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Why Care About Intellectual Property? IP: The Forgotten First Step

February 19, 2014

When starting a business, many assume intellectual property (IP) is merely an incredibly expensive legal concept that does not apply to them; or worse, too many people believe IP is something that can be put off until later. It should be known that every company has IP and innovation, and the time to identify and decide upon a strategy to protect your IP is at inception.

Every business has IP

IP can be found in 100% of businesses and is not just for tech businesses or inventors.  Simple items like business or product names, customer lists, and blog or presentation content are IP. Innovation (or IP) is often a business’ most valuable asset, particularly during startup, and must be coveted in the same way as your tangible office assets (e.g., computers, cash, products, etc.). You would not leave the company office unlocked with these items out in the open; IP or intangibles need to be treated with the same care as physical assets.  (more…)

Success Story: Texas

February 18, 2014

State: Texas
Center: Del Mar College SBDC in South West Texas
Client: Bella Abastta

Bella Abastta, fresh out of high school, is a young and ambitious entrepreneur seeking to venture outside her family’s business. Her love for fashion motivated her to negotiate the purchase of an existing boutique that offers an eclectic variety of stylish and trendy women’s clothing and accessories.

Bella, who had no established credit, limited knowledge in purchasing and operating a business, was asked to present a Business Plan including a financial analysis. The purpose of the plan was to help the leaseholder transition over the lease and help Bella purchase the business.

Celia Garza, Business Advisor with Del Mar College SBDC encouraged Bella to participate in training seminars offered by the SBDC. Training seminars helped her become familiarized with fundamental business essentials such as start-up, marketing and financial statements. After attending business training and working closely with Celia, Bella was able to complete a Business Plan and generate a 3-year Financial Projection Plan. (more…)

What is a proprietary lending program?

February 12, 2014

Benetrends+bannerad.jpgAlthough the structure of proprietary lending programs can vary, typically your funding partner will work with one or more banks to set aside a block of money to be used exclusively for your franchise concept by providing loans to your candidates.  Proprietary lending programs can simplify your funding issues, increase candidate’s confidence in your system, project a strong brand image and catapult your unit growth.

Having a program partner gives you much more control over the funding process.  Your concept is “underwritten” so that the lender becomes well educated regarding your franchise. The lender needs to understand the nuances contained in your concept: how it works, why it works, what makes a location successful and what obstacles need to be avoided or overcome.

A proprietary lending program will establish the appropriate “credit box” or set of criteria through which your clients will be analyzed to ensure the greatest likelihood of success for funding approval.  In addition, because your lending partner knows the credit requirements, prequalification’s are much quicker, which can save you from wasting your valuable time should a candidate be determined to be un-fundable. (more…)

$100 Million Franchise Fund

February 11, 2014

Benetrends+bannerad.jpgBenetrends is proud to announce a new $100 Million franchise fund. The new franchise lending program was created to help International Franchise Association franchisor members provide qualified candidates with direct access to capital for new store development. Hand & Stone, a rapidly growing spa franchise, is the first franchisor selected by Benetrendsto participate in the new fund. Hand & Stone has been provided $10 million in initial capital to assist with its franchise growth.

“Benetrends is excited to now provide franchisors and their franchisees access to the critical funding needed to expand their current operations or purchase their first franchise,” said Rocco Fiorentino, president & CEO, Benetrends, Inc. “We’re pleased to award Hand & Stone the first $10 million from the new fund as they look to meet their future development needs following their record-setting growth in 2013.”

Franchisors and franchisees selected to participate in the program benefit from:

• Direct access to capital
• Simplified qualification process (more…)

Intellectual Property Lessons Learned

February 10, 2014

Standing on stage, Cynthia Schames, Founder & CEO of AbbeyPost, realized she needed a patent before her Women 2.0 pitch that was scheduled the next day. For many, being a pitch competition finalist is stressful enough; filing a provisional patent overnight is an unnecessary distraction. One of our mantras is that you cannot protect your Intellectual Property (IP) unless you know what IP you have. Unfortunately, many postpone identifying their IP and even more wait until disaster strikes.

Luckily, Cynthia’s pitch coach asked if she was prepared to answer questions from judges about how she protected her IP. AbbeyPost licenses a patented 3D body scanning technology called Find Your Fit, which accurately and quickly scans a shopper’s body for specific measurements and shape. The scanning technology didn’t concern Cynthia, but rather her company’s proprietary know-how, process, and use of data to create real-time-manufactured, made-to-measure clothing.

Cynthia needed protection before she pitched (and won) in a public setting. Not protecting your ideas before widely sharing the details may result in loss of international patent rights.  (more…)