Research and development (R&D) is important to the success of your business.
The most innovative companies know spending more on R&D is the answer to continual growth. The proper R&D can save you time and money, and help you decide what your business should work on next.
It Saves You Time
Sometimes you have to make quick, time-sensitive decisions. The knowledge you gain during R&D allows you to jump on trends more readily and stay ahead of the competition.
Companies who fail to see the importance of preliminary work waste time playing catch-up and running down avenues that are not viable.
When you have information about how you or a competitor has spent time in the past, you know which paths are more fruitful.
It Saves You Money
There have been many studies done on the relationship of R&D to a company’s bottom line.
Since R&D helps you work out all the ways a project can go right or wrong, it lets you make better decisions about where to spend money.
The more research you do on how and where you spend money increases your ROI. “The ROI on R&D efforts can take a while to materialize. But once success is achieved, the financial returns can be quite high.” – Presidency School of Business
It Prepares You For Inevitable Setbacks
Some roadblocks are unavoidable. R&D helps you take stock of all the ways a project can go sideways.
You can use the information you gain during R&D to prepare you for the worst. While you’re always hoping that you’ve taken all the right precautions on any project, it’s a good idea to play it safe.
R&D also helps you realize and prepare for setbacks you might not see coming. It’s easy to get carried away during the excitement of a new project or product launch, but never overlook how the unexpected can derail your goals.
It Offers You A Competitive Edge
Innovative ideas arise when your team has the resources it needs to explore.
Take a look at this infographic from How Much to see an idea of just what each country invests in R&D:
It demonstrates, while costly, R&D is essential in giving you a competitive edge.
“Many times a market is already embracing a trend, and the research and development department can be used to make the business active in that trend and increase sales [and] the business is seen as adaptable and profitable.” – Small Business
It Gives You Options
It’s difficult to explore your options if you don’t know what they are.
Once most projects move into execution, there is rarely room for spontaneity. The R&D phase allows for you and your team to take time on important aspects of a project which can often get lost or overlooked once the ball is rolling.
Don’t be afraid to return to the R&D phase of a project either. You will often find solutions in previously unexplored avenues. So, take stock of other viable options and treat research and development as an on-going process. It is something to return to again and again when you find yourself stuck during a project.
The benefit of R&D for your business is often long-term. It can be difficult to track exactly how efforts to develop projects beforehand will impact the end result. However, it often provides you with the most useful information you will need moving forward.
When you give your team space to explore, account for inevitable setbacks, and embrace the research process, you can often tackle problems head-on, before they even develop!
If you have questions or would like more information, I’d be happy to help. Please send an email, and my team will get in touch with you!