Business owners can be so focused on execution and day-to-day activities that sometimes there isn’t a lot of time or money left over for research and development. Ignoring R&D can eventually mean a business loses a competitive edge in the marketplace.
If a business is going to commit to doing the research and development necessary there are a few strategies that can help make it happen without diverting too much time and money away from the normal operations of the company.
Bring on Full Time R&D Staff
The best way to avoid impacting normal business operations is to hire new employees who are dedicated to research and development. New employees can either begin work immediately on R&D or existing employees can be moved into R&D roles while the new employees backfill their positions.
Unfortunately this costs money so it is important to see if you can offset the costs somehow. One way to do that is with tax credits.
Look Into Financing Tax Credits
The nice thing about R&D is that there can be tax credits available to help fund this type of work. The problem with tax credits is that it can be complicated to figure out if your business is eligible.
It’s also hard to pay for business expenses while waiting for the tax credit to come through. Luckily, there are companies that offer services such as financing refundable tax credits for R&D that make this possible.
Be a Fast Follower
If you don’t have the time and money to be on the cutting edge of research and development, it’s important to keep yourself informed on industry trends. As soon as someone else in the industry takes the next innovative leap you can look at what they did and model your strategy after theirs.
Being a fast follower can keep you in business, but to get to the head of the pack it is important to do your own research and development and be the first company to market with a new fresh idea.
If your business needs funding for research and development you should find out if you are eligible for loans to finance refundable tax credits and look into bringing on new employees to stay on the cutting edge of new new technology.