Business Brokers NJ: Article About Intellectual Property Adds Business Value
Intellectual property (IP) is an intangible asset that makes your business more valuable, especially when you get ready to sell. It consists of original plans, inventions, methods of operation or production, business logos and symbols that are unique to your business. When you discuss the sale of your company with your business brokers NJ, make sure that they are aware of the intellectual property assets to be included with your business.
Protecting your IP is critical to preserving its value. As you acquire or create IT, you should take immediate steps to protect it legally and build your IP portfolio. Protect your logo from imitators by obtaining a trademark. Safeguard your operations manuals, marketing materials and other written matter with copyrights. Patent your unique, proprietary inventions, equipment and manufacturing processes.
Trademarks protect brand names, phrases, designs, sounds and logos associated with your business from direct imitation. You can extend the trademark to franchisees as long as they maintain the standards of your parent company. A trademarked product may be a principle revenue generator for your business, and as part of your sale, it virtually guarantees the purchaser a reliable source of income. If not included in the sale package, the value of the business for the purchaser is significantly lower.
Have a question regarding business acquisitions or business sales? Please ask the business brokers from Selby Associates of Cherry Hill NJ today.
Copyrights protect the expression of your ideas via writing, music, artworks, performing arts and cinema. Authors of computer programs can also copyright their work. This type of protection from plagiarism lasts for 50 years beyond the author's death.
Federally issued patents exclude your competitors from manufacturing and using your invention. A patent is valid for 20 years from its origination date. After that period, others can legally make use of the technology.
These legal protections validate your IP in the eyes of potential buyers for your business. They verify that your IP portfolio is indeed one of a kind and as such has real value. A copyright, trademark or patent also ensures buyers that the law protects their IP investment.
However, even if you have not amassed a portfolio of trademarks and patents, you still may own IP that is nevertheless marketable. Your knowledge and experience as a successful entrepreneur is enticing to buyers who are inexperienced in your industry. An offer to stay on during a training period to impart your expertise may be invaluable to a prospective purchaser.
Virtual assets such as a domain name or a blog following are other forms of IP that add value to your business. You wield considerable influence over the hundreds of followers who read your weekly blog posts, and that influence translates to consumer loyalty. Anyone buying your business would have to work long and hard to generate a similar value.