In the previous article, we discussed a basic understanding of what R&D is. This article sets out to help you get started. Every business has different needs, but the following steps give an outline of the process to get started:
1. Define your goal and select a project
Assess your product offering and try to determine any gaps in your product line, common customer improvement requests, products that might benefit most from cost reduction, products under threat from competition, or products that could easily be sold into or adjusted for new markets. When selecting a project, think about what would benefit the business strategy, what projects could be given suitable resources easily, and what your budget might be.
2. Consider and set a budget
Start to build an idea of how much the project may cost, and refine your expectations and goals according to what your available budget will be.
How many resources are available? Are there significant material costs or tasks which require external resource or facilities? Don't forget that projects should be reviewed periodically - if costs are getting out of hand, or results aren't meeting expectations, you have the chance to put a hold on the project or redefine it accordingly.
3. Assess your resources and build your team
Review available internal resources and determine if you have the skills, expertise, mindset and availability to achieve your goal. A collaborative team makes all the difference, so choose team members that will challenge, cooperate and contribute. Ensure there is leadership in the team and management oversight for reviews. Do you need to hire new staff? Do you need external help? Is there another business that you could partner with?
4. Plan the project
Projects will benefit from even a simple project plan in the form of tasks or groups of tasks to be undertaken and a timeline. Prepare some guidance documentation to ensure that goals for the project are clearly communicated, and identify any key criteria for the project or for the product and lock them in to a project scope and product specification.
Remember that there are always parts of the project you cannot accurately plan, as this is the nature of R&D, and is an essential part of the process. Allow for iterations and mistakes, but track the project and review frequently so you can react to the outcomes and adjust your plans, if needed.
5. Review additional funding methods
Funding may not be available for every project, but most can utilise one of the following:
R&D Tax Incentive - the most likely source for most businesses, which is technically a Tax Offset rather than funding. There are some criteria for business type and project, but is a very useful tool and is available to many businesses https://www.business.gov.au/grants-and-programs/research-and-development-tax-incentive
Government Grants & Programs - there are a broad range of grants and schemes on offer at any given time, and although they often target support to specific industries or business categories, there are sometimes ways to help fund development equipment, resources or up-skilling. The tool below is a useful start point: https://business.gov.au/grants-and-programs
Crowdsourcing - typically seen as a source for start-ups, crowdsourcing can be an effective way to assess funding for established businesses too. There are definitely pros and cons, but it is worth considering for some.
Accelerator Programmes - geared at small start-ups and inventors, these programs or "hubs" often provide funding, office space, mentoring, development tools (3D printing facilities etc.) and a strong network for kickstarting opportunities.
Thanks for reading, and hopefully now you understand more clearly what R&D is and how to start to think about potential projects that could benefit your business.
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