Innovation

Innovation is finding new ways of doing things or creating new unique selling points (USPs). A USP is something that makes a business different from its competitors, so customers have a reason to choose it.

Innovation is more than having ideas. Creativity is generating ideas; innovation is putting those ideas into practice. For example, you might creatively imagine a bike repair service that travels to customers, but it only becomes innovation when you test the idea, set up booking and actually repair bikes at people's homes.

New products and marketing

An entrepreneur can innovate by developing a new product or service, or by using a new marketing strategy or channel. A new marketing channel can reach customers that a competitor is missing. For example, a small gardening business could offer a balcony plant health check and advertise it through a local allotment association's newsletter. The new service and the new way of reaching gardeners both help it stand out.

More efficient processes

Innovation can also improve internal processes, making operations more efficient or streamlined. This means the business uses less time, money or effort to get the same job done. For example, a mobile phone repair shop could use a simple online form that asks customers for their phone model and fault. Jobs are sorted before customers arrive, so staff spend less time asking questions and more time repairing. Efficiency can lower costs and improve customer service.

Standing out and growing

By offering something new or doing something in a better way, a business can stand out from competitors and grow. Customers may be attracted by the USP, and the business may win repeat sales or enter new markets. Innovation does not guarantee success, but it can give the business a stronger chance of competing.