Why every entrepreneur needs an innovation plan

Why every entrepreneur needs an innovation plan

Startup companies differ from traditional businesses in two characteristics:

  1. They aim at developing a viable business model around an innovative product or service, oftentimes to disrupt traditional markets.
  2. They seek rapid growth, sometimes with the aim of selling the company after a few years.

In the early stages, a startup typically does not own significant “real” business assets, such as production machinery, raw materials or inventories.

Instead, the value of a typical startup is almost entirely based on its innovation potential, which is embodied in “soft” assets such as know-how, technology concepts, or branding.

Without proper management and protection, these intangible assets cannot be owned and controlled“Thoughts are free”.

The Startup Patent Toolbox***
This is an excerpt from my book “The Startup Patent Toolbox”. I invite you to grab a free copy!
***

It therefore strikes me as odd how many entrepreneurs focus entirely at all sorts of plans:

  • a business plan
  • a (lean) product development plan
  • a marketing plan
  • a growth plan

… but do not think about planning and managing their most important resource: their innovation assets.

Intellectual property rights are one way of transforming these intangible innovation assets into concrete business assets that can be owned, valuated, sold and rented – hence the name intellectual property.

It should thus go without saying that every entrepreneur needs to have a plan to turn the startup’s intangible innovation assets into well-defined intellectual property to maximize its business value.

When properly planned and managed, the startup’s intellectual property gains immediate business value. This can in turn lead to significant benefits, which I will cover in one of the next articles.

The Startup Patent Toolbox***
This is an excerpt from my book “The Startup Patent Toolbox”. I invite you to grab a free copy!
***

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