Why Your Company Must Develop New Products During the Recession?

Recession according to Investopedia is a significant, widespread, and prolonged downturn in economic activity. Forbes gives it a similar definition when it explains recession to be when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time. So, summarily, a recession is a really hard time for businesses that is why you should develop new products.

But according to the popular saying, “when the going gets tough, the tough gets going”. And this is the reality of many small business owners today who see a bleak sight as a result of the looming recession. Times may be tough, however, there is no better time to start creating products than now!

In the words of Bill Hewlett, “Investing in new product innovation and expanding the product catalog is probably one of the most difficult things to do in the difficult times but also the most important one.”  In fact, many other thought leaders and entrepreneurs call new products the lifeblood of a company.

Thus, there are salient reasons to develop new products during the recession. But this article highlights just enough for you to see the light at the end of the tunnel. Find out below, why you should introduce fresh products in these times and how it would help your business grow.

Why Should You Develop New Products During Recession?

• Most Companies Stop Innovating

A recession clearly reveals the company that would last the test of time and the ones that would not. And this is because most companies are looking to spend less money. Thus, they do not expend money on R&D or innovation.

Thus, you have the leverage to win over the hearts of the market with your new product idea. And by that, you stand a chance of thriving in the hard economic time. This is because developing a new product idea during the recession is what separates the wheat from the chaff in the industry.

• Outperform Your Competitors

Research has shown that businesses that develop new products during the recession outperform their counterparts by upwards of 30% in the market. Thus, creating new products during a recession can be what separates the winners from the losers. That is, you not only find a way to survive in the economic downtime, but you also get to position yourself for great success as a small business.

A good example is where, as an innovator, you create a more economical solution for your customers. This would allow you to maintain and grow your market share. This happens when you come up with a reusable substitute to their disposable product or you develop new distribution channels and business models.

You may even come up with a radical product that will make all the other products in the market obsolete.

• Funding

There are a lot of grants available for companies who are developing a new product. And you can also get funding from angel investors and venture capitalists for your new product.   Thus, if you are looking to expand your capital base in the business, start innovating and developing new products.

Most often than not, your company would always be in need of funding. And a good way to keep the business afloat and show yourself innovative and valuable to potential investors is through the use of new product prototypes. That way, they are informed of your knack for keeping a fresh perspective as an inventor even in an economic downtime.

Thus, you gain trust in the market and with potential investors through the development of new products in a recession. And that helps you to secure funding that keeps your business thriving in the midst of difficulties.

• Team Motivation

It is no news that during a recession, many people feel demotivated. But if you can manage to keep them focused on developing new products and innovating, that would make them feel more purposeful and motivated to do more for your company.

So you see, a recession can be an opportunity to give your company a friendly jolt as an innovative business.

Hottest Questions on Developing New Products During Recession

Get more insight into the importance of developing a product during a recession through these frequently asked questions.

Final Words

A recession can be a truly difficult time for businesses. But at the same time, it can be when a business spread its wings and flies high in the market. It all depends on understanding the opportunities that developing a new product brings.

Is your company excited about turning a concept into a product? For your conceptual design phase, do you require a wholesome prototype?

LA NPDT is a product development company that exists to assist you in converting your ideas into commercial products. Our staff is prepared to support you in achieving your goals with your customers. For any concept design needs, you may contact us at 318-243-5789 or at our website, lanpdt.com.