Practical Steps for Business Innovation and Growth

Jul 19, 2024 | Listen

Practical Steps for Business Innovation and Growth

When we think of business innovation, we often picture groundbreaking technologies or revolutionary new products. But the reality is that small business innovation is so much more than that. 

It involves embracing new ideas, adopting fresh perspectives, making smart decisions, and pushing for strategic growth. It can transform how you use your existing products, improve your processes, and open up new avenues for success.

But what does innovation really look like in small businesses? 

How does it work? 

How does it contribute to growth and success? 

And how can you create a culture that will grow innovation within your teams?

Steve Wunker: Innovation in small businesses

In this episode,  Steve Wunker and I explore what innovation is and how it can come to play in small businesses. We also examine the impact of innovation on success, and discuss why leaders play such an important part in building an innovative culture.  



Timestamps for this week’s episode

03:06 The innovation process for small businesses

09:16 Innovation as an evolutionary process

20:31 Building and cultivating innovation in your business

27:05 Balancing financial prudence and innovation

34:56 Actionable steps to take for small business innovation

“A lot of the great innovations that we have in our economy started with small businesses.” – Steve Wunker


The innovation process for small businesses

The innovation process for small businesses begins with actively listening to your customers. Take some time after to step back and reflect on what they said, identify trends, and consider how changes in your industry or related fields might impact your business.

But instead of jumping straight to solutions, focus on framing the right questions first. While ideas are exciting and fun, the true power of innovation comes from asking the right questions. This way, you make sure your ideas will adapt and improve as they’re put into practice, leading to meaningful and lasting innovation.

We love our ideas. But the real power of innovation lies in a well-framed question, not necessarily in your idea, which will most likely morph as it gets implemented.

Innovation as an evolutionary process

Innovation is not a one-time event. It’s very rarely a “Eureka!” moment but an ongoing process that evolves along with what your customers and market need or demand. You can start by understanding your customers and your competition, as well as the total business landscape before diving into what your business excels at.

Jeff Bezos once said that focusing solely on your strengths can prevent change or progress. Instead, understand your market first, then think about your strengths and abilities.  This way, innovation becomes an ongoing process, adapting to changes and driving continuous growth. 

“Ideas are one of the easiest parts of innovation. If you define the problems and the strategy well, the ideas will come. What you need to have are places for those ideas to go, specifically, how are you going to execute them?” – Steve Wunker

Building and cultivating innovation in your business

Start with a clear aspiration. Ideas are essential, but they need direction and support. Set aside time or resources to explore and develop new ideas so they don’t get lost.

Assess ideas based on desirability (do customers want it?), feasibility (can it be produced at scale?), and viability (is it financially sustainable?). This keeps big ideas practical and achievable.

By focusing on aspiration, building pathways for ideas, and testing for market fit and feasibility, your business can foster true innovation.

Big ideas are your growth engine, and so you want to keep the big ideas. Don't make big ideas small just because they are easily implemented, more easily funded and approved and won't disrupt the operations of the company.

Balancing financial risk and innovation

To balance the need to be financially prudent and careful versus taking on the “risk” of innovation, first set realistic goals that are based on market conditions and the current state of your business. 

By confirming your assumptions with real data and you encourage open communications across teams, your business can innovate effectively while taking care to stay financially stable. This way, you reduce risks and support sustainable growth through careful financial management.

“Go out there yourself and really talk to customers. Innovation is about understanding deeply where you fit into their lives, and if there are also relevant adjacent places you can go.”- Steve Wunker

Actionable steps to take for small business innovation

The first step to take is to connect with customers beyond standard market research. Engage with them directly to understand their lives and uncover other parallel or “tangent” opportunities that meet their needs.

The CREATE framework for innovative leaders illustrates this:

  • Connect deeply with customers to gain insights. 
  • Role model innovative behaviors within the organization. 
  • Evolve with market changes and trends.
  • Advocate for bold ideas that push boundaries. 
  • Think holistically with a 360-degree view of challenges. 
  • Enable diverse perspectives and ideas to thrive.

By following these steps, you’ll be able to cultivate an environment where different viewpoints contribute to innovation.

Summary

  • Start small business innovation by listening to customers, reflecting on their feedback, and framing key questions before rushing to solutions to collect adaptable and impactful ideas.

  • Innovation evolves with customer needs and changes in the market. It’s not a one-time process

  • Assess ideas based on desirability, feasibility, and viability to keep your big ideas practical and achievable.

  • Balance financial prudence with innovation by setting realistic goals based on market conditions and validating assumptions with data and encouraging effective team communication and collaboration.

  • Connect with your customers to uncover new opportunities. Embrace the CREATE framework: Connect, Role model, Evolve, Advocate, Think holistically, and Enable diverse perspectives for innovative growth.

Transcript

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About guest – Steve Wunker

Managing Director

New Markets Advisor

Steve Wunker who is the Managing Director of New Markets Advisors, a global consulting firm focused on innovation. He was responsible for one of the world’s first smartphones, pioneered the mobile marketing and commerce industries, and partnered with a longtime colleague, Harvard Business School’s Clayton Christensen, in building the consulting firm Innosight. He’s also the author of three award-winning business books and the co-author of the new book: The Innovative Leader: Step-by-Step Lessons from Top Innovators for You and Your Organization.


Website – http://www.newmarketsadvisors.com/
LinkedIn – https://www.linkedin.com/in/stephenwunker

Author: 

The Innovative Leader: Step-by-Step Lessons from Top Innovators for You and Your Organization (2024) – https://a.co/d/57VXey0

Capturing New Markets: How Smart Companies Create Opportunities Others Don’t (2011)

https://www.amazon.com/Capturing-New-Markets-Companies-Opportunities/dp/0071825959

Jobs to be Done: A Roadmap for Customer-Centered Innovation (2016)

https://www.amazon.com/Jobs-Be-Done-Customer-Centered-Innovation-ebook/dp/B01HJ35YNI?ref_=ast_author_dp

Costovation: Innovation That Gives Your Customers Exactly What They Want–And Nothing More (2018)

https://www.amazon.com/Costovation-Innovation-Customers-Exactly-Want/dp/0814439756

Other resources mentioned in this episode:

Clayton Christensen

Book: Jobs to be Done: Theory to Practice by Anthony Ulwicke

https://www.amazon.com/Jobs-be-Done-Theory-Practice/dp/0990576744


About host – Kathy Svetina

Kathy Svetina is a Fractional CFO for growing small businesses with $10M+ in annual revenue.

Clients hire her when they’re unsure about what’s going on in their finances, are stressed out by making financial decisions, or need to structure their finances to keep up with their growth.

She solves their nagging money mysteries and builds a financial structure with a tailored financial strategy. That way they can grow in a financially healthy and sustainable way.

Kathy is based in Chicago, IL and works with clients all over the US.

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