Intellectual Property on the growth agenda – turning creative assets into commercial advantage
For many SMEs, intellectual property (IP) is treated as a defensive measure – something to protect against theft or infringement. While that’s important, it’s only half the story.
When properly identified and protected, IP can become a powerful engine for growth, creating new revenue streams, opening markets, and increasing business value. For advisors working with ambitious SMEs, understanding how to leverage IP is just as critical as knowing how to safeguard it.
IP as a value multiplier
Investors and buyers look for certainty. Registered trade marks, design rights, patents, and documented copyright ownership provide exactly that: clear proof that the business controls its key assets.
An SME with protected IP can:
- Command a higher valuation in a sale or investment round.
- Negotiate more favourable lending terms.
- Use IP as a tangible asset in strategic planning.
By contrast, businesses without IP protection often face due diligence questions that slow transactions and depress value.
Unlocking new revenue streams
IP isn’t just something to hold but is something to license, franchise, and monetise.
A registered trade mark can be licensed to other businesses, generating recurring royalty income. A patented invention can be manufactured under licence by others, allowing the SME to earn revenue without the operational overhead of production. Design rights can be leveraged in joint ventures, ensuring the SME benefits whenever its designs are used.
The more robust the protection, the easier it is to structure these agreements and the more confidence potential partners will have in the underlying business.
Stronger partnerships, clearer contracts
Collaborations are increasingly common among SMEs whether in marketing, manufacturing, or product development. Clearly defined and protected IP rights help avoid disputes over who owns what.
By entering partnerships with registered IP in place, businesses can:
- Set clear licensing terms;
- Avoid ownership disputes that can derail projects;
- Ensure they retain rights to the most valuable aspects of their contribution.
An investment with tangible returns
Some SMEs hesitate to spend on IP protection because they view it as a cost rather than an investment. Framing it as an enabler of revenue, partnerships, and higher valuations changes that perspective.
The cost of registering a trade mark or design is minimal compared to the additional income it can unlock – whether through licensing, market expansion, or an uplift in sale price.
The role of the advisor: from gatekeeper to growth partner
As an accountant or consultant, your role isn’t limited to flagging risks. You can also be the one to highlight opportunities clients might otherwise overlook.
Simple questions can start the process:
- Could your brand be licensed to others?
- Would protecting this design open the door to new partnerships?
- Is your IP portfolio strong enough to support an investment pitch?
These conversations position you as a strategic partner, not just a compliance professional – and they can lead directly to measurable growth for your clients.
Making IP a strategic priority
In the same way that you’d encourage a client to reinvest profits or develop a new product line, you can help them see IP protection as part of their growth plan.
By doing so, you help them move from protecting what they have to building what they can become.
The message is simple: IP isn’t just about defence. It’s about possibility. And when SMEs see it that way, the returns can be substantial.
Feel confident handing your clients over to Barker Brettell for bespoke advice.
To continue the conversation please contact one of the authors, Rosalyn Newsome or Oliver Pooley, who will be happy to answer your questions.
