Innovation is a powerful technique that growing, profitable, and forward-thinking small businesses are using every day. It’s when you apply new processes, models, and ideas throughout the organization from your workplace culture to the products you offer. It’s a commitment to getting better and better, instead of standing still and allowing the competition to overtake you. Here are real reasons why small businesses must innovate.
Innovation increases small business revenue by creating new products or services that attract new customers and cause your current customers to purchase more from you. Innovative product features that become a “must have” feature increase sales.
Innovating internal procedures can significantly reduce a company’s everyday operating expenses. Innovative manufacturing procedures will reduce manufacturing expenses, which strengthens your business.
Provide a competitive edge
New products (and new features for existing products) distinguish your company’s products from others in the marketplace, which can increase sales. Small enhancements to your product or service can dramatically increase sales.
Position your business as an innovator
News articles, press releases and similar information discussing your company’s innovations can attract customers to your products. Innovative businesses often have a customer base full of raving fans who promote the company’s products by word-of-mouth.
Attract and retain top employees
Many people want to work for innovative companies. Employees enjoy being part of an innovative environment, rather than an old-fashioned “boring” company. Attracting a large pool of people that want to work for your company lets you pick the most talented individuals for open positions.
Help Create an innovation culture
Teaching employees about innovation and encouraging innovative thinking produces an innovation culture in your business. This “innovation habit” is contagious and produces a steady stream of creative ideas from all departments in the company.
Many investors and other funding sources look favorably upon innovative companies. Innovations provide a path to new products and increased revenue, which improves the investor’s profits and reduces their perception of risk.
By Damilola Faustino
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