We find ourselves in an era where the very core principles of business itself are unpredictable. The recipe for success that might have worked for many, many years in the past can just as easily be the downfall for a company today. Why do certain companies fail that have been in business for several years, where the odd start-up company succeeds with flying colors? In the past, chasing growth, driving sales, pushing for bigger profits and multiplying your number of employees might have worked in order to secure stable business growth. Unfortunately, times have changed and so does the methods behind a successful venture. This is where the concept of innovation plays a major role.

It is important to remember that success isn’t an overnight concept. The road to success is long, bumpy, full of pitfalls, wrong turns and big hills to climb. This is why innovation is so extremely vital within a business environment and is 100% necessary in order to survive in the fast-paced and cut-throat environment that we call business today. Whether you aim to just stay relevant in the market, gain a hefty competitive advantage or multiply your revenue – innovation is the key.

Unfortunately, so many companies fail to innovate and as such, also severely limit their growth in the long run. Below, we look at a few reasons as to which factors contribute towards the failure to innovate:

Lack of long-term planning

Most start-up businesses go in with a mindset of “let’s take it day by day and get the show on the road for now”. Unfortunately, once the company has been established and all the growing pains and kinks have been sorted out, they’re still stuck in the same mindset of operating and living in the present. Every company needs to plan and work towards a long-term goal – set out what they want to achieve, over a certain amount of time and plan as to how they will achieve the outcome they wish for. Setting goals drives results, results drive innovation and innovation ensures growth. Thinking long term also ensures that you can accurately divide your resources and budget to cover a certain amount of time, instead of spending big over a short period and not having the necessary funds to continue with aspects such as marketing campaigns or sales initiatives later in the year.

Fear of failing

Failing, pertaining to business, is inevitable. During some time of your career, failure will be something you have to deal with and learn from in order to avoid making the same mistake and to learn how to handle the situation for the best possible outcome. Unfortunately, people tend to be so afraid of failure, that it stunts innovation because they don’t want to take a calculated risk. Innovation fosters innovation and if there is a culture of fear amongst risk-taking, it might result in a general reluctance within the company to try new approaches or take on challenging projects.

Lack of an innovative mindset

We live with the sad reality that most employees purely work somewhere in order to pay the bills, with the mindset of going to work, completing the tasks according to their job description, going home and getting a check at the end of the month. Why care about the company and its growth if you’re already getting what you want out of it, without having to put extra effort into it? Unfortunately, as mentioned before, innovation drives innovation and the above-mentioned statement also applies to managers, directors and company owners. If you fail to innovate within your own company, you also fail to create an innovative culture wherein your employees could possibly have thrived in. A higher up within a company, it is your responsibility to create a space for you can boost creativity, brainstorm exciting new ideas and nurture your employees to think big and outside the box.

 Lack of available budget

Unfortunately, innovation and the implementation of most innovative ideas come at a cost – money. Without the necessary funds to drive a project related to a new, innovative idea, there is a chance that the whole endeavor might fail if not executed properly. A lot can still be achieved with a limited budget; however, a limited budget also limits the extent of which you can take innovation and turn it into something that can drive success within your company. There is a difference between doable and successful.