The innovation journey requires planning

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 does require planning and 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). This is where we will start this journey on Monday.

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

Government grants are a great way to receive assistance without too many strings attached i.e. rarely does a government grant impose any sort 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.

Board of advice can play a very important role in assisting an entrepreneur to navigate the challenges on an innovation journey.

We will discuss these key components of the “innovation journey” in a series of posts.

If you have any questions on any of the matters raised, please do not hesitate to contact Peter Towers, Managing Director of Towers Business Development, at 1800 232 088 or email .