maybe Every business aims to make money, he said. Regardless of what product they sell or what service they provide, every business needs to make money to survive and hopefully thrive. But there’s another ingredient that a business needs to thrive, at least in the long run: innovation. If a business doesn’t innovate and improve its current offerings, it may never grow or reach its true potential.
But innovation comes with risk, as not every idea will be profitable or embraced by customers. To find the balance between making money to survive and making room for innovation, business leaders should consider these eight tips from experts at the Rolling Stone Culture Council: Here, we discuss the keys to balancing innovation with the economic need to stick with what’s working so business leaders can keep paying the bills.
Protect the core and innovate adjacent areas
When resources are limited, focus your innovation efforts on things adjacent to what already works well. Big bets on bolder innovations should be saved for when you can afford to take the risk. Always remember that more or bigger is not always better; better is always better. Innovate to make good great, not something entirely new or risky. – Scott Curran, Beyond Advisers
Ensure that innovation addresses a real need
Innovation must be based on a specific customer need. The key is to find out what your customers’ biggest problems are and how to solve them before you create a solution. That way, you can ensure that your end product will be accepted by your customers while mitigating financial risk. – Dustin Eide, CanPay
Consider stakeholder opinions
It’s important to maintain the perspective that this work is a collaboration between stakeholders and your organization. Do you understand your stakeholders’ appetite for innovation? What areas of innovation would interest them? In addition, it’s critical to develop the organizational capability to prove the feasibility of new concepts before making large investments. – Jed Brewer, Good Loud Media
The Rolling Stone Culture Council is an invitation-only community for influencers, innovators and creators. Am I eligible?
Follow the 80/20 rule for resource allocation
Effectively balance resource allocation and optimize your business with the 80/20 rule. Create an organizational structure that supports innovation by allocating 80% of resources to your core business and 20% to developing new products. As new projects progress and evolve, it’s essential to maintain flexibility to scale and generate new revenue. – Michael Klein, cannabisMD
Let’s start with the staple food
You have what’s called your “bread and butter”: incremental revenue to pay the bills. Start there. Then analyze your innovation options to implement based on their approximate cost in time and money. Then prioritize them based on how relatively easy it would be to implement the innovation if it were successful. — Susan Johnston, New Media Film Festival®
Adopt a portfolio approach
Take a portfolio approach and ensure that innovations drive incremental revenue and business. If you’re taking a big step, make sure you have paying customers who need and want your new service or product. If possible, beta test with your target customers to increase your chances of success. – Brian Framson, Citrus America Inc.
Regularly evaluate new and existing initiatives
Businesses should set aside a portion of their budget for innovation so as not to disrupt their primary revenue stream. Regularly evaluating both new and existing initiatives allows companies to integrate cutting-edge advancements without jeopardizing their financial health. This approach allows for sustainable growth and adaption to market changes while continuing to pay the bills. – Dan Cerrado, Cannabis Creative Group
Set goals, analyze, and conduct pilot projects
Balancing innovation and financial stability requires strategic foresight. Setting clear goals, conducting thorough market analysis, and implementing phased pilot projects will ensure your innovation efforts are sustainable and don’t jeopardize your ability to meet your financial obligations. – Matthew Miller, Orlando Informer
