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Will an R&D Department Help Your Small Business?

– Contributed content –

Microscope

(Public Domain Pictures, Pixabay)

30 Oct. 2020. Many small business owners assume that research and development is something that only large corporations have the resources to do, so they don’t consider how it could benefit their business. The reality is, any business can run a research and development team and it will help to push your company forward in a lot of different ways. These are some of the reasons why your small business needs a research and development department.

Developing unique products

Your product design process benefits greatly from a research and development department. If you can create completely new technology and patent it, you can build some amazing products around it and none of your competitors will be able to imitate what you’re doing. Without your own research and development program, you are reliant on patents from other companies, which you have to pay for. Other businesses can use the same patented technology so you have no control over the other products on the market. But when you own the patent, you have full control and you corner the market in that particular product. If you are unsure how patenting works, visit https://www.masterclass.com/articles/how-to-patent-a-product for more information.

Tax benefits

Businesses are always looking for ways to reduce their tax burden and research and development is a very effective way to do that. There are a lot of tax credits available for businesses that engage in research and development, so you will make some big savings. You may need a consultant (like this one at https://www.tri-merit.com/services/research-development-consulting/) to help make sure that you are taking advantage of all available tax credits and saving as much as you possibly can. When you combine the increased earning potential from the unique patents that you develop with the tax benefits, you can increase your profits in a significant way.

Grants

Some of the increased earnings from research and development are offset by the cost of running the department, but there are ways around that. There are a lot of government grants available for certain areas of research and development, often the ones that help to create products that reduce environmental damage. If you can get some of these grants, you can create new products without having to pay the initial upfront costs yourself. However, you will still benefit from the research that you carry out, so it’s incredibly good for your business.

Improved brand reputation

When you are building your business brand, it’s important that you present yourself as a leader in your industry so consumers have trust in your products. Having a research and development branch is such an effective way to do that because you are not just manufacturing and selling products, you are at the forefront of researching new technologies to improve your products. This shows customers that your products are always at the cutting edge and your competitors will not be able to match their quality of functionality.

Many small businesses never even consider the benefits of research and development but if you want to drive your business forward, it’s one of the most effective ways.

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