Business Necessity | Meaning and Definition

What is business necessity?

Necessity is a condition that must be met for an act to be lawful. It must be essential or required to accomplish the desired result for something to be necessary. In other words, something is necessary if it’s impossible to achieve a goal without it. 

Business necessity is determined by what’s needed to accomplish a business goal. Sometimes that means going above and beyond what’s required by law. Businesses may need to do things like collect data or contact customers to meet their goals, and they may need to use certain tools or methods to do so lawfully. 

In general, if a business can’t accomplish its goals without doing something not expressly allowed by law when you define necessity. 

Examples of a Business Necessity

There are many examples of business necessities, but some of the most common include educational requirements, travel requirements, and experiential requirements. Let’s take a closer look at each of these. 

Educational requirements can vary depending on the field or industry, but a good education is essential for business success. A college degree is now required to get your foot in the door for many positions. And even if you’re self-employed, having a solid foundation of knowledge or experience can give you a major advantage over your competition.

Travel requirements also vary depending on the field or industry, but often business travel is unavoidable. For example, if you’re in sales, you may have to travel frequently to meet customers.