Idaho SBDC: Innovation for Small Businesses
Ann Swanson – Idaho SBDC | Nov 26, 2024
The “I” word is a business world darling, but it is thrown around so often, its meaning gets fuzzy and often reserved for the elite. Innovation comes up on the covers of slick magazines and posts about the wonders of Silicon Valley founders. The message? Innovation is for the lucky and the well-funded folks who have a once-in-a-lifetime billion-dollar idea.
Let’s step away from that definition and reclaim it for the small and very small businesses. Ninety nine percent of American businesses are considered “small,” having 500 employees or less. More importantly, 49 percent of American businesses have one to four employees.
These extra-small businesses are the drivers of our local economy, and innovation is just as available to our smallest enterprises. I want to recast innovation in a different light.
Innovation means trying something different in order to solve a problem or make life better for customers, employees and owners. Sounds good. Let’s do it. Let’s try new things! Toddlers like to try new things, too, but if you leave one with finger paints in a china shop…
Innovations, like toddlers, need context and guardrails. You may first have to create an environment of asking and listening. Good ideas come from all over. I had a boss once who regularly asked me, “Is there any tool or process that would make your job easier?” Take time to meet with everyone in your business and ask what could be different and why. Questions can include, “What part of your job do you dislike?” “What are you hearing customers rave about? Complain about?” “Are you doing anything that feels like a waste of time?”
Once a problem or an idea has been identified (and it’s best to stick with one problem), the next step is to brainstorm the problem. This tip came from one of my most successful clients, Jordan Menzel at Maple Grove Hot Springs, just outside of Grace, Idaho. We usually think of brainstorming as a tool for finding solutions. It is just as important to use it to understand — deeply — what the problem really is.
Another way to get at the root issue(s) is asking “Five Whys.” The coffee is bland. Why? The beans are not ground correctly. Why? Because the grinder is dull. Why? Because the part is still on order. Why? Because that supplier is unreliable. Why? Because the supplier recently sold to a new company. Possible solution: Time to find a new supplier.
Sometimes problems have easy solutions, but sometimes a solution (read “innovation”) impacts the entire organization. When this happens, gears need to shift toward planning a change management strategy. Implementing change in an organization — especially one with more than a few employees — is a challenge. Here are some ways to make it easier:
Make it clear to employees what is happening, but more importantly, explain why a change is happening. Be honest. Listen carefully to resistance and recognize out loud that change can be uncomfortable. Reinforce the why: to solve a problem and/or make work life better.
Share responsibility for implementing the change. A work group approach can help shoulder the work and address complaints. Employees should know about the timeline of the project, and regular updates will help everyone feel included in the change.
I tell many of my new business clients to start small. Test your idea with as little investment as possible. If you want to open a bakery, try selling at a farmers market first to see if people will buy your products. This is great advice for change management. Running a pilot project with a few people can help work out bugs and potentially better clarify the problem.
Whether you are making small innovations or larger decisions that are tackling organization-wide problems, the Small Business Development Center can help coach you through this process. We have resources on time-saving tips, getting to the root of a problem, and can help you roll out organization-wide innovations.
By John Roark & Ann Swanson
Ann Swanson is the regional director of the Small Business Development Center at Idaho State University’s College of Business. The Small Business Development Center is taxpayer funded to provide no-cost consulting and low-cost training to help business owners grow and thrive. If your business needs help with any aspect of business ownership/management, take advantage of our free consulting and training by reaching Swanson at 208-282-4402 or swanann@isu.edu.