I hope that you're having a good week.
Today I want to talk about the unique value of a financial perspective, and why having advisors in your corner offers to you an indispensable viewpoint when it comes to business.
I, myself, have been occasionally guilty of the cardinal sin of not knowing my numbers!
(I have no excuse either, as I did A-level Maths and Statistics).
But nothing informs you better about the true value of accountancy than running your own business - let me tell you!
Money is the lifeblood of any company and being safe in the knowledge that everything stacks up and is appropriately valued is key to maintaining and growing business value.
The right people in your corner
I’ve been lucky that several accountant colleagues have been super-helpful at providing a steer in the past.
Whilst I’d be the last person to say, “let your accountant run your business”, I would say it is a must to let a good accountant inform your business decisions
Putting a numerical value to assets within your business really does help you identify where your priorities lie.
We do this for ourselves, and we do this for our clients.
For example, we’ve recently been helped by the brilliant forensic accountancy team headed up by Matthew Geale
at Armstrong Watson
, on several client matters.
Whilst as IP advisors we understand the importance of intangible assets within a business, appraising them is a different kettle of fish.
A valuation by a trained financial advisor will clarify the significance of a business’s assets and in turn the importance of allocating the appropriate resources to hold them securely within the business.
And often, many businesses find out that the most valuable assets they hold are actually intangible. (Think: client databases, market research, product and business plans and so on…
In doing so, this helps inform decisions as it relates to digital and contractual security - gone are the days where bolting the door keeps the crown jewels under lock and key!
Follow the money
You see, sometimes you need to see things from a different perspective.
Using these experts (thank you Lauren and Lindsay!) we’ve been able to establish brand value, understand lost income and establish acquisition costs for IP infringements...
When push comes to shove, looking at a business as a matrix of worth and understanding where the true value lies is a great way of optimising commercial activity.
By doing this early in litigation, we had a stronger position when negotiating settlements and brought parties closer together - all thanks to our better understanding of what was in play!
It has also been brilliant in explaining the commercial value of IP to clients.
In an economy that is increasingly driven by clicks not bricks, this realisation is something that is becoming increasingly important for businesses to have. Has the "IP penny" dropped for you yet?
Do you know what IP you have in your business?
Do you know what your IP is worth?
How much is it costing you to let someone copy it?
If you want to chat, you know where we are!