A legacy can start with a simple idea, but to make a great business, you must multiply an idea by its execution.
However executing an idea – that is, the entire process of innovating – is an inherently risky process when it all comes down to an untested idea. As such, the biggest question on many entrepreneurs’ and founders’ minds come before execution, right at the ideation stage: “what’s my idea worth?”
There are many facets of determining value in business. A lawyer may tell you that the value of something is whatever the parties agreed to in a contract. An accountant may divest into a discounted cash flow analysis and depreciation charts, and an economist may tell you about factors of production and supply and demand.
It is perhaps surprising then, that there is a relatively standard approach to the valuation of intangibles as established by the World Intellectual Property Organisation. This consists of two sides to the equation of value: development and commercialization. Whether you have just an idea, are building an idea for investment, or have an established shipped-to-market product, being able to properly understand and identify these factors is vital. Understanding the inputs that create (or will create) costs of developing an idea provides a popular method for valuing an idea before investing in essential execution.
Understanding the factors that can contribute to the market value of an idea can assist in shortlisting the most profitable ideas to invest an effective execution on.
Once the right ideas are selected, strategic planning and well-managed execution are the next step to creating value.
Tyner Group is experienced in performing IP valuations to suit a number of needs, including for business planning, new product development, accounting and financial reports, forecasts for potential investors, or market research.