As an enterprise startup needing to find an early boost in sales, you’ve probably placed most of your energies on marketing using inbound or outbound methods. While focusing mostly on these areas, you’ve maybe overlooked one important aspect: Have you protected the product (or products) you’ve created so they aren’t stolen by competitors?
If you haven’t kept up on patent laws for a long time, you’ll be surprised at what’s changed. You may remember back in the days when you could get credit for inventing something based on when you created it.
With the “File First, First to Invent” laws going into effect several years ago, you don’t have time on your side anymore. Getting a patent as soon as possible is essential for the survival of your business in the future, but also in unexpected ways.
You’ll discover three surprising facts on how patents help sales and push up your profits. This has a domino effect helping you get ahead when others want your products.
1. Large Corporations are Risk Averse
You’ll find a lot of reasons why large corporations become risk-averse. Forbes notes it has everything to do with a shift in ownership, shifts in leadership, changes in human resources, managing toward the middle, or fear of the unknown.
A company like this may want to acquire your products in order to keep themselves alive for the long-term. However, if you don’t have patents available for those products, outside companies may not want to invest in your company.
The same goes with venture capitalists who invest in a business like yours. They aren’t going to bother with your company if they see your competitor beat you out to the patent filing. You’re more apt to get sued by your competitor down the road or become legally blocked from going forward. This leads to major financial disaster after years of hard work.
2. Patents Increase Sales
Evidence shows when you demonstrate proof of patents, you’re more apt to increase sales from other companies needing your products. In fact, when you’ve successfully filed a patent, sales increase 51%, which is considerably more than how it grows your employment.
It goes beyond this and into inspiring your employees to continue innovating, which only begets more sales from companies and customers trusting you. Basically, you increase your clout tenfold when you prove you’ve patented a business idea that solves a major problem.
Other evidence shows patents more than double the chance you’ll get listed on a stock exchange. Going public with stock options increases your reputation further and increases sales confidence in your brand.
3. You Can Increase Sales with Few Customers
One misconception you may have about filing patents early is you can’t increase your sales with a small customer base. A company called INFINIDAT managed to increase their sales with less than 100 customers.
While it’s rare to find startup unicorns like this, this all became possible because they patented their unique technology before their competitors did. Thanks to taking care of this sooner, they turned into a billion-dollar company in the field of data storage.
The field they’re in was already competitive from the start, yet they understood protecting ideas is all about timing. They knew what others are up to and realized you can’t waste time with today’s patent laws.
It wasn’t just one patent they filed either. With multiple patents filed at once, they managed to protect all of their assets and put all competitors out to pasture.
If you’re just now opening a startup, it pays to look at your competitors and realize what you face. Filing a patent the day you invent an idea is the smartest thing you can do to assure your financial future.