Business owners, are you investing in the right places?
Why you should manage your intangible assets
Scroll to beginIn the United States today, more than 50% of all business value is intangible.
During the past 25 years, intangible assets have supplanted tangible assets as the key value drivers in the economy.
At the same time, traditional accounting has remained focused on tangible assets.
—
Accenture Source
Tangible & Intangible
assets include:
Tangible
- Cash
- Payments Due
- Inventory
- Property
- Equipment
Intangible
- Brands
- Trademarks
- Customer Lists
- Customer Relationships
- Business Relationships
- Licenses
- Patented Technology
- Databases
- Goodwill
- Assembled Workforce
- Company Culture
- Business Processes
When you’re running a business, looking after tangible assets consumes a lot of your time.
But a large proportion of the value is intangible.
Market Value of 10 Top Brands in 2013
The proportion of intangible value varies by industry.
The top 7 sectors with the highest proportion of intangible assets
For private companies, the value of your intangible assets is realized when you sell the company.
The exact value is determined by the purchaser. More info
You wouldn’t dream of running a business without carefully managing your cash and inventory.
Why do we not have the same processes in place for managing intangible assets which often account for more than 50% of business value? Source
It’s hard running a business.
And sometimes you need a reminder to invest your time and energy in the right places.
Companies that focus on the management and enhancement of intangible assets will be rewarded
—
Rubin Brown Accountants Source
So, ask yourself…
How well are you managing your intangible assets?
Which intangible assets are the key drivers of value in your business?
What processes do you have in place for managing these intangible assets?
How many resources do you dedicate to managing and growing these assets?