The Importance of Research & Development for a Business

All businesses activities can be sorted into four main categories. In larger organisations, you might have a division or department dealing with each. But even as a small business it can be helpful to think in terms of theses departments. These are:

These are the parts of the business that add value. The functions that support these activities are usually the ones that cost your business money. These include all of your administration functions. These can range from your bookkeeping to purchasing, but they would not exist if it were not for the four main departments.

Each department uses its own ideas and models to try to improve your business. If you know the name of the model or concept you are looking for, then please try the index. This contains links to all of the concepts and models that are currently available.

Traditionally we think of R&D as being new product or service development. However it should cover more than that. Right at the very start of a business’s life, we should be writing the business plan. We should have all of the necessary business forms created. This plan is the repository for all the information that you have been able to gather about your business idea, how you will produce it, who you will sell to, how you will deliver it and how you will finance the business.

The first piece of R&D you will need if you are going to build a business is your business plan.