In a business context, innovation is a process that requires dealing with the unknown and uncertainty. But uncertainty does not mean that it is impossible to reduce the risks. One of the avenues is to acquire an innovative solution that has been developed externally, by a startup, for example. Here are 5 practical tips to de-risk the purchase of an innovative solution.
1- Compare your ideas
At the root of any purchase is what is known as "purchase intent," which is the moment when you seriously think about buying a product or service. It's the same for innovation, but before you get to the final decision, give yourself the opportunity to compare the reasons why you would want to buy. Get out of your usual circles and seek the opinions of other people in order to validate your hypotheses. For example, what will IT professionals say about acquiring a new solution for a marketing team? Do not hesitate to involve users in your reflection. Comparing your ideas and hypotheses will allow you to validate whether the innovative solution proposed is really the best option for your needs. With the current economic context, it is normal to be cautious about your spending and to buy only when necessary.
2- Big vision, small projects
In innovation, we often say to dream big – to rise to get a view that we wouldn't have in our usual work environment. However, once the overall vision is placed, the trap often becomes wanting to "accomplish everything at once". To reduce the risk in the acquisition of an innovation, it becomes important to go back to basics. By planning the implementation of an innovation in small projects, you will be able to control your expenses at each stage and only take the next step if the results are conclusive. One only has to think of "this new system that no one is using" – a classic in business – to understand the importance of a step-by-step approach. Startups are often very open to this approach.
3- Try before you buy
It's very simple, but we too often neglect the possibility of carrying out a test before making the purchase. By testing a solution, you will be much better able to decide on its relevance and its fair price. You would be surprised at the openness that entrepreneurs have to make arrangements to give you a demonstration, even when it comes to technological solutions.
4- Use the financial levers at your fingertips
Did you know that to encourage local SMEs and their innovations, there are several financial levers to reduce your financial involvement? Depending on the size of your business and your location on the territory, some programs can even pay up to 90% of the bill or $50,000. This is enough to convince a hesitant management team that innovation is within reach. Startups that are in an incubator like the MT Lab often have access to such financial levers through government programs.
5- Ask who you do business with
Trust is the basis of all business relationships. For a first collaboration, don't hesitate to ask if the company can provide you with customer references to call them. This will give you a good insight into the attitude and quality of your potential future supplier's offering. With start-ups just starting out, you may be their first customer: you can always ask the entrepreneur for references from former bosses or employees. As companies are made up of individuals, the reputations that precede them will give you the right idea of their reliability in delivering what you want. Taking the time to investigate who you do business with will give you the assurance that the acquisition of the innovative solution will be smooth.
With these 5 tips in mind, you should avoid a little cold sweat when signing your next cheque for the acquisition of an innovation: because where risks are controlled, uncertainties diminish.
Originally published on January 25, 2021 on Tourisme Express
