3 Rules For Business Innovation

rules for business innovation

The idea of a truly unique business doesn’t come along very often in the modern world. Everyone has great ideas or thoughts, but not everyone can execute them successfully, or at all. 

To an extent, the majority of businesses are doing the same thing that others have done before. Sure, they might be putting a new spin on it of sorts, a new way of running things, a new lifeblood - but the core reality is the same. One digital marketing company, for example, isn’t going to be that different to another. One bar of handmade soap isn’t going to be that much different than the offerings on grocery store shelves. 

Innovation Is Everything When Building A Business

There’s a reason the majority of businesses fall into the “remix” rather than “restart” categories; the problem of risk. Risk is a word that many business owners shy away from; the same is true of investors. A great example of this is in the movie industry. 

Have you ever wondered why most major films now are sequels, adaptations, remakes, or part of an anthology series? There’s very little being made that is genuinely new - because new equals risk, and movie studios would rather spend their money on a sure thing than do something genuinely innovative. 

Of course, this is pretty much the death of creativity. You can find yourself with an exciting idea for your business, but the fact it’s never been done before puts you off pursuing it. Usually, it’d be great that you’d hit on something new and novel - but somehow, that actually makes it feel more dangerous. 

If there’s a chance you want to take, then it’s usually best to just make the leap - provided you do it sensibly, of course. Rather than plowing into something brand new and hoping it works out, there are ways and means of exploring your innovative ideas without putting your entire business on the line… 

Rule #1: Don’t Use Your Own Money

Your “own” money there being either the business or your personal funds, the same as you will have done for your startup costs. Wherever possible, don’t invest finances you can ill afford to lose. It’s far safer to look for outside funding for any new and potentially risky project, otherwise the failure of such a venture could result in the wholesale crash of your company. 

You could look for angel investors or among the various SRED solutions, both of which can provide the financing you need without the concern over risking your entire financial future. 

Rule #2: Start Small 

If you have a great idea, chances are that despite your concerns about the cost, you’re mostly going to be excited to be able to jump on in and get on with it. It might be expensive to produce a one-off experimental idea, which means you can find yourself tempted by bulk discounts to reduce your business costs. If you’re sure the idea is going to take off, you might think that there’s nothing wrong with investing… 

… except there is. You could be risking a lot of money on producing a lot of different things, only to discover that the idea was never viable outside of the concept stage. Don’t risk it; pay more for your first production and take things from there. You can always reduce the costs later. 

Rule #3: Do It!

Finally, here’s the rub; if you have an idea and you have the right funding and plans for it, then do it. Don’t hold back out of fear of being the first or doing something truly innovative. You’re a businessperson and you might be sitting on a goldmine of an idea; don’t let your fear hold you back from that. 

Innovate And Dominate

Innovation is everything in business. Good luck on your quest for business innovation and remember the rules!

lean startup business innovation guide

I hope you enjoyed this article about rules to maximize your business innovation without risking it all.

Interested in more articles about building business innovation?

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