How Can You 5x business value?
Creative business owners and innovators can 5X business value by avoiding a mistake that even seasoned entrepreneurs routinely make with their intellectual property or IP.
By understanding the Concertina™ principle, which I'll explain in a moment, anyone can quickly scale the value of a business without any concern of losing valuable ideas, creative works, know-how … or whatever it is that sets a business apart from its competitors.
Many entrepreneurs don't even realize they've made a mistake until it's too late, but taking action based on the Concertina™ principle can help, even AFTER the damage has been done.
By focusing on scaling the value of a company's most valuable asset, which accountants refer to as intangibles, a business can 5X value, without spending hundreds of thousands on lawyers.
It's all easily explained once you understand the Concertina™ principle.
It doesn't matter if you're just starting out or an established business. Even if you're already deep into a business and have made mistakes. Understanding the Concertina™ principle will help you quickly take action to start scaling business value.
So, what is the Concertina™ principle?
Concertina wire is a particularly gnarly defensive barrier. Its tends to rip uniforms and flesh, and soldiers don't like deploying it, at all.
But concertina a particularly effective component of hasty defense.
It's never intended to stop a determined enemy. It's effectiveness comes from early warning and slowing an assault against a protected perimeter.
In that respect, it's just like IP. IP or intellectual property protects a company's intangibles.
However, owning and protecting IP, alone, doesn't prevent loss of a company's most valuable asset...
...just like concertina, even if strung right, can't stop a determined foe.
Instead, it gives early warning and slows an assault.
If done right, your IP will also gives early warning and slows a potential infringer, even if the infringer is determined to steal your company's creative works, brands, innovations ...
That'll give you a chance to stop the infringement before it impacts the value of your intangibles.
That's why someone trying to do it himself or herself is usually completely wasting money. Without understanding how to apply the Concertina™ principle to IP, spending money on IP is a waste of valuable resources.
Maybe that's why some seriously experienced entrepreneurs say that IP is a waste of time...
...an act of futility...
They urge inexperienced entrepreneurs to just share their ideas without any protection, willy nilly, because you have to share your ideas to be successful.
Ignoring 80% of the value of your company is foolish.
It's no better than saying that concertina wire is useless, because it doesn't stop a determined enemy, by itself...
...but a hundred years of war teach the opposite.
Concertina was never meant to be used alone, by itself...
Instead, it's a component of an effective defensive position capable of being quickly and inexpensively deployed, which allows a smaller force to defeat even a much larger foe.
I'll provide a real world example.
Tim Bryce had a consulting company with valuable know-how and copyrights. They made an effort to protect it through agreements and reasonable efforts to keep their know-how secret.
When a much larger company misappropriated the know-how in violation of their consulting agreement, Tim's company warned them and eventually had to sue, when the company ignored their demands to cease and desist.
Tim's company won the lawsuit, a great outcome for a small consulting company.
Did the company's IP prevent the theft of their know-how.
But by protecting their IP, it gave them a remedy that ultimately defeated a much larger multi-national corporate foe.
Just like concertina wire, as one component of a defensive position, allows a defender to defeat a much larger foe.
The history of valuations for companies listed in the S&P 500 shows why it is foolish to neglect intangibles or IP...
In 1975 less than 20% of the value of companies listed on the S&P 500 was attributed to intangibles. This was before the world wide web, before the innovation age, before Microsoft and Apple.
By 2015 more than 80% of the value of companies listed in the S&P 500 was attributed to intangibles ... a complete reversal!
So, in this age of innovation, ignoring IP ignores more than four fifths of the potential value of a business.
It stands to reason, then, that doing IP right, using the Concertina Principle, will at least 5X the value of any creative or innovative business.
(Every successful small business should embrace innovation. It's one big advantage that small businesses have over large corporations.)
It's unwise to neglect more than 4/5ths of your company's value, no matter what some "expert" might say.
The Concertina™ principle is this...
It's possible to do a few things quickly, at a reasonable expense, which builds a hedge of protection around a company's most valuable asset ...
not to stop someone from stealing your "secret sauce"...
but to provide an alert and give a quick remedy before a loss of valuable rights.
Ultimately, if you've done everything right, you can defeat a much larger competitor. Better yet, often, you won't have to file a lawsuit.
Let's look at another example.
An artist creates a work of art. The artwork automatically gives the author a copyright in the artwork.
