Disruption is the buzz word that’s taking over the business world at the moment. Unlike at school where it was something that would get you sent to the Head Teacher, disruption in business is a positive strategy which is born from innovation.
Disruptive innovation is the process by which a new product or service becomes popular enough to displace an established one. A great example of this is Netflix, which has almost single-handedly caused the global death of video rental shops.
But it’s not just the big brands that can be disruptive. Small businesses are often really well placed to become disruptors. Their product development processes are often more flexible and quicker due to having smaller teams that can make decisions quicker than larger firms. Small businesses also have a greater need to stay competitive than more established brands, and therefore have the incentive to drive forward with change. They also tend to have more detailed and specialist knowledge of their market. All these factors mean that small businesses can be powerful incubators for innovation.
So how can you become a disruptor? Through research and development processes, and through knowing your market really well, it can be surprisingly easy to come up with disruptive ideas that can change your company’s fortunes. The key is to regularly set aside time to think creatively, so that you have the space and opportunity to come up with your next big idea.
Luckily for you, these kind of research & development (R&D) activities can come with significant tax savings! Companies carrying out qualifying R&D activities can claim significant corporation tax relief on eligible expenditure. Eligible companies can benefit from a tax credit if they are loss-making or a corporation tax reduction if they are profitable.
So if you’re ready to become a disruptor, talk to our team about your plans. We can give you specialist, expert advice on how to change the world whilst saving tax!
