The marketplace is constantly changing, and any business that doesn’t adapt will inevitably falter.

To stay ahead of the competition, you need to avoid getting too comfortable with the status quo and instead find novel ways to serve your customers. Use this guide to learn how embracing and enabling innovation can help your company attract and retain consumers, increase brand recognition, and, ultimately, reach each of its goals.

The importance of innovation

Innovation can be the fuel that drives your company to success. Just consider companies like Beyond Meat and Square, which both recognized and capitalized on shifting values and needs among customers. With its meat-alternative products, Beyond Meat disrupted the meat industry by appealing to a growing consumer group of vegetarians and vegans and those who wanted healthier or more ethical options. And Square created, and continues to create, ways for small businesses to easily accept payments with minimal equipment necessary. Similarly, by identifying new ideas and adaptations that can make positive improvements, no matter how small, you can raise your business to the next level.

Set your goals

Before you can create an impactful innovation strategy, you should determine what you want to achieve. Otherwise, you may end up spinning your wheels and wasting valuable resources. Instead, focus your efforts first on changes that will have an immediate impact, such as ones that solve problems or improve your customer experience. Do you want to broaden your client base, boost your image, or improve customer satisfaction? Pick just one or two goals to start; limiting how many you tackle can help you avoid spreading your resources too thin.

Gather ideas

After setting your goals, brainstorm creative ways to reach them. This can be fun—but also difficult. Fortunately, you can find inspiration almost anywhere. Begin by looking internally to see if any of your products or processes are dated and considering ways to tweak them to improve customer satisfaction. You could also conduct your own market research to determine what your target market wants or needs and ways technology could bolster how you do business. If you’re still in need of ideas, consider using suggestion boxes or online polls to solicit ideas from your staff, clients, and vendors. Another option is to evaluate what other companies are doing well and determine whether you can replicate it to enhance your customer experience.

Start small

If you’re a small-business owner, you may have a limited budget for innovating your products and services, but don’t worry—even simple, relatively inexpensive ideas can be impactful. Imagine how minor the groundbreaking concepts of adding three-point seat belts to the Volvo in 1959 and putting wheels on a suitcase in 1970 might have seemed at first. Once you’ve pinpointed an idea or two to try, nail down vital specifics such as your budget, steps, and timeline and how you’ll allocate staff, materials, and other resources.

Be prepared for setbacks

The innovation process has ups and downs, so you may face at least some disappointment along the way. Rather than feel defeated by any failures, try to learn from them and move on quickly. Your mistakes can provide insights that may propel you closer to reaching your goals.

Test and update

Resist taking your foot off the gas even after you’ve successfully created a brand-new product or service for your customers. Just as you must always strive to sustain your viability and competitiveness, you’ll need to constantly monitor any innovations you’ve launched and modify them as necessary to maintain their marketability and profitability. Also, you’ll likely find something you can alter to help your company run smoother. For instance, after fine-tuning your product offerings, you may want to improve how you communicate their features and your vision to your clients—whether it’s through social media or an updated email-marketing program.

While conceiving novel products or ways to run your business may seem like an insurmountable task, you can find success by starting small and slowly building on your accomplishments—you never know what seemingly unassuming modifications may transform your business.

TAKE ACTION:
Pinpoint a challenge your business is facing, and look for an innovative way to solve it.