Jason Drohn's Scrapbook

Value of Intellectual Property Exceeds Physical Property

Thursday, September 27th, 2007

Intellectual Property… What the hell is it? Where does it come from? How can it make your business more profitable? And utimately, how much is it worth?

Business Law Today says the following:

Intellectual property is any property resulting from intellectual, creative processes – the products of an individual’s mind.  Although it is an abstract term for an abstract concept, intellectual property is nonetheless wholly familiar to virtually everyone.  The information contained in books and computer files is intellectual property.  The software you use, the movies you see, and the music you listen to are all forms of intellectual property.  In fact, in today’s information age, it should come as no surprise that the value of the world’s intellectual property now exceeds the value of physical property, such as machines and houses.

To me, this was very interesting and something I had never really thought about because you always place value on tangible goods or land or whatever.  But I assure, if I owned the rights to The Lord of the Rings – I would be knee deep in intellectual property.

So the next time you are trying to come up with a new business idea, or trying to place a value on your company – make sure to keep intellectual property front and center.  It’s value might be staggering!

The Golden Rule of Business

Wednesday, September 26th, 2007

One time I was asked what the ‘Golden Rule’ of business was.  Now, as you can imagine, this single question took me on a long trip through countless lectures and classes, thousands of conversations and various interactions, and so on.

Then, I took at the theological side of things, meaning the answer is, “Do unto others as you would have them do unto you!.”  That’s it.  It had to be right.  Everyone in business wants to be treated fairly!

Well, as it turns out, I was wrong on every account.  Apparently, the Golden Rule of Business is this:

“He who has the gold makes the rules.”

Who needs college anyway… :0)

Entrepreneur’s Shoot-A-Round II

Monday, September 24th, 2007

Just a quick note thanking everyone who showed up at the Entrepreneur’s Shoot-A-Round last Friday!

For those of you who couldn’t make it, try to pop in next time.  We got a chance to discuss some very, very good ideas and I think we are actually going to watch a couple entrepreneurs build their businesses out!  Lots of good advice and critiques though.

The next meeting will be Saturday, 1:00 pm Eastern Standard Time..

 https://www.gotomeeting.com/join/662577763

Conference Call: Dial (217) 287-4185, access code 662-577-763

Meeting Password: jdsblog

Meeting ID: 662-577-763

Once again – if you are planning on attending, let me know what you would like to talk about.  That way, I can try to come up with some relevant information we can all drill down during the meeting!

The Value Of A Consultant

Monday, September 24th, 2007

Consultants come in all shapes, sizes, and flavors.  You have your big ones, small ones, smart ones, and dumb ones.  Some come prepackaged through a firm, while others are lone rangers who come in for the occasional side job.  The fact remains though, they are as essential to modern day business as the Internet is to Google.

Ages ago, my ex-girlfriend’s dad worked for General Electric (aka GE) and he was telling me horror stories about consultant.  How they are brought in to consolidate and people end up losing their jobs.  I am sure a lot of you remember the consultants showing up in Office Space, and how the employees started freaking out.  Someone is bound to lose their job!  (ps.. If you haven’t seen that movie in a while – you should!)

The reason consultant are vital to any business is simple – outside influence.  Oftentimes, management in a company get affected by group think and can’t see what a normal person sees.  For instance, a marketing department will know all about what they are trying to sell, but they forget they need to pitch the product to normal people!  Or an executive will know the production process inside and out – and not realize that the process can be cut in half because of redundant work being done…

There are basically two different ways you can take this little braindump of mine.

  1. If you are knowledgeable in any one or two areas, use it to your advantage and consult for someone.  Granted, sewing wicker baskets might not be in high demand, but who knows!
  2. If your company is in need of a NEW viewpoint, find a consultant that comes highly recommended for your line of work.  Line up some clear cut objectives, and benefit from someone outside the loop.

Who knows – a consultant might cut $50,000 off your bottom line, or you might be able to make a couple grand consulting someone else.  Either way, both sides seem worth a shot..

Don’t be the President

Thursday, September 20th, 2007

business cardsHave you ever met someone who did amazing things for business, or society, or the general good of the public and was quiet about it?  I am not talking about those people who do good and then tell everyone about it – I am talking about people who are quiet and unassuming, but still manage to change the world one person at a time.  I think these kinds of people are amazing.  They somehow find the time in a day to affect so many lives, and still provide for their family and do fantastic business..

I guess what I am trying to get at is I admire people who are humble.  To me, a humble person is intriguing, especially if you know that they have every right to be complete morons due to what they have accomplished. I always want to know more about them or what they do, and no matter how many questions you ask, you can’t pinpoint it.

When you own your own business, it really isn’t any different.  To be the president (or CEO, or cofounder) means to have all the answers.  And frankly, you don’t!  You never do!  You have to answer for your business in every situation from the telephone book calling for advertising to client pricing problems.  Some people bask in this sort of attention…  It means they are in control and can put their ‘executive foot’ down.  I take a different view on the situation, though.

To be the president also means you have the utmost say, and you can look like an asshole in front of a client.  Like when you are out negotiating a deal…  Say I am doing a data recovery job for a small business with a crashed hard drive.  Normally this kind of service runs about $75 an hour.   Being the president, I can change the price because there is no one I have to answer to!  I could be negotiated down to $30 or $40 an hour because I am a nice guy and people pretty much sense that when I walk in the door.  But, being an employee of my company – $75 an hour is the price and that’s it.  People are less willing to get into pricing with people they know don’t have the final say.

The other side is $75 an hour is a pretty steep price.  As an employee, when you write the invoice and it comes out to $700+, there is really nothing you can do about it.  That is the price that needs to be paid.  I do give pretty considerable discounts more often than not, but I make sure it is noted on the invoice.  The invoice itself might be $850, but if I feel the small business is too small or lacks the capital, I might take $200 off the total through a discount code.  If anything, this encourages repeat business!

When you decide to venture off on your own, or that you are going to pursue some sort of small business – get two different business cards made up.  One with your name and your position as the president of your company.  These are useful in networking situations and ‘non-monetary’ things.  The other set can be your name and a made up title (the more creative, the better) that you hand out to clients and marketers and such.  Your title can be ‘Chief Software Architect’ or ‘Head Graphic Designer’ or whatever floats your boat.  It’s your company!  Do yourself proud.  Just stay away from ‘President!’

If you do this, I can guarantee that you will get more business and make more money.  Just remember I get 10%.  Oh wait, you talked me into 5%.  Thats fine with me too :0)

Just kidding…