Identifying and leveraging innovations in your business can provide benefits to any type of business. Here are my seven favorite innovation-related benefits to help you expand your business.
- Increase Revenue – Innovations increase company revenue by creating new products or services that attract new customers and get your current customers to purchase more from you. Innovative product features that become a "must have" feature increase sales.
- Reduce Expenses – Innovating internal procedures can significantly reduce a company's everyday operating expenses. Innovative manufacturing procedures will reduce manufacturing expenses, which strengthens your business.
- Provide A Competitive Edge – New products (and new features for existing products) differentiate your company's products from others in the marketplace, which can increase sales. Small improvements to your product or service can dramatically increase sales.
- Position your Business as an "Innovator" in the Marketplace – News articles, press releases and similar information discussing your company's innovations can attract customers to your products. Innovative businesses often have a customer base full of raving fans that promote their products by word-of-mouth.
- Attract and Retain Top Employees and Contractors – Many people want to work for innovative companies. Employees enjoy being part of an innovative environment, rather than an old-fashioned "boring" company. Attracting a large pool of people that want to work for your company lets you pick the most talented individuals for open positions.
- Create A "Culture of Innovation" – Teaching employees about innovation and encouraging innovative thinking produces an innovation culture in your business. This "innovation habit" is contagious and produces a steady stream of creative ideas from all departments in the company.
- Attract Investors / Funding – Many investors and other funding sources look favorably upon innovative companies. Innovations provide a path to new products and increased revenue, which improves the investor's profits and reduces their perception of risk.
A well-designed Innovation Strategy can provide many other benefits to your business – the above list identifies a few of my favorite innovation benefits.