Trademarks are already known to be valuable to any business by providing protection over your brand from the likes of imitators, but many business owners fail to recognize their value in and of themselves. If your company is focused on growth, brand awareness, and expanding into new markets, your trademarks won’t just protect you, but propel your business forward – if you utilize them correctly.
For instance, consider the trademark of Coca-Cola. There are many different imitators to the popular soft drink all over the world, many of which may be indistinguishable in a blind taste test. Even so, Coca-Cola remains one of the most dominant soft drink brands in the world, due to their trademark. This example points out what really drives people to pick their product over the others; brand recognition and familiarity with the product. Both of these aspects mean that customers will choose Coke over and over again because they know what they’re getting. At the end of the day, this is the main draw towards that familiar red can.
Now, think of those other competitors. They have a very similar or possibly even indistinguishable product but lack the trademark and branding. If Coca-Cola lost their trademark and familiar red cans, customers may pass up their drinks when walking down the aisle even if the liquid inside was exactly the same. In this sense, their trademark is doing a lot of the heavy lifting. The goal for any business should be to reach the same level of success with their trademarks; a widely known, and very recognizable brand that gives consumers a sense of familiarity and assurance that the product is quality.
Once a trademark reaches a high level of familiarity among consumers, it can become one of your business’s most valuable assets. When selling a business, the “goodwill” associated with their trademarks is included with the sale. The goodwill of a trademark is what we have described as the value behind them, or the recognition and driving power that the trademark has. The valuation of this goodwill is considered when selling a business, just as with any other asset. Growing the goodwill of your trademarks could lead to a massive increase in the value of your business’s bottom line should you ever decide to sell.
When focusing on your business’ next steps, focus on growing your trademarks through recognition and creating loyalty by delivering quality products. Confidence in a brand creates repeat buyers and drives word of mouth, both of which are some of the strongest drivers of business success. To get your business’ trademarks up and running, call Aftermarket Law today at (720) 221-4545, or contact us on our website.
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