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How to be a small business that's truly innovative (Guest Blog)

Innovation is such a key buzzword these days – especially in the realm of small business and entrepreneurship. But what does it actually mean? Really? Day to day – and over the longer term – to you, as a small-business owner? Here we explain how we think about innovation, and how to implement it, for real – not just pay lip service – in your small but growing business.

For instance, we don’t believe innovation means constantly chopping and changing what you do. We don’t believe it means following the latest trend just for the sake of it.

We do believe it means having some kind of clear vision for where your business is going and then working hard to hold to this.

Innovation might mean…

  1. Tweaking the way you do things
  2. Or it might mean improving existing products
  3. Or it might mean taking a quantum leap into something quite new and different.

It all depends on where you think you’re going.

There’s no point or need for the glory shot or big gesture unless that’s really going to help get your business from a to b.

In other words:

  • Keep your eyes and ears truly open
  • Be honest with yourselves – about what’s working in your current set up, and where you’re flailing
  • Face how the market in which you’re operating is actually changing. 

Find inspiration

One key to true innovation, we believe, is openness: a genuine willingness to see and learn from what’s going on around you. 

Outside your business

  • Find out about existing and potential customers
  • Know your business environment
  • Know your competitors
  • Communicate with your suppliers, showing you value their opinions
  • Identify the people you respect as experts in your field, and find ways to talk to them
  • Investigate opportunities for benchmarking everything you do against others.

From within your own 4 walls

  • Sounds obvious – but talk to your team. Never forget no one knows more about what you do than those actually doing it
  • Improve your product by opening your eyes to its faults
  • Make full use of internal benchmarking – are there good ideas in one part of your business that could apply elsewhere?
  • Encourage experiments and be prepared to take risks.

 A few further tips

Set aside time for innovation workshops, with cross-functional teams from all parts of your business. Do not let status or position get in the way of good ideas.

Try breaking down complex issues into smaller pieces. This lets people get to work on solving more manageable, clearly-defined problems. You can put the jigsaw back together later.

Lead staff away from assuming ‘innovation’ always means those big-bang, radical changes. A lot of small moves can lead to real quantum change for the better, usually with far less risk.

Show that innovation is a real and on-going commitment for you – not confined to an away day. (Experience also shows, incidentally, that the 48 hours after a workshop can prove exceptionally productive. Making sure ideas percolating up during this period don’t get lost.)

And again, when all else is said and done, encapsulate your vision in an exemplary business plan.

Innovation is not always born out of chaotic creativity. Often, the most innovative strategies emerge from clarity and ordered thinking.

So, what do you say? Innovation in a nutshell? Or does it mean something very different to you?

 

There’s an awful lot more where this came from. Do check out our Business Advice Service blog – for regular accessible advice on all aspects of running your own small or medium-sized business. 

Blog Author - The ICAEW Business Advice Service Team offers advice for SMEs & Startups, plus free business advice sessions with ICAEW accredited Chartered Accountants. For SME business news & views to share request an invite at Smarter Business Network.

 

For more information on Technology & business productivity tools to start or grow your business, visit the Microsoft Small Business hub for hints & tips!