Strategies for successful innovation

Towers Business Development News

Innovation is very important for all businesses, however it is also important that it is planned, researched and that funding is available.

Many SMEs set out with a vision to develop a product, process, service or some other business activity. Unfortunately, some people have not considered the entire process in their initial thinking. An appropriate terminology for the process is ‘The Innovation Journey’.

The innovation journey requires planning.

The innovation journey does require planning, an understanding of the time that it will take and the documentation that will be required much of which will need to be provided by an external expert.

The innovation journey normally starts with research and development (R&D).

To claim the R&D tax offset, the applicant must be a company.

Government grants are great way to receive assistance without too many strings attached. That is, rarely does a government grant impose any type of ownership being transferred to a Government agency.

Business plans are important. In fact, a business plan is just as important for a business person as a map is for a tourist – if you don’t know where you’re going, how are you going to know when you get there? More importantly, how will you know when you are off track on your overall strategy?

Predictive accounting reports are the financial reflection of what’s contained within the business plan. This is very important and relates to budgets, cash flow forecasts and projected balance sheets.

Funding for the business is an ongoing issue. Do you borrow money? If so, do you have security that you can offer the lender or do you attempt to raise capital? There are now 3 ways that private companies are able to raise capital direct from the public.

The ‘Industry Growth Program’ that was announced last week could be a great source of grant funds for eligible companies that are operating in the priority areas established by the National Reconstruction Fund: