Research and development are vital in every single sector of business. If you want to grow your business, you need to have the funds available to reinvest in bringing new or modified products or services to the market.
However, research and development aren’t cheap. As such, you might find this area of your company can quickly eat into your budget, requiring you to look for other business finance to support your ongoing efforts.
Regardless of the industry you are in, there are options available to help you reduce research and development costs.
R&D Tax Credits
While not an upfront funding source, reducing your tax bill by providing evidence you are undertaking research and development activities can help get you a tax incentive from the government. To take advantage of the scheme or find out if you are eligible, the best option is to consult experts in R&D tax credits, who can look at your business ideas and day to day operations to assess if you qualify. Many companies across the UK are currently missing out on this tax credit as they are unaware they are eligible, and this can go a long way to reducing your research and development costs.
Grants
Unlike business loans, grants do not need to be paid back. Each year there are over 200 grants available for UK businesses. Grants are available via various sources and are an excellent way for small businesses to increase their business finance options without worrying about paying back a loan.
When applying for grants, you must assess your eligibility before completing the application process and improving your chances of success.
Grants are available for research and development purposes, and you can find them on the government’s business finance finder, via local authorities or the Prince’s Trust. They support young people aged 18 to 30 to start new businesses.
Effective Planning
Unlike business loans, grants do not need to be paid back. Each year there are over 200 grants available for UK businesses. Grants are available via various sources and are an excellent way for small businesses to increase their business finance options without worrying about paying back a loan.
When applying for grants, you must assess your eligibility before completing the application process and improving your chances of success.
Grants are available for research and development purposes, and you can find them on the government’s business finance finder, via local authorities or the Prince’s Trust. They support young people aged 18 to 30 to start new businesses.
Repurpose Old Designs & Processes
Do you have any previous designs, products or materials that can be repurposed to support this new project? Using what you already have can take time to repurpose, especially with physical products that need to be deconstructed, but it is a great way to save costs.
Reduce Marketing Spend
Marketing costs always eat into your budget, and streamlining your spending can help put money where it is needed. Use software or third parties to help you create a mock-up of your design without a prototype if required to get your marketing up and to get up and running faster for a lower spend.
When you are focused on research and development as a company, you can always expect a heavy time and financial investment; however, talking to experts in maximising your business finances, including claiming the right r&d tax incentive, can identify ways you can reduce costs without compromising on integrity.
