Page 1Innovation andCommercializationLecture 7LO 3: Process required tocommercialize innovation.End of the Session ObjectivesYou will be able to:• Understand the planning of innovation.• Understand the challenges of innovation• Understand the executive inquisition.• Understand the funding sources• Understand the resources required tocommercializePage 2Planning InnovationPage 3Page 4Page 5Page 6Page 7Page 8Page 9Page 10Page 11Page 12Page 13Most Common Reasons … Continue reading “Innovation and Commercialization | My Assignment Tutor”
Page 1Innovation andCommercializationLecture 7LO 3: Process required tocommercialize innovation.End of the Session ObjectivesYou will be able to:• Understand the planning of innovation.• Understand the challenges of innovation• Understand the executive inquisition.• Understand the funding sources• Understand the resources required tocommercializePage 2Planning InnovationPage 3Page 4Page 5Page 6Page 7Page 8Page 9Page 10Page 11Page 12Page 13Most Common Reasons BusinessesSeek Funding• Working capital• Asset purchase• Start a business• Growth funding• Debt restructuring• Product development• Marketing• DistributionPage 14Working capital• Sufficient working capital is a key aspect of anycompany’s financial health, and not having enoughworking capital can have a serious impact on the future ofyour business.• Many businesses choose to apply for external funding tocreate enough working capital to enable them to fulfil theirgrowth ambitions.• A loan can cover short-term funding requirements whilegiving the business the money it needs to grow, or canbridge the gap between customer orders and supplierpayments to help the company meet its fundingobligations.Working capital• This type of funding can also allow your company to takeadvantage of new opportunities that arise, investing in newproducts or services to enable you to expand. Workingcapital loans can provide a useful ‘cushion’ for yourcompany should you need a bit of extra cash – you’ll knowyour day-to- day running costs are covered with a loan, soyou’ll have the funds available to meet any unexpectedcosts. Seasonal businesses may benefit from workingcapital funding during their quieter periods to cover basicexpenses.Page 15Asset purchase• Growing your business and increasing sales often requiresyou to purchase assets such as new machinery or vehicles.While you may have enough cash to cover working capitalexpenses for your company, you may look for a loan tocover the purchase of new assets to enable your business toexpand. An asset funding loan is a great way to spread thecosts of acquiring an expensive new asset. Fixed monthlyrepayments and loan terms from 6 months to 5 years canhelp you plan your cash flow in advance so you can makethe most of your opportunity to grow.Asset purchase• An asset purchase loan can be used to buy different thingsfor your business, depending on what you need to fulfilyour expansion plans. Funds can be used for businessvehicles, whether you’re looking to buy your company’sfirst vehicle or want to increase capacity by adding to yourexisting fleet. You could also use a loan to buy office andIT equipment to make sure your staff have everything theyneed to grow the business, or new machinery to enable youto make new products or scale up production whilespreading the cost instead of paying a large amountupfront.Page 16Start a business• New businesses that are still in the start up stage will needfunding to get off the ground. While most directors willuse their own funds to start the business, very few manageto entirely self-fund the company to profitability, and willtherefore have to seek external funding. There are a varietyof options for external start up funding, including bankloans, borrowing from family and friends, equityinvestment from a business angel, crowdfunding, andfunding grants. A loan to start a business can be used foreverything from buying stock to marketing to hiring staff,but start up funding can be difficult to secure and manytraditional finance providers will require lots ofinformation, such as a detailed business plan.Growth funding• If you’re looking to grow your business to take it to thenext level, you may very well need funding that enablesyou to execute on your business plans. Whether you wantto increase sales, expand your range of products orservices, move into new premises, hire more staff, orexpand internationally, a loan for growth finance can help.However you are planning to expand your business,growth finance that’s right for your company can help youtake advantage of new opportunities and make yourambitions a reality. If your business has its daily runningcosts covered, external funding may be the solution youneed to grow. Many such loans will have fixed monthlyrepayments over the term of the loan, enabling you to moreeasily plan your business finances as you grow.Page 17Debt restructuring• If you need to restructure your company’s debt, aloan that consolidates your borrowings andreduces costs can make your finances moremanageable for your business. A loan torestructure your existing debt can make financialplanning easier by reducing the number ofmonthly repayments you have to keep track of,and could potentially reduce your total monthlyrepayments. Refinancing your existing companydebt can help your company grow by freeing upcash in your business for working capital andexpansion.Resources required to coomercializenew product or services• Office space• Personnel• Equipment & materials• Access to technology• Access to distribution channels• Availability of external services
