Final Word by Paul Moore: Take a punt

How much is an idea worth? I spend large parts of my working day trying to work that out.

I am involved with a research project which offers people, companies and individuals, funding to develop ideas they have and hopefully take them to market.

The major problem, however, is trying to figure out how much an idea will actually be worth and whether the initial investment to bring the idea to life is worth the commitment of government finance, money which ultimately comes from other people through their taxes.

The people seeking the funding often have no idea either what their idea might be worth in the medium-to-long-term.

They can usually identify a market and offer an indication as to how much it might cost to build a product for that market, but after that it is essentially a lottery as to what is successful and what is not.

If you have ever watched Dragon’s Den you will have a flavour of the conundrum that unfolds with each new product and contestant.

What most people do not realise is that there are hundreds, if not thousands, of other people out there who may be having the same idea, or a version of it, and they too are working to find ways to ensure that they are the first out the door and on their way to their first million.

Also there are large numbers of people who would be quite willing to ‘steal’ your idea and produce a version of it, with perhaps a slight tweak to make it look a little different than your vision, and they might well get to market first.

The only way you can ensure this does not happen is to legally make the idea you have your intellectual property.

Intellectual property, or IP, is the holy grail of designers and developers.

It is the one way they can try to ensure their idea is not stolen.

However, it costs money to have an idea IP’ed, and most do not have the money for the product let alone the legal process of getting the certification.

Enter Nat West Bank.

The bank recently announced that they would be willing to offer loans based on the worth of IP which companies have in their possession, worth which they will work out for you.

The loans are obviously subject to all the usual checks, but this is the first time I can recall that a bank looks as though it is willing to invest in risk, certainly the first since the the major crash of 2008.

So why does any of this matter to ordinary mortals like ourselves?

Quite simply it matters because each and every one of us has an idea which might just be the next big thing.

I can think of at least four examples in my own small work space where ideas have become multi-million pound companies because the developer had the courage to follow their idea and were able to access the best advice at crucial moments in the product’s growth.

We are heading into a new year and if you have an idea which has been floating around in your head becoming more credible each day then this is the time to do something about it.

The more creative you are the more people are likely to listen and the grander the idea the greater the potential that there is somewhere in it – a nugget – which will yield success.

I can say this with certainty because we can be sure banks are not entering this space for the benefit only of their customers and if they are willing to take a gamble then we should oblige them and take that gamble with their money.