A company I was advising had big dreams for research & development. The management board however shared concerns about budget allocations and cannibalizing the well-functioning parts of the business. They didn’t want to risk under-funding their business for the sake of innovation.
A thorough resource audit allowed us to re-assign small profits from various business areas into a new Innovation Budget.
Using these funds they developed their new ideas without removing funds from the rest of business operations. They enjoy being the company who can always offer clients something new.
Before your friend’s software company sinks half their gross profits into an unproven model, tell him he can be innovative and maintain routine at the same time.