Living Entrepreneurship Blog / Babson Entrepreneurs

Importance of Asset Valuation of an Idea

With my company I was put in charge of the extensive research and development work, I can say that the pricing for the services we provide are very much straightforward and it become important to maintain transparency to be in the business. Knowledge based assets are completely different from real estate or any other physical assets. Calculating the value of an idea and then converting it into money is not an easy thing to do. Sometimes I found that using an external aid such as a software program would consider several things while calculating the value of an intellectual property and some of those features are effective life, deprecation property, transaction characterization and other related aspects of the product or service. Patent laws and calculating the worth of an idea is very important because new ideas move this world and it requires mental and physical effort to create a new idea. A proper valuation of the new idea will definitely make my entrepreneurship career much easier.