The Importance of Creativity for Small Businesses

Many small business owners might panic when they hear the statistic that 60% of small businesses fail within their first three years. But the power is in your hands. In order for small and new businesses to be successful, it is essential they are creative. Here are a few of the ways you can ensure your company continues to thrive in the face of that intimidating statistic.

Adaptability

Many small businesses create an iron-tight business plan and think this is enough to ensure the success of their business. Unfortunately, no matter what industry you operate in, things rarely go to plan. 

Small businesses must learn how to creatively problem solve and adapt to unexpected market conditions, the latest industry updates or even a sudden loss of income. Instead of following a business plan that doesn’t account for forks in the road, businesses must use their creativity to adapt and navigate through tricky new developments.

Direct Line highlighted the necessity for this kind of proactive thinking in a recent study. They found that in the case of an unforeseen major issue, the average insurance claim for an SME could account for anywhere between 41-49% of their net profits for that month. Having a rigid and unmalleable approach will make this hit significantly more damaging in the long term.

Innovation

In today's digital world, it is easier than ever to start an online business. Because of this, many industries have become saturated with small enterprises – which in turn creates far greater levels of competitiveness in the market. 

In order for your business to stand out, and consistently grow, it is essential to think creatively. Thinking creatively and bringing new, innovative products and services will allow you to attract and retain customers, and become an industry leader rather than just another generic small business offering the same services and value as your competitors.

What can you do to differentiate yourself from the crowd? Is there a particular niche which your business can pivot around? Are you the best at what you’re doing? And if not, why not? These are the kinds of questions you need to ask yourself.

Talent Retention

When you own or manage a small business, you'll naturally want to surround yourself with employees who are passionate about your company and excel in their job role. Employees thrive in their position when they feel supported and challenged by their career. 

If you want to attract and retain the best candidates for a vacancy in your company, it is essential you make your workplace a creative one, where innovative minds can be challenged and flourish. The CEO of PGi software, Boland Jones, summed it up perfectly when he explained, “Creativity leads to productivity."

Having creative talents in your fold will keep things constantly fresh, remove boundaries, help the company evolve and ultimately keep everyone emotionally invested in what you’re doing. 

Inspiration through creativity 

Creative tasks can help employees release stress and think of new, innovative ideas. For example, having a 5-minute task mid-way through a company meeting can help to re-energise a team of employees, and inspire them on for the second half.

Whilst completing a creative task, the minds of your employees will also be encouraged to think productively. They may even be able to think of solutions to larger problems in the business or think of a new, unique product or service for your company to offer. 

Identity

As a small business, it is essential you separate yourself from corporate companies and give your target customers a reason to give you their custom rather than a large, global competitor. 

As a small business, your identity is one of your greatest assets. Use it to help differentiate your business and enhance brand awareness for your company. Creativity can help you achieve this in multiple ways from inspiring your social media posts to leading your marketing campaigns.

If you have a small business and want to grow it creatively by accepting multiple payments at once and boosting your marketing exposure, get in touch with FaveBiz today. We can help your business increase its creativity whilst attracting and retaining new customers.

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