The two are distinctly different yet we use the two words far too interchangeably. As Professor Levitt said in his book “Marketing for Business Growth” in 1974, “Creativity thinks up new things. Innovation does new things.” He said it a while ago but its still as pertinent now as it ever was.

To our detriment in small business, we do mix the words up in our definition. Small businesses are usually a hot bed of ideas and creativity, it’s what makes them so special yet, quite often, we fail to implement the ideas. Both creativity and innovation are crucial to small business. They are the difference between an average and exceptional one.

Innovation in it’s most basic sense starts with constantly asking the questions about every aspect of your business. In it’s most sophisticated sense, it actually simplifies your business. Whilst creativity will generate lots of initial work, innovation should always make things easier for you, if it doesn’t it is actually complication.

Innovation turns lots of ideas into meaningful action. It asks creativity the question; will this add value? And it’s not just about customer interactions, production efficiency, product development or financial investment. Innovation can work just as easily when improving the way you deal with your people!

Innovation constantly asks these questions:

1. What is preventing us from doing what we talk about doing?

2. What do we need to do to improve and add value to our customer experience/employee experience?

3. What is standing in the way of me (owner) getting what I want from the business?

4. What is the best way to do this?

Not only does it force you to think about improving things, it’s a great way to invigorate a team by getting them involved and engaged with the process. Makes innovation a lot easier to implement too!