Planning for innovation

Innovation is typically seen as something that happens, not something that’s planned for. But Elliot Leeder says this is a myth

When Cantina Goccia launched their first wine bottled in a Frugal Bottle, it proved so popular it completely sold out…twice. One wine chain sold its whole stock in just a single day. The drinks brand now intends to sell half of its wines in Frugal Bottles.

The Frugal Bottle is manufactured by Ipswich-based SME, Frugalpac. The brain child of the CEO Malcolm Waugh, it is made from 94% recycled paperboard and contains a food grade pouch which is also recyclable. But Frugalpac doesn’t just manufacture bottles. Realising that manufacturing and sending out Frugal Bottles to hundreds of different sellers globally would be slow work, a decision was made to also sell the machines that would allow drinks producers around the world to create their own sustainable packaging, thus speeding up the lightweight bottle revolution.

At the heart of Frugalpac’s success is a focus on systems and scalability. By manufacturing bottles and designing and selling the machinery that produces them, they have created a dual revenue stream. This enables partners worldwide to adopt sustainable packaging but also allows Frugalpac to better fund other parts of the business that may not be immediately profitable, like bottle design and development. 

It sounds simple but getting this far hasn’t been easy. Operations Director Elliot Leeder says that four main pillars are at the foundation of Frugalpac’s success.

Innovating beyond product

Elliot explains, ‘We had to write the rule book ourselves. Processes didn’t exist for what we were creating, so we relied on trial and error, detailed analytics, and PFMEAs to ensure success.’

Process Failure Mode and Effects Analysis, or PFMEA, are analytical tools used to evaluate and identify potential failures related to operational processes. Possible failure modes refer to vulnerabilities resulting in productivity, quality control, and safety setbacks. They have heavily supported Frugalpac’s innovation by modelling any potential failure and thus lowering the impact of any losses the business may incur during the trial and error period.

Takeaway: every innovation requires robust systems to support it. Whether you’re scaling a product or improving service delivery, invest in processes that ensure quality and efficiency.

Sustainably scaling

Frugalpac’s team operates with a lean mindset, aiming to maximise output while minimising input. This philosophy has driven significant improvements, including transforming a 25% production pass rate into a viable operation through ongoing adjustments and operator-led improvements.

For small businesses, whether in manufacturing or not, adopting lean practices can yield significant benefits.

• Start with analytics: identify bottlenecks and inefficiencies in the operation of your product or service.
• Empower your team: employees often have the best insights into potential improvements. Create a culture where their ideas are valued and implemented.
• Iterate constantly: sustainable growth requires adaptability. Regularly refine processes to meet changing demands.

Educating the market

Innovation often means challenging industry norms. Frugalpac’s Frugal Bottle faces competition from glass bottles, a material with deeply entrenched perceptions of quality. Convincing customers to switch to paperboard bottles requires more than technical superiority, it demands storytelling.

The Help to Grow: Management Course’s marketing module demonstrated to Elliot the importance of educating the market so it can sell your product. Since completing the course, Elliot has focused on three areas to improve the product’s position in the market:

• Communicate value clearly: what makes your product or service better? Use data, testimonials, and case studies to make your case.
• Address objections proactively: anticipate customer concerns and respond with evidence and empathy.
• Advocate for change: position yourself as a thought leader in the industry. Share your expertise through blogs, talks, or social media to build trust and authority.

Leadership development: a continuous process

Elliot’s transition from an engineering background to Operations Director wasn’t without challenges. To prepare for his expanded responsibilities, he recognised the need to develop skills in areas like finance, marketing, and strategy. This has gone beyond his own abilities and Elliot now advocates for leadership development across the company.

‘As business leaders, investing in your own development is critical. And why would I just want that for myself. It’s important we learn as a unit.’ Says Elliot.

Consider the following:

1. Expand your expertise: if you’re strong in operations but lack marketing or finance knowledge, look for courses, resources, or team members to fill the gap.
2. Focus on decision-making: effective leaders can analyse data, identify trends, and make informed decisions. Seek out CPD opportunities that enhance these skills.
3. Balance strategy and execution: small businesses often demand hands-on involvement. Most business’s will have either visionaries or executors, leaders must prioritise long-term planning.

Lessons for your business

Whether you’re scaling a new product, refining operations, or stepping into a leadership role, the principles that have guided Frugalpac’s growth journey are relevant and transferable?

1. Innovate thoughtfully: ensure your ideas are backed by systems that enable scalability and sustainability.
2. Adopt lean principles: maximise efficiency without compromising quality.
3. Educate your audience: don’t just sell a product—build a narrative that helps customers understand its value.
4. Invest in leadership: make time for CPD to strengthen your employee’s skills and improve decision-making.

Running a business is a constant learning process. By embracing measured innovation, fostering a culture of improvement, and prioritising your own development, you can navigate challenges and position your business for long-term success.

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