Why patent your idea?
As a startup entrepreneur, your most valuable asset is your idea. It can help your business thrive and expand to new markets. As a new business, you also need to minimize risk and maximize the gains from every move you make. A patent helps you to protect your idea and gives you access to both investors and new customers.
Still not convinced? Here are three reasons a patent is a "must-have" for your startup:
A patent is a shield of protection for your business
Your idea can be copied. If it's a good idea, you can be certain that it will be copied. Most entrepreneurs think that copycats aren't a big deal because the idea doesn't really matter unless it is paired with superb execution. To some extent, this is true, but doesn't reveal the full picture. If someone copies your idea and obtains a patent for it, they can block you out of the market. If your competitors have a patent on their idea, they can literally lock you out of the competition. The result of being locked out by a competitor? Not too great, as you can guess. Your options include: running a business that eventually goes bankrupt or changing your entire business model whilst being careful not to violate any patent terms.
If you are the first to obtain a patent for your idea, then you are lucky. You now have the opportunity to block others out of the game, should you choose. A patent is a tool for litigation and you can use it as both a defensive and offensive tool.
We believe a patent should be one of the first business assets that any startup should seek.
A patent is a magnet for investors
You're not the only stakeholder who wants to minimize risk and maximize gain. Investors want to put their money in a business that has a high valuation, but low risk, in order to ensure a great return on their investment. Therefore, a patent is a magnet for investors. Here's why:
The competitive landscape is immense, and too many startups are looking to receive funding from investors. Those who can prove their business model will win funding. You need proof of your innovation-- and there's no better proof that your idea is unique and patent-worthy than an actual patent in-hand to show investors. Patents can help you become the unique "rainbow fish" in a crowded ocean of startups.
A patent is also a business asset, that can be sold, franchised or transferred. Inherent in the name itself: intellectual property, is that a patent is property like any other asset. A patent stands out in that it may be the most valuable property that your business ever possesses. If your company owns valuable property, it further minimizes risk for investors. Even if your business leaves the game - it happens even if you have a patent - your business property can be sold and your investors will at least get some of their money back.
We believe a patent is your most valuable business asset and you should invest in it for long-term goals.
A patent is a cash-machine
Now that we've covered the topic of business assets and highlighted the important fact that your patent is your most valuable business property, it's time to talk about what kind of cash a patent can generate. It can be sold, franchised or transferred. Imagine that you're no longer a startup and are looking to cash-out your business. You are looking for a buyer with the highest bid. A patent is still your most valuable business asset and can help you cash-out with ease and higher bids.
A patent can drive startup acquisition-- as a matter of fact, there are startup acquisitions that only happen because of patents. Big companies are looking for agile, innovative startups and their proven innovations -- they are buying them up and saving costs on their own R&D by getting their hands on other innovations. A patent can be also franchised, thereby continuously generating cash-flow for your company.
We think patents are real cash-machines and they are your most valuable long-term investments.
Additional benefits of patents
Patents can drive more sales to your business as they inform your customers that they can trust your company. As your market position is secured with patents and your innovation is proven, a patent can also help you to increase employee retention. People want to work with secured businesses because they want their jobs to be secured. A patent indirectly fuels growth as well, because once you have a patent for your idea, you will have increased access to investors, customers, talent and acquisitions.
At KISSPatent, we help startups to realize their dreams and fulfill their potential. We help them secure their ideas with patents and kick start their growth by utilizing the power of intellectual property. We work from fixed-priced packages, making us much more affordable than any other legal companies. We also support entrepreneurs with our expertise and share all of our knowledge upfront.
Wondering if your idea is patentable? Have a question about this article? We can answer all of your questions — just hit "contact us" down below!