Innovation programs in technology often face a number of different problems. This includes red tape and legal problems, problems with competition, problems with skills and problems with market research. However, the biggest issue of all is to find the funding for these programs. Although businesses are always told to be innovative and to take risks, actually doing so takes money and money is generally in short supply. Within a technology innovation program however, even more money is required because it generally has to cover specialized staff and specialized equipment, as well as things such as advertising and transport. So how do you get funding?
Why Funding Is an Issue
Funding is so difficult within technology innovation programs because it is a high risk area. The majority of these innovative programs fail, which means that the money is simply gone. It is also for this reason that it is very hard to turn to traditional funding sources as an innovator. Even if a loan is granted, which is incredibly rare, the interest rates would be cripplingly high.
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The other issue is seen in the fact that most innovators will not be able to pay any loans back until after their project takes off, if it does at all. Because there are so many different constraints in the way of innovative projects that it simply is a risk that most lenders are unwilling to take. Technology innovation programs often don’t meet deadlines because there is a delay in one area or another, which is another added risk. Most lenders are pretty strict in terms of when they want to see their loans paid back, which again does not make them very willing to take on an innovator. Luckily, there are a few things that an innovator can do in order to still get their idea of the ground.
What Innovators Can Do
The first thing an innovator should do is write an excellent business plan. This plan should honestly and realistically highlight what the program is trying to achieve. It should also demonstrate how these goals are going to be achieved and what sort of measurement methods will be in place. Additionally, it should outline contingency plans, addressing “what if” issues.
The second thing an innovator should do is sell themselves. In many cases, leaders of technology innovation programs are very young, which makes them high risk for lenders. Hence, it is very important for an innovator to show why they can be trusted, and that they truly believe in their ability to turn their idea into reality.
Finally, the two elements above should be taken to a crowdfunding platform. This will allow others to pledge towards the innovation project. Hence, rather than expecting a single institution to fork out a huge amount of money at a high risk, people only fund as much as what they can afford to lose as well. If done properly, crowdfunding could get the funds together in no time whatsoever.