Small businesses often run and hide when they hear the terms research and development but they shouldn’t fear it. The truth is research and development can save small businesses money, can help improve their products and will help improve a business bottom line when done correctly.
What exactly is research and development?
Research and development is the process that companies go through for the innovation of new products, services or improving existing products. In ever-changing markets, it’s always important to keep ahead of the curve so your business can adapt and be profitable.
Some businesses may look at their existing products and improve on them. This may be the case for a company such as Tuball that create materials such as epoxies and then research new ways of improving them through additives. These changes then allow them to create new materials that the market hasn’t seen before which will allow them to not only innovate but become market leaders in their space.
Research and development for the majority of the time are about the innovation of new products and processes, but there are other benefits a small business can see when investing in R&D.
Other benefits of R&D Include:
- Tax relief and deductibles.
- Increased income.
- Can access grants and funding.
- Great networking opportunities.
- Easier to market.
The above benefits are something all businesses should think about regardless of their size. For example, tax relief and deductibles from R&D can not only allow you to improve your business products but it can also cut down on the tax your business pays and in some instances the government will pay you for these innovations.
Income increase is also something that is associated with R&D for the simple reason that most companies main objectives with research and development is to make their processes more efficient and their product more profitable.
Grants and funding opportunities are also opened up to companies that choose to innovate so be sure to check if there are any grants available in your space if you partake in research and development.
Companies that take part in research and development often don’t do it alone and will network and work with other companies or universities depending on the research being carried out. These opportunities will allow your business to network closely with others and as a result, may lead to increased sales down the line.
Finally, companies that have unique products or unique data insights are far easier to market than those that don’t. Having carried out R&D within your business you are likely to uncover information that isn’t available elsewhere. This data can then be shared within your marketing campaigns to capture your customer’s interest.
Improved productivity through research and development
Improved productivity is also a benefit of research and development.
Companies that invest in R&D often look at their own processes as well as the products they produce to make a more efficient business. Refining your business processes through R&D could save your company millions, and it could improve your productivity leading to increasing your business bottom line.
Conclusion
Research and development aren’t just for giant corporations in the world. Small businesses can use R&D to benefit too. Above are just some of the ways that a business can benefit from innovating. If you do think that R&D could benefit your business our recommendation would be to consult with an accountant that has experience in R&D.
Some R&D fields may not be covered when it comes to getting paid from the tax office so check with an accountant first to see what is covered and what is not. From there you can then plan the R&D for your business.