How To Protect & Capitalize on Your Company's "Secret Sauce" - June 14, 2010

Protect and leverage your company's "secret sauce" with this T.I.D.B.I.T.  

At the heart of every successful business is their core product or

service.  The manner in which you make your product or deliver your

service to your customers is what makes your company uniquely

valuable in the marketplace.  This is where your competitive advantage

lies.  It is also your biggest asset to leverage. 

According to I.P. (Intellectual Property) Strategist, Jackie Hutter,

“70% of business value [is] in [the] form of intangible assets.”  This

percentage is even higher for service-based companies who

comparatively have fewer tangible assets than product-based

companies that provide tangible goods (i.e. retail, manufacturing,

restaurants).  Download the illustration to the right for more details.

So, how do you capitalize on your most prized possession – your knowledge? 

Follow these 5 steps:

1.  Know Thyself.

     First, look at your company’s financial health by carefully reviewing your financial statements.  In particular, look at the

     balance sheet.  On a balance sheet, Assets – Liabilities = Equity.  The goal is to have more in assets than liabilities to

     create positive equity.

2.    Begin With the End.

        Decide how you want to grow your company.  Do you want to expand or exit?  Both strategies require capturing your

      I.P.  Expansion could include hiring more employees, opening more offices, securing more partners/investors and even

      franchising your company. 

3.       Ask the Experts.

          Once you know how you plan to grow your company, reach out to the subject matter experts.  I.P. is a tricky and

        potentially costly endeavor, so you want to make sure you educate yourself and get a solid team of experts behind

        you.  An I.P. Strategist will take an inventory of all of your I.P., determine what has value and tell you how to best

        protect it (i.e. trademark, trade secret, copyright or even patent). 

4.      Document.  Document.  Document!

        You cannot protect what is not identified and captured.  Business Process specialists, like Equilibria, have the

        technical expertise to properly capture your secret sauce and commit it to paper.  An I.P. Attorney or Patent Attorney

        will then assist with the legal documentation to ensure optimal protection of your I.P.     

5.     Seek Valuation.

        There are seasoned I.P. Valuation experts who can actually analyze your documented I.P. for market viability and

        sustainability and assign a real dollar value to your otherwise intangible asset.  Having this dollar figure can give your

        total assets the boost needed to attract the right buyer, investor or possible loan needed to take your business to the

        next level.

At Equilibria, we specialize in creating small business infrastructure which includes capturing a company’s “secret

sauce” and have firsthand experience in documenting processes for optimal I.P. protection.  If you or a fellow

colleague that you know is serious about growing their company, forward this tip.  We provide complementary one

hour consultations and can work seamlessly with I.P. Strategists, Attorneys and Valuation Experts.  Call today for a

complimentary consultation.