Businesses that develop a research and development (R&D) strategy are more likely to grow and succeed.
Why is this? In performing R&D, companies must internally review their processes and technologies in order to identify issues. With these weaknesses targeted, both the products and services offered can be improved upon.
Innovation enables productivity and customer satisfaction to increase thereby strengthening the company’s competitive advantage.
Developing a Strategy
Each strategy is unique, depending on the drive and size of the company. For a small business it is beneficial to focus on perfecting the chain of production or delivery of service in order to enhance customer experience gaining trust and mutually beneficial relationships.
A larger company would also benefit from this but typically once a business is well established R&D turns toward introducing new products and services to expand further into the market .
Supporting Your Growing Business
While R&D is extremely necessary to increase competitive advantage, it is often times very costly. For a small business this can be challenging especially when your business is not yet profitable. The good news is that the R&D Tax Credit recognises this.
Research and development does not need to happen in a test tube to be eligible for return.
If you would like to discuss your eligibility R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.