There’s lots of talk about the need to make Canadian businesses more innovative. But how do you make it happen when you’re a time-pressed entrepreneur? Here is some down-to-earth advice on practical steps companies can take to boost revenues, increase productivity and reduce costs.

Jeremy Gutsche knew there had to be a better way. The upstart Toronto publisher launched Trendhunter.com in 2008 but couldn’t afford high-priced journalists to write articles and manage a global network of contributors.

The solution Gutsche came up with was the Trend Hunter Academy. Student interns exchange their labour for the opportunity to learn about marketing, journalism and social media at what has become the world’s No. 1 trend-spotting website. After four months, they receive a $1,500 stipend and a certificate in digital journalism and social media to add to their new job-winning skills. Some even get full-time jobs at the company.

“That’s an example of a creative solution,” says Gutsche, an innovation guru and recession-era success. “Our student interns publish nearly 1,000 articles, get a couple of million views for their portfolio and learn cool social media techniques. It keeps our editorial costs down and helps our organization stay young, vibrant and innovative.”

Bolstering small business innovation has become a top priority for governments and business groups across Canada. Report after report has concluded that Canadian companies can boost their revenues, increase productivity and reduce costs by improving their offerings and the way they do business.

The innovation challenges are well known. What is needed now is action, says Jean-René Halde, President and CEO of the Business Development Bank of Canada (BDC).

“No matter what business you’re in, or how small your company, innovation needs to be a key part of your business strategy and something you think about on a daily basis,” Halde says. “What innovation is happening within my sector? Is there a new market I can tap? Can I improve the quality of my management information? What are my competitors doing that is new and different?”

Innovation doesn’t have to mean inventing new high-tech products, Halde adds. Most innovations are incremental: improved products, streamlined business processes, a more advanced piece of equipment or a new marketing approach.

A recent BDC survey found that three-quarters of Canadian entrepreneurs say innovation is a priority for their firms. However, less than 10% have developed and implemented a formal innovation strategy. While intentions are high, action remains low.

Gutsche’s Toronto-based company offers a global response to that challenge. Boasting 35 million monthly views, Trendhunter.com has become the go-to site for innovative ideas in business, technology, pop culture and fashion. Detailed data are packaged into reports used by large corporations such as Pepsi, Microsoft and Google to kick-start innovation.

“Our level of automation makes it possible to produce 10 times more data than our closest competitor, and with just one editor to manage the content,” says Gutsche, whose meteoric five-year rise has earned him plenty of accolades, including a BDC 2011 Young Entrepreneur Award.

All business owners will acknowledge they could always do something better in their business, but where to start? Halde recommends a “3D” approach: decide to make innovation your competitive edge, discover what your customers need and then do it.

“Innovation will not happen by accident,” he says. “It takes human resources and capital. But the risk of doing nothing will be much higher, because you can be sure your competition isn’t standing still.”

Prof. Becky Reuber, an expert on entrepreneurs and innovation at the Rotman School of Management, says this requires a customer focus from everyone—no matter what their job.

“Discovering your clients’ needs requires systems, whether formal or informal,” she says. “Your employees interact with customers daily. How are you bringing that knowledge back into the company so that everyone can benefit from it?”

Innovation also requires leadership, Reuber adds. Business owners need to be champions for doing things better in their company.

An advisory board can help entrepreneurs provide that leadership by challenging them to think of new initiatives and how best to execute them, Halde says.

Companies should also consider putting aside a special reserve to finance new ideas, suggests Gutsche. In the 1990s, the BBC had no hit shows and was losing viewers. It decided to create a dedicated pool to fund its riskier ideas. The first big winner? The Office, which failed the normal screening process yet went on to become one of the BBC’s biggest hits.

“Another reason we created Trend Hunter Academy,” says Gutsche, “was to ensure this constant supply of new people with new ideas. At the end of the day, that culture of innovation can become your company’s most powerful competitive asset.”