Thursday, 3 September 2020

Cost Cutting Tips For Any Innovative Business

 


Many companies now appreciate the need to invest in research and development within their organisations. The new challenge is how to stay ahead of the game. As competitive as it can be for a startup however, there are tips and tricks that can provide your team with the support they need to stand out in the market. These ideas should make it easier for your business to innovate and thrive while shaving off a lot of costs.

 

Shared office space

The best strategy for a new business in the innovative space is to look for affordable incubation centers. For example, there are innovation parks in Manchester that are ideal for an R&D startup. Luckily, these spaces offer a conducive environment to work in plus access to facilities such as laboratories and sometimes research libraries. This will reduce the cost of having to set up these spaces from scratch. Many of these centers provide office equipment when you commit to the rental charges. To be part of such a shared office building space that supports research and development may also motivate your team and keep them sharp as they interact with people in similar fields.

 

Collaborate with innovators

On some occasions, moving forward with a project might mean exploring the possibility of partnering with bigger companies who have similar interests. Collaborating on R&D projects often provides more cash flow to conduct core businesses activities. There are many established companies that would easily inject capital into your research and development process, as they are keen to explore ways in which they can increase their revenue and grow their market share.

 

There are several options from venture capitalists, angel investors and crowdfunding. The Government is also investing more into innovation with almost £22 billion set aside this year for that purpose. It is always a sound idea to get legal advice on how to protect your intellectual property in such cases but once that is done it is all systems go! Tapping into collaborative research as a resource will largely speed up your innovation efforts.

 

R&D tax relief

The innovation tax relief plan was set up to give businesses in research and development the luxury of knowing that they can experiment on seemingly expensive projects without worrying about the tax implications they would face. The Government’s intention is to support such businesses with the expectation that these innovations can have far reaching benefits to the larger population. Tax relief can go a long way towards supporting the operations of any innovative startup. For example, £14.1 million in funding was announced towards the research and development of a Covid 19 vaccine. As a company, consider seeking advice from tax advisors like Areande on the credit you might be eligible for even if you are part of a collaborative project.

 

Keep it lean

Your vision should never supersede your resources. It might appear to be the best decision to spend a lot of your seed money on equipment and staffing but having a lean team might be of more value to you. For a startup, a lean operation allows you to invest more money into creating a viable product. Moreover, it also means you are in a good position to offer your team significant remuneration that will incentivise them to work harder. When your research and development team is excited about discovering and learning more, it can only increase your chances of innovation.

 

Outsourcing

Outsourcing is a brilliant way to spend less without compromising on quality. You can always cross check to see that you are using professionals and hold them accountable once you contract them. With staff constraints, outsourcing offers a professional set of hands to come in on a temporary basis. It can also support the business with skills that may be lacking in your team while controlling capital costs.

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