Grow Value

If a CEO, president or entrepreneur asks me to help them grow the value of their business, I won’t suggest buying more real estate, stockpiling inventory, or adding more sales people. The tangibles. No, I start with the easiest and most economical approach. Let’s grow the value of your intangible assets.

That’s because although most company presidents, entrepreneurs and small to mid-sized business owners tend to focus on the tangibles, a study in 2001, by CJ Patrick & Company — reiterated in 2009 by Brand Finance — suggests that in most successful enterprises, only 25% to 33% of their value is derived from tangible assets. A much larger portion, 66% to 75% is in intangible assets.

That was a long sentence. Shortened up, most successful enterprises derive less that 33% of their value from tangible assets and deriving nearly 70% from the intangibles.

That’s why I recommend a focus on those intangible assets to maximize company worth and business growth. And all without increasing your marketing budget.