Intellectual property is an extremely valuable asset for any business — especially for creative businesses, like design, writing, art or handmade items. If you’ve developed or obtained the rights to any intellectual property that is critical to your business or your industry, you’ll find that having that IP can dramatically increase the market value of your business — and open up even more doors to opportunities for future profits.
In addition, when there’s a high demand for your service- or product-based IP already in the marketplace or industry, securing legal protection can be even more important.
Here are just a few of the ways that IP can be leveraged to increase your company’s market value
1) IP Gives you Revenue Options
Intellectual property can generate income for your online business in a variety of different fashions, all of which can increase it’s profits and market value.
One popular way is to license out your IP to different companies and organizations so that they can use your plans, processes or services. This gives your company the ability to collect either large one-time payments or recurring revenue from licensing out your intellectual property. In return, this can increase your market share, raise your profit margins or do both.
2) IP Gives Your Business Street Appeal
One of the most powerful things that IP can do for your business is give it more appeal and a higher face value to financing institutions and investors. If you control a powerful or influential piece of intellectual property that provides value to your business, market or industry, investors are going to be interested and, in turn, will be willing to shell out more for what you have.
3) IP Gives You Support in Unique Circumstances
In the event that you have to sell your business, go through a merger or be acquired, your intellectual property may guarantee you more money and protection. IP assets can noticeably increase the value of your business and, in these unique circumstances, may be the primary or only asset of value that you have.
Getting the Full Value of Your Intellectual Property
Intellectual property should be treated just like any other valuable asset of your business, if you want it to enhance your business’s market value. You should be taking every opportunity that you have to utilize and protect your IP so that you don’t lose it. If you have intellectual property that brings value to the table of your business, make sure that you manage it, maintain it and monitor it closely so that you can reap all of the benefits of having it.