Developing new products and services is an inherently risky process. You must plan any investment carefully and strictly control your costs.You need to:factor any future investment in products and services into your strategic business plan ,plan exactly where this investment will be directed ,justify the expenditure on every project ,manage your costs .Before making investment decisions, consider how much your business stands to gain from a completed product or service. Weigh this against the risks you face.
Phasing new product development:One way to minimise your risks is to phase investments in projects. By reviewing a project at the end of each phase or stage of development, you can identify products or services that are unlikely to be successful before resources are wasted. If the product or service fails to meet established criteria, the project is ditched. If it meets them, resources sufficient to enable it to reach a next, predetermined, stage are allocated.
Finding support:A range of government grants and tax breaks is available for research and new product development. For further information, see our guides on innovation, research and development grants and tax reliefs and allowances for research and development.
Cost control:It's essential to keep a close eye on costs when you develop new products and services to avoid them spiralling out of control. You should:estimate development costs in advance, as described below,monitor expenditure throughout the development process,introduce phased investment.
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