It’s a scary thought. Having your intellectual property stolen isn’t just something that can cost you from a dollars and cents standpoint. There’s also pride on the line that your work will go to benefit someone else. In an era when virtually anyone with a computer and a brain can implement an idea because they have access to resources, it is more important than ever to have a strategy to protect your intellectual property.
Without a proper strategy, you have no way to communicate value. With no way to communicate value, you don’t have a reason for people to invest into your idea, whether that’s a crowdfunding campaign or a meeting with backers in a conference room. That’s why a strategy is so important.
You Need To Secure Your Intellectual Property Right Now
Because there is such a high level of competition in every industry right now, you need to secure your intellectual property before you create any crowdfunding campaign. This is important, especially if you’re looking for equity crowdfunding, because it gives potential backers a higher level of confidence. They know that their investment will be protected because you have evaluated what the IP means to your business.
Part of this securing process is to determine what the actual scope of the coverage is for your intellectual property. What is its potential for monetization? How will the IP affect the overall valuation of your business? These are important considerations because it not only affects how much money you might be able to raise, but what percentage of the company would be assigned to each individual backer.
Why Is It Important To Focus On an IP Strategy First?
The strategy you develop for your intellectual property is a direct reflection of the value you can provide. It is an asset for you, just like your buildings, your vehicle fleet, or the computer you’re using to read this article. Without a comprehensive assessment of this value, then the future potential of your IP may never be achieved.
You may even believe you’ve achieved the maximum potential of your IP. It would be like selling an idea for thousands and being satisfied with that amount, only to discover later on that it was worth tens of millions instead. Without information, no one will ever know what the peak potential will be for your next campaign. If that is not known, then you have no effective method of marketing your efforts.
You’ll have no way to reach out to backers because you’ll have no information.
The strategy that you develop with your initial conversations really can mean the difference between the success of a crowdfunding campaign or its colossal failure. Identify what your intellectual property is within any idea; protect it prior to the creation of any fundraising effort, whether public or private, and you’ll be able to give backers the critical they need in order to help your business move forward.