A business valuation is an important step for any business owner who is thinking about selling, bringing on new partners, finding investors or applying for a loan. But the process measures more than just the business’ worth. It also considers intangible assets that add value to the business such as goodwill or brand recognition.
In most cases, business owners want to bolster their business’ value prior to valuation as much as possible, but they may not be sure how to increase their business’ intangible assets. Here are a few tips from a recent article in Colorado Biz magazine on how to do that:
Identify your brand and protect it. Businesses spend years establishing their brands, from their logos to their taglines to their standard of service. Once you have established these things, you should consider registering your name or logo as trademark with the state and federal government. This will provide you will extra legal protections if someone tries to benefit off of your brand.
Figure out what sets your business apart and keep it a secret. All businesses have key elements or “secrets” that sets them apart from the competition. In order to keep the secrets (and the business) safe, they must be protected. The good news is protecting these elements is free, you just have to take proactive steps to do it.
Think about copyright registrations. Chances are that you spent significant time and money creating your website, manuals, newsletters and other business “expressions.” It would be horrible if someone came along and copied your hard work, which is why you might want to consider copyright registration to protect these expressions and grant you added legal protections.
These are all good tips for business owners who want to boost the intangible value of their businesses. For more information on protecting intellectual property, see our last post on the differences between a patent, copyright and trademark.