Impact of Innovation on Startup Success
In this world, one has to be innovative in order to climb the ladder of success. The competition out here is very tight. To stay in this competition, an entrepreneur ought to stay creative. Businesses that have proved to be innovative have remained successful whereas those who stay comfortable doing the normal may face an economic crisis. There are many reasons why people should embrace innovations in their businesses. However, it should also be noted that innovations come hand in hand with advancement in technology.
When an individual decides to start up a business, they are faced with many challenges that come along with it. The process is very daunting and most people may give up along the way. At the start, success may seem impossible. Truth is, most businesses crumble during the early stages due to various factors such as inexperience and lack of bookkeeping skills. This means that prior preparation in the running of the business helps reduce these risks. In the process, one can learn on the different ways of making their businesses different from their competitors’. Innovations have different impacts on business as discussed herein.
1. Improved productivity
Once a company decides on the art of creativity, nothing can stop them from achieving that which they dreamt of. Creativity leads to an increase in the production of goods or services. This is because the main objective of innovations is to reduce the cost of production and at the same time maximize on the products.
A recycling business for mobile phones is an example of such a company. The business will use an old phone’s handset or other inbuilt parts to make a new phone. Provided some of them are still working, one can assemble different parts to make a whole new thing thus increasing productivity without necessarily buying new things.
2. Reduced costs
Innovations lead to a reduction in the amount of money spent on buying extra items. Take the example of a household that uses a lot of plastic bottles to pack their liquids, e.g. water. Buying bottles every day can be very expensive. In addition to this, it may lead to the destruction of the environment by filling up the house with bottles. However, once such a company decides on recycling the bottles, this will reduce the cost of purchase. This is the same case with other businesses. This can be applied in an innovative business that deals with recyclable materials. Provided the material products will not be harmful when used for the second and third time, people should not hesitate to embrace such innovations.
3. Increased competitiveness
What is the expected result when people embrace creativity at their place of work? In the beginning, it may seem risky since not very many people have done it before. With time, a business may accelerate to heights of success. Customers are known to like things or services with just an extra touch. When two similar businesses offer the same products, a customer will always visit the company that offers something just a little bit extra.
Take the example of two supermarkets operating in the same street. For the second supermarket that is more creative, they may decide to offer their clients a chance to walk away with free shopping vouchers if they purchase goods worth a particular amount. Logically, a customer who wants a budget worth that amount will walk right into the second supermarket. That is what we are talking about! Be creative enough to have customers running into your store rather than you going after them.
4. New relationships or partnerships
Human beings are known to be creatures who value success and fame. When innovations in businesses lead to increased profits, the business will grow into a big enterprise. Entrepreneurs may find themselves being at par with a company that seemed too successful from the very start. During such moments, businesses owners will have random visits or check-ins from other businesses wanting to partner with them in the creation of something bigger like a company. In addition to this, an entrepreneur may have a chance to create rapport with other bigger businesses. The main advantage of entertaining such relations is because positive minds always lead to something bigger; doing what one may not have done in case they worked alone.
5. Recognition of the brand and its value
The best thing about innovating is setting the bar for others. Once you make your products or services stand out from the rest, people will yearn more of them every time they are in need. This means that you will have created a brand for yourself that is well known without necessarily advertising or wooing people in. Take the example of a restaurant that specializes in a specific dish; a rare one in that particular town.
Chances have it that people will stop by just to have a taste of the dish. In fact, people will recognize your place as ‘the restaurant that sells this and that’. The owner of the business will have created a brand for themselves by doing something different from what other restaurants indulge in.
Most businesses that fail to innovate are at risks of reducing profits, important workers, decreased productivity and losing the market. Innovations lead to an increase in production without spending a lot of money to advertise the same to customers. Businesses that lack creativity always falls in one way or another. In life, just think of something extra; something that other people don’t do.