Valuing an Idea

What is the value of my idea? The safe answer to that is between zero and infinity. But the real answer is its depends.

An idea on its own is worth only as much as its uniqueness and ability to transform the idea into cash. A concept or idea can be as good as a light speed which works well on paper or in concept but translating the idea into commercial reality is the main point at which value is accrued.

Biotech, chemical, electronic companies invest billion in R&D which is essentially ideas and concepts. The expenditure is incurred by company and written off if the ideas cannot be transformed into commercial reality (i.e. sales). The costs incurred in putting the idea or concept can be used as a started point. Once the practicalities are there and the concept or idea works, only then money can be assigned to the idea or concept, but of course with a risk probability attached to it.

However, in the very rare case that the reality and tools necessary to realise an idea into money existed but for some reason the ideas could not be implemented, a value may assigned depending on the reasons why implementation was restricted.















This article may seem as clear as muck but this depicts the un clarity faced when valuing an idea or concept on its own.


Larger brands are more detailed and difficult to value and there are specialists valuers who do this as a full time profession.