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Should I Get A Patent?

The answer is not a simple yes or no. It’s a strategy question. Would a patent allow you to do a better job delighting your customers and generating new and BETTER revenue streams? Whether you get a patent or not needs to be very closely aligned with your business or your business has to define whether or not you need a patent. For large companies, this is a pretty easy thing to figure out. They get shelf space at Home Depot or Walmart just by asking. But for entrepreneurs and small companies, all of those things are not a given. A patent will likely end up being worthless unless and until you can demonstrate how you're going to make money from that idea. Having a patent that covers a successful business idea can be very useful, if not critical. A patent allows you to go to a large company that might want access to your business, your customers, and your revenue streams. If you have a patent on your product or idea that you have customers and revenue for that could very well define your exit plan. Having a patent can allow a potential acquirer to see that the revenue you have today is sustainable. Nobody wants to pay for a business based upon today's revenue if they can't show that or they can't be satisfied that that revenue is going to continue in the future. Another reason to get a patent is to develop strategic partnerships. Very often large companies do not enter into small markets because they're too busy in their existing markets or they don't even know that a market exists. Entrepreneurs create new markets and new opportunities but it’s hard to ask others to adopt and buy it without revenue and scalability. If you develop strategic partnerships with the incumbents who might want to have access to the technology, they can try it before they buy it. Once your improvements are integrated inside of a large corporation's ecosystem, it's very difficult for them to back out of having your stuff in their product line. And if they do, you can take your patented product and go offer it to one of their competitors with a track record of success and data. A patent and a partnership can give you a competitive advantage in a market where you wouldn't necessarily be large enough to play. Keep in mind that companies don't buy patents, they buy businesses. And if your business is protected by a patent, then that's going to make it more likely that your business is going to be bought. Patents are never a means to an end, but a way to enhance and surpass your business goals. Please reach out and let me know how I can help you generate desired business outcomes using intellectual property. https://thehuttergroup.com/

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