Peter Grant, programme director for InterTradeIreland FUSION and managing director of Helix Innovation Partnerships, which is involved in project management of collaborative R&D projects

Where do companies fall down most on innovation?

Most tend to think of it as new product development. Innovation is much broader and can also be about process, service, organisation and the business model. Another misunderstanding is that it needs to be about doing something radical with a high risk attached. It can also be about making small incremental changes with less risk.

Does the current climate make it more or less difficult to innovate?

More difficult to get companies to focus on innovation because most attention is being paid to immediate problems. Now is a good time to innovate. Only the fittest SMEs will survive the recession.

What are the key qualities found in innovative companies?

Across Europe they have the following in common: understanding clearly the relationship between innovation and sustainable growth. Firms need to have a strategy for innovation and define it as a driver for profitable growth. They also need to know what their growth targets are. They should have an ideas pipeline that is sufficient to achieve these growth targets. Finally, they need to exploit both internal and external sources to develop new ideas.

Mike McGrath, business coach

What issues are hurting companies most?

Not having enough cash to run the business with no recourse to bank support. No scope to invest in people, stock or new equipment. Severe staff reductions through cost cutting, burdening remaining staff with additional work. Depleted morale. Uncertainty and lack of confidence about the future and lack of vision and belief in the business. Excessive rent, rates and very high energy costs. Poor consumer demand and struggling to win new business at a sustainable profit level.

Where are they going wrong?

Waiting for improvement while not being proactive about chasing new markets, new clients or new products. Taking too long to make key changes and keeping insolvent businesses alive instead of closing them. Failing to recognise the need to actively market to existing clients with text, e-mail, phone calls and meetings.

Failing to invest time and money to market their business and products, extending large customers too much credit and failing to invest in their best asset – their people.

What could they do to survive the downturn?

Create a new strategic plan for the business, diversifying if old markets have died. Restructure. Consider mergers or partnerships or seek external investment if the existing structure is viable. Embrace and develop a suitable social media strategy. Create an online identity for the business. Be different and stand out.

Brian Patterson, partner, Praesta executive coaching, former director general of the Irish Management Institute

What are the recurrent issues facing companies at the moment?

Firms are under huge pressures. There’s a paradigm shifts in markets, low consumer confidence, falling revenues, financing and credit problems, problems getting paid and credit control. They’re learning to live with enormous uncertainty. Staff are under huge pressure.

What are the classic mistakes companies are making in the current climate?

Many seem to be caught in the headlights believing the world hasn’t really changed. As a result they are failing to act decisively and to recognise and act on unprofitable products and activities. They are heavily focused on costs with not enough focus on revenues.

They are taking their eye off their customers and failing to communicate with staff and other key people. People can handle a lot of bad news. What they can’t handle is uncertainty and rumour. Teamwork is a strategic choice for competitive advantage. Use all the talents and resources in the leadership team and get a high-performing group around you.

What can they do to survive the downturn?

Take out all unnecessary costs. Root out outdated work practices. Innovate like hell with new, value-driven customer propositions and new products/services.

Clodagh Sherrard, director, food marketing company Levercliff, and responsible for delivering the Bord Bia Vantage Partner Programme from its inception in 2007

What are the main things companies do wrong when launching new food products?

They’re not doing enough research to establish if there’s a true market for their product, they’re failing to do in-depth costings and don’t know where their break point is when negotiating with retailers. They als forget to add in all the margins in the supply chain that affect price.

Do companies over or underestimate the effort required to export?

Underestimate. For example they assume that because Tesco Ireland lists them it’s an easy step to a UK listing. What they find is while Tesco Ireland is happy to support local, Tesco UK is doing the same. They underestimate the time and money that needs to be put behind an export product. It is a much harder sell when you have no loyal local support.

There is always a dilemma for food companies whether to stay niche/artisan or supply the multiples. Are there any clear guidelines?

Start by identifying the ambition for the company. Is it a turnover of €500,000 or €5 million? The level of ambition will determine whether a company needs the multiples or can hand pick enough stores to get the volume it needs. Margins are tight but companies can still make a living. Multiples cut smaller producers more slack. The best advice is to go in with eyes wide open.

David Bunworth, business mentor and former commercial director at Aer Lingus

Where do businesses in tourism/leisure sectors consistently get it wrong?

Sometimes providers in Irish tourism suffer from a sense of entitlement. Some believe our innate friendliness, scenery and heritage will overcome any deficiencies in the tourism product – it won’t. The Irish tourism product and service offering is an eclectic mix of excellence, very good, mediocrity and sometimes just awful.

All of those involved need to think of the customer at the central point of their offering. The industry needs to think what it can offer outside the scenery, pub and restaurant experience. If facilities are first class and good value they will come. The Guinness Storehouse and the Boyne Visitor Centre are cases in point.

Where do improvements need to be made?

There needs to be a relentless pursuit of product and service improvements across the entire tourism offering. This is both a mindset and marketing challenge.

Scarce marketing resources need to be centralised. There are far too many tourism bodies and not enough focused thinking on the key challenges ahead.

‘A lot to handle on my own’

Having an experienced head to call on can save a fledgling business from making a rookie error.

Founder of Igloo Animations, Trevor Courtney, says his mentor stopped him giving away equity too early.

“There was a lot to handle on my own and I was seriously thinking of getting a partner until my mentor, Brian Davitt, stopped me,” Courtney says. “He said I didn’t know what I was really giving away as the company was so young. His question to me was: ‘What was it I couldn’t cope with?’

“When we actually discussed things the situation wasn’t as daunting. I found that having someone older – a bit like one of your dad’s mates, but who knows stuff – very helpful.”