3 innovation strategies for your small business

Strategic innovation in a small business is the deliberate introduction of new systems, processes, and ideas. Ultimately, innovation happens with the goal to better a business.

Many small business leaders want to consider what options can help their SME (small to medium-sized enterprise) grow but it is often easier said than done. The day-to-day demands of running an organisation usually become the priority, and finding time to reflect on the success of the existing strategy can take a back seat.

If you are looking to innovate your small business but are unsure where to start, here are three ideas inspired by Part 1 of the Help to Grow: Management Course: Strategies and Innovation.

Considering new audiences for a product or service can often spark innovation. This was the case for the Co-founder of Idenfo, Antony Bellingall.

While he was taking part in the Help to Grow: Management Course, Antony spent time thinking about how the company could reach new financial institutions within the UK and globally.

“The outlined approaches to targeting and audience segmentation were really useful. For example, when we decided that our mass retail product was going to target accountants, law firms, estate agents and jewellery shops; the scale of the business took off massively.”

As a result of actively targeting new markets, Idenfo saw its client base increase by ten times. Using established business frameworks to think through barriers and growth opportunities in a structured way will help you identify which market segments still have potential and where the future opportunity lies.

Not every strategic innovation will focus on increasing sales. It can improve a variety of areas in a business. For example, technology can be deployed to better manage existing customer needs.

Faced with an employee leaving her organisation, Claudine Reid MBE, Director at PJ’s Community Services, realised how dependent they were on individuals within the team for retaining "corporate memory".

Inspired by the possibilities explored in Module 2 (Digital Transformation) of the Help to Grow: Management Course, she challenged a member of the team to explore how digital tools could help them.

“It turned out that a Customer Relationship Management tool could help us manage our customer relations more effectively and would save us time.”

By taking a step back from the business, Claudine was able to think more strategically about what she could do to innovate the businesses’ approach to looking after customers. Ultimately, the adoption of a CRM helped improve customer relationships and business efficiency.

One of the most daunting ways to innovate is to change an existing business model. Whether a company is moving to a service model, or launching a new product, it can feel like a leap of faith if you haven’t completed the strategic thinking in advance.

Paul Kenny, Sales Director at water hygiene company Aquatrust, has first-hand experience of having an idea that could benefit a company but struggling to take it forward, “I had a whole host of steps that I needed to take to get my idea of sensors that monitored water conditions moving and the Help to Grow: Management Course guided me through that.

I discussed the technology with my peers on the course and made a compelling case for a new product to the senior leadership team in my company.”

Using what he learnt in the strategy and innovation module, Paul built his business case, outlining the way to move forward with new technology that would reduce emissions through site visits and improve efficiency. Paul also worked with his Help to Grow: Management mentor to incorporate employee engagement into the launch plan to make sure that everybody understood the change and why it was positive for the future of the company, and individuals.

Aquatrust’s shift from a “man in a van” model to a remote monitoring service led to better customer service and an increase in turnover of 31%."

Whatever product or service your SME provides, a useful exercise is to take a step back and consider the business's existing strategy. Exploring how to improve an organisation with frameworks on innovation, digital transformation, and winning new markets can only be beneficial.

SME leaders, like all business leaders, need to assess their strategy and create room to innovate. To find out how the Help to Grow: Management Course will support you to do this, click here.