Many small business owners make the mistake of thinking that research and development is solely meant for big corporations. This is far from reality. This article takes a look at examples of how R&D can positively transform a small business.
- Developing a unique selling point
R&D can help many small businesses develop unique products and services. The products and services don’t have to be completely new from scratch as R&D can help bring about innovation within an existing business offering. It can help business owners to confirm the availability of a market for a specific idea thereby increasing profitability margins.
- Creating additional income
Unique products and services coming out of successful R&D projects can lead to financial benefits to businesses. Many small businesses have been able to rely on it create new income streams and in some cases, it has been the driving force behind new funding from potential investors. R&D also offers other financial opportunities for businesses including research and development grants from local and international bodies and tax relief from the government.
- Improved competitiveness
Research and development can help small businesses to develop an advantage over their competitors by establishing themselves as leaders in the specific sector. Development of new products and services leads to the generation of new intellectual property that can quickly cement the position of a small business in the sector. However, such intellectual property must be adequately protected.
- Better collaboration
Collaboration is often a key fixture in any R&D project and it could be vital for the success of any small business. Collaborations can take place between the business and other enterprises including academic institutions. This allows a seamless transfer of skills and knowledge as well as access to facilities that would ordinarily be out of reach for the small business.
- Improved Reputation
As a small business, collaborating with a trusted and reliable bigger corporation or scientific institution in R&D is a great way to improve brand recognition and reputation. Although there are some simple and easy ways to improve reputation in a small business too. In many cases, the commercial success resulting from the R&D process can be attributed to consumers and target audience seeing the involvement of such reputable partners.