Why Should Each Business Invest in Research and Development?
“Why should I put my money in developing something new and different when I can get the latest and tested from other sources in much less cost?” this is how most businessmen think when they look for doing something new for their business growth. And they aren’t entirely wrong; it is the fastest and cheapest way to keep up with the competition. However, if you don’t want to grow your business, I suggest you stop reading and start working on issues like-
- Struggling for your market share.
- Keeping track of your money so you could again buy something more advance than now
- Not giving your customers something better to talk about than the usual, “hey you can get the SAME thing there at lesser price.”
If not then you should know, why your business no matter how big or small MUST invest in Research and Development (R&D).
How R&D Increases Productivity?
Developing a production process which cannot be replicated by competition is like having an ace up a sleeve.
Many businesses like Goli Vada Pav developed their own process which put them aside from other local vendors and now you can see how that worked so well for them. Can you guess what they may have changed or
Take help from experts and consultants, learn what is wrong with the present process and find your own ways to improve.
Product Differentiation with R&D
Your competition and you are always looking for ways to steal customer’s attention from one another. However, customers are always curious and looking for product which is well-suited to their demands (which keeps on changing).
Researching these demands will help in developing a better, unique and more acceptable product for your customers.
Such products always make customer distinguish your business than your regular competition making it much easier and cheaper to promote and sell.
This is what made Microsoft and Apple big brands of today from when they were small businesses.
Necessary for Survival and Growth of Business
As an owner of a business you have to take decisions, make plans and work tirelessly to keep the ship sailing. But in today’s competitive business scenario you have to always think of ways to invest and grow.
Because if you don’t, it won’t take much time for others to step on you and leave you behind and if you are not careful, you may have to pull down the shutter no matter how well you think you are doing now.
It also makes investors see you as a company which is forward thinking and progressive.
Take a look of how even the great Tata had to struggle to keep itself in business till today by always investing and finding innovative ways to develop.
Keep in Mind
- Investing in R&D is the most practical step in GROWING AND SUSTAINING any business.
- It is also necessary to create a product which makes you STAND OUT FROM THE REST.
- Developing a process to INCREASE PRODUCTIVITY is not only economically helpful but also profitable.
- Adapting new practices is one thing but developing them is a different story.
Research and development needs not just money but also time, efforts and a capable team that is dedicated and innovative.