If the author understands the Concertina™ principle, an application for copyright registration will be filed within 90 days of publication, giving the artist certain additional defenses:
- attorneys' fees,
- statutory damages
- a presumption of ownership
The artist will setup a watch service to detect copyright infringement.
(Concertina wire needs to be watched to be effective as a barrier.)
If unauthorized copying is detected, a takedown notice is dispatched to the infringer and the infringer's Internet service provider.
(Any attempt to breach the wire must be met with a quick reaction plan before the enemy has a chance to breach the perimeter.)
Any infringing website will be taken down in a few days, without having to spend money on lawyers.
(When detected and met with force, most enemies withdraw, rather than getting hung up and destroyed in the wire.)
Yet, if litigation does become necessary, the extra rights granted by registration of copyrights gives even an individual artist a way to defeat a much larger, corporate infringer.
That's how the Concertina™ principle works.
It builds a comparatively inexpensive, quick hedge of protection around a core asset:
- a IP barrier (e.g. copyright, trademark, patent, trade secret)
- a warning system to detect infringement (e.g. watch service or google alerts)
- an action plan if infringement is detected (cease & desist letter, takedown notice, lawsuit)
For a minimal upfront investment and nominal time commitment, the Concertina™ principle can conservatively 5X the value of a business, without ever firing a shot, just by owning and being prepared to defend your company's valuable intangibles.
I helped launch an accelerator program recently and heard a seasoned entrepreneur say "...don't worry about protecting your ideas from being stolen. Just implement your plan better and faster than anyone that might steal your ideas."
He couldn't be more wrong.
In order to figure out if your idea is actually going to work, it’s essential that you share it with people. -- Joel Gascoigne, CEO, Buffer
I agree with Joel Gascoigne, the CEO of Buffer, that you have to share your idea to validate it, to get the help you need, to let customers know about your solution and to scale your business...
but that doesn't mean you give 4/5 of your company away.
Is it possible
... to scale your business
...without leaving your most valuable assets unprotected?
Can you avoid "reality television" dysfunctional drama when scaling a business?
Just do this one thing right ... FIRST.
If you're an expert, an innovator, a creative entrepreneur or any type of entrepreneur that wants to scale your business... (and why wouldn't you want to scale?)
...then you need to understand the Concertina™ principle.
One caveat ...
The America Invents Act has created a new defense to patent infringement. Even if protected as a trade secret, an earlier use of a patented invention can be a defense to patent infringement.
That means it's never been more essential to document your processes and innovations, even if you don't patent them.
It's not difficult or expensive, either. Therefore, the Concertina™ principle kicks in.
Document trade secrets. it's as easy as keeping an inventor's notebook, signing it, dating it and having it witnessed and dated for new processes and products that your company is developing.
Take reasonable measures to keep secret all of your key trade secrets, and register copyright in published copyrighted works within 90 days of publication.
Like buying concertina wire, IP protection can be comparatively inexpensive for the value that it brings.
If your customers perceive value from your expertise, innovative solutions or creative expression...
... if you're an inventor, artist, author, coach, expert or want to build a brand with sustained value...
Then you HAVE to apply the Concertina™ principle.
Take effective action with the aim to do as much to protect your company as possible with quick and inexpensive solutions. Then, improve your defensive and offensive IP portfolio over time, as time and money allow.
That's the Concertina™ principle.
Intangibles "IP" Create VALUE & Build EQUITY
"Intangibles" (IP) Dominate Business Value!
Only in the sectors of utilities, energy and materials do tangible assets amount to more than half of the total assets, i.e. "total enterprise value" (TEV).
IP is "Intangible" but the VALUE is Real!
In this "age of innovation" the percentage of intangible assets of companies listed on the S&P 500 has increased from 17% in 1975 to 84% in 2015.
Paradies® law is a separate law firm and Chris Paradies is a Florida Bar certified IP attorney & US registered patent attorney. However, Paradies IP Solutions LLC, which offers the iPscaling program, is not a law firm and does not provide legal advice or legal services. The opinions of Chris Paradies and his firm are their own.
This might be considered attorney advertising in some states. iPscaling® services are not legal services and Paradies IP Solutions LLC is not a law firm. We help you analyze your strengths and self-discover your e-type. Then, we use training and the 5 essentials tools to help you take action, immediately, to implement the own protect grow® process within your business using the tools the iPscaling® process provides. Each program is customized to your particular e-type to help you efficiently implement the Concertina™ principle within your business.
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