Back Yourself! But I would add the caveat "you should know you can afford to take the risk..."
It’s good to improve, this inoculates your business from risk because it;
- increases revenue
- attracts customers and staff
But you need to focus on it as it requires;
- time
- money
- staff
- goals – to know when you’ve succeeded
- measurement – to track progress
Improvements others don’t have...
Innovation means you are doing things the others aren’t, that customers want, which gives you a competitive advantage.
An innovation is an invention that makes you money. It is not possible to ensure or be 100% certain each time you try to make use of an invention it will make money.
So – it’s a gamble!
Is it closer to $2 each way?, $100 on the nose?
Risking money on innovation is not like either of these bets.
It is more like a progressive bet over time, that you can stop if it’s not working. If you are getting good feedback you can continue to spend in that direction, always knowing that a payout is at risk.
Responsible Gambling
You cannot devote time to innovation unless you know you’re in a comfortable position as it may not pay off.
Do you have money, time, resources to gamble?
You will only know this if you have a cash flow forecast. Your profit and loss statement, balance sheet etc will not tell you this as they are historical.
Without a cash flow forecast you will not know you can stop rushing around to simply survive let alone spend time focusing on the future. You will not know if you;
- have spare cash now to experiment
- can devote future money to new project
- can risk your money and perhaps lose it
Have a Plan
You and your staff are in a better position to enjoy the process if you plan these first;
a) understand the process – what are the steps involved, time and cost
b) understand what you need up front – before you begin
c) is it any good? - how to get feedback from customers
It’s worth a bet to ensure your future.