By Adam Blatchford, Associate, Equiteq.
Smart Scaling is all about growing revenues and profits while also building your equity value, as opposed to doing one at the expense of the other. Intellectual Property is central to that, it is a ‘win-win’ because buyers want it and it drives profitable growth in your firm.
Whether your firm generates revenues of $20m or $100m, IP differentiates you. It ensures clients buy your services, means you can deliver profitably, and makes investors love you. This blog will focus on how to achieve that in your firm.
What is IP?
In simple terms, intellectual property is any knowledge recorded and maintained as a usable business asset. In most consulting firms, this means ‘trade secrets’, such as process maps, methodologies, training systems and software tools, rather than just copyrights and trademarks.
There are three main types of IP:
- IP to market the business
- IP to deliver business
- IP to run the business
All three are important, but in the context of Smart Scaling we will focus on delivery IP. See here for a deeper discussion of the three types.