The Misconception About Innovation in the Small Business World

Small businesses often feel pressured to be copycats. The illusion that innovation is reserved for the big and affluent has taken hold in the minds of many small business operators.

In conversations I've had, I've heard that innovation must be something never seen before, something that changes perceptions by the millions. This self-imposed barrier prevents many small businesses from even trying to innovate or be creative. Instead, they settle into plateaus.

However, research shows us that innovation can be learned. We can confidently dismiss the

idea that innovative breakthroughs require special, intrinsic talent.

Here's what changes everything: understanding that small changes in products, processes, or communication count as innovation. The mere fact of changing something to make it work better than before is innovation. Once this is understood and adopted, you can start innovating immediately.

Here A Practical Framework

1. Pick Something

Choose any component in your business that hasn't been changed in a while—a product, process, communication method, or workflow.

2. Benchmark It

Get an idea of what the industry standard is. Is yours within the standard, below it, or above it?

3. Break It Down

Split the component into individual steps. Benchmark each step individually. Then look outside your industry—find the same steps in other industries and compare. Is another industry doing it better?

4. Reassemble

Put everything back together with the new, refined steps.

5. Implement

Put your improved version into action. Measure the results.

6. Repeat

Pick another component and run through the process again.

The Bottom Line

Innovation isn't reserved for big businesses with massive budgets. It's a learnable skill—and it starts with something small. Pick one thing. Test it. Improve it. Repeat.

That's innovation in the small business world.