qualifying for entry-level business analyst positions. All in all, you can expect the process to take between five and nine years!
2. How Do I Start a Career In Business Analytics?
The first step to starting a career in business analytics is to gain the right education. Considering you’ll be working in both business and finance, choose a major that is related to these subjects.
To make yourself a more competitive applicant, you should also consider a minor in communication or information technology, as these subjects are crucial to the field. As you complete your degree, participate in internships, co-ops, or other learning opportunities to begin honing your professional skills and building your network.
You may complete a master’s to bolster your credentials, but it is not necessary. Once you graduate, begin gaining as much hands-on experience as possible. Use the relationships you created through your internships to your advantage! Continue honing your technical and soft skills and taking on projects to build your portfolio.
3. Is It Hard to Become a Business Analyst?
Becoming a business analyst can be a demanding role. You’ll be expected to complete at least one difficult degree and seek opportunities to develop the skills necessary to succeed in the field. You will need to stay busy and take on projects to ensure you build a comprehensive resume and stand out as a strong applicant.
4. Can I Become a Business Analyst Without a Degree?
Due to the technical nature of this work, it is very unlikely to become a business analyst without a bachelor’s degree.
5. How Can I Become a Business Analyst With No Experience?
Becoming a business analyst without prior experience will be challenging, as most entry-level positions typically require at least one year of experience. However, if you pursue a master’s degree, such as an MBA, you will be more qualified for these positions because of your advanced education and training.
Nonetheless, business analytics are best learned through practice, so it’s best you try to gain experience through co-op programs or internships during your studies at the very least!
Final Thoughts
Becoming a business analyst requires a combination of education, work experience, technical skills, and networking. By following the steps outlined in this guide, aspiring business analysts can develop the skills and experience needed to succeed in this lucrative and rewarding profession